Integration of Climate Change in Business

Added on - 28 May 2020

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Running head: RESEARCH PROJECTResearch projectName of the studentName of the UniversityAuthor note
1RESEARCH PROJECTTable of ContentsIntroduction:....................................................................................................................................2Literature review:.............................................................................................................................2Conceptual framework:...................................................................................................................3Hypothesis:......................................................................................................................................4Proxy measures:...............................................................................................................................4Conclusion:......................................................................................................................................4Reference:........................................................................................................................................6
2RESEARCH PROJECTIntroduction:A long-standing debate is always there regarding the linkage between the environmentalperformance of the corporate and the firm’s performance (Endrikat, Guenther and Hoppe 2014).This research report provides a research framework to analyze the effect of climate change onthe firm’s performance and efficiency considering the Climate Disclosure Project (CDP) andintegrating the legitimacy theory. This research framework will provide details on the conceptualframework for developing the research on climate change with the help of CDP data andlegitimacy theory and along with this; it will establish the hypothesis and proxy measures.Literature review:Recently it has been observed that various research papers use CDP data and thelegitimacy theory is one of the most applied theory with respect to the CDP disclosure in order toassess the firm’s policy for inclusion of the climate change (Dahlmann, Branicki and Brammer2015). Legitimacy theory confronts that if a firm were conforming to its environmental andsocial expectations, then it would display enough in order to avoid scrutiny (Fernando andLawrence 2014). In order to meet the requirement of the institutional investors, applyinglegitimacy theory with the CDP disclosure will lead towards a prediction that the organisationwill display the minimum amount of its necessary (Filatotchev and Nakajima 2014). CDPdisclosures can also be applied in the context of accounting, which will aid to assess thestakeholder power and ability of the firm. Legitimacy theory also aids to assess the Green HouseGas emission and social performance of the firm making it one of the best tool analyze andcompare the firm’s performance with climate change.
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