logo

Academic misconduct policy at a university: Is it legit?

   

Added on  2020-03-16

12 Pages3305 Words358 Views
1MGT723 Research ProjectSemester 2 2017Assessment Task 3: ReportStudent Name:Your assigned research topic*:Title:Submission Date:Acknowledgement:I certify that I have carefully reviewed the university’s academic misconduct policy. I understandthat the source of ideas must be referenced and that quotation marks and a reference are requiredwhen directly quoting anyone else’s words.

2IntroductionThis paper is set to address the question of whether legitimacy theory can act as a basefor the new CDP law that requires firms to disclose their actual carbon performance on aquarterly basis. The legitimacy theory posits that the actions of any entity must be appropriate orproper within the system of values, norms, and beliefs within which the entity exists (Comyns,2012). As such, it is important to measure just how the current law on GHG emissions couldwork along this. Not so many years ago, it was projected that 400 parts per million for CO2would be a tipping point as far as climate change was concerned. In the legitimacy theory, andconcerning the climate change issue, firms should report their carbon performance and themeasures they are taking to reduce it. When organizations demonstrate that they are takingsubstantial actions in reducing climate change, they gain their ‘legitimacy’ in society. However,many firms fail to report properly and accurately – they only use the media to offer reports thatimprove their image and ‘legitimacy’ (Comyns, 2012). In this study, the idea is to explorewhether the legitimacy theory can act as a basis for the new environmental law to motivate formsto ensure accurate and timely disclosure. The previous research on legitimacy theory has not focused on how the ambiguities, intheory, can be addressed (Hahn et al., 2015). There are discrepancies in research on whether thetheory motivates firm towards better disclosure considering that there may be positive ornegative performance (Apergis et al., 2013). Previous research has not addressed how new locallaws can be developed based on this theory so that firms have legal requirements to follow.Further, the issue of mandatory disclosures and how such an approach can motivate accuracy andhonesty in reporting have not been addressed in research.Currently, disclosures are voluntary, and companies are expected to play their ethical mandate indisplaying their findings to all. Research has found it vulnerable in the sense that it fails to makethe process mandatory where all companies have to adhere to it (Fernando and Lawrence, 2014).Literature review Base theory – Legitimacy TheoryChu et al. (2013) noted that the organizations must be bound by the social contract with society.Organisations have certain social responsibilities which include sponsorship, education andvoluntary disclosure of information. The firm agrees to act in a certain way in line with thevalues and beliefs of society (Comyns, 2012). This enable firms gain their legitimacy in societyand develop positive image. They are accepted morally since their actions are appropriate anddesirable to society. These help them to gain customers and labour forceIncreasing steps to reduce carbon footprints has been linked to the higher legitimacy offirms in society. Many firms provide more precise and reasonable carbon disclosures when thereis legal requirement. Firms always follow disclosures that are mandatory and the figures aremore accurate and timely since there are legal ramifications of failure to disclose, (Comyns,2012). Firms can use this approach to demonstrate their ability to do things that are proper and

3beneficial. A positive correlation has been identified between proper actions and legitimacy andthis translates to more profit. The more a company discloses precise and accurate carbonemission to the public the better the company will gain in term of image and profits, (Downie &Stubbs, 2013).Theoretical Constructs and operational proxiesAccurate and timely disclosure (the dependent variable)In the previous research, there has been the focus on how the legitimacy theory canbenefit the disclosures that are related to carbon emissions. In using the legitimacy theory,stakeholders rely on the promise of the social contract to establish how firms should take actionagainst global warming (Chu et al., 2013). The proportion of the effort taken by firms should bein line with their carbon footprint. Every company is entitled to take care of the surroundingenvironment and take some social responsibilities. This help firms establish positive co-existencewith different publics and take responsibility of reducing world global warming effects (Toke,2017). There is also need to understand how the theory can be relied upon to bring about morestrict measures and ensure correct action against the carbon emissions.Stringent law/legal requirement to direct firms on disclosure (independent variable)The relationship between stringent legislation and compliance is positive – the morestringent the laws, the better the outcomes regarding reporting and disclosure and the less thestringent law the worse the outcomes regarding carbon disclosure. Previous study identified lawmake it possible for every company to timely and accurately report on carbon emission level andmeasures the firm is undertaking to reduce this, (Rahmana et al., 2014). In theory, it is importantto note that the arguments are logical and they can form a basis for the law forcing companies todisclose their positions and actions in reducing global warming. The legal arguments can bemade for the social contract and the requirements identified in theory. The law can define theareas of ‘proper and appropriate action’ and the ‘values, beliefs, and morals’ that a firm exists in(Toke, 2017). It means that there is a high possibility of the theory being used as a basis formaking the law. Relationships between proxiesThe previous research has indicated that more strict rules and regulatory requirementsforce companies to achieve better reporting and disclosure (Chu et al., 2013), and legalrequirements have penalties that can be instituted to motivate firms and this is connected to theimproved performance in reporting and disclosure. Previous studies also shows that the firmsattempt to follow the law to remain more legitimate and get appreciation from government andconsumers. It was also established that the new laws are likely to motivate firms to compete inshowing compliance and this is connected to a better performance in this area. The firm will tryto create positive image to public, media, government, society and customers and by doing soimprove the level of carbon disclosure, (Kaime, 2014). Accurate and timely disclosure isconsidered as proxy of carbon disclosure index while legal requirements to direct firm todisclosure are proxy of legitimacy theory.

4The law can incentivize companies to improve their approaches in disclosure andpossibly motivate them to seek more actions to improve their carbon performance. Firms will tryto make can disclosure a priority and even create new departments to deal with carbonperformance, and this has a direct link to the positive performance of businesses in the area.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Legitimacy Theory - AFW3040
|10
|2115
|19

Assignment Contemporary Issues in Accounting
|14
|2524
|53

Board level responsibility for climate change lead to reduction in carbon emission
|16
|3387
|440

Theoretical constructs in forming new law as per which firms are required to disclose their carbon performance on a quarterly basis?
|13
|3187
|399

Incorporation of Climate Change in Business Strategy: A Legitimacy Theory Perspective
|17
|3647
|203

MGT723 Research Project PDF
|7
|2056
|26