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

Running head: RESEARCH PROJECT
Research Project
Name of the student
University name
Author’s note

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RESEARCH PROJECT
Table of Contents
1. Summary............................................................................................................................2
2. Conceptual model...............................................................................................................2
3. Practical motivation...........................................................................................................3
4. Theoretical motivation.......................................................................................................3
5. Literature review................................................................................................................4
Base theory –legitimacy theory..................................................................................................4
Seminal articles..........................................................................................................................4
6. Hypothesis..........................................................................................................................5
7. Proxy Measures for Theoretical Constructs.......................................................................6
Theoretical constructs................................................................................................................6
Stringent laws directing firms to disclose their carbon performance.........................................6
Improved carbon performance of the firm.................................................................................7
8. Research method................................................................................................................7
Summary................................................................................................................................9
References............................................................................................................................10

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RESEARCH PROJECT
Title: Theoretical constructs in forming new law as per which firms are required to disclose
their carbon performance on a quarterly basis?
1. Summary
The current assignment focuses upon the legitimacy theory which has used to analyse the
legal frame work within a business organization. In this respect, the legitimacy theory will be used by
the researcher as a base for a new law. As per the legitimacy theory, a business organization is
required to report their carbon performance (Hagstrom and Engman 2017). The legitimacy theory is
the one of the most cited theories within social and environmental accounting g area. It laid much
importance upon the voluntary disclosures of organization towards maintaining the corporate social
responsibility (Busch and Kolbel 2016). There has been growing environmental concerns regarding
carbon emissions. Hence, the researcher will evaluate whether the theory could form the basis of new
environmental laws.
2. Conceptual model
Legitimacy theory
Stringent laws directing firms to
disclose their carbon performance
Improved carbon performance of
the firm
Reduction in
the rate of
environment
pollution

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RESEARCH PROJECT
(Source: author)
3. Practical motivation
 There has been growing concerns regarding the huge rate of carbon emissions released by
business firms and organizations.
 Some of these have been contributing significantly to the growing concerns of global
warming.
 The global warming and the emission of some of the green house gases have been seen to
enhance the rates of respiratory tract infections (Bae Choi et al. 2013).
 Some of the firms have been specifically investing in environmental [projects to reduce their
carbon footprints with the help of refined technologies (Freedman and Park 2014)
 Due to increased pressure from the media and concerns expressed by social activities some
firms have introduced a number of environmental campaigns. However, most of these have
laid to inaccurate reporting (Guenther et al. 2016)
4. Theoretical motivation
 Low legitimacy could have dire consequences for organizations which can affect their rights
to operate within a global scenario (Bae Choi et al. 2013).
 Legitimacy is an abstract concept and the view differs based upon the observer (Tauringana
and Chithambo 2015)
 Legitimacy can help the organizations achieve resources for operating (Prasad et al. 2016).
 Some of the previous researches have failed to address the way in which business firms can
implement the legitimacy theory and guidelines in order to meet the legal requirements.
5. Literature review
Base theory –legitimacy theory
A business firm or organization is operating within a large social circle and is duly affected
by various processes of the social realm. Hence, the organization is entitled to give back to the