Accounting Research Proposal: Climate Change and ExxonMobil

This research proposal investigates the impact of ExxonMobil's emissions on climate change, focusing on the company's environmental practices and their effects. The study explores the practical and theoretical motivations behind this analysis, including the use of legitimacy theory to understand ExxonMobil's responses to environmental concerns. The research examines ExxonMobil's historical approach to climate change, the role of the Climate Change Information Request, and the corporation's involvement in the issue. The research questions address the climatic impacts of ExxonMobil's emissions, the integration of climate change strategies into business objectives, and the geographical scope of the analysis. The study employs an explorative research method, using secondary data to assess the relationship between ExxonMobil's emissions and climate change indicators such as polar ice cap melting and rising temperatures. The proposal outlines hypotheses and proxy measures to analyze the relationship between the independent variable (emissions) and the dependent variable (climate change), aiming to contribute to the understanding of corporate environmental responsibility and its effects.

Contemporary Issues in Accounting
Research Proposal
Student Name:
Your assigned research question*:
Title:
Submission Date:
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Acknowledgement:
I certify that I have carefully reviewed the university’s academic misconduct policy. I understand
that the source of ideas must be referenced and that quotation marks and a reference are required
when directly quoting anyone else’s words.
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Introduction:
Climate Change Information Request is an integrated program of CPD that functions in a way
such that companies greenhouse gas emissions can be reduced. They are working hand in hand
with companies to mitigate effects of climate change risks (Moser, 2010). Currently they are
working with various investors globally with huge assets, collecting information and processing
the same to bring about positive impact on our climate. Companies adhering to climate change
requests are furnishing their details and answering questions from climate change information
requests provided by CPD through an Online Response System (ORS) given in their websites. In
Australia this body is striving tremendously to bring about a positive impact on the climate. The
scope of this current report focuses on climate change attributes for Exxon Mobil Corporation
(cdn.exxonmobil.com, Retrieved on 22nd August 2017). Exxon Mobil Corporation is an
American multinational oil and gas company with its headquarters in Spring, Texas. The
Company is making several endeavors to reduce the harmful effects it causes on the environment
by having discussions with stakeholder groups and others. The scope of the report thus discuses
practical applications as impacted by the Company for bringing a positive change in the
environment.
Practical Motivation:
Climate change 2015 Information Request aims to collect data and information in regards to the
Company’s stakeholder group, management and investors along with their specific motivations.
Exxon Mobil Corporation being world’s largest traded international gas company has large
volumes of gas and oil reserves (Murphy, 2008). They not only has large reserves but also
comprise of world’s largest chemical company, who are constantly aiming to transform energy
into sustainable modes and methods. The Company aims to create an existing brand name in the
industry. Exxon Mobil Chemical a primarily petrochemical Company that was created by
merging of Mobil’s chemical industry with that of Exxon. Apart from manufacturing various
chemical products, the Company is into manufacturing of several types of additional chemical
products from scientific innovations as well (Stocker, 2014). The Company wants to become a
leader in the innovative domain such that it is able to become a leader in the refining and
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chemical productions. The Company has been targeted various times for criticism for their
environmental lobby group and disagreeing to global warming impacts. Hence, the Company
aims to create a positive endeavor in that regards. Developing sustainable fuel and furnishing
information to Climate Change Information 2015 CPD can allow the Company become a leading
one in its industry (Change., 2014).
Theoretical Motivation:
Environmental concerns have been a matter of high importance now with large number of
changes being brought about in the current domain. Various researches are aimed at attaining of
environmental standards of highest levels such that a positive effect can be generated and further
deterioration of the climate can be stopped (Chiew, 2009). Theoretical motivation for the study
encompasses aspects that can be accommodate to further develop scientific endeavors for
arriving at goals for the study. Legitimacy theory has been selected for the purpose of analysis in
this study. Legitimacy theory assumes according to a generalized perception or with assumptions
for actions of an organisation with an appropriately developed system of values, beliefs, norms,
definitions and so on. Climatic degradation has been a major aspect of theoretical debate as well
as scientific inventions in recent times that has led to adopting this project for study.
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Literature Review - Summary
Climate change has been a rising concern in recent years especially with large numbers of
climatic impacts. Exxon Mobil has been various times accused of Greenpeace environmental
group lobbying and disagreeing with employee pension funds that disagree with stances on
global warming (CHANGE, 2007). ExxonMobil has been ranked to be a leading corporation that
emits airborne pollutants in United States, by the Political Economy according to quantity of
greenhouse emissions. However, recently the Company has committed less than 1% of their
profits towards innovative measures for alternative energy sources. Scholars have noted that
ExxonMobil attributes towards climate change has changed and varied through decades. Since
the 1970s and 1980s ExxonMobil funded a broad based research in line with public scientific
approach and went on to become a leader in climate change denial. From 2014 the Company
accommodated climate change risk by demonstrating its support through carbon tax.
Motivation:
Practical
Dependent variable in this scope of discussion is climate change that can be
influenced through corporate endeavors. Leading corporates as ExxonMobil can make
significant contribution in developing of treaty or attitude that can have significant effect on the
climate. Climate change has typically gained momentum in board meetings as well. With varied
range of stakeholders raising concerns related to possible impacts of such climate change in our
day to day lives. S.Haque (2010) article, “Corporate climate change‐related governance practices
and related disclosures: evidence from Australia.” In the Australian Accounting Review, pages
317 to 333 provides various relevant inputs in regards to governnace related practices in
corporations (Haque, 2010). Internal as well as external stakeholders, especially shareholders of
ExonMobil has adopted steps in order to include climatic change impacts by developing
sustainable forms of energy. ExxonMobil will aim to target this fundamental approach related to
climate change at the National level and aim to make positive contribution towards global
Climate Coalition. The Company has already made contribution to the Union of Concerned
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Scientists with an amount of $16 million. Vision related to creating positive effect on the
environment is articulated and adopted across the entire organisation.
Theoretical
Though previous research in the domain aims to accommodate ways and
endeavors in which a positive impact on the climate can be generated but specific measures had
not been highlighted. J.F.Pittock (2010), “Changing character: the Ramsar Convention on
Wetlands and climate change in the Murray-Darling Basin, Australia” (Pittock, 2010). This
article poitns out that along with creating accord to reduce future pollutions, there needs to be
also steps that can provide reversal of climatic impacts. Meaning that gaps in research exists as
ExxonMobil has already provided targets related to superior environmental performance. There
are two theoritcial constructs for the study one aism to diagnose polar ice cap melting with that
of emissions from ExxonMobil and another is rise of temperature in Texas in the last 20 years
with connection to emissions from ExxonMobil. But it is yet to include certain measures through
which it can directly affect the environemnt. Target setting in reagrds to environment is separtae
as considered to target setting for financial outcomes. Thus, similar procedures might not be
applicable in both the instances, as in case of climatic impacts there needs to be steps that help
ressolve conflicts with environment creating a positive discourse.
Conflicting previous results
Findings from previous studies demonstrate that impact on climate change is
irreversible in nature. Burning of fossil fuels and other gas emissions has created enormous
effect on the climate leading to its degradation. Thus, even in case ExxonMobil tries to
incorporate positive attributes in creating climatic change such might not be able to create an
impact on the climate.
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Assigned Theory
CPD is an information brochure that aims to collect data and information in regards to
certain company specifics. Such key specifics that are included in the CPD information
brochures are the leading factors and motivations that can create a positive effect on the
environment. Environmental norms and standards can be highlighted and accommodated such
that stakeholders thoughts and activities are reflected through it. P.S. Glick (2011), “Scanning
the conservation horizon: a guide to climate change vulnerability assessment” (Glick, 2011). this
journal assesses the key vulnerabilities that the environment is expossed to which needs to be
adopted in the scope of discussions.
Key theoretical constructs
Dependent variable in the study is the climatic change, which has to be reflected
upon. There are various articles and journals that provides relevant aspects and thoughts
regarding causes of climate change (Solomon, 2007). While there are many human led causes,
primary cause amongst them constitutes burning of fossil fuels.
Independent variable in this theoretical construct constitutes emissions from
ExxonMobil. ExxonMobil has been burning high quantities of fossil fuels that has been
negatively impacting the environment since ages. Carbon footprints associated with such burning
is also high leading to polar caps melting and other climatic changes globally.
The study aims to create a relationship by establishing ways independent variable
(IV) which constitutes emissions from ExxonMobil has a relationship with dependent variable
(DV) which is the climatic change (Timbal, 2009). While burning of fossil fuel alone from
ExxonMobil cannot create an impact on the environment however, burning large quantities of
such has tremendous potential to cause impact on the environment. ExxonMobil has been
steadily burning large quantities of fossil fuels and releasing them in the atmosphere such that
there are high amounts of pollutants generated. Data will be primarily collected from historical
timeframes such that prolonged effects of climate change can easily be depicted.
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Another variable for the model of the study will include time duration through which
ExxonMobil makes such harmful emissions in the environment. Based on previous researches
done by scholars refers time frame as an integral variable which can cause significant effect on
the environment. Prolonged emissions are bound to generate more effect considered to reduced
effect from emissions. Hypothesis for the another study would include time frame of emissions
connection to climatic change impacts. While emissions are bound to create harmful
environmental impacts, prolonged usage of such harmful chemicals and realising them into the
atmosphere without filtering can cause significant harm. Oil spills, degradation of the local
environment and other nearby concerns in Texas ExxonMobil are some other impacts caused by
the Company.
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Conceptual Model:
Figure 1: Conceptual Model
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Hypotheses
In order to form research hypothesis, the following research questions needs to be attempted;
Research Question 1: What is the climatic impact of exhaust from ExxonMobil?
Research Question 2: What ways are the climatic impact strategized into business objectives?
Research Question 3: What are the geographical areas included in the analysis?
Research Question 4: What emission reduction activities did the organisation implement in the
current year?
There will be two hypothesis that will be included in the scope of discussion, null hypothesis (H0)
and alternate hypothesis (H1). The null hypothesis assumes that there will be no change on
dependent variable, which constitutes the climate change by the independent variable which is the
emissions from ExxonMobil. The assumption for alternate hypothesis is that dependent variable
which is climate change will be impacted by means of the independent variable which are the
emissions from ExonMobil. The study will aim to validate Alternate Hypothesis and reject the
Null Hypothesis.
Proxy Measures for Theoretical Constructs
Theoretical
Construct
Proxy measure Dependent (DV),
Independent (IV),
or Control
Variable (CV)
Source
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Impact on Polar
Ice Cap Melting
Rising sea-
levels, reducing
ice in Antarctic
region
DV-Polar Cap
Melting
IV-Emissions from
ExxonMobil
ExxonMobil CPD data
Rising
temperature near
Texas region
Temperature
measures
DV-Temperature
Records
IV-Emissions from
ExxonMobil
Scientific data measures and
collection
Research Method
In order that results of the study are analysed and arrived at appropriately, it becomes integral for
scholars to include relevant research methods. A research method is a philosophy that allows for
appropriate theoretical developmental framework such that data collection procedures can be
entailed and appropriate findings for the study can be arrived at. A research philosophy that has
been applied in the current scope of the study is explorative method. This method collects data
and then utilizes them to reflect upon thoughts as well as processes. An explorative study is a
suitable framework that allows for integration of practical concepts with theoretical ones. Then
inductive reasoning has been applied to arrive at results for the study. Data has been collected
mostly from secondary sources, which is a second hand type of data, as due to lack of time first
hand data could not be collected. Secondary data regarding Exxon Mobil has been obtained from
websites, journals, company magazine of Exxon Mobil. Such collected data was qualitative as
well as quantitative in nature and allowed for appropriate arriving at results for the study. For
quantitative data analysis, statistical techniques and procedures has been applied. Filled up CPD
questionnaire is the primary data collection method that had been used to arrive at findings for
the study.
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Reference Lists
cdn.exxonmobil.com. (Retrieved on 22nd August 2017). Exxon Mobil Corporation.
http://cdn.exxonmobil.com/~/media/global/files/energy-and-environment/
2015_cdp_response-pdf.pdf.
CHANGE, O. C. (2007). Intergovernmental panel on climate change. In World Meteorological
Organization. Disponible en: http://wmo. insomnation.
com/sites/default/files/documents/meetings/session20/doc2. pdf.
Change., I. P. (2014). Climate Change 2014–Impacts, Adaptation and Vulnerability: Regional
Aspects. Cambridge University Press.
Chiew, F. H. (2009). Estimating climate change impact on runoff across southeast Australia:
Method, results, and implications of the modeling method. Estimating climate change
impact on runoff across southeast Australia: Method, results, and implications of the
modeling method.
Glick, P. S. (2011). Scanning the conservation horizon: a guide to climate change vulnerability
assessment.
Haque, S. &. (2010). Corporate climate change‐related governance practices and related
disclosures: evidence from Australia. Australian Accounting Review, 317-333.
Moser, S. C. (2010). A framework to diagnose barriers to climate change adaptation.
Proceedings of the National Academy of Sciences, 22026-22031.
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