MGT723 Research Project Summer/Semester 3 2017Assessment Task 3:Final ReportStudent Name:Harmeet Singh, (1097208)Your assigned research Topic:Agency Theory Draft Research Question:Is Climate change integrated into business StrategyTitle:Carbon Disclosure Project (CDP)Submission Date: 27/January/2018.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.
IntroductionResearch QuestionIs there any relationship between 2016 CDP, voluntary disclosure score and business strategy? Howthis problem linked to agency theory?CDP (Carbon disclosure project), is a not-for-profit charity that runs the global disclosure system forinvestors, companies, cities, states and regions to manage their environmental impacts, (CDP,worldwide registered charity, 2018). GICS- Global Industry Classification Sector, (It is a four-tiredhierarchical industry classification system), In 1999, MSCI and S&P Global Developed GICS, to offeran efficient investment tool, companies are classified quantitatively and qualitatively, and beenassigned a single GICS Sector, (GICS-MSCI, 1999).The Main Objective of this research paper is to investigate the connection between effectiveness ofPlanned, Strategized, implied company’s decision taken by Board of Directors & supervised byManagers, and Company’s voluntary disclosure of information on Greenhouse Gases, theircontribution to minimise carbon emissions & corporate Social responsibility. This research reportcompletely stands on, agency theory and how it works as a limb of financial wealth, that sight at thedispute between commending people with a Various interest in the same assets. This research paper isgoing to help us know, some interesting facts, more precisely about the different strategies made bycompany’s management and how it is affecting the disclosure score of CDP. It is important forshareholders to understand, the actual position of a company before they make an investment.Disputecommend between people means:1)Companies Managers (Directors), and Shareholders.2)Shareholders and Partners.Literature Review – SummaryThese days, Climate change has become a global issue, in term of the Policy, there is another side ofthe world affected directly more than others, it all mediums to regional results and in their agreementwith very diverse legal framework, monetary, social and natural situations (Ans Kolk & JonathanPinkse, 2010).Given the cost and benefits associated with the voluntary disclosure, and the separation of ownershipand management, agency theory (Jensen and Meckling,1976; Fama and Jensen, 1983), argues that theboard serves a monitoring role over management, on behalf of shareholders. The Managers vital job isto pay attention of the company by being faithful towards on what they do for the company and acteffectively in the interest on their shareholders for which they will be paid incentives (Fama andJensen, 1983).