MGT723 Research Project Assessment Task 1: Research ProposalStudent Name: Pamidi Ajay Kumar Your assigned research topic*: Agency TheoryDraft Research Question: Is climate change integrated into business strategyTitle: Task 3Submission Date: 08/06/2018Acknowledgement: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. * In ACC620 you were assigned to a theoretical perspective (Agency Theory, Stakeholder Theory, or Legitimacy Theory)Unless otherwise approved by the course coordinator, all students will be considering the general issue of the Voluntary Disclosure of Environmental Performance.
Literature Review - SummaryFrom the past, few years climate change has become the political and business agenda due to thecarbon and greenhouse gasses emission which resulted in the global warming. The research is basedon the agency theory which is defined as agency theory considers the conflicts of interest between thepeople of different interest on the same asset[ CITATION Dav16 \l 3081 ]. Importantly the conflictsmay occur between the managers and the shareholders of the company. Shareholders are the principaland managers are the agents of the company who take decision and implement them behalf ofshareholders. The climate change strategies start by identifying how companies can reduce theirenergy consumption by decreasing the carbon emission. Effective target setting goes hand in handwith an action plan of how the target will be met. In the business strategy of organisation, themanagement must include the environmental performance target to reduce the carbon emission whichhas greater impact on climate change, where most of the management slack in doing so. Themanagers of the company can improve and refine the climate strategy by including advancedinitiatives such as[ CITATION wen161 \l 3081 ] 1)Developing less carbon-intensive products. 2)Collaborating with other organisations to share best practise. 3)Establishing a sustainability team to monitor and report corporate climate change performance.4)Engaging your value chain—those who manufacture, deliver and consume your products and services—to help reduce Scope 3 GHG emissionsCarbon emission can be managed in the same manner as of any other business risk by assessing andmitigating risks by including the use of environmental management system, strategic planning, riskmanagement and business continuity planning. Local resources, knowledge and adaptive behaviourcan have a significant role with regards to the carbon emission[ CITATION mar141 \l 3081 ]A target for the company on environment can be based on proxy by which any differentiation betweenfinancial targets and environmental targets will not be high. Utilizing of proxy would lead themanagers to have asymmetric information and the organisation can have a policy of providing