Discuss about the Greenhouse Gas Footprints of Production Systems.
In today’s world day to day increasing in the technology, commercial and social developments and growing population has become a big question for protection of environment against the corporate bodies. For causing the harm to environment whether the companies is paying the allowance for harm of environment or they pay to go green ( Robbins , et al., 2013). In this case study it shows that corporate bodies is mainly responsible for the carbon radiation in the environment which harm the atmosphere. Due to this reason there is climate change all over the world. Carbon radiation is the most harmful due to this it rise to failure in protecting the related harmful ultra violet rays to natural environment. The meeting of the companies about the environment through Corporate Social Responsibility mechanism, the revelation of carbon radiation has become essential for every company. The main target of research proposal at developing a theory for carbon radiation performance related by the companies voluntarily and mandatorily (MCSWEENEY, 2015). In this proposal it includes the theoretical and practical motivation for justify the issue related of research with extensive literature review and related to carbon radiation.
Carbon radiation level has been increasing day to day and for the environment it has become serious issue at international level and it cause a huge climate change and fall of atmosphere. It has been contended that we are at leaning point in concern to change in climate. One of the principal source of emission of carbon is organizations. For various processes such as manufacturing of products leads to emission of carbon. Therefore, organizations have the utmost prospective to make essential modifications so that emission of carbon could be reduced. Escalation in regards to general concern for environment has been intended. In addition to this, regulations for reducing emission of carbon has been increased by the government (Casper, 2010). the harmful effect of the carbon radiation on the environment it effects the business of the corporates bodies there are most of the reasons such as adverse effect on the quality of raw material, reduced the share price, due to change in the climatic changes it effects the availability and supply of raw materials, decline in the value of shareholders investment etc. It is the bridge which make the direct connection between the carbon radiation and financial performance and growth of a company (Leonard , 2010). The pressure regrading demonstration of organization`s commitment to minimize their contribution in context to change in climate are also increasing so that further increase in regulation could be avoided.
The legitimacy theory research carried out formerly laid emphasis on disclosure in context to the carbon emissions by organizations voluntarily (Ghomi & Leung, 2013). In contrast to this, conflicting research are also there which is related with the organizations are more likely to disclose voluntarily when their performance is effective or ineffective (Hoefnagels, 20110). Targets are not being considered by the previous researches. In addition to this it has been noticed that the carbon radiation has effect the performance of the corporate bodies (See, 2011). Beside this climatic change is the important distress for international business, and it became the important issue for the research. The research done in the previous research and merge the conflicts to solve the problem in an efficient manner. The carbon radiation leak by the company and it is the responsibility of shareholders to determine the actual financial performance of the company. It is also important prove the environment efficiency (Leonard , 2010).
Greenhouse gases can be defined as such gases which trap heat in the air. Some greenhouse gases befall certainly and go into the atmosphere because of human activities (for instance- agriculture and burning fossil fuels0 and natural processes (like- organic matter`s decomposition). Some of the greenhouse gases which occurs due to human activities as well as natural processes are- Ozone (O3), Nitrous Oxide (N2O), Methane (CH4), Water vapour and Carbon Dioxide (CO2). The release of carbon radiation make a big financial burden on the companies and it may going to decrease in a profits to the company. It involves the cost of monitoring, and achieved the target by the agencies and try to recover the losses from this process (Lallanila, 2010). In addition to this it requires the involving the incentives of the agents for achieving the targets efficiently and it also effect the performance of the company. With the help of Legitimacy theory it clearly mention that relationship of organization`s performance, carbon reporting and carbon performance is also attaining consideration from researchers. On the other hand, there is an unsolved argument on whether disclosure of carbon are consistent with organization`s carbon performance. In addition to this there are many ways which could help the organizations in reducing the carbon radiation such as developing low carbon technology, use of low energy radiation equipment, sharing carbon equipment for multitasking, implementing carbon radiation management system within the business operation and procedures and setting radiation targets for managers etc. With the help of carbon radiation reduction techniques, companies can achieve their targets and then surplus can be sold to carbon trading market in order to earn the profits (See, 2011). This the way by which only company financial burden is not there it can be done by only carbon radiation.
After studying this report, it has been noticed by means of the legitimacy theory that the carbon radiation performance of the company also create the non-financial impact on the business of the company. This is intangible impacts which influence the financial burden. The problem of carbon radiation can be solve out by making a reputation of the company in the trading market and which attracts the investors and shareholders to invest and it is beneficial for the company (Casper, 2010). The regulatory perspective, CSR policy is the effective way in developing the better relationship of company with the government and with the local bodies. After building a strong relationship it also make the reputation and goodwill of the company. In addition to this company have to maintain the biter relationship with suppliers and customers the result of this all the customers all over the world contributed towards for the environment protection they also supports the company for paying the attention towards the environment.
According to (Lallanila, 2010) with the help of Legitimacy theory it is a process which helps in maintain the relationship between the principles and agents to solve out the specific problem. The principle find out the errors and the agents give out the solution to solve the problem by using the Legitimacy theory. These types of problems mostly arisen in the relationship due to difference in their goals and objectives so by the help of these legitimacy theory companies can solve out these types of the problems. In addition to this legitimacy method can used the various types of tactics, such as PDP aspects to solve the problem they use the theoretical model to test the relationship between the financial and non-financial performance of the company and also find out the solution of the carbon radiation (MCSWEENEY, 2015). The carbon radiation is term as a principle factor by these various financial and intangible factors which affects the overall performance of the company can be solve out through the agent, agent under this theory works as in order to test the relationship and link connects the two variables.
According to the research proposed by (Hoefnagels, 20110), it can be assessed, that among the 242 companies of the world is the most polluting companies of US shows that they companies having the high environment performance increase to achieve the growth in sales and profitability. This report clearly show that financial impact of carbon radiation performance on the company and there is no empirical evidence for the non-financial impact not found.
Legitimacy theory foresees that in context to today`s significance in relation to carbon issues, it is not possible to intend that businesses be likely to unveil the information regarding greenhouse gas in order to legitimate their operations (Ghomi & Leung, 2013).
The disclosure of carbon radiation the performance of the company results in both financial and non-financial impact on this and the growth and profit of the company is also depends on the regular investment of the company.
H1. There is significant relationship between carbon radiation and company`s performance.
H2. As much as disclosure of carbon radiation, as much as impact on company`s financial and non-financial aspects.
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