Corporate Water Return: A Five Factor Framework
Posted: 22 Mar 2016
Date Written: March 21, 2016
This paper applies transaction cost theory to propose a framework based on hybrid governance structures that intermediates the gap between symbolism and substance in terms of corporate disclosure. It proposes the idea of “corporate water return” as a corollary to corporate water risk and argues, with reference to transaction cost theory, that firms may take actions that are outside the frame of business as usual, if the action is predicated on a competitive advantage that the firm enjoys. A prerequisite for the action to occur is that there are shared benefits both to the company and its external stakeholders which can be specifically attributed to the action. The paper offers a Five Factor Framework to describe this process, using the water infrastructure deficit challenge, and the concept of corporate water return as illustrative examples.
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