Does Corporate Environmental Accounting Make Business Sense?

Ecology, Environment and Conservation

Environmental accounting is an important tool for understanding the role played by the Natural environment in the economy. Environmental accounts provide data which highlight both the contribution of natural resources to economic well-being and the costs imposed by pollution or resource degradation. Enterprises, which are important subjects of economical activities, play major roles in economical activities. Therefore, clear incorporation of the objective called environmental conservation in each business activity becomes a powerful motive force for the structural transformation of this economic society. It is important for people, regions, and administrations involved in enterprises to correctly. Evaluate such attempts by the enterprises and be able to prepare the system that can support the attempts for the entire society. The term environmental accounting is frequently used within the accounting and environmental management literatures. Environmental accounting is a broader term ...

ENVIRONMENTAL ACCOUNTING AND REPORTING: AN ESSENTIAL COMPONENT OF BUSINESS STRATEGY , 2012

ABSTRACT Environmental accounting is on an expansion path. With increasing social focus on the environment, accounting fills an expectation role, to measure environmental performance. Only stressing on the economic and industrial development unfortunately we, the Indian forget the importance of and the consequences of such forgetfulness gave birth to the remarkable incidence of the Bhopal chemical leak (1984), Tsunami in India (2004). Infect the industrial and business activity are directly or indirectly responsible for various environmental problems such as Global Warming, a rapid changes in climate, glacier meltdown, soil erosion, land degradation, deforestation, loss of biodiversity and pollution of all kinds such as water, air, marine, noise, light etc. A native American proverb states that, “only when the last tree is cut, only when the last river is polluted, only when the last fish is caught only when they will realized that you cannot eat money”. The issue of environmental responsibility and the sustainable industrial development has given to the birth of new branch of accounting, i.e. environmental accounting and reporting. Environmental accounting is relatively a recent entrant in the domain of accounting. It is the process of identification measurement and commutation of information in the environmental responsibility of the performance of an entity to permit economic decision. Environmental accounting first adopted by Norway in the 1970s and in India it is applied only the cements, oil and petroleum, power and electronics, steel, engineering and textile industries. For proper implementation of environmental accounting in India a large number of researches, discussion, accounting standard and regulatory frameworks is necessary. The status of environmental awareness provides a dynamic for business reporting its environmental performance. Examining the integration of environmental policy with business policy is the focus of this research. The business firm’s strategy includes responding to capital and operating AJRBF Asian Journal of Research in Banking and Finance Vol.2 Issue 4, April 2012, ISSN 2249 7323 Journal of Asian Research Consortium 86 http://www.aijsh.org costs of pollution control equipment. This is caused by increasing public concerns over environmental issues, and by a recent government-led trend to incentive-based regulation. This paper describes the environmental component of the business strategy, producing the required performance reports and recognizing the multiple skills required to measure, compile and analyze the requisite data. Special emphasis of the research is on generation of reports and their standards, for the range of business and regulatory purposes. KEYWORDS: Environmental Accounting, Business Strategy, Environmental Reporting, Environmental policy.

Environmental Quality Management, 1996

Much as Total Quality Management (TQM) has helped companies decrease waste and enhance value, environmental accounting offers an approach and a suite of tools that can help organizations improve both environmental quality and bottom‐line business performance. Its focus is to bridge the world of finance and economics with the world of environmental management. Companies in all sectors have discovered that they can increase profits by meeting and even surpassing environmental regulations. Through environmental accounting, companies can discover more of these opportunities and, ideally, bring environmental concerns earlier into planning, decision making, and operations. This article introduces environmental accounting and some basic principles that should guide organizations' thinking on environmental accounting and environmental accounting systems. It also describes several different objectives for environmental accounting that imply different requirements and orientations. Althou...

Accounting Organizations and Society, 1976

Growing social costs and increasing criticism of prevailing accounting practices both on the macroeconomic and microeconomic level have recently led to efforts to expand the scope of accounting for better evaluation of an organization's behavior. CEAS provides corporate management as well as governmental authorities with a comprehensive assessment system of the annual environmental effects of a corporation's regular business activities. As a tool to control an economy's impact on the physical environment, it helps to achieve a better quality of life. *The author would like to acknowledge the helpful comments of R. MtiJler-Wenk and of MS B. E. Phiebig Ullman. An earlier draft of this paper was presented at the annual conference of the European Foundation for Management Development in Manchester, England in June 1975.

2016

This study evaluates the use of environmental management accounting (EMA) in maintaining business processes among industrial companies. EMA is a management tool related to environment accountability. It is utilised to improve the financial and environmental performances of companies to achieve sustainability. This study reviews management accounting literature that has examined industrial environmental pollution. Results show that companies that conduct environmental activities identify the problem associated with the environment as environmental cost. This cost is reported in the environmental cost report, which provides a clear, detailed picture of all environment costs. The environmental cost report assists managers in their decision-making process. Generally, companies do not adhere to environmental accountability. In addition, the environmental cost report of companies cannot separated from their financial statements. Keywords: environmental management accounting, environmental...

Environmental Quality Management, 1996

work in environmental accounting, life-cycle costinghanagement, and the monetization of environmental liabilities. His work involves the development of decision aids for prioritization of environmental issues, selection of environmental management strategies, and financial evaluation of pollution prevention/waste minimization actions.

The growth in environmental accounting research and interest in the last few years has been little short of phenomenal. For those of us with a long-standing interest in such issues, it is easy to get swept along in the euphoria of seeing environmental issues brought to centre stage in business and accounting debates. Despite wishing to encourage this growth in interest, this paper is by way of a cautionary tale that, within this burgeoning, enthusiastic and often excellent research, there is a very real danger that environmental accounting may well end up doing more harm than good. This paper, works from the premises that (a) accounting (and accounting research) typically adopts a set of implicit assumptions about the primacy and desirability of the conventional business agenda-and is thus "managerialist" in focus; and (b) that the conventional business agenda and environmental protection-and, especially, the pursuit of sustainability-are in fundamental conflict. If this is so then accounting is contributing to environmental degradation-not environmental protection. The paper seeks to provide a review of the current state of the art in environmental accounting research through this "managerialist" lens and then goes on to illustrate the essence of the problem through the reporting of a new analysis of data from an international study of accounting, sustainability and transnational corporations. The paper concludes with a call for more explicit examination of the implicit assumptions held in accounting research generally and environmental accounting research in particular.

Bangalore University, 2017

Those who are doing research on Environmental Accounting, this paper gives you broader outline and make you to feel comfortable withrespect to research. You should do more research in this area. You can contact me: [email protected] (91)9845844319(India)

The environmental accounting literature covers both public and private, or corporate, fields. The needs of private firms differ from public organisations in that environmental accounting systems must pay for themselves. Stakeholder analysis and the so-called triple bottom line forget that shareholders (and regulators) must be satisfied. However, unsatisfied stakeholders can impact on the firm's financial prospects and on shareholder value. This leads to strategic accounting, which endogenises future environmental costs, and relates to corporate goodwill and social capital. Rethinking private environmental accounting shows how it can lead to more efficient corporate governance, and what role government can play.

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017

This paper establishes the relevance of Environmental management accounting (EMA) as an inevitable system for ensuring effective corporate governance. In contemporary business, corporate leaders globally stress on ensuring the interest of stakeholders through diverse means of which the use of Environment management accounting systems could be adopted for that purpose. Reluctance in handling environmental issues could culminate into huge financial loss to organizations in terms of environmental or other opportunity costs. It could also be the source of loss of goodwill on the part of stakeholders which can spell huge consequences for the entity’s business relationships resulting into governance problems. Consequently, the paper suggests that there are several reasons by which environmental management accounting becomes inevitable in the corporate governance process. It further concludes that Environmental management accounting provides information to the CEO that enables companies im...