Environmental accounting: an essential component of business strategy

Abstract

Environmental accounting is on an expansion path. With increasing social focus on the environment, accounting fills an expectation role, to measure environmental performance. 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 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. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.

Sustainability Reporting as a Challenge for Performance Measurement: Literature Review

“…Bissett and Green [10] examine key issues and drivers, elements of an effective strategy, roles and responsibilities, resource requirements, challenges/obstacles, solutions, and performance measurement and also the aspect of how it should be communicated. [83] describe environmental accounting as an essential component of business strategy. Mueller et al [53] illustrate the extent to which corporate organizations in Germany and New Zealand have included sustainability practices as part of their strategic planning process.…”

Environmental accounting practices: A Regulatory and internal management perspective

“…Regarding the multiple departments (not only accounting department) background from firm is to get salient emphasis logic of EA practices; it is supported by Burritt, Schaltegger, and Zvezdov (2011) who argued that public relations departments are interested in communicating emission figures, while plant managers are interested in cutting down energy consumption, and emission traders attempt to optimize emission trading. Yakhou and Dorweiler (2004) (2004) was concerned about the consistency of data where triangulation approach is implied. The first stage of interviews are gathering saturated items or categories from sources related to 'organizational standard', 'sustainability', 'reporting', 'laws enforcement', 'management system', 'evaluation on EA' 'environmental friendly product', 'growth', 'improving operational', 'compliance to regulations'.…”

Remuneration and Management Behavior Evaluation: A Critical Review

“…Somehow, external policies could be determining individual or organization perceptions (Gunningham, Kagan & Thornton, 2004). Implementation of environmental accounting is an external policy imposed by law and other stakeholders such as consumers, NGOs and international or pleaded as interventionist regulations (Yakhou & Dorweiler 2004).…”