Quantifying and Accounting for Environmental Costs by the Avoidance Cost’s Method: The Case of a Tunisian Firm

Abstract

Working under a view of social ethics, implies that the firms must behave like a responsible citizen. This entails rights as obligations to the community. In this perspective, the company is now responsible for negative consequences produced by its activities. The company well knows, to minimize risk by controlling the environmental costs incurred by society. Although these costs represent a threat to some companies for performance, others consider them a competitive factor.Throughout this work, we will demonstrate, through a case study, the environmental costs, despite the ambiguities related to calculation, can be identified and recorded in the financial reports of the company. To do this, the researchers will proceed as follows. A first section will present the theoretical framework of this research by discussing the concepts of environmental costs. The second section will be reserving for environmental costs. In the last section, the researchers present calculations of the various environmental costs and bookings in the financial reports of the company.