The accountants’ perspective on sustainable business practices in SMEs

Abstract

Purpose – This paper aims to explore the accountants’ perspective towards their role and function as business advisors in assisting with the adoption of sustainable business practices (SBPs) in small and medium enterprises (SMEs). Design/methodology/approach – A questionnaire-based study was conducted on members from one of Australia’s leading professional accounting organizations. Findings – Key findings from this research highlighted deficiencies in the effectiveness of the accounting profession in assisting SMEs in implementing SBPs despite a desire from clients for accountants to provide this advice and a belief that accountants are best placed to do so. Further, an expectations gap is evident between the level of involvement accountants believe they should be having in assisting SMEs and the level of involvement that is currently occurring. Research limitations/implications – This finding has implications for the accounting profession, with accountants needing to examine their current business approaches in an effort to close this gap. If this does not occur, SMEs will most likely seek this much-needed advice and support from outside the profession. Originality/value – Little attention has been given to the accountant’s role in respect of sustainability from an accountant’s perspective. The findings contribute to understanding the accountant’s importance in advancing their involvement in assisting SMEs in the uptake of SBPs.

Drivers of Sustainability Practices and SMEs: A Systematic Literature Review

“…The community is a major motivation for SMEs in various countries to adopt sustainable practices. In Australia, the environmental pressure groups were one of the major forces that made SMEs take up environmental sustainability in their practices (Williams & O"Donovan, 2015). In the case of China, raised environmental awareness and demands of the local community pressurised SMEs to promote environmental practices performance (Zhang et al, 2009).…”

Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa

“…Inconclusive examinations on the contribution of the small business sector to the sustainability spectrum have been the subject of contentious research debate. As such, due to global output and employment concerns, it is ultimately and widely agreed that research on Sustainability 2018, 10, 3855 2 of 11 the economic contribution of SMEs could provide sustainable competitive advantage for all countries, especially in the developing world [5].…”

Accountants’ Perspectives on the Environment

“…There is evidence the accounting profession is losing sustainability reporting and assurance market share to third-party providers (Fernandez-Feijoo, Romero, & Ruiz, 2016). Williams and O'Donovan (2015) investigated accountants' perceptions of providing sustainability services. Accountants' perception mean scores on a five-point scale were between 4.0 and 4.15; however, actual accountant practice did not rise above 3.62 demonstrating a gap between perception and practice (Williams & O'Donovan, 2015).…”

“…Criticism of the accounting profession concerning sustainability accounting reporting has appeared in recent accounting literature (Adams, 2015;Flower, 2015). Williams and O'Donovan (2015) emphasized the need for investigating of accountants' involvement in sustainability reporting because there a gap exists between accountants' perceived contribution and actual contribution in sustainability accounting. Much of the criticism of accountants and sustainability accounting reporting centers on conventional accountants who want to keep the status quo of financial reporting (Adams, 2015;Flower, 2015).…”