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The Measurement Of Environmental Reporting Practices Accounting

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Abstraction

The Triple Bottom Line coverage ( TBL ) is an accounting model that incorporates three dimensions of public presentation: societal, environmental and fiscal. This differs from traditional coverage ( fiscal ) frameworks as it includes environmental and societal coverage. Environmental coverage is one of the cardinal parts of TBL coverage. Environmental Reporting is an country where our state requires a encouragement. A batch of work has been done by other developed states in this country. India is believed to be still at its babyhood phase so far as Environmental Reporting ( an built-in portion of ternary bottom line coverage ) is concerned.

The debut of the ISO 14000 series for Environmental Management Best Practice has introduced environmental issues as portion of “ Business as usual ” . So, it has now become an impulse for the companies worldwide to describe on the Environmental issues and their part in safeguarding the Environment. The aim of this survey is to look into the measure and quality of voluntary environmental revelations in the one-year studies or sustainability studies of the few selected index based Indian companies listed on the stock exchange.

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The consequence may function a base or the way towards better Environmental revelations in India.

Keywords: Environmental Reports, Sustainability, Disclosures

I INTRODUCTION

Triple Bottom Line is bit by bit deriving importance all over the universe. Specially, environmental coverage plays a important function in this planetary heating. Over recent periods, the consequence of the single endeavor on the environment has increased force per unit area for the concern sector to set about a more responsible and crystalline function in this country. The stakeholders are now interested non merely to cognize the mere net income of the company but besides what steps the company takes in order to protect the environment, is besides taken note of. Now, the stakeholders are keenly interested to cognize “ how much ” and “ to what extent ” each single company contributes towards the creative activity of a healthy environment.

In add-on, the debut of the ISO 14000 series for Environmental Management Best Practice has besides drawn a manner towards better environmental coverage. Now the companies abroad have developed an environmental coverage model for inclusion in one-year studies, back uping integrating of economic and environmental public presentation studies for intents of sustainable coverage and can be found in the Report by the Secretariat of the United Nations Conference on Trade and Development, 1999.

Over and above this, the March 1999 Global Reporting Initiatives ( GRI ) Exposure bill of exchange ( CERES/GRI, 1999 ) introduced initial revelation guidelines to associate economic, societal and environmental public presentation issues. Subsequent guidelines were issued in June, 2000.

The GRI was established in late 1997 with the mission of developing globally applicable guidelines for describing on all these three countries, i.e. , economic, societal and environmental public presentation, ab initio for corporations and finally for any concern, governmental, or non-governmental organisation ( NGO ) . Convened by the Coalition for Environmentally Responsible Economies ( CERES ) in partnership with the United Nations Environment Programme ( UNEP ) , the GRI incorporates the active engagement of corporations, NGOs, accounting organisations, concern associations, and other stakeholders from around the universe. The GRI ‘s Sustainability Reporting Guidelines were released in exposure bill of exchange signifier in London in March 1999.

However, GRI guidelines are voluntary coverage enterprises ; hence companies are non obliged to inform GRI of their coverage verification. It is, nevertheless, to be noted that the GRI guidelines are dynamic and the Exposure Draft issued in March 1999 represents merely a primary measure in the development of a model for sustainable coverage. Companies may take it as a manner towards better coverage patterns.

II OBJECTIVE OF THE STUDY

The chief aim of this survey is to mensurate the Environmental Reporting Disclosures of the selected index based Indian companies. In order to measure the environmental coverage patterns, the classification contained in the Global Reporting Initiatives guidelines has been used to an extent. However, it besides chiefly aims at the measure and quality analysis of the environmental coverage patterns of the selected companies whereby, proper environmental coverage patterns in India can be arrived at.

III REVIEW OF LITERATURE

TBL may be an emerging construct for the Indian corporate, but it was coined manner back. Discussion of the quantification of societal and environmental public presentation is non wholly new and predates Elkington ‘s ( 1997 ) book. In 1972, David Rockfeller said that he ‘can anticipate the twenty-four hours when, in add-on to the one-year fiscal statements certified by independent comptrollers, corporations may be required to print a societal audit likewise certified ‘ ( cited in Gray, Owen, et Al, 1987, pyx ) .

Harmonizing to Holsti ( 1969 ) , content analysis categorises narrative affair into subjects, a method systematically used in Corporate Social Reporting research ( Adams and Roberts, 1995 ) , Zeghal and Ahmed ( 1990 ) , Gamble et. Al. ( 1995 ) . Hackston and Milne ( 1996 ) and Krippendorff ( 1980. p. 21 ) define content analysis as “ a research technique for doing replicable and valid illations from informations harmonizing to their context ” .

The aim of the survey was to find the followers in the one-year studies ( sustainability studies ) and separate environmental studies ( if prepared by the selected Indian companies ) :

Measure of revelation, utilizing a sentence based attack ( Hackston and Milne, 1996 ; Buhr, 1998 ) which were so accumulated into page proportions ; and

Quality of revelations ( Gamble et al. , 1995 ; Wiseman, 1982 ; Guthrie and Parker, 1990 ; Walden and Schwartz, 1997 ; Kusumo et al. , n.d. ) .

IV METHODOLOGY

The nature of the said research work is analytical. This survey is based on the Primary Data collected from one-year studies downloaded from web sites of the selected companies. The survey is based for the old ages 2009-’10 and 2010-’11. Four indexed based companies are selected for the intent of this survey i.e. , ITC Ltd. , Reliance Ltd. , Bajaj Ltd. and Hindustan Unilever Ltd. In order to mensurate environment coverage patterns by selected Indian companies, GRI guidelines were taken as a base. Analysis of the information is based on a few selected classs comprised of in GRI guidelines to hold a better measuring.

V QUANTITATIVE AND QUALITATIVE MEASUREMENT OF ENVIRONMENTAL REPORTING BY SELECTED INDEX BASED INDIAN COMPANIES

Freedman and Jaggi ( 1986 ) , Kelly ( 1981 ) and Roberts ( 1992 ) are of the sentiment that the usage of one-year studies as a primary communicating vehicle for environmental public presentation serves a better measuring tool. For the intent of this survey besides, one-year studies or sustainability/ environmental studies are used as a information beginning.

The point of beginning was to find if the one-year studies included revelation on environment issues. It was besides checked whether separate sustainability/ environmental studies were prepared or the environmental revelations formed a portion of the one-year studies.

The one-year study information was ab initio analyzed utilizing a dichotomous variable ( Yes=1 ; No=0 ) . Once it was ascertained that the environmental information was present in the studies, it was necessary to find how it was to be coded.

As highlighted by Guthrie and Mathews ( 1985 ) , Hackston and Milne ( 1996 ) and pointed out by Milne and Adler ( 1999 ) , there are no steadfastly established criterions of dependability for content analysis. Research undertaken utilizing content analysis requires:

a categorization strategy, defined by Milne and Adler ( 1999 ) as a “ set of boxes into which to set the information ” ; and

a set of regulations of “ what ” and “ how ” to code, step and record the informations to be classified.

Assorted tabular arraies demoing the manner of the presence of environmental information, quantum of the content, quality of description disclosed and determination regulations have been prepared to hold a clear thought about the environmental revelations and which would function as a tool of measuring.

Kindly refer Table I it shows the manner of presentation of Environmental Information by the selected companies.

It can be seen from the tabular array I, that ITC Ltd. , Reliance Ltd. and Hindustan Unilever Ltd. prepares a separate study viz. , Sustainability Report/ Sustainable Development Report and discloses its environmental information therein, while Bajaj Ltd. includes it as a portion of its one-year study headed as Report on CSR ( Corporate Social Reporting ) .

DESCRIPTION AND DECISION RULES REGARDING ENVIRONMENT Coverage

Kindly refer Table II

The following tabular array exhibits some of the classs which are selected as a tool towards better measuring of environmental information which is based on the GRI guidelines. Further, to hold a clear thought, each such class was allotted a mark of 10 points doing a highest mark of 80 points.

Kindly refer Table III

From Table III, it is clear that ITC Ltd. , Reliance Ltd. and Hindustan Unilever Ltd. have disclosed about information for about all of the classs so studied hiting 80 points each.

However, Bajaj Ltd. is far lower than that of the other selected companies and includes information on merely two classs, viz. , Profile and Sustain, doing a mark of 20 points merely.

QUANTITATIVE AND QUALITATIVE MEASUREMENT STANDARDS OF ENVIRONMENTAL REPORTING PRACTICES

Kindly refer Table IV

Table IV has farther been divided into two classs in order to hold a clear penetration into the content, viz. : Table V which shows the measure of revelations “ How much ” and a mark to the content nowadays. While, Table VI shows the quality of revelations “ How mensural ” and a mark, thereof of the selected companies.

QUANTITATIVE MEASUREMENT OF ENVIRONMENTAL REPORTING PRACTICES OF THE SELECTED COMPANIES

Kindly refer Table V

Each class of Table V ( viz. , sentence, paragraph, half A4 page, 1 A4 page and & gt ; 1 A4 page ) has been allotted 10 points each, which makes an overall mark of 50 points.

We can detect from Table V that all the companies have reported & gt ; 1 A4 page and scored full ( maximal ) points i.e. , 50 points. This in fact, is a positive mark towards a better environmental coverage patterns.

QUALITATIVE MEASUREMENT OF ENVIRONMENTAL REPORTING PRACTICES OF SELECTED COMPANIES

A house supplying a combination of treatment on environmental ends and aims, and result in qualitative, non-monetary and pecuniary footings was considered to be more meaningful to help stakeholder determinations by associating revelation, environmental public presentation, and economic public presentation ( Belkaoui and Karpik, 1989 ) .

Kindly refer Table VI

Each class of Table VI, ( viz. , pecuniary, non-monetary, qualitative merely, qualitative and pecuniary, qualitative and non-monetary, pecuniary and non-monetary and qualitative, pecuniary and non-monetary ) has been allotted 10 points each, which makes a highest mark of 70 points and a lowest of 10 points.

It is observed from Table VI that ITC Ltd. , Reliance Ltd. and Hindustan Unilever Ltd. has presented its environmental information in qualitative, pecuniary and non-monetary footings and have scored full 70 points.

While, Bajaj has exhibited its environmental information merely in Qualitative and Non-Monetary signifier and has scored 50 points on the mark board.

Kindly refer Table VII

Table VII shows whether the selected companies confirms to GRI-G3 Compliant Application Level A+ or non.

It is observed that Bajaj Ltd. does n’t follow with the GRI-G3 Application Level A+ , while the other selected companies do follow the same.

Overall PERFORMANCE IN DISCLOSING ENVIRONMENTAL INFORMATION IN THE REPORTS OF THE SELECTED COMPANIES

Kindly refer Table VIII

Overall mark is made up of the classs studied, qualitative and quantitative information disclosed pertaining to each such class ( exhibited by Table III, V and VI ) of the selected companies.

Uniting the overall scoreboard, it is really much clear that Bajaj Ltd. scored merely 120 points, while ITC Ltd. , Reliance Ltd. and Hindustan Unilever Ltd. scored same points i.e. , 200 points on its revelation on environmental information.

VI FINDINGS OF THE STUDY

It has been found out from the scoreboard ( Table VIII ) that, all the companies have reported on the environmental issues to more or less extent. However, ITC Ltd. , Reliance Ltd. and Hindustan Ltd. are found to be better as compared to Bajaj Ltd.

Bajaj Ltd. needs to unwrap more information on the environmental issues and besides seek to follow with GRI-G3 Application Level A+ for even better revelation.

Although the attempts put in by all the companies in unwraping its environmental information are deserving appreciable.

VII LIMITATIONS OF THIS STUDY

The survey considers merely few indiscriminately selected index based companies which merely gives a brief position of the environmental coverage patterns carried out in India. It does non purport to show the exact consequences and coverage patterns which can be considered as an ideal step for such coverage.

Besides, the survey has been taken on for merely two old ages which gives a nut shell position of the environmental coverage patterns of the selected companies.

Though attempts were undertaken to guarantee coding dependability, there remains a grade of subjectiveness in the finding and project of coding patterns in content analysis research.

Cite this The Measurement Of Environmental Reporting Practices Accounting

The Measurement Of Environmental Reporting Practices Accounting. (2016, Nov 15). Retrieved from https://graduateway.com/the-measurement-of-environmental-reporting-practices-accounting-essay/

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