We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

The utilization and benefits of using environmental management accounting for firms

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Abstraction

This thesis high spots on the use and benefits of utilizing environmental direction accounting for houses. In order to recognize the utilizations and benefits of such a system, a model is drawn to develop and implement an environmental direction accounting system within an organisation. The paper besides compares and finds the difference between traditional fiscal accounting method and environmental direction accounting to sketch the importance of the ulterior system in the current concern environment. The research paper besides discusses the methods of happening environmental costs and how the companies can accrue salvaging and generate grosss by dividing environmental costs from general accounting ( Parker, 2002 ) .

Don't use plagiarized sources. Get Your Custom Essay on
The utilization and benefits of using environmental management accounting for firms
Just from $13,9/Page
Get custom paper

The thesis efforts to happen out the basic benefits companies can earn by following an efficient environment direction accounting pattern which has the primary function to take a company in the way of advancement through eco-friendly enterprises. Furthermore, the research would formalize the usage of system in helping direction determinations sing planing environmental friendly merchandises, attuning production procedure and managing wastes ( White and Savage, 1995 ) .

Chapter 1

Introduction

Statement of the job

In today ‘s globalized economic system, companies have become excessively competitory and are even utilizing unethical agencies to shoot the other houses in the race. The greatest concern these yearss have been on the consequence of environment that these companies are seting to gain higher grosss and increasing their bottom-line. Thus, authorities, non-governmental organisations every bit good as the general populace are progressively seting force per unit area on the companies to go responsible towards the environment and put significant sum of money and attempt to protect the environment ( White and Savage, 1995 ) .

Therefore, the issue of safeguarding the environment has gained prominence throughout the universe in the past few decennaries, which has in bend made it of import for companies to re-think their accounting construction and stress on accounting for environmental and other such related issues in the one-year studies and direction determinations. Therefore, the demand of the hr for companies are non merely analysing fiscal informations but besides to take into history assorted environment-related information in the end-of-the twelvemonth consequences. The issues related to environment has garnered greater media and public attending in the past few decennaries due to major incidents like the Exxon Valdez oil spill of 1989 and the Bhopal chemical leak of 1984. These incidents were non merely single corporate failures but in fact became planetary speaking points which in bend steered the attending of the universe towards issues such as planetary heating, clime alteration, fast depletion of fuel and other non-renewable resources, deforestation and the loss of natural home grounds ( United States Environmental Protection Agency, 1995 ) .

Such issues have besides pointed fingers and raised inquiries against the unethical concern patterns followed by the companies and many since have called for alteration in policies to modulate the corporate and do them more responsible towards the environment. Not merely non-governmental organisations such as the Greenpeace and Friends of the Earth has raised their voice about environmental issues but even the United Nations, the European Union, and several other authoritiess around the universe have besides adopted assorted policies to safeguard the environment. Many understandings are besides formulated on the planetary degree to forestall the future harm of the environment. Some of these outstanding understandings include the Kyoto Protocol, the Rio Declaration and the Montreal Protocol ( Votta and White, 1998 ) .

1.2: Research aims

The cardinal subject of this paper is to exemplify the benefits of environmental direction accounting system and happen out how concerns can implement this system to earn better market value and place. Some of the major benefits of the environmental direction accounting include helping companies to take responsible determinations associating to issues such as apportioning costs, capital budgeting or designing procedures. Experts believe that companies can utilize the undermentioned stairss to implement the accounting system in an effectual mode. The first and the first measure are to place the chances so that unneeded costs are eliminated that does non give any value to a merchandise or procedure.

Furthermore, companies need to happen out the environmental costs from the history sheets which are frequently hidden under the overhead histories, direct labour histories or direct stuff histories. It has been found that in most instances, environmental costs are hidden in different parts of the direction accounting system. For case, the below diagram illustrates that the environmental cost is being hidden under direct labour, direct stuff and operating expenses.

To accrue greater benefits from the environmental direction accounting system the company should besides place chances that may bring forth gross by selling waste byproducts and incorporating the environment with assorted other facets of concern direction that support and implement the system. The house should besides find the costs and nest eggs that the system might bring forth, and place the precise method for pricing merchandises as per industry criterions. Last but non the least ; companies should besides concentrate on planing more environmental friendly merchandises and attuning the procedures that might supply a competitory border to the company over its nearest challengers ( Rikhardsson and Schaltegger, 2002 ) .

1.3: Methodology

I propose to utilize qualitative research methodological analysis for set abouting this thesis, as I believe that qualitative research is important for analysing the construct of environmental direction accounting and how handling of environmental issues unsuitably can damage the repute of a concern in the market. Furthermore, it is besides imperative to carry on an in-depth secondary research to understand the surrounding universe. A qualitative methodological analysis is the best tantrum for this subject because it provides an initial apprehension and benefits of environmental direction accounting system while besides supplying a base for farther research. This methodological analysis will be more subjective than quantitative studies because I will be able to make up one’s mind which specific illustrations to describe. As the thesis trades with larger societal inquiry of the demand to integrate environmental issues in the accounting system, I consider that quantitative research methodological analysis would non be suited for this thesis. On the other manus, qualitative methodological analysis would non merely assist in sum uping a few cardinal issues such as happening out the elements that constitute a environmental direction accounting system but at the micro degree, happening out the differences between the traditional accounting system and the environmental direction accounting system. Therefore, to understand this complex correlativity, I propose to establish my research on qualitative methodological analysis. Qualitative research, being more subjective in comparing to quantitative methodological analysis, would assist in analyzing the intangible facets of the research topic, for illustration: identifying environmental costs, which are frequently hidden under the overhead histories.

I have besides relied to a great extent on secondary informations and research, as the subject demanded an in-depth cognition about non merely the system but besides about how environmental issues can make or destruct concerns. Such intensive research could merely hold been possible through secondary informations hunts. I have undertaken a secondary hunt of available literature on the subject from secondary beginnings, such as published media studies and published research studies on the capable line. Some of the common beginnings of secondary informations undertaken for this research paper include academic documents, organisational studies, and authorities records.

The huge range and entree of the survey makes it imperative to set about a qualitative research. This sort of research is besides chosen for the fact that while one understands the phenomenon of a peculiar subject, one at the same time acquire more experient and informed about the same. It is the current thought that gives manner to the hereafter thought, ensuing in the outgrowth of new, interesting and more feasible theories.

Chapter 2: Background

2.1: Specifying Environmental Management Accounting

Environmental direction accounting ( EMA ) is considered to be a subset of environmental accounting and is by and large used to supply information for decision-making in an organisation. EMA related to turn outing information for internal decision-making is consistent across all degrees as defined by US EPA ( 1995 ) . Per the EPA, the procedure of roll uping, placing and analysing data/information about environmental costs and public presentation in order make good determination devising. As per International Federation of Accountants ( 1998 ) , EMA is defined as direction of environmental and economic public presentation by developing and implementing appropriate environment-related systems and patterns. This might include coverage and auditing in some companies, environmental direction accounting fundamentally involves life rhythm costing, benefit appraisal, full cost accounting and strategic planning for environmental direction.

Chapter 3: Literature Reappraisal

3.1: Specifying environmental direction accounting

The thought of environmental direction accounting has gained prominence from the past few decennaries due to the rise in environmental-related jobs and issues. In general footings, the construct of environmental direction accounting is defined as a system that identifies, collects, analyses, estimations, studies, and uses information related to environmental costs that are used to do determinations within a house. In the modern-day universe, it has become a widely used tool to equilibrate economic, technological and societal factors while developing procedures and policies for a sustainable concern environment.

Environmental direction accounting is frequently positioned within the model of societal accounting. Experts such as Parker ( 2002 ) , in fact suggest that societal accounting is the procedure through which societal and environmental effects of organisations are communicated. Gray says that the societal accounting system “ as such involves widening the answerability of companies beyond the proviso of fiscal histories to the proprietors of capital ( peculiarly stockholders ) . ” Taking the cue farther, experts such as Epstein besides echoed similar sentiments and said, “ Social accounting and answerability, societal duty coverage, and sustainability coverage are all footings that refer to the measuring and coverage of an organisation ‘s societal, environmental, and economic impacts ” ( Epstein, 2004 ) .

3.2: Environmental direction accounting and cost factor

Some of the cost information that directors need to place and undertaking are environmental public presentation and the associated economic public presentation. EMA practicians and research workers have developed assorted EMA methodological analysiss and attacks that can be followed by assorted organisations. It has been seen and cover with that non all emanations and waste can be reduced. Some of them are inevitable but it is fiscal best involvement of the organisations to utilize the stuffs, H2O and energy in every bit much less measure for accomplishing their ends. Proactive and preventative environmental direction that can assist cut down the sum of the waste coevals, besides handling the waste stuff for reuse can cut down purchase costs of the stuff non used or lost as wastes. Therefore, appraisal of these costs allows the directors to better understand the possible pecuniary value of the environmental direction for preventative steps

3.3: Environmental direction accounting and concerns

Irrespective of being employed by a little or big company, the success of an environmental direction accounting system depends on the effectivity of measurement and roll uping facts and information related to the environmental impacts and facets. For little companies, such an luxuriant system might non be in topographic point, and hence, to measure the environmental impacts they may foreground on issues such as cost direction system or quality direction. However, for a large company, the information related to environmental costs might be gathered from assorted beginnings such as the environmental direction system, appraisals of life-cycles, environmental direction programs and indexs that evaluate environmental public presentation.

Chapter 4: Methodology

This chapter analyses the methodological analysis to be used for carry oning the research on happening about the benefits and utilizations of environmental direction accounting for houses. Furthermore, the research attempts to set about an in-depth analysis of environmental direction accounting system and the demand to pull a model to develop and implement an environmental direction accounting system within an organisation. It would farther discourse the usage of qualitative methodological analysis for carry oning this research to understand the importance of environmental direction accounting system in today ‘s concern scenario, while besides supplying a base for farther research.

I propose to utilize qualitative research methodological analysis for set abouting this thesis, as I believe that qualitative research is important for analyzing the construct of environmental direction accounting and how handling of environmental issues unsuitably can damage the repute of a concern in the market. Furthermore, it is besides imperative to carry on an in-depth secondary research to understand the surrounding universe ( Mannose, 1998 ) .

4.1: Exploitation qualitative and secondary research methodological analysis

A qualitative methodological analysis is the best tantrum for this subject because it provides an initial apprehension and benefits of environmental direction accounting system while besides supplying a base for farther research. This methodological analysis will be more subjective than quantitative studies because I will be able to make up one’s mind which specific illustrations to describe. As the thesis trades with larger societal inquiry of the demand to integrate environmental issues in the accounting system, I consider that quantitative research methodological analysis would non be suited for this thesis. On the other manus, qualitative methodological analysis would non merely assist in sum uping a few cardinal issues such as happening out the elements that constitute a environmental direction accounting system but at the micro degree, happening out the differences between the traditional accounting system and the environmental direction accounting system. Therefore, to understand this complex correlativity, I propose to establish my research on qualitative methodological analysis. Qualitative research, being more subjective in comparing to quantitative methodological analysis, would assist in analyzing the intangible facets of the research topic, for illustration: identifying environmental costs, which are frequently hidden under the operating expense, histories ( Howes, 2002 ) .

I have besides relied to a great extent on secondary informations and research, as the subject demanded an in-depth cognition about non merely the system but besides about how environmental issues can make or destruct concerns. Such intensive research could merely hold been possible through secondary informations hunts. I have undertaken a secondary hunt of available literature on the subject from secondary beginnings, such as published media studies and published research studies on the capable line. Some of the common beginnings of secondary informations undertaken for this research paper include academic documents, organisational studies, and authorities records. There are several advantages of roll uping informations through secondary research, which includes economy clip, and roll uping a big database ( Hibbitt and Collison, 2004 ) . However, the major disadvantage of this sort of research is that the research worker could non personally look into the dependability of the information. Secondary information analysis is normally conducted by research workers to acquire a better apprehension of a construct. Secondary information helps a research worker to back up his or her construct and specify the ends of the research by construing the information. However, as secondary research wholly relies on already published studies, it is imperative to roll up the information from dependable beginnings and look into the cogency of the information. The informations can be easy located with advanced online hunts, but one needs to be careful about utilizing out of day of the month or inappropriate informations. In order to measure the cogency of the informations a research worker should analyze the secondary informations and guarantee that it is appropriate for the intent of their survey ( Constanza and Maxwell, 1999 ) .

Therefore, for this peculiar study, I have used assorted secondary informations as it allowed me to carry on analyses of assorted accounting procedures and happen out the relevant system that can happen out environmental costs efficaciously. It besides saved me clip and money since the work has already been done and helped me in avoiding the jobs associated with the informations aggregation procedure.

I would non be carry oning any sample studies for this research, since this thesis will be based on secondary informations taken from articles, diaries and instance surveies. Furthermore, this thesis will non merely analyze and summarize informations, but besides identify the different factors involved. Therefore, analytical and prognostic research will besides be used in the thesis. Analytic research is an extension of descriptive research and prognostic research is to theorize on future possibilities, based on analysis of available grounds of cause and consequence ( Bennett and James, 1998 ) .

The huge range and entree of the survey makes it imperative to set about a qualitative research. This sort of research is besides chosen for the fact that while one understands the phenomenon of a peculiar subject, one at the same time acquire more experient and informed about the same. It is the current thought that gives manner to the hereafter thought, ensuing in the outgrowth of new, interesting and more feasible theories. Not merely that, qualitative research besides has alone value for look intoing complex subjects as this 1. Qualitative research besides has the differentiation of bring forthing more interesting and elaborate information of value. Though dubbed as a expletive, the item in most qualitative research is more than a approval excessively, since it tells the narrative from the participant ‘s point of view, full with rich descriptive and component ( Bennett, 2004 ) .

4.2: Datas aggregation

Since informations will be gathered throughout the research procedure, it requires the usage of conceptualisation and categorization for informations analysis. In order to bring forth a reasoned decision, qualitative information analysis will be used in this thesis. To carry on a good-structured qualitative analysis, informations should be classified into classs, so apportion informations into appropriate classs. Afterwards, recognize and develop relationships within and between classs of informations. Finally, develop and prove hypotheses or propositions ( Bebbington and Kirk, 2001 ) .For this thesis, I have collected informations through assorted secondary beginnings and academic documents, which outlines the benefits and use of environmental direction accounting. The collected information is so researched further and bucketed into separate sections to come out with a hypothesis for the thesis. Secondary information helped me in establishing my research on the available information and thereby, salvaging my clip in roll uping the information. Furthermore, as the research subject demands in-depth apprehension of assorted accounting methods, hence, it is easier to establish the research on already published stuffs, instead than set abouting immense studies ( White and Savage, 1995 ) .

As the thesis efforts to happen out the basic benefits that the companies can earn by following an efficient environment direction accounting pattern which has the primary function to take a company in the way of advancement through eco-friendly enterprises, the paper has outlined these benefits through the presentation of assorted instance surveies.

Although, environmental direction accounting is a new attack to better the environmental public presentation of a company, proper execution of the system can guarantee transparence for the company to describe the environmental costs clearly and assist them in accessing their corporate societal duty enterprises every bit good. All this, in bend enhance the image of the company in the media every bit good as amongst its stockholders. Therefore, the construct of environmental direction accounting is deserving researching and puting into ( Bebbington and Walters, 1993 ) .

Cite this The utilization and benefits of using environmental management accounting for firms

The utilization and benefits of using environmental management accounting for firms. (2016, Nov 15). Retrieved from https://graduateway.com/the-utilization-and-benefits-of-using-environmental-management-accounting-for-firms/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page