Environmental Accounting Case Study

THE PROBLEM

Businesses are continuing to grow; creating innovative products, developing efficient and effective processes, and targeting different markets. With this kind of progress, the demand for such products persistently grows. As the demand for these products grow, the supply of the resources that are used for the production of these items are now gradually depleting, hence, the debate between businesses and society as to the insufficiency of business accountability especially for companies engaged in businesses that feed of off natural resources. Due to this pressure on the businesses, reports have gone from only recording those that are measurable and quantifiable and that are required under the law or by accounting standards to providing

Internal function refers to the contribution of environmental accounting to the entity while external function is the impact of environmental accounting to the stakeholders. Internal function provides for an analysis of environmental activities that would aid in the decision making of the management regarding costs and opportunities within its control (eg: environmental conservation activities versus the benefit obtained). It also paves a way for the entity to develop efficient and effective business processes. External functions create a platform -through disclosures of environment promotion reports- for the entity in influencing the decisions of

The environment is a shared responsibility among members of society: business entities, people and government. In recent years, it is becoming common to associate entities with apprehensions regarding water, air and soil pollution, hence, business entities play a vital role in the conservation of natural resources. As suggested by Eze et al., multinational companies can massively contribute in the promotion of the environment through innovations and improvements not only on the entity’s products but also in its methods. Stakeholders are influenced greatly by the environmental and social standing of an entity. So, they require that business entities provide products that are cheap and of good quality without leaving any harmful traces to the