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Transcript of Environmental Accounting
Acconting Rayan & Marwan Outline Development Economy Society Environment is development that meets the
needs of the present without
compromising the ability of
future generations to meet
their own needs.
(Brundtland Report, 1987) QUESTIONS One more thing.. It is fun BALANCE Sustainable What is the different between people and bees? What went
wrong? is what surrounds a thing or an item. It could be:
1-physical environment (natural environment - air conditions, water, land and atmosphere)
2.human environment (social environment) What is the concept of environment? Corporate social 2-Sustainable development 3-Corporate social responsibility responsibility What is it? late 1960s and early 1970s CSR aims to:
1.Promote the public interest.
2.Encourage the business. Education Development Business
& Economy "Major disasters like the Japanese earthquake and tsunami or Pakistan's floods are likely to become more frequent 4-Global reporting initiative knowing as
Environmental Social Governance (ESG) reporting,
Triple Bottom Line (TBL) reporting,
Corporate Social Responsibility (CSR) reporting. Produces global standards
for sustainability reporting Thank you The References:
Bowden, R. Adrian. (2001). Triple bottom line risk management: enhancing profit, environmental performance, and community benefits. John Wiley and Sons
GRI . (2011, April, 3). About GRI. Retrieved on April 3rd, 2011 from:http://www.globalreporting.org/Home
Khandelwal , C,M. (2008). Social Accounting. Pointer Publishers
Volosin, Ecaterina. (2008). Environmental Accounting. GRIN Verlag
Financial Accounting Theory 2e by Deegan. input output The world has been changed from To How What is sustainable cost? "A cost that maintains the Earth's capital" Gray 1992 What ''Earth's capital" mean? Sustainable natural capital like ozone.
Substutable natural capital such as oil.
Renewable natural capital such as water.
Human made capital for example cars. TBL is a reporting which provides information about the economic, environmental, and social performance of an entity. "Elkington 1997" Is it a global issue? who is responsible for creating environmental damages ? Pollution How to fix that as
accountant? Environmental problems and issues
in relation to business Losses of forest cover Air pollution
Overpopulation Loss of Biodiversity Ozone Depletion Nuclear Catastrophe Global Warming CSR is voluntary and self-regulating mechanism
as business monitors and ensures its active compliance whereby business monitors and
ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is the view of how companies manage the business processes to produce an overall positive impact on society which represents a company’s sense of responsibility towards the community and environment in which it operates. CSR provides guidelines for investing entities. 1. The profession
2. Clients, SH, investors and stakeholders.
3. The whole community In fact accounting is inseparable part of the society. Accountants and accounting have vast commitments and obligations toward many parties: what the relation between accounting
and the environment?
why accounting should be supportive
to the environmental issues? “Eco-city” Corporations moving towards greater sustainability:
a. In America: some major producers moved to:
• Use recycled and more environmentally friendly products.
• More efficient manufacturing processes.
• They have reduced their energy and water consumption.
b. Some Timber companies replace any trees they harvest by planting new trees in their place.
As a reward they are allowed to print a logo on their products so people support by purchasing their paper and wood products. Canada, Burnside Park.
Recycling Network Styria, Austria.
Benefits of eco- industrial parks:
• Reduction in energy & material inputs to the industrial system
• Reduction in waste and emissions output from industry
• Helps to generate revenue
• Reduces costs and creates synergy between production and distribution
• Provides cost savings
• Offers flexible responses to regulatory changes
• Enhances the public image of the participating companies
• Early adopters can become new market leaders Examples Calgary – Canada
The researches indicate that Germany have eco- cities
more than any other country in the world. Vauban, Freiburg
GothenburgI in Sweden “Eco-industrial parks” One more thing.. How sustainable development impacts on environment and accounting? • Minimizing the production waste and disposal.
• Better social, economic and environmental atmosphere.
• Sufficient use of resources.
• Reduce the input and production costs.
• Encourage the use of environment friendly and renewable sources of energy.
• Industrial cities facilitate observation of businesses so polluting industries might be closed.
• Encourage planting of trees.
• Reduce wastage of electricity, fuel and food.
• Use of recycled, renewable and clean resources
In Egypt and Saudi Arabia there is tendency of usage wind and sun as a clean source of electricity in industrial cities, new housing projects and new established communities.
• Best use of resources.
• Reduce pollution generating Sectors. According to Bebbington and Gray; there are four schools concern the relation between SD and Accounting:
1. Those who completely ignore the role of accounting to support the environment and society.
2. Those who reduce the sustainability issues to contingent liabilities and impaired assets- not much significant than the last school of literature.
3. Those who offer unpractical managerial solutions as it lacks to any analysis procedures; which tend to be unworthy.
4. Those who adopt the supportive role of accounting to SD although application is a problem. Next.. Marwan BUT And Also Q1: Should companies be forced to report on their environmental impact?
Q2: What is meant by the terms
eco-efficiency and how do
they relate to accounting? Theories of CSR disclosures 1- Legitimacy theory 3- Institutional theory 2- Stakeholder theory It implies social contract in which the firms and businesses agree to perform socially actions in return for letting them trade. Legitimacy theory Stakeholder theory Institutional theory Why corprations might make CSR disclosures? Isomorphism Decoupling normative (ethical) branch
positive (managerial) branch Attempts to explain when corporate management will be likely to attend to the expectations of particular (powerful) stakeholders All stakeholders have the right to be treated fairly by an organisation. Management should manage the organisation for the benefit of all stakeholders and have a fiduciary relationship to all of them. What is the Social and Environmental Accounting? and what is (SER)? Next.. Rayan How does CSR work? "go with the river" "words and actions are different" 1-Introduction