Today industries have become more aware of the environmental and social liabilities pertaining to their operations and products as the environmental issues has risen significantly during the past two decade. Environment management accounting (EMA) has being acknowledged by numerous businesses. The major incidents happened in Bhopal chemical leak (1948) and the Exxon Valdez oil spill (1989) has attracted worldwide media attention. For example, key environment issues have increased in worldwide such as global warming, climate change, deforestation, ozone layer depletion, and others. This make the whole nation country of people’s very worry about the current situation (ACCA Global, n .d.).
In the view of company, the benefit of using EMA is cost …show more content…
The company reputations can be improved by arising from good citizenship behavior and from offering environmentally friendly products. EMA can help company reduce the risks of consumer boycotts by providing information on social and environmental issues (Adams, 2002). Next, EMA help to empowers stakeholders to assess the environmental performance of company conduct their activities. EMA helps companies to experience improvements in their reputation and also competitive advantage in the market (Adams, 2002; King, 2002). Thus, the company and stakeholder acquire benefits from using …show more content…
It provides benefits to the company and shareholder. To make sure the business implementing the EMA, the company should clearly understand what EMA is, and what EMA can impact the environment issues.
Environmental costs and discussion of two examples
One of the major areas for the application of Environmental Management Accounting (EMA) is calculating costs. Every organization define environmental cost in vary meaning. (Shane, 2004) However, in 1998 US Environmental Protection Agency provided a definition for EMA, they stated that the definition of environmental costs depended on how an organization intended to use the information. US Environmental Protection Agency distinguish environmental costs into four categories:
• Conventional costs
• Potentially hidden
In the view of company, the benefit of using EMA is cost …show more content…
The company reputations can be improved by arising from good citizenship behavior and from offering environmentally friendly products. EMA can help company reduce the risks of consumer boycotts by providing information on social and environmental issues (Adams, 2002). Next, EMA help to empowers stakeholders to assess the environmental performance of company conduct their activities. EMA helps companies to experience improvements in their reputation and also competitive advantage in the market (Adams, 2002; King, 2002). Thus, the company and stakeholder acquire benefits from using …show more content…
It provides benefits to the company and shareholder. To make sure the business implementing the EMA, the company should clearly understand what EMA is, and what EMA can impact the environment issues.
Environmental costs and discussion of two examples
One of the major areas for the application of Environmental Management Accounting (EMA) is calculating costs. Every organization define environmental cost in vary meaning. (Shane, 2004) However, in 1998 US Environmental Protection Agency provided a definition for EMA, they stated that the definition of environmental costs depended on how an organization intended to use the information. US Environmental Protection Agency distinguish environmental costs into four categories:
• Conventional costs
• Potentially hidden