Can organizations meet their environment and social reporting obligations even in a financial crisis? Towards an effective sustainability management accounting system

Paper

Petcharat, Nickie and Mula, Joseph M.. 2010. "Can organizations meet their environment and social reporting obligations even in a financial crisis? Towards an effective sustainability management accounting system." Vlasic, Goran and Pavicic, Goran (ed.) 2010 Global Business Conference. Dubrovnik, Croatia 13 - 16 Oct 2010 Zagreb, Croatia.
Paper/Presentation Title

Can organizations meet their environment and social reporting obligations even in a financial crisis? Towards an effective sustainability management accounting system

Presentation TypePaper
AuthorsPetcharat, Nickie (Author) and Mula, Joseph M. (Author)
EditorsVlasic, Goran and Pavicic, Goran
Journal or Proceedings Title2010 Global Business Conference Proceedings
Number of Pages18
Year2010
Place of PublicationZagreb, Croatia
ISBN9789535638506
Web Address (URL) of Paperhttp://www.gbc-dubrovnik.com/
Conference/Event2010 Global Business Conference
Event Details
2010 Global Business Conference
Event Date
13 to end of 16 Oct 2010
Event Location
Dubrovnik, Croatia
Abstract

To achieve sustainable development, organizations need to disclose three areas of performance - economic, social, and environment - to support stakeholders' interests as well as improving internal management decisions. This results in environmental and social cost information that needs to be incorporated in disclosures in the form of a triple bottom line. However, as these costs have been treated as overhead by traditional accounting such activity based costing (ABC) approach, this results in cost information inaccuracies when preparing environmental and social performance disclosures. To overcome some of these deficiencies in current systems, this study develops a conceptual model for a Sustainability Management Accounting System (SMAS) to improve the identification and measurement of environmental and social impact costs. A SMAS also provides companies with a way to improve cost allocation and analysis efficiency thus creating more accurate cost accounting data and meeting their reporting obligations even in hard times. The paper describes preliminary analysis undertaken to date. It would appear that most firms are focusing on reporting externally their social performance more than environmental indicators.

Keywordsactivity based costing; ABC; environmental management accounting; EMA; social management accounting; SMA; sustainability management accounting system; SMAS; global financial crisis; GFC; environmental cost; social cost
ANZSRC Field of Research 2020350103. Financial accounting
350105. Management accounting
350104. International accounting
350107. Sustainability accounting and reporting
Public Notes

No evidence of copyright status, publication status or refereed status.

Byline AffiliationsSchool of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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