Environmental Accounting as a Tool for Environmental Management System

Arumugam Seetharaman · Mohd Sobre Ismail · A.S. Saravanan

30 citations0/0 files storedJournal of applied science and environmental management

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Accounting and Financial Management Quality and Management Systems Environmental Sustainability in Business

Abstract

This paper reviews about the relationship of environmental accounting and environmental management system in order to determine the sustainability of organization. In past, the traditional approach ofoperations management has been used to evaluate an organization’s performance based on cost, quality and profit without giving due consideration in preserving the environment. It also identified the lack of awareness and interest by organization about environmental preservation distinguish the context for environmental management needs in developing and newly industrialized countries compared to western countries. However, the growing awareness andpressure by community, customer, and stakeholders has forced the organization to accept the introduction of environmental protection measures into their organization. The integration of environmental accounting into EMS will be served as a self-regulatory compliance to legal and regulation requirement, to reduce cost from customeraudits, better market impression, increase efficiency of resources and the ability to adopt changing circumstances would contribute to the improvement of quality performance and organization’s performance as a whole. Some of the possible benefit from environmental audit also discussed. In this paper, also discusses number of pollution preventionstrategies. It concludes with an emphasis on the use of environmental accounting for continuous improvement in environmental corporate policies and programs by taking into account the regulatory, technical developments, scientific developments, and it must be fully integrated into EMS along with other functional area.

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References

2001Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?2001Corporate environmental strategies and actions 2001Environmental life cycle cost analysis of products 1997Environmental accounting ‐ what does it mean to professional accountants?2002Product quality, environmental accounting and quality performance 2002How chief executives’ perception of the environment impacts on company performance 1999An overview of trends related to environmental reporting in Singapore 2000Environmental cost accounting and auditing

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