Business Transformation Towards Sustainability: The Role of Green Accounting in Sustainability Management

Authors

  • Bunga Soraya Universitas 17 Agustus 1945 Surabaya
  • Aliatus Nurrochmah Universitas 17 Agustus 1945 Surabaya
  • Hwihanus Hwihanus Universitas 17 Agustus 1945 Surabaya

DOI:

https://doi.org/10.47134/jees.v1i3.342

Keywords:

Green Accounting, Sustainability Management, Business Sustainability, Sustainability Reporting, Sustainability Performance

Abstract

Green accounting, as an accounting approach that integrates environmental and social factors into a company's financial reporting system, plays an important role in supporting business transformation towards sustainability. This article aims to explore the role of green accounting in sustainability management and how its application can assist companies in managing and reporting their sustainability performance effectively. Through a review of literature and previous research, it is found that green accounting enables companies to identify, measure and disclose the environmental impacts of their business activities more comprehensively. The integration of green accounting in sustainability management also allows companies to develop more comprehensive sustainability performance indicators, set targets, and monitor progress in achieving their sustainability goals. The implementation of green accounting can increase corporate transparency and accountability, build trust and a better reputation, and increase the competitiveness and value of the company in the long run. This article concludes that the role of green accounting is crucial in ensuring that companies consider environmental and social impacts in their business decisions, and create long-term value for stakeholders while minimizing negative impacts on the environment and society.

References

Adams, C. A., & McNicholas, P. (2007). Making a difference: Sustainability reporting, accountability and organisational change. Accounting, Auditing & Accountability Journal, 20(3), 382–402. http://dx.doi.org/10.1108/09513570710748553

Agarwal, V., & Kalpaja, L. (2018). A study on the importance of green accounting. International journal of advance research, ideas and innovations in technology, 4(5), 206-210.

Bebbington, J., & Gray, R. (2001). An account of sustainability: Failure, success and a reconceptualization. Critical Perspectives on Accounting, 12(5), 557–587. http://dx.doi.org/10.1006/cpac.2000.0450

Bužinskienė, R. (2022). Green Accounting for Sustainable Business. Applied Scientific Research, 1(1), 67-78.

Crane, A., Matten, D., Glozer, S., & Spence, L. J. (2019). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press. http://dx.doi.org/10.1093/hebz/9780198810070.001.0001

Crane, A., Matten, D., Glozer, S., & Spence, L. J. (2019). Framing Business Ethics: Corporate Responsibility, Stakeholders, and Citizenship. In A. Crane, D. Matten, S. Glozer, & L. J. Spence (Eds.), Business Ethics. Oxford University Press. http://dx.doi.org/10.1093/hebz/9780198810070.003.0003

Elkington, J. (1998). Accounting for the triple bottom line. Measuring Business Excellence, 2(3), 18–22. http://dx.doi.org/10.1108/eb025539

Elkington, J. (1999). Partnerships from cannibals with forks: The triple bottom line of 21st-century business. Environmental Quality Management, 8(1), 37–51. http://dx.doi.org/10.1002/tqem.3310080106

Elkington, J., & Rowlands, I. H. (1999). Cannibals with forks: The triple bottom line of 21st century business. Alternatives Journal, 25(4), 42.

Farouk, S., Cherian, J., & Jacob, J. (2012). Green accounting and management for sustainable manufacturing in developing countries. International Journal of Business and Management, 7(20). http://dx.doi.org/10.5539/ijbm.v7n20p36

Ma, J., & Ma, J. (2019). A research review of corporate green accounting information disclosure. IOP Conference Series: Earth and Environmental Science, 310(5), 052071. http://dx.doi.org/10.1088/1755-1315/310/5/052071

Raju, K. K. (2018). Green accounting practices. Indian Journal of Accounting (IJA) Vol, 50(1).

Schaltegger, S., & Burritt, R. L. (2010). Sustainability accounting for companies: Catchphrase or decision support for business leaders? Journal of World Business, 45(4), 375–384. http://dx.doi.org/10.1016/j.jwb.2009.08.002

Tu, J.-C., & Huang, H.-S. (2015). Analysis on the relationship between green accounting and green design for enterprises. Sustainability, 7(5), 6264–6277. http://dx.doi.org/10.3390/su7056264

Yordanova–Dinova, P. (2021). GREEN ACCOUNTING–MANAGEMENT INSTRUMENT OF THE ENTERPISE’S SUSTAINABILITY DEVELOPMENT. KNOWLEDGE-International Journal, 49(1), 127-131.

Downloads

Published

2024-06-19

How to Cite

Soraya, B., Nurrochmah, A., & Hwihanus, H. (2024). Business Transformation Towards Sustainability: The Role of Green Accounting in Sustainability Management. Journal of Environmental Economics and Sustainability, 1(3), 1–8. https://doi.org/10.47134/jees.v1i3.342

Issue

Section

Articles

Similar Articles

You may also start an advanced similarity search for this article.