Mapping the path to sustainable accounting: a DEMATEL-based analysis of key factors influencing effective extended producer responsibility in the circular economy

Abstract

Purpose

This study aims to assess the factors influencing the effective implementation of extended producer responsibility (EPR) practices within the context of sustainable accounting goals and circular economy principles. It seeks to provide insights into the significance of EPR policies for manufacturing industries striving to enhance their environmental, social and governance performance while ensuring sustainable accounting of their business operations.

Design/methodology/approach

The methodology proposed in this article is based on the decision-making trial and evaluation laboratory (DEMATEL) technique. This approach formulates a structural framework for evaluating influential elements among critical recognized factors. By using DEMATEL, the study examines the interconnectedness between assessed factors through a cause-and-effect diagram, facilitating the integration of EPR into sustainable accounting practices.

Findings

The research findings reveal that the most impactful contributors to sustainable accounting practices of EPR within the framework of sustainable development goals and circular economy are producers, consumers, eco-design, public awareness and the support of local authorities. These findings underscore the importance of considering these factors in implementing EPR and advancing sustainable accounting practices.

Originality/value

This paper contributes to the literature by proposing a DEMATEL-based model for evaluating the factors affecting the implementation of EPR within the context of sustainable accounting goals and circular economy principles.

Citation

Sahu, M., Jee, K., Uddin, F., Sani, A. and Tiwari, S.C. (2024), "Mapping the path to sustainable accounting: a DEMATEL-based analysis of key factors influencing effective extended producer responsibility in the circular economy", Journal of Accounting & Organizational Change, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAOC-01-2024-0043