Search results
1 – 6 of 6
The paper aims to explore the role of management accounting practices as facilitators of the environmental management.
Abstract
Purpose
The paper aims to explore the role of management accounting practices as facilitators of the environmental management.
Design/methodology/approach
A qualitative study involving semi‐structured interviews with environmental and accounting managers from six Spanish factories has been carried out to analyse how four management accounting practices commonly used at operational level – investment appraisals, costing systems, budgets and performance measures – may reinforce the environmental management and guarantee the maintenance of an environmental management system according to the European Community's Eco‐Management and Audit Scheme (EMAS).
Findings
The analysis suggests that management accounting practices operate as a facilitator mechanism for the environmental management by reinforcing the four EMAS significant elements: commitment to the continual improvement of the environmental performance; compliance with environmental legislation; communication with interested parties; and employee involvement. However, evidence seems to support business case arguments since accounting serves a double function: as a facilitator for the environmental management, and as a barrier for a further accountability‐based environmental management.
Research limitations/implications
The study has been developed at plan level, but the influence of the top management might be analysed as well in order to explore how these management accounting practices are translated into upper organisational level.
Practical implications
The analysis helps to understand the complex nature of the business case as different nuances are identified when considering the different practices.
Originality/value
The paper shows how linked to business case arguments, small arena for internal and for external accountability are emerging.
Details
Keywords
Esther Albelda Pérez, Carmen Correa Ruiz and Francisco Carrasco Fenech
The purpose of this paper is to explore the interplay between strategy, environmental management systems and environmental accounting, and their role in improving environmental…
Abstract
Purpose
The purpose of this paper is to explore the interplay between strategy, environmental management systems and environmental accounting, and their role in improving environmental performance.
Design/methodology/approach
By engaging with organisations through field research, this paper analyses the aspects of the European Community's Eco‐Management and Audit Scheme (EMAS), an environmental management system (EMS), that act as catalysts for change through the development of intangible assets that improve environmental performance. Evidence is collected from semi‐structured interviews with environmental managers and management accountants from ten Spanish EMAS registered sites.
Findings
The embedding mechanisms of EMAS are considered. From the analysis, six valuable intangible assets for improving environmental performance were identified: awareness of employees; environmental knowledge, skills and expertise of employees; the commitment of managers; cross‐functional coordination; the integration of environmental issues in strategic planning process; and, the use of management accounting practices. These intangible assets were used to define three levels of environmental embeddedness: primary, visible, and advanced.
Practical implications
This paper provides insights into the interface between environmental management systems and management accounting and the implications of this for organisational change and environmental performance.
Originality/value
This paper contributes to fieldwork research within the environmental accounting literature by engaging with organisations in addressing the question of how EMAS improves environmental performance. Furthermore, it demonstrates that involvement primarily of internal, but also external, participants enhances further development of EMAS.
Details
Keywords
Sabina Scarpellini, Luz María Marín-Vinuesa, Alfonso Aranda-Usón and Pilar Portillo-Tarragona
This paper aims to define and measure the environmental capabilities that are applied when the circular economy (CE) is introduced in businesses. Founded on the dynamic…
Abstract
Purpose
This paper aims to define and measure the environmental capabilities that are applied when the circular economy (CE) is introduced in businesses. Founded on the dynamic capabilities theoretical approach, the study analyzes different environmental competences that firms apply during this process. Environmental management systems, corporate social responsibility, reporting and accountability and other environmental accounting practices are studied in the same analytical framework used to study the environmental capabilities that influence the circular scope (CS) of firms. This study contributes to bridging the gap between academic research focused on environmental accounting and that investigating the introduction of the CE in businesses.
Design/methodology/approach
The results were obtained by using partial least squares structural equation modeling to analyze the relationship between environmental capabilities for the CE and the CS achieved by a sample of Spanish firms with more than 50 employees that expressed interest in the CE, eco-design, eco-innovation and other environmental issues.
Findings
Based on an analysis using the dynamic capabilities theoretical approach, the results suggest a positive relationship between the CS of firms, their environmental accounting practices and their level of corporate social responsibility (CSR) and accountability. Stakeholders’ pressure – which has a mediating effect on the CS of firms – is also analyzed, adding new insights to recent studies of this topic at the micro-level. The authors also explore whether the CS of businesses, which is related to the degree of their development of capabilities, influences environmental and financial performance.
Practical implications
The new insights obtained in this study can help overcome the limitations of conventional accounting approaches and incorporates a much broader scale of environmental information that can be applied to CE practices. These results also offer insights to practitioners regarding the internal measurement processes related to the CE and regarding CSR in particular for small and medium enterprises, because these metrics can be partially applied depending on the practices introduced in each firm. For policymakers, a better understanding of the CE’s introduction into businesses will contribute to the design of policies that can enhance its deployment, for example, by providing tools that set up regional priorities depending on the CE-related practices adopted by the firms located in the territory.
Social implications
A CE involves the transformation of a linear economic model into a circular one to reduce dependence on raw materials and energy and to reduce the environmental impact of production and consumption. Understanding how to manage the specific competences that integrate capabilities applied to the CE will allow firms to improve their social and environmental reporting. In addition, other social implications of this study relate to improving relationships with consumers and stakeholders and to the practice of social corporate sustainability.
Originality/value
This study goes beyond previous research on the CE to extend the authors’ knowledge about its adoption at the micro-level by taking a transversal approach, as its subject spans the fields of environmental accounting and the CE while addressing both in a framework of analysis. The analysis of the accounting concerns of the CE in businesses and the study of concerns related to endogenous environmental competences are quite original under the theoretical framework of dynamic capabilities, and this study is a first step in an incipient line of inquiry.
Details