Management Accounting at Organizational Level

Management Accounting at Organizational Level

Introduction

Incentives and demands for the implementation of clear/hygienic production and pollution preventions methods by corporations or businesses have appeared from both the internal and external side. Internally implementing cleaner technologies motivated by the number of efforts to avoid the management cost. To find a way around for uncertainties and constantly changes in regulations. Externally, performance of the corporate environment is increasing inspection day by day, by the public, regulators, financial advisors, and by host communities. To assure and satisfy these external pressure business are modifying and examining the external reporting processes and managerial processes in concerns of internal and societal environment (US. 2001).

The Environmental Management Accounting (EMA) is an important business instrument for creating safe and cleaner processes and to less the waste of material processes in production. Environmental management accounting adopt the change and elaborates the reasons that why a company should engage in prevention of pollution. One of the main reason is making good business and deliver services without any delay and analyzing financial benefits. Even though managerial accounting system traditionally considered as an internal matter of a firm but its potential benefits for social and environment results from environmental management, this tool calls active participation of government and promoting such systems for safety of the world.

Discussion

The main aim of sustainable development is do not to pursue those activities that may threaten the long term safety of this planet and its people (Zadek, 2004). The term sustainable development and sustainability are widely used in business word. Sustainability to develop the operation in a way that it meets present needs without compromising the aptitude of future generation to meet their own needs (US, 2001). Environmental and many other Sustainable issues may affect business numerous ways. Regulators and environmental legislators have made obligatory compliance on business and required to monitor activities and production output more strictly. Business face pressure from government, stockholder, including many dominant group of the community and media.

Accounting sustainability

Sustainability accounting refers to the process of analysis, collections and communication of information related to sustainability. This information is related to or required for corporate sustainability management. It includes the information which is already generated and new coming information, for example, employment law and legal compliance.

The methodologies regarding reporting on the usage of social, environmental and economic resources with sustainability emerged from nature of accounting and from it combined philosophy for management and sustainability (Bennett). Growing shortage of natural resources are the main concern and a big issue now days. Increase in energy costs directly affects the market prices which incite companies to view and review their product processes in order to know and respond risks and cost structures.

New developments based on wholly new system of extension to conventional accounting, depending on the collected relevant information by the company about accounting sustainability. This explicitly or implicitly rely on, in respect of present accounting information systems that companies some time do not completely recognize ...