IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 5 2023
DOI: https://doi.org/10.56201/jafm.v9.no5.2023.pg104.119

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Green Cost Accounting, Environmental Economics and Auditing Concepts: Efficient and Effective Utilisation of Natural Resources via Corporate Sustainability and Responsibility Approach

EFUNTADE, Alani Olusegun, FCIB, FCA, EFUNTADE, Olubunmi Omotayo, PhD

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Abstract

The paper explored green accounting, environmental economics and auditing: efficient and effective utilisation of natural resources via corporate economic sustainability and responsibility approach. It is discovered that businesses and academics worldwide agree regarding the benefits of sustainable development (SD). Improving reputation and branding and increasing revenues by reducing costs are the primary strategic objectives of any entity. The content analysis showed that the requirements of green accounting include: expanding corporate social responsibility, production cannot be exempted from environmental protection, the manufacturing of clean products can generate pollution, the external production cost should be internalized, the redesign to improve the product production process and packaging, reducing resource waste and implementing the (Reduce, Recycle, Reuse) 3R policy, lifecycle assessment for all assessments and developing environmentally-friendly products. Green accounting initiatives and strategies for SD comprise the results of a decade research work within an interdisciplinary team of academics, with all concerned about the global crises. Environmental accounting is a comprehensive tool for introducing environmental considerations into business decisions. the introduction of internal environmental costs in the accounting system will help companies make decisions that, in addition to increasing long-term profitability, will improve the environmental performance and, by introducing themselves as the green industry to the capital market, will increase the shareholder’s wealth and will provide an environmental accounting system based on the idea of classical accounting evolution. In this regard, the costs of pollution and their elimination as a function of production or services, along with the profit and the cost of goods and services themselves, are calculated.

keywords:

Green cost accounting, environmental economics, environmental auditing and utilisation of natural resources: corporate sustainability and responsibility approach.

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