Environmental Accounting Challenges of Selected Manufacturing Enterprises in Bangladesh

Abstract

Considering the importance as well as potential problems of environment issues, it needs more analysis of relevant factors for future course of actions. Environmental Accounting is called green accounting. This paper made on Challenges of Environmental Accounting Practices in Bangladesh on most polluted 16 selected enterprises in Chittagong during the period 2018. The main objective of the study is to specify the environmental accounting challenges in selected manufacturing enterprises in Bangladesh. The study is based on primary data. Primary data were collected by questionnaire and expert opinion. Questionnaires were prepared based on study objectives. Collected data were processed manually and with help of the Computer software. The study highlights some critical challenges to implement environmental accounting in manufacturing enterprises in Bangladesh. The perception of respondents about the Challenges are: cost involvement, lack of skilled manpower, lack of set rules about environmental accounting, inadequate environmental accounting standard, low adoption of environmental accounting, no specific principles of environmental accounting etc. The average mean score of challenges is 2.47 in the scale of 3. The study also tries to forward some recommendations to overcome the challenges. It is to be recognized that the accountants have a key role in environmental accounting and reporting.

Environmental Management Accounting System and Value Creation: An institutional perspective

“…The management barrier comes mainly from the lack of encouragement from management, lack of environmental accountability, and no proper environmental strategic plan that has been incorporated in business decision-making (Hossain, 2019;Jamil et al, 2015). In addition, the top management was also hesitant to manage environmental costs and do not want accountability for consuming natural resources when there is no incentive to address environmental matters.…”

“…Top management's resistance to change is a crucial obstacle to adopting environmental initiatives (Mohamed & Jamil, 2018;Jankovic & Krivacic, 2014). Organizations accumulate environmental costs such as electricity and water in an overhead account (Hossain, 2019;Doorasamy, 2016). The top management also does not motivate to manage the environmental cost (ACCA, 2018).…”

Emerging Issues in Management Accounting: Digital Technologies, Governance, and Sustainability

“…Meanwhile, business practitioners have continuously criticized it because it doesn't match the radical changes. To practice the relevancy with the current management accounting practices and better cater to the environmental accounting issues while practicing sustainability, it has become evident to consider digital technologies and governance practices (Hossain, 2019). Doorasamy (2015) debated those continual changes in the environment accounting practices have enhanced the challenges accountants and people practicing auditing as a profession while the governmental regulations, monitoring, and sanctions continue to drive the changes for the organizations.…”

An in-depth look at the status of environmental financial accounting in Mexico from the point of view of stakeholder theory: myth or reality?

“…The drawbacks for the implementation of EFA vary depending on the country; this could be a direction for further studies on the subject. For instance, manufacturing companies in Bangladesh need to have specific environmental accounting principles before they can implement EFA (Hossain, 2019). In Ecuador, the lack of terminology has been an obstacle for its development in agricultural companies (Vilela, 2017).…”