Question

Explain the different ways in which accounting can be used to support environmental and sustainability concerns. Take care to illustrate you answer by reference to at least one relevant example (from the press, lecture discussions guest lecture etc.)

Answer 1

Finance and accounts is perhaps the only business function which accepts responsibility to act in public interest. Hence, a finance accounting professionals responsibility is not restricted to satisfy the needs of any particular individual or organization. While acting in public interest it becomes imperative that the finance and accounting professional adheres to certain basic ethics in order to achieve his objectives Sustainable accounting is a tool used by organization to become more sustainable.

Following are the ways, how accounting can be used to support environmental concern.

1.Ensuring that employees are aware of their legal and ethical responsibilities :some ethical organizations are having policy to train and motivate employees towards ethical behavior .Companies like Raytheon, texas, Wipro are pioneers in establishing ethical environment .

2.Providing communication system between management and employees :In india,Wipro has introduced a helpline comprising of senior members of company who are available for guidance on any moral, legal issues that an employee of company may face .

3 .Ensuring fair treatment to those who act as whistle blowers :This is perhaps the most important and sensitive issue . Fair treatment to whistle blowers is a basic necessity to check fraud. Some acts must be appreciated .

Eg:With a view to promoting environmental management ,Toshiba Group is working to introduce an environmental accounting approach aimed at collecting accurate data .Total environmental cost decreased by 21% from FY 2015 to 41.5 billion yen.