Institutional Accountability for True Green

• Autores: Fahrettin Okcabol, Joan M. Hoffman
• Localización: Advances in Public Interest Accounting, ISSN 1041-7060, Volume 28, 2015, págs. 123-160
• Idioma: inglés
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• Resumen

  • Abstract There is growing apprehension about climate change and the role played by fossil fuels. Exploration of renewable sources of energy as an alternative to fossil fuels reveals that there is no path forward toward a true green economy that does not have negative environmental side effects. Thus, the improvement of managerial and financial accounting to provide more environmental information and accountability by governmental and nongovernmental institutions is increasingly important in guiding us toward wiser choices. Since the 1970s, the increasing concerns about the environment in the United States have led to improved regulation and more comprehensive environmental reporting requirements and accounting standards. Also, global institutions have been created to foster voluntary reporting of both direct and indirect environmental impacts of their activities by institutions. However, evidence suggests that, while some large global firms have found it useful to engage in sustainability reporting throughout their operations, in general, the US organizational environmental reporting is not strong and is oriented toward the legal minimum when present. If we are to take account of the many direct and indirect ways in which our production choices affect our environment, then our institutions need to play a larger role in informing our choices. Both the Environmental Managerial Accounting Initiative and an enhanced balanced scorecard approach are recommended as frameworks for future efforts; public and private institutions must also include life cycle analysis in decision-making systems in order to enhance their ability to help achieve sustainable economic progress.