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Title: | The application and relevance of sustainability management accounting, sustainability reporting and assurance in the local market : an investigative study |
Authors: | Bonavia, Annabel |
Keywords: | Sustainability Managerial accounting -- Malta Social responsibility of business |
Issue Date: | 2013 |
Abstract: | Purpose: This study investigates what drives Corporate Sustainability (CS) and whether social, environmental and economic costs feature in local companies' Management Accounting Systems and are embedded within their decision-making process. It also assesses the reasons behind providing Sustainability reports and assurance to finally conclude whether there is any present relationship between these two practises and a Sustainability Management Accounting System (SMAS). Design: Semi-structured interviews were initially held with five firms, two of which provided CSR report audits and other consultancy services. This was necessary in assisting with the design of the questionnaire which was later sent out to a confined sample of large and medium-sized companies since from the findings it emerged that CS was synonymous among only the larger category of companies. Findings: Despite the fact that CS is voluntary, a considerable handful of firms have attempted to execute a number of social, environmental and economic initiatives. Regulation compliance and company image proved to be significant drivers towards CS while inevitably; the high cost of implementation was among the reasons for hindering such a practice. As yet, there is no standard method of measuring social, environmental and economic 'costs' and non-financial elements but local companies still have a tendency to account for such costs as overheads. Nevertheless, local companies tend to consider SMAS for proactive decision-making rather seeking such a system within an evaluation framework. Conclusions: Whilst eliciting the importance given to CS, modern society is leading firms to undertake a more holistic approach to it. Indeed, Sustainability reporting and assurance can be somewhat related with the presence of a SMAS, but firms still rely heavily on costs for evaluating business decisions without giving much priority to non-financial facts which also affect performance. This calls for a paradigm shift in mentality towards more strategic thinking, if a company wishes to be more sustainable. Value: Firms are continually seeking ways to achieve a competitive advantage on the market by adopting sustainable strategies and Management Accountants undoubtedly have a proactive role to play in this field. It is hoped that this study will serve as a platform towards the adoptability of a SMAS whilst providing an impetus for further research. Furthermore, it highlights the growing relevance of CS in defining new niches for the service and consultancy business sector. |
Description: | B.ACCTY.(HONS) |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/7380 |
Appears in Collections: | Dissertations - FacEma - 2013 Dissertations - FacEMAAcc - 2013 |
Files in This Item:
File | Description | Size | Format | |
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13BACC011.pdf Restricted Access | 2.1 MB | Adobe PDF | View/Open Request a copy |
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