Areas of Corporate Environmental Accounting and its Practice in Manufacturing Industries: A Study on Some Selected Manufacturing Industries in Bangladesh

Abstract

             Environmental accounting is a new dimension in financial and management accounting. As an inseparable part of society, business firms are also involved in protecting the environment in many ways. The accumulation of such environment protection activities in physical and monetary forms is known as corporate environmental accounting. As anemerging economy, Bangladesh is trying to control the industrial pollution by enacting new laws and regulations. In addition, firms are forced to take these measures by the mainstakeholders such as foreign buyers. This paper investigates the existence of environmental accounting at the micro level. The authors follow case study and observation method to find out the real picture of the firms’ environmental accounting systems. Five top-polluted industries, tannery, paper, fertilizer, textile and paint are examined. Results show that no sample company maintains environmental accounting systems separately. However, all the companies deal with pollution preventive activities and therein lies a degree of environmental accounting. The study proposes a framework of environmental accounting to consider their environmental performance