ACC3200 Chapter Notes - Chapter 4: Management Accounting, Environmental Resource Management
14 Jun 2018
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Management Accounting Chapter 4 Notes
The benefits of recognising environmental and social impacts
• Management accountants have often been too busy identifying
financial impacts of decisions to take on the additional difficult task of
measuring environmental and social performance and preparing
decision-making information that addresses environmental and social
issues.
• In addition, many accountants may believe that their role is to create
value for major stakeholders, and not for the broader community.
• However, many organisations and their accountants are increasingly
now acknowledging the broad consequences of their behaviour,
including their impacts on the wider community.
• Many managers now accept that social and environmental
responsibility is important to the long-term sustainability of their
organisation.
Benefits
There are great benefits in recognising, managing and reporting
environmental and social impacts.
• These include attracting and retaining highly skilled employees who
wish to work for a responsible employer
• Enhancement of the organisation’s reputation as a responsible and
caring organization
• Identification of potential cost savings
• Reduction in the risk of current and future activities
