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Achieving a Sustainable Business: The Role of Environmental Management Accounting in Corporate Governance

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  • Kwame Oduro Amoako
  • Emmanuel Opoku Marfo
  • Eric Nsiah Gyabaah
  • Kofi Owiredu-Ghorman

Abstract

This paper establishes the relevance of Environmental management accounting (EMA) as an inevitable system for ensuring effective corporate governance. In contemporary business, corporate leaders globally stress on ensuring the interest of stakeholders through diverse means of which the use of Environment management accounting systems could be adopted for that purpose. Reluctance in handling environmental issues could culminate into huge financial loss to organizations in terms of environmental or other opportunity costs. It could also be the source of loss of goodwill on the part of stakeholders which can spell huge consequences for the entity’s business relationships resulting into governance problems. Consequently, the paper suggests that there are several reasons by which environmental management accounting becomes inevitable in the corporate governance process. It further concludes that Environmental management accounting provides information to the CEO that enables companies improve upon their environmental performance which impacts on effective corporate governance. The paper finally suggests specific areas for future research in relation to EMA and corporate governance.

Suggested Citation

  • Kwame Oduro Amoako & Emmanuel Opoku Marfo & Eric Nsiah Gyabaah & Kofi Owiredu-Ghorman, 2017. "Achieving a Sustainable Business: The Role of Environmental Management Accounting in Corporate Governance," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 11-20, October.
  • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:4:p:11-20
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    References listed on IDEAS

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    5. Ilinitch, Anne Y. & Soderstrom, Naomi S. & E. Thomas, Tom, 1998. "Measuring corporate environmental performance," Journal of Accounting and Public Policy, Elsevier, vol. 17(4-5), pages 383-408.
    6. Wei Qian & Roger Burritt & Gary Monroe, 2011. "Environmental management accounting in local government," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(1), pages 93-128, January.
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