Made by Group 5: M.

Adam Wirautama (115020300111080) Edwina Liony Putri (115020300111083) Putri Husnah A (115020300111089)

DEFINITION ENVIRONMENTAL ACCOUNTING

Environmental accounting, as defined in these guidelines, aims at achieving sustainable development, maintaining a favorable relationship with the community, and pursuing effective and efficient environmentalconservation activities.

FUNCTIONS AND ROLES OF ENVIRONMENTAL ACCOUNTING

Internal Functions As one step of a companys environmental information system, internal function makes it possible tomanage environmental conservation cost and analyze the cost of environmental conservation activities versus the benefit obtained, and promotes effective and efficient environmental conservation activities through suitable decision-making. External Functions External functions allow a company to influence the decision-making of stakeholders, such as consumers, investors, and local residents.

BASIC DIMENSIONS OF ENVIRONMENTAL ACCOUNTING

Relevance Reliability Understandability Comparability Verifiability

STRUCTURAL ELEMENTS OF ENVIRONMENTAL ACOUNTING

Environmental Conservation Cost Environmental Conservation Benefit Economic Benefit Associated with Environmental Conservation Activities

THE DISCOURSE OF ENVIRONMENTALISM

Elkington covers the 19612001 time frame and describes the first wave, which reached its height with Earth Day in 1970, as a time when there was an understanding that environmental impacts had to be limited. This resulted in an outpouring of legislation and a defensive stance from business. The second wave reached its height with Earth Day 1990 and brought with it the real- ization that new kinds of production and technologies were needed and that business would have to take the lead and be more competitive in this area. The third wave, which begins in 1999, (but does not show its full height according to the time frame provided by Elkington), is seen as a time of growing recognition that sustainable development will require profound changes in the governance of corporations and the role of government and civil society.

ENVIRONMENTAL PHILOSOPHIES

Environmental philosophy in its modern form developed in the late 1960s, the product of concerns arising from diverse quarters: naturalists, scientists and other academics, journalists, and politicians. A sense of crisis and doom pervaded the time, reflecting fears about the Cold War and the threat of nuclear annihilation; this malaise helped to spawn the protest music and countercultural protests of the 1960s.

CORPORATE COMMUNICATION AND DISCOURSE

Discourse is a cultural and social product that serves to construct our social life and recursively produce, re-produce and transform meanings, ideologies and social structures (Fairclough, 1989, 1992; Phillips & Hardy, 2002; van Dijk, 1985). Therefore, a useful way to analyse societal change and changing views of the environment is to analyse public discourse. Public discourse is constituted by an amalgam of diverse and multiple communications. For a corporation to secure a space in the market for green images, it is necessary to adopt the preferred language and terminology.

SOCIAL RESPONSIBILITY DRIVER OF SOCIAL AND ENVIRONMETAL REPORTING

Reporting of corporate social and environmental information has matured over the past decades, but there still remained a lack of adequate standardization. To gain insight into what distinguishes excellence in corporate social and environmental reporting it is useful to examine another reporting model, and in our case is financial reporting model. Millions of individuals make decisions based on these reports. Investors and creditors provide the ultimate endorsement to this form of reporting. Financial reports are much more than booklets written by communications specialists who are fed information and then spin it to make the entity look good. Codes of conduct, governance principles and disclosure rules are moving entities to higher standards of non-financial reporting, including expanded coverage in their financial statements. Economic, environmental and social indicators are appearing with increasing frequency, providing insights into the vision and effectiveness of management in anticipating new risks and opportunities in the marketplace.

GUIDELINES FOR ENVIRONMENTAL REPORTING

In most countries, environmental reporting is entirely voluntary in terms of statute or listing rules. In effect, however, it has become difficult to resist for large companies concerned about their reputations, certainly in highly developed countries in which large companies experience high political visibility. Because it is technically voluntary, companies can theoretically adopt any approach to environmental reporting that they like, but in practice, a number of voluntary reporting frameworks have been adopted. The best known and most common of these is called the Global Reporting Initiative (or GRI).

WHERE DOES ENVIRONMENTAL REPORTING OCCUR?

Environmental reporting can occur in a range of media including in annual reports, in stand alone reports, on company websites, in advertising or in promotional media. To some extent, there has been social and environmental information in annual reports for many years. In more recent times, however, many companies and most large companies have produced a stand alone report dedicated just to environmental, and sometimes, social, issues. These are often expensive to produce, and contain varying levels of detail and information quality.

ADVANTAGES AND PURPOSES OF ENVIRONMENTAL REPORTING

Because of the complex nature of business accountability, it is difficult to reduce the motivations for environmental reporting down to just a few main points. Different stakeholders can benefit from a companys environmental reporting, however, and it is capable of serving the information needs of a range of both internal and external stakeholders. Some would argue that environmental reporting is a useful way in which reporting companies can help to discharge their accountabilities to society and to future generations (because the use of resources and the pollution of the environment can affect future generations). In addition, it may also serve to strengthen a companys accountability to its shareholders. By providing more information to shareholders, the companys is less able to conceal important information and this helps to reduce the agency gap between a companys directors and its shareholders.


The first of these is that environmental reporting is capable of containing comment on a range of environmental risks. The second is that it is thought that environmental reporting is a key measure for encouraging the internal efficiency of operations.

Thank You .