Adopting Environmental Accounting for Sustainable Practices

The assignment discusses the importance of considering environmental factors in business operations, highlighting a case where a company's practice of disposing hazardous chemicals into a river has serious consequences. The article suggests that adopting environment accounting practices can enhance accountability and transparency, prevent legal issues, and create a positive green image for the company.

Introduction
Every business operate under the specified business environment and this business
environment wildly and continually affect the operation of business. Hence a smart
business adopt a framework which has duly concern about the various controllable or
non-controllable environment factors. Out of all business environment factors, at
present a natural environment influence the corporate activities in large scale.
Ignorance of natural environment, will create serious issue for business, as it creates
both financial and non-financial burden over the business.
Here in present case we are discussing about the environment accounting and
consequence of ignorance of natural environment under corporate and non-corporate
activities.
Current case
Our company dealing with the hazardous chemical, and the industry is highly
competitive due to high disposables cost of unused Chemical or Chemical that can no
longer be sold. Our warehouse was located near to river, where the numbers of local
people Enjoys swimming during the summer’s days.
One of our particular dangerous chemical had not been sold for a long time, however
it was written down in books of account as zero, and our firm had adopted a practice
to dispose of such hazardous chemical into the near river over a period of time in
small proportion.
Consequence
In the case of The Franklin Dam case, Tasmania, the judicial Authority had taken
following action on finding a guilty to damage natural environment.
The Practice adopted by our firm is not ethical as well as it is ageing the society, if
such practice is track or challenge, with legal authorities than our company is
supposed to face a legal action, legal authority may require our company to
compensate all those local peoples who were suffered from illness, or any type of
health issue. Additionally, legal regulatory required our company to discontinue its
operation, and or can order to shift the warehouse at another location after paying
suitable penalties. (Di Leva, C. (2015).
Such incidence will create a negative impacts over the goodwill and intellectual assets
of our company. Question will rise at future date for association of any stakeholders.
Local peoples and society protest for continues of operation of our firm. Our
company face a difficulties in hearing a reliable and trusted employees, as our firm
had already lost its reputation and many more legal and social issues will arise.

Adoption of Practice for environment accounting
Muninarayanappa & Amaladas, 2014, had identified the importance of saving the
Environment for sustainable development and suggested that Environmental
Accounting should be included in the university curriculum for undergraduate and
postgraduate students of commerce and management. (Anon (2019).
The environment accounting is a corporate practices where reporting entity identifies
resources used by company measure and communicate the costs of company or
natural economic impact on the environment. The environment accounting practice
enhance the accountability and transparency among all interested stakeholders and
help a corporation in preventing legal action by regulatory. (Lee, G. (2009).
If our company adopt the environment accounting practices, this will result into
creation of green image of our firm, image of sustainable practice of our firm, less
legal issue, always suppose form the society and social groups during the critical time.
References
Anon (2019). Retrieved from
https://halshs.archives-ouvertes.fr/halshs-00658409/document
Anon (2019). Retrieved from
https://shodhgangotri.inflibnet.ac.in/bitstream/123456789/2037/1/rl-com-
synopsis.pdf
Anon (2019). Retrieved from
http://iced.cag.gov.in/wp-content/uploads/2013/02/INTOSAI-envr-
aaccounting-current-status.pdf
Di Leva, C. (2015). Climate-Related Standards and Multilateral Finance for
Development. Laws, 4(4), 674-690. doi: 10.3390/laws4040674
Lee, G. (2009). Online and Offline Copyright Infringement in Digital
Environment: An Overview of Korean Case Laws. SSRN Electronic Journal.
doi: 10.2139/ssrn.1656215