Barriers to Environmental Management Accounting Practices and its Implementation

ONLINE EXAM
(METHDOLOGY AND
PRACTICAL
KNOWLEDGE)

TABLE OF CONTENTS
QUESTION ONE......................................................................................................................................3
a) Barriers to Environmental management accounting practices and its implementation........................3
b) Impact of human rights, environmental, social and governance policies on the organization.............4
QUESTION TWO.......................................................................................................................................4
a) Memo..............................................................................................................................................4
b) Describing drawbacks of balance scorecard........................................................................................5
Question FOUR.........................................................................................................................................6
(a)............................................................................................................................................................6
(b)............................................................................................................................................................8
REFERENCES..........................................................................................................................................9

QUESTION ONE
a) Barriers to Environmental management accounting practices and its implementation
The Environmental management accounting is focused upon gathering the information
that is pertaining organizational impact on environment, utilization of the resources like water
and energy, preventive costs incurred for its protection, investments in respect of environmental
compliance procedures etc. and with the help of these information the internal decision making is
done by the management. But there are certain barriers to the implementation of these
environmental management practices which are:-
 Financial barriers:- The financial barriers are posing slow implementation of the
environmental management accounting in the organization because of the resource
constraints like energy, fuel, water etc. and also lack of the availability of alternative
sources. Also the environmental costs that are incurred to prevent and protect the
surroundings are insignificant and shall not be deriving returns for the company (Latan,
and et.al., 2018).
 Attitudinal barriers:- The attitudinal barriers that are associated with the
implementation of the environmental friendly practices is the human nature resisting the
change. It is difficult to introduce new policies pertaining to the same as the employees of
the company are resistant towards it. Also the management is with the attitude of
providing less priority to these environmental costs which are only to satisfy the society
and better positioning of the business.
 Informational barriers:- The informational barriers are associated with lack of
knowledge pertaining to the prevention of environment, requirement of high degree
research for generating alternative source of energy, difficulty in allocation of the
environmental costs and the uncertainties in the physical environment.
 Institutional barriers:- There are several institutional barriers associated with
environment protection in relation to the power that is exercised by the shareholders and
the major stakeholders of the company. The shareholders are focused to maximize their
wealth by not incurring much expenses in the protection of the environment. The
institutional pressures are also significantly less as the society at large is not the top
priority of the business.