Research Report: Accounting and Sustainability in Fiji - Issues

This research report focuses on the critical importance of accounting and sustainability practices within Fiji, addressing the challenges of implementation. It examines environmental and social issues, emphasizing the need for sustainable accounting, reporting, and corporate social responsibility to mitigate negative impacts. The report explores the existing problems, including political and economic instability, and the public's limited understanding of environmental changes. It reviews relevant literature on sustainability accounting, corporate governance, and corporate social responsibility, highlighting the underrepresentation of corporate governance in Fijian literature and the need for further research. The research objectives include examining the role of corporate governance, the implementation issues of sustainable accounting and reporting, and the relationship between accounting and sustainable development. The report concludes by emphasizing the need to address environmental degradation, lack of social responsibility awareness, and the integration of sustainability practices in accounting. The research uses the APA referencing system and follows the style guidelines as requested.

Running head: RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
Name of the Student
Name of the University
Author note

1
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
Executive Summary
The aim of the research proposal is to discuss environmental and social issues and why
Sustainable accounting and reporting, along with corporate social responsibility, is essential in
Fiji. The issues that are existing and why execution is difficult to implement.

2
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
Table of Contents
Introduction......................................................................................................................................3
Rationale......................................................................................................................................3
Main Problem..............................................................................................................................3
Literature Review............................................................................................................................4
Research Objectives.........................................................................................................................5
Problem Statement.......................................................................................................................5
References........................................................................................................................................6

3
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
Introduction
The aim of this research is to focus on the importance of accounting and sustainability
and what are the issues in implementation of the same in Fiji. Sustainability accounting and
reporting assists organizations in presenting quantitative and qualitative information regarding
environment management, human resource and capital management. This includes corporate
governance and corporate social responsibility, corporate reporting on the environmental, and
economic performance of firms. It allows organizations to report on their performance with
respect to social matters, health, and safety, along with presenting traditional financial
performance.
Rationale
This type of reporting and accounting is essential and is the need of the hour to mitigate
the negative environmental, governance, and social effects (Albers, 2018). Sustainability
accounting and reporting are important because climate change pretenses a substantial threat to
Fiji’s current and future economic development, environment stability, national security, cultural
practices, and well-being. These threats and their impact on the development of Fiji make it
important to conduct the research and to analyze what are the probable issues. There are very
little research and study on Fiji’s corporate governance practices, and hence more studies should
be carried out.
Main Problem
There is a dynamic change in the world as modernity is scattering worldwide under the
pretext of development and is transforming disaster risk. It raises problems regarding how
disaster risk is varying in such environments. There are environmental issues besides that there
are development issues. The primary issue is that –
Why the public and government do not understand the consequences of neglecting
environmental changes and why they do not understand the importance of such accounting
practice?
Fiji is still struggling with political and economical problems and economy is declining despite
of the severe efforts put by the government. The challenges are due to political instability which

4
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
is being continuing and along with that issues of property right over land. (Kumar & Prasad,
2019).

5
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
Literature Review
Sustainability Accounting and Reporting
As per the previous studies it has been found that sustainability management is a problem
for global businesses, society and researchers. Since it involves creation, implementation and
assessment of decisions and related actions regarding social, economic and environmental
sustainability issues (Starik & Kanashiro, 2013). There has been a concern for business managers
that how they will assist in reducing the effects of business activities on environment. Research
suggests that it can be achieved by creating such business systems, approaches and
methodologies which will lead to creation of value for long-term and development for
sustainability. Organizations that are engaged in SAR are required to communicate every
information on management and performance to stakeholders in connection with sustainability
issues, social environmental and economic matters to exhibit their commitment. Thus, the
requirement for SAR practices by entities has been highlighted in the literature (Schaltegger,
Burritt & Petersen, 2017) and within the last several years this concept in financial reporting is
getting a substantial amount of consideration across the globe (KPMG 2011).
Corporate Governance
Based on the study of three previous papers on corporate governance practices in Fiji it
can be stated that corporate governance on Fiji is underrepresented in the literature. This area
needs to be explored more and more research and studies should be conducted on this topic as it
is an essential constituent of healthy corporate practices (Hossain et al. 2017). A case study
based approach is adopted by Mala and White (2009) to analyze why companies are listed on a
stock exchange in Fiji. It was observed then that Fiji’s corporates are encouraged to get listed by
factors like reputation, enhancing business value and improving managerial practices and
financial factors. It was assessed that the Fiji corporates were focused on listing and other
corporate practices adoption only because of factors like competition, reputation, out of image
consciousness, and to not get into any legal consequences (Sharma & An, 2018). They did not
realize the importance of governance, its necessity, and the true essence of corporate social
responsibility.

6
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
The majority of studies and researches offer an indication of a major and positive
relationship between disclosures on sustainability and financial performances in arrears to
several synergies and benefits. Baumuk (2009) mentioned that the primary advantages of
sustainability reporting are higher demand for the organization’s assistance and a rise in prices of
the stock. In the last few years, researches are based on sustainability reporting and respective
effects on financial performance. Otherwise, before that, it was only about determining the
relationship between Corporate social and financial performance.
Alternatively, it was observed from the review that the theoretical influences that are
stemming from Fijian literature on accounting are comparatively less. Most of the researched
papers did not let to any theoretical contributions, and if by chance, any theoretical contributions
were developed, it only concerned with social or institutional theory. There is a want for further
studies on Fiji in context to critical theorizing or with other relevant theories and approaches.
These are the reasons there is lack of corporate governance (Namoga, 2017).
Research Objectives
The research aims to study the issues in the implementation of sustainable development
accounting, including why the public and government could not understand the importance of
such accounting and role of corporate governance.
The objectives of the research are as follows –
(i) To examine the role of corporate governance, accounting for climate change in Fiji
(ii) To find the issues in the implementation of SAR
(iii) To evaluate the relationship between accounting and sustainable development and
how one impacts the other.
Problem Statement
Environmental degradation, lack of knowledge of social responsibility awareness, no
knowledge of incorporating sustainability practices in accounting are the issues that need to be
addressed (Kumar & Prasad, 2019). Every country and their organizations takes so much from
the environment in the form of resources to operate, to grow economically but then it is their
responsibility to make sure they efficiently utilize the resources without letting any adverse
impact on the environment. The issue is climate change, poverty, unemployment and then also

7
RESEARCH ON ACCOUNTING AND SUSTAINABILITY IN FIJI
public and country do not realize the importance of responsible accounting practices. The issue is
that there are no such researches on accounting and sustainability and corporate social
responsibility and that is why no such influence and encouragement for people.
References
Albers, T. (2018). Fiji’s climate campaign: Small state niche leadership: A Bachelor’s thesis
exploring the leading position Fiji, a small island developing state pursues with regard
to climate change (Bachelor's thesis).
Hossain, M. M., Momin, M. A., Rowe, A. L., & Quaddus, M. (2017). Corporate social and
environmental reporting practices. Sustainability Accounting, Management and Policy
Journal.
Kolk, A., van der Veen, M. L., Hay, K., & Wennink, D. (2002). KPMG international survey of
corporate sustainability reporting 2002.
Kumar, S., & Prasad, B. C. (2019). Fiji's economic woes: a nation in search of development
progress.
Namoga, M. O. (2017). Corporate governance and board performance: empirical evidence from
Pacific Island countries. Cambridge Scholars Publishing.
Schaltegger, S., Burritt, R., & Petersen, H. (2017). An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Sharma, U., & An, Y. (2018). Accounting and Accountability in Fiji: A review and
synthesis. Australian Accounting Review, 28(3), 421-427.
Starik, M., & Kanashiro, P. (2013). Toward a theory of sustainability management: Uncovering
and integrating the nearly obvious. Organization & Environment, 26(1), 7–30