Social And Environmental Accounting

[10] Social and Environmental Accounting: A Practical Demonstration of Ethical Concern? [1995] by M. R. Mathews attempted to relate the development of social and environmental accounting to an expression of ethical concern by the accounting discipline. General concerns about ethical behaviour are not normally included in the preparation of accountants. There are arguments in the favour of widening the definition and practice of accounting to include social and environmental matters, although it is not always clear that these arguments demonstrate ethical concern. The social contract between business and society and provides a strong argument for widening the basis of accounting disclosure to include social and environmental issues. This argument

The development of ethical behaviour will have to rely on the factors other than social and environmental accounting, such as a broader educations for professional, and the setting of appropriate standards of decision making by the people at the top of the organisation.

[16] A paper “Accounting for the environment: Towards a theoretical perspective for environmental accounting and reporting” [2010] published by Michael John Jones tried to provide a theoretical justification for environmental accounting and reporting. For this purpose, a model was constructed which underpinned environmental accounting and reporting. The Model consisted of 5 major parts: Environmental Dangers; Corporate Responsibility; New Relationship between Industry and the Environment; Measure Industry’s Impact; Disclosure and Report

There are two types of sampling techniques under non-probability which are convenience and purposive sampling. The purposive sampling is used to group the Top 100 Company of Market Capitalization as the specific types of respondents that can provide the required information. The data collected is secondary data by receiving the annual report to gather the information regarding the environmental disclosure information of the Top 100 companies of Market Capitalization of year 2011. The measurement of independent variables has been adopted and adapted from the Journal by Razeed (2010). As based on Razeed(2010), the environmental disclosure is simplified by providing the environmental index. The environmental index has been tested by doing pilot test among the group member in order to conclude the way of analysis of the environmental information in the annual report as to ensure the consistency of the data collected between each of the group member. The 10% of the total number of sample has been selected randomly in order to conduct the pilot test which comprises of 10 companies. The information such as Return on Asset (ROA), Earnings per Share (EPS), Return on Equity (ROE) and also profit margin need to exploit in order to measure the financial performance as the data are obtained from Bursa Malaysia which was already being calculated by emailing knowledge centre of Bursa