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Financial comparability and environmental diversity: an international context

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  • Pamela Edwards
  • Frank K. Birkin
  • David G. Woodward

Abstract

Accounting and environmental management both hold improved resource‐use efficiency as an ultimate goal, but intermediate processes and objectives vary and consequently it is separately assessed within each discipline. This paper intends to make visible the globalizing trends in accounting practice, which aim to standardize financial reporting to produce comparable information so that shareholders can maximize their economic wealth. This paper seeks to contrast this comparability strategy with the apparent need for diversity in accounting information exhibited by actual accounting practices, the information needs of environmental management and, ultimately, the cultural needs of sustainable development. We argue that a more pluralistic model, that enables a holistic assessment of corporate performance and balances diverse stakeholder objectives, is better suited to an uncertain future. Implementation requires accountants and environmental managers jointly to create and test a new order of reporting. There are many practical challenges but most significantly accountants and environmental managers must combine to enhance the visibility and credibility of these diverse performance measures. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Suggested Citation

  • Pamela Edwards & Frank K. Birkin & David G. Woodward, 2002. "Financial comparability and environmental diversity: an international context," Business Strategy and the Environment, Wiley Blackwell, vol. 11(6), pages 343-359, November.
    • Handle: RePEc:bla:bstrat:v:11:y:2002:i:6:p:343-359
    DOI: 10.1002/bse.342
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    3. Olaf Weber, 2005. "Sustainability benchmarking of European banks and financial service organizations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 12(2), pages 73-87, June.
    4. Shun-Pin Chuang & Sun-Jen Huang, 2015. "Effects of Business Greening and Green IT Capital on Business Competitiveness," Journal of Business Ethics, Springer, vol. 128(1), pages 221-231, April.
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