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The Relationship between Waste Management Expenditure and Waste Reduction Targets on Selected JSE Companies

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  • Thabo Gerald Maleka

    (Africa Centre for Sustainability Accounting and Management (ACSAM), School of Accountancy, University of Limpopo, Sovenga 0727, South Africa)

  • Gibson Nyirenda

    (Department of Financial Accounting, School of Accountancy, University of Limpopo, Sovenga 0727, South Africa)

  • Michael Bamidele Fakoya

    (Africa Centre for Sustainability Accounting and Management (ACSAM), School of Accountancy, University of Limpopo, Sovenga 0727, South Africa)

Abstract

Waste generation and waste management are critical environmental issues faced by countries all over the world. Furthermore, there are greater environmental, economic, and social demands on firms to reduce the environmental impacts due to environmental problems brought about by their operating activities. There is a current debate as to the financial implications of waste management expenditure on waste reduction targets. This study examines the relationship between waste management expenditure on waste reduction targets, and the impact of waste reduction targets on firms’ profitability. This study used the quantitative method that utilizes the multiple regressions method to analyses data from selected South African Johannesburg Stock Exchange’s (JSE) Socially Responsible Index (SRI) listed manufacturing and mining firms for ten years (2007–2016). The study tests if there is a relationship between waste management expenditure and waste reduction targets, as well as the impact of waste reduction targets on firms’ profitability. Results show that waste reduction targets have a positive, but insignificant, correlation on the profitability of firms, and also indicate that there is a relationship between waste management expenditure and waste reduction targets. The study recommends that firms should focus more on minimizing waste generation to reduce costs.

Suggested Citation

  • Thabo Gerald Maleka & Gibson Nyirenda & Michael Bamidele Fakoya, 2017. "The Relationship between Waste Management Expenditure and Waste Reduction Targets on Selected JSE Companies," Sustainability, MDPI, vol. 9(9), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:9:p:1528-:d:110025
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    2. Alice Mazzucchelli & Roberto Chierici & Manlio Del Giudice & Ilenia Bua, 2022. "Do circular economy practices affect corporate performance? Evidence from Italian large‐sized manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2016-2029, November.

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