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The Main Transition Management Issues And The Effects Of Environmental Accounting On Financial Performance– With Focus On Cement Industry

Author

Listed:
  • Csaba FOGARASSY

    (Economist/Engineer; SzentIstvan University; Godollo, Hungary)

  • Éva NEUBAUER

    (Economist; SzentIstvan University; Godollo, Hungary)

  • Hasan MANSUR

    (Doctoral School of Management and Business Administration, SzentIstvan University, Godollo, Hungary)

  • Anita TANGL

    (Economist; SzentIstvan University; Godollo, Hungary)

  • Judit OLÁH

    (Economist/Engineer; Debrecen University, Debrecen, Hungary)

  • József POPP

    (Economist; Debrecen University, Debrecen, Hungary)

Abstract

This article highlights the importance of Environmental Accounting (EA) on financial performance and the extent of its application in cement industry companies in the light of de-carbonization goals. We defined key performance indicators of EA which are ready to be turned from unsustainable to sustainable circular operation. We have categorized them from our proposed sustainable Business Model Canvas into a transition matrix and weighted them by a circular benchmarking model connected to a circularity spiral. We have found, the direct encouragement of Environmental Provisions (EPs), and the standardization of EA within the International Financial Reporting Standards would be beneficial as EA is able to refer to and re-evaluate sustainability gaps in financial language. The main results of the research, that EA occurs at the corporate strategy level, but its application does not really depend on social needs and the sectoral circumstances of the company. Its usage also can be determined by the relationship between the socially negative external marginal costs and the production structure of the firm. EA can reflect positively on the profitability of industrial companies, provided that legislation is available to stimulate companies to take the environmental cost into consideration. Research findings have shown that the dominant factor in government intervention, so in government regulation, is to accelerate the internalization of externalities towards more cost-effective solutions.

Suggested Citation

  • Csaba FOGARASSY & Éva NEUBAUER & Hasan MANSUR & Anita TANGL & Judit OLÁH & József POPP, 2018. "The Main Transition Management Issues And The Effects Of Environmental Accounting On Financial Performance– With Focus On Cement Industry," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2018(31), pages 52-66, December.
    • Handle: RePEc:rom:rampas:v:2018:y:2018:i:31:p:52-66
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    References listed on IDEAS

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    Cited by:

    1. Gergely Tóth, 2019. "Circular Economy and its Comparison with 14 Other Business Sustainability Movements," Resources, MDPI, vol. 8(4), pages 1-19, September.
    2. Árpád Tóth & Cecília Szigeti, 2019. "Example of a German Free-Float Car-Sharing Company Expansion in East-Central Europe," Resources, MDPI, vol. 8(4), pages 1-16, November.
    3. Candy Chamorro Gonzalez & Jesús Peña-Vinces, 2023. "A framework for a green accounting system-exploratory study in a developing country context, Colombia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9517-9541, September.
    4. Eva Benková & Peter Gallo & Beáta Balogová & Jozef Nemec, 2020. "Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    5. Balint Horvath & Miriam Bahna & Csaba Fogarassy, 2019. "The Ecological Criteria of Circular Growth and the Rebound Risk of Closed Loops," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    6. Serhiy Lyeonov & Tetyana Pimonenko & Yuriy Bilan & Dalia Štreimikienė & Grzegorz Mentel, 2019. "Assessment of Green Investments’ Impact on Sustainable Development: Linking Gross Domestic Product Per Capita, Greenhouse Gas Emissions and Renewable Energy," Energies, MDPI, vol. 12(20), pages 1-12, October.
    7. Bogdan Włodarczyk & Daniela Firoiu & George H. Ionescu & Florin Ghiocel & Marek Szturo & Lesław Markowski, 2021. "Assessing the Sustainable Development and Renewable Energy Sources Relationship in EU Countries," Energies, MDPI, vol. 14(8), pages 1-16, April.

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    More about this item

    Keywords

    Environmental Provisions; Environmental Accounting; internalizing externalities; sustainable Business Model Canvas; transition management; circularity spiral.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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