Reference no: EM132547203

Question - Environmental and Social Accounting

'Environmental protection is becoming a high priority goal' and 'Protecting the Environment is becoming an expression of corporate responsibility'. Businesses have become increasingly aware of the environmental implications of their operations, products and services. Environmental risks cannot be ignored. Poor environmental behaviors have shown real adverse impact on the business and its finances. Thus today, Businesses want to do more, they employ the best available technology within the limits of their economic possibilities to continuously reduce the negative impacts of their business activities on the environment. Adapted from: Langfield, S. (2009). Management Accounting (5ed), pp.900.

(a) Discuss at least two ways in which an increasing general concern for the environment can impact an organizations' performance.

(b) Discuss how environmental management accounting can be used to overcome the shortcomings of traditional management accounting in dealing with environmental costs.