Lecture 3

Environmental Accounting

How do we comprehend non-financial info?

• Manage report full costs
• Measurement tools
  • life-cycle assessment
  • make costs viable
• Auditing and Benchmark tools
  • comparison
  • standards
  • extensions
• Control Tools
  • environmental strategy

What are challenges of this micro-level approach to environmentalism

• Manager’s acceptance
• Misreporting
• Data management
• Transparency
• Stakeholder management
• Customer focus/sentiment

How do we find more creative ways to use our resources?

• Example with the using the entire tomato plant instead of just the tomato

Case 3

What are the goals and limitations of the stakeholder inclusive growth model? The main goal is to involve stakeholders to the growth plan of the company.

Pros:

• Sustainable development
• Improving the outlook of the company (amidst scandals)
• Creating innovative approaches to different problems
• Effective finance

Cons:

• Challenges of including stakeholders (stakeholders may not be informed on the company to make decisions)
• Relative power of the stakeholders
• Privatized hospitals in order to prey on employees, was not in the scope of stakeholder’s ideas
• Short term thinking
• Pollution scandals
• Takes years to address these problems
• How exactly are these problems being addressed? Never mentioned

Discuss how accounting systems of measurement and control are applied in the quality programs in TMH and JUSCO to implement TQM (i.e., the Plan-Do-Check-Act cycle).

• KPIs: how do we measure the things in the hospital.
• Customers were unsatisfied with the long waiting times
• Increase the training and technology, we can then improve patient care

Environmental Risks vs Sustainability Risks

• What are risks that occur outside the corporation vs inside the corporation?
• Accidents/fatalities
• Spills
• Natural disasters