Accounting and the Environment

Paper Summary:

This paper relates that, in this article, Sami and Bae define the environment that a company needs to create a strong sense of responsibility and profitability for the long-term production. The author points out that this article reflects a growing concern for accounting practices to induce more environmental disclosures for modern corporations. The paper relates that, by finding all available expenses and liabilities within the infrastructure of financial management practices, there can be a greater degree of ethics and long-term profitability for accounting in the future.

From the Paper:

"This article presents a detailed evaluation of the environmental aspects of accounting that must taken into calculations when understanding value and expenses of corporate finances. In this manner, Bae and Sami present findings of the EPA to help business owners and accountants understand how and why environmental standards are important to expenditures and cost values. The basis for this information begins with a cases study they performed through the EPA, which presents an N-probit analysis, which confirms that companies with a high environmental set of costs are more likely to disclose their environmental issues that surround their business."

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