The International Journal o f Accounting and Business Society 21
A c c o u n t a b ilit y a n d E n v ir o n m e n t a l Issues'*
Eko Ganis Sukoharsono
Accounting Department
Brawijaya University
g ree n a c c o u n tin g in In d on esia is n e c e ssa ry for o rg a n is a tio n ’s
a c c o u n ta b ility fu nc tio n a nd sh ou ld be a key c o m p o n e n t in the
c o rp o ra te stra te g ic p ro ce ss. Such a sta nc e req u ire s an a p p ro p ria te
a p p ro a c h in d e fin in g w ha t is e n viro n m e n t re la te d to a c c o u n tin g
a sp ec ts on d e c isio n m a k in g u sefulne ss, a cc ou n ta b ility a nd rele v a n c e o f in fo rm a tio n to u se rs in the b ro a d e r c ontexts.
Introduction
economics performance as well.
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
22 Green Accounting in Indonesia ...
Respectively to the environment phenomena, there has been also much
such im p o r t a n c e . It i s a c k n o w l e d g e d t h a t t h e im p o r t a n c e o f t h e d e b a t e s a n d
concerning these
environment as an
i n v o l v i n g in e n v i r o n m e n t a l r e p o r tin g w i l l g i v e n e w f o c u s in t r a d itio n a l
Vol. 15 , No. 1 , August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
The International Journal o f Accounting and Business Society 23
The Impact Of Governmental Regulations To Corporate Responsibilities In Indonesia
A B u s i n e s s I n t e r e s t in E n v i r o n m e n t a l P e r f o r m a n c e
In h is 1 9 9 2 te x ts , G r e e n R e p o r tin g , D a v id O w e n ( 1 9 9 2 ) s ta te s :
‘T h e p a s t c o u p le o f y e a r s h a v e s e e n g r e e n is s u e , o r ....a c o n c e r n w ith
c o n s c i o u s n e s s a n d s u b s e q u e n tly th e p o litic a l a g e n d a in a b ig w a y . It is a ls o b e c o m in g in c r e a s in g ly a p p a r e n t t h a t e v e r
c h a ll e n g e f o r b u s in e s s . N o t o n ly d o b u s in e s s e s h a v e to c o m p l y w ith a w h o le h o s t o f e n v ir o n m e n t a l r e g u l a ti o n s a n d la w , b u t th e y m u s t a ls o a s s u r e t h e i r s ta k e h o ld e r t h a t th e y a r e e n v ir o n m e n t a ll y f rie n d ly . T h is a s s u r a n c e to s t a k e h o l d e r m a n d a te s th a t c o r p o r a ti o n s c o m m u n ic a t e th e ir e n v ir o n m e n ta l a c tiv itie s . O n e o f f e w e s t
The Industrial Development Concerning Global Environmental Issue
Several w o r r ie s grow
e n v ir o n m e n ta l s ta n d a r d u s e d b y w e s te r n /r ic h e c o n o m i c s c o u n tr i e s a s a n e x c u s e to b u ild n e w tr a d e b a r r ie r s s u c h e c o - la b e llin g , a n ti- tr o p ic a l t im b e r c a m p a ig n ,
Vol. 15, No. I, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
24 Green Accounting in Indonesia ...
IS O 1 4 0 0 0 , e tc ., w h ic h lim ite d th e m a r k e t a c c e s s f o r I n d o n e s i a ’ e x p o r t
c o m m o d itie s , i f I n d o n e s ia n g o v e r n m e n t a n d b u s in e s s p a r tie s d o n o t s h o w th e i r r e s p e c tiv e ly e f f o r ts to d e v e lo p o r to a d a p t a d v a n c e t e c h n o l o g y f o r m o r e c le a n p r o d u c tio n p r o c e s s in in d u s tr ie s .
G e n e r a lly , b u s in e s s p a r tie s still h o ld o n o ld e c o n o m i c s p r in c ip le s th a t is m in im iz in g c o s t to r e a c h h ig h e s t p r o fits . T h is o r ie n ta tio n m o re s o u n d to
c la s s ic b u s in e s s e th ic th a t s h o u ld to b e b u ilt fro m t h e i r b a s ic w a y o f th in k in g . M o s t o f n e w in d u s tr ia l c o u n tr ie s i n c lu d in g I n d o n e s ia , e n v ir o n m e n ta l p r e s e r v a tio n a w a r e n e s s c u ltu r e h a s n o t g r o w n u p v e r y w e ll, e s p e c ia lly its
c o r p o r a te r e s p o n s i b il it y to m a in ta in o r c r e a te b e tte r e n v ir o n m e n t.
Strategies of Clean Industrial Development.
" E n d o f P ip e / E O P ” A p p r o a c h T h is a p p r o a c h e m p h a s i z e o n h o w to m a n a g e w a s te s o c c u r r e d a s th e e f f e c t o f in d u s tr ia l a c ti v it ie s m o s tly to e n c o u r a g e th e m to n o t t o p o llu te th e e n v ir o n m e n t. In s e v e r a l o c c a s i o n s th e e n d o f p ip e m e th o d c o n ta in s m a n y d is a d v a n t a g e s lik e
e x p la in e d b e lo w :
( 1 ) P e n g o la h a n lim b a h c a ir , p a d a t a ta u g a s m e m ilik i r e s ik o p in d a h n y a p o lu ta n
d a ri s u a tu m e d ia k e m e d ia la in , d im a n a d a p a t m e n im b u lk a n m a s a la h lin g k u n g a n y a n g s a m a g a w a tn y a , a ta u b e r a k h ir s e b a g a i s u m b e r p e n c e m a r a n s e c a r a tid a k la n g s u n g p a d a m e d ia y a n g s a m a .
(2 ) W a la u p u n tid a k s e tin g g i b ia y a r e m e d ia s i k e r u s a k a n l in g k u n g a n , p e n g o la h a n lim b a h m e m e r lu k a n b ia y a t a m b a h a n p a d a p r o s e s p r o d u k s i, s e h in g g a b ia y a p e r s a tu a n n a ik . H a l ini j u g a m e n y e b a b k a n p a r a p e n g u s a h a e n g g a n m e n g o p e r a s ik a n p e r a la ta n p e n g o la h a n lim b a h y a n g m e r e k a m ilik i.
( 3 ) P e n d e k a ta n p e n g e n d a lia n p e n c e m a r a n m e m e r lu k a n b e r b a g i p e r a n g k a t p e r a tu r a n , s e la in m e n u n tu t t e r s e d ia n y a b ia y a d a n s u m b e r d a y a m a n u s ia y a n g h a n d a l d a la m j u m a l h y a n g b e s a r d a n m e m a d a i u n tu k m e l a k s a n a k a n
p e m a n ta u a n , p e n g a w a s a n d a n p e n e g a k a n h u k u m . L e m a h n y a k o n tr o l s o s ia l, t e r b a ta s n y a s a r a n a d a n p r a s a r a n a , s e r ta k u r a n g n y a j u m l a h d a n k e m a m p u a n t e n a g a p e n g a w a s m e n y e b a b k a n h u k u m tid a k b is a d ite g a k k a n .
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research
Postgraduate Program, Brawijaya University
The International Journal o f Accounting and Business Society 25
( 4 ) P e n g e m b a n g a n te k n o lo g i p e n g o la h a n lim b a h tid a k m e n d o r o n g u p a y a k e a ra h pengurangan
kurang m e n ja n jik a n p e m a n f a a t a n lim b a h le b ih j a u li. ( e ) T e k n o lo g i r e t r o f i t d a p a t g a g a l b e r f u n g s i a ta u s a n g a t b e r f lu k tu a s i d a la m
i m p le m e n te d th r o u g h clean technology or low and no-waste technology th a t is n o w to b e th e f o u n d a tio n o f Clean Production Programme. This concept is m o re s u p e r i o r in m a n a g in g p o llu tio n c o n tr o l c o m p a r e w ith “ e n d o f p ip e "
a p p r o a c h th a t s o m e o f th e d is a d v a n ta g e s h a v e b e e n e x p la i n e d a b o v e . T h e w o r d s “ c le a n p r o d u c t” w a s in tr o d u c e d to c a p tu r e n e w a p p r o a c h in p r o d u c tio n p r o b le m s t h a t c o v e r p r o d u c tio n p r o c e s s , p r o d u c t life c y c le , a n d
c o n s u m p t io n p a tte r n t h a t m a in ta in th e p o s s ib ility to fu lf ill th e b a s ic h u m a n need
w i t h o u t d i s t u r b in g o r d a m a g in g e n v ir o n m e n t as
a p la c e of
d e v e lo p m e n t a c tiv itie s . C le a n p r o d u c t c a n b e a ls o m e a n t a s o p e r a tio n a l
a p p r o a c h t o w a r d s p r o d u c tio n s y s te m d e v e lo p m e n t a n d c o n s u m p t io n b a s e d o n p r e v e n tio n a p p r o a c h to e n v ir o n m e n ta l p r e s e r v a tio n . T h e r e a r e tw o im p o r ta n t m a tte r s th a t s h o u ld b e p e r c e iv e d in p r e v e n tio n approach: ( 1 ) E n v ir o n m e n ta l e f f e c t fro m p r o c e s s in g , p r o d u c t life c y c le , a n d e c o n o m ic s
e n v ir o n m e n t a ll y f r ie n d ly c h e m ic a l s u b s titu te c o m p o s i ti o n to th a t s tu ff.
4R Management
Vol. 15, No. I, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
26 Green Accounting in Indonesia ...
T o in c r e a s e e f f i c i e n c y p r o c e s s , p r o d u c t a n d c o n s u m p t i o n p a ttern r e la t e d w it h e n e r g y u s i n g a n d r a w m a t e r ia ls a r e t h e fir st k e y t o o p e r a t e c le a n p r o d u c t io n c o n c e p t . T h e s e o p e r a t io n a l s t e p s h a v e a c l o s e c o n n e c t i o n w it h
more s o p h i s t i c a t e d / a d v a n c e t e c h n o l o g y th a t f a s te r , b e t te r , l e s s p o llu t i o n a n d l e s s
be h e ld by changing
c e r t a in
manufacture
equipment w it h
1 ) R e d u c e o r r e t r e n c h m e n t , w h ic h r a is e t h e q u e s t io n s w h e t h e r g o o d s o r
services can reduce and make water & energy resources more efficient.
product w h ic h
the s u s t a in a b le d e v e lo p m e n t p r o g r a m m e . S u c h a s m a k in g t h e r e p la c e m e n t s u b s t a n c e o f C F C o r c h l o r o f lu o r o c a r b o n t o H C F o r h y d r o c h lo r o f l u o r that
and support
Green Consumerism
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The International Journal o f Accounting and Business Society 27
e n v ir o n m e n ta l c o s t to p r o d u c tio n c o s t in w h ic h lo g ic a lly r a is e r a is e th e p r ic e a n d th e y b u r d e n it to c o n s u m e r ’ s h o u ld e r . A c c o r d in g to p r e v io u s r e s e a r c h , c h e a p p r ic e is still th e m o s t a tt r a c tiv e f o c u s to th e c o n s u m e r , a d d e d b y t h e i r lo w q u a lity o f k n o w le d g e to c e r ta in c h e m ic a l c o m p o s itio n th a t g iv e s e r io u s ly b a d e f f e c t to th e e n v ir o n m e n t , m a k e th e w h o le th in g c o m p lic a te d . F o r e x a m p l e , th e r e a re m a n y c o m p a n y s till u s e d b o r a x a n d m a n y f o r b id d e n c h e m ic a l s t u f f in fo o d p r o d u c tio n , i f th e c o n s u m e r k n o w a b o u t it th e w o u l d n ’t b u y it, b u t th e fa c t is th e
c o m p a n y s till r u n a n d p r o d u c e t h o s e t h in g b e c a u s e th e m a r k e t s till r e c e iv e it.
A c tu a lly th e c o n s u m e r h a s s tr o n g a n d s tr a te g ic p o s itio n in th e s e m a tte r a s “ m a r k e t d e c is io n m a k e r ” . T h e ir p u r c h a s e c a p a b ility w o u ld b e c o m e a g r e a t v o ic e th a t h a s to b e lis te n e d , s o th e p r o d u c ts d e v e lo p m e n t in m a r k e t a re d e c id e d b y th e
c o n s u m e r w h e t h e r th e y w o u ld b u y it o r r e je c t a n d th e w o r s e b o ic o t it, lik e it
a lr e a d y h a p p e n e d in m a n y w e s te r n c o u n tr ie s .
It s h o u ld b e a d m i tt e d t h a t in I n d o n e s ia , “ g r e e n c o n s u m e r m o v e m e n t ” still r e m a in s n e w . O u r s o c ie ty s till p u t a v e ry little a tte n tio n a b o u t it, b u t it c o u ld be u n d e r s to o d , c a u s e g e n e r a lly e n v ir o n m e n ta lly f r ie n d ly a r e m o re e x p e n s i v e th a n th e re s t. A n d in m y o p in io n g o v e r n m e n t s h o u ld h a s c e r ta in p o lic ie s to th e
c o m p a n y w h o s e t h e i r p r o d u c t a re n o t ta k in g e n v ir o n m e n t a ll y d a m a g e s , w o u ld r e c e iv e d i s c o u n t o r in c e n tiv e s in ta x a tio n . A t th e o t h e r s id e w h o k n o w s it c a n r e d u c e p r o d u c tio n c o s t a n d m a k e s t h e i r p r o d u c ts c h e a p e r a ls o e a s y to a c h ie v e b y th e c o m m o n p e o p le .
Corporate Environmental Responsibilities
a. Environmental Responsibility
T h e p h r a s e “ e n v ir o n m e n ta l r e s p o n s ib ility ” h a s d if f e r e n t m e a n in g to
d i f f e r e n t p e o p le . F o r s o m e , it m e a n s c o m p ly in g w ith la w s a n d r e g u la tio n s r e l a tin g to p o llu tio n , w a s te d is p o s a l, a n d o t h e r e n v ir o n m e n t a ll y is s u e . F o r o th e r s , e n v ir o n m e n ta l r e s p o n s ib ility m e a n s s tr iv in g to w a r d s u s ta in a b le
d e v e lo p m e n t.
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
28 Green Accounting in Indonesia .
physical assets. Regardless
b. The Connection between Quality and Environmental Responsibility
T h e c o m p a n y a ls o n e e d s to r e c o g n iz e m a n y o f h i g h - q u a lity p r o c e s s e s th a t a re c o n s is t e n t w ith e n v ir o n m e n ta l r e s p o n s ib ility , w h ic h a re :
Vol. IS, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The International Journal o f Accounting and Business Society 29
CHARATER1STICS OF HIGH-QUALITY PROCESS
• O u t p u t s a tis f ie d p r o c e s s c u s to m e r •
O u t p u t m e e ts s p e c if ic a tio n lim its •
T h e r e is lo w v a r ia b ility in p r o c e s s a c tiv itie s •
e n v ir o n m e n t a l r e s p o n s ib ility . W h e n o u tp u t m e e ts c u s t o m e r s ' n e e d , f e w e r p r o d u c t s a r e r e p a ir s a n d r e tu r n s in r e s o u r c e s a n d e n e r g y s a v in g s . W h e n p r o c e s s e s .tre m o r e e n e r g y e f f ic ie n t a n d le s s w a s te f u l, th e y a re m o re
c o m p a t ib l e w ith th e n a tu r a l e n v ir o n m e n t. B u t d if f ic u l ti e s c o m e a lth o u g h m a n y a s p e c ts o f q u a lity a re c o m p a tib le w ith e n v ir o n m e n ta l r e s p o n s ib ility ,
a c o m p a n y ’s p e r f o r m a n c e u s u a lly is m e a s u r e d in t e r m s o f p r o fits . T h e r e f o r e , c o m p a n i e s w ill b e m o tiv a te d to u n d e r ta k e e n v ir o n m e n ta l p r o je c ts a n d m a n u f a c tu r e e n v ir o n m e n ta lly f r ie n d ly p r o d u c t i f th e p r o je c t
a n d p r o d u c t im p a c t o n p r o fit f a v o u r a b ly . M o s t U S c o m p a n i e s p r e s e n tly
h a v e r e c o g n iz e d th a t h ig h e r q u a lity r e s u lts in h ig h e r p r o f its . T h e r e a r e tw o r e a s o n s . T h e F irs t is h ig h e r q u a lity r e s u lts in le s s s c r a p a n d lo w e r r e w o rk
c o s ts , le a d in g to h ig h e r p r o fits . T h e s e c o n d is h ig h e r q u a lity r e s u lts in a la r g e r m a r k e t s h a r e w ith c o r r e s p o n d in g h ig h e r p r o f its . W h e n q u a lity im p r o v e m e n ts r e s u lt in le s s w a s te a n d lo w e r e n e r g y u s a g e , o n e w o u ld
e x p e c t p r o f its to in c r e a s e . A s tu d y o f th e q u a lity p r a c t ic e s a t g lo b a l m e t a ll u r g i c a l, in c ., a M a lc o lm B a r d r ig e N a tio n a l Q u a lity A w a r d W in n e r ,
c o n f i r m s t h is e x p e c ta tio n :
“ ...G lo b e h a s v ir tu a lly e lim in a te d o u t - o f - s p e c if ic a t io n s h ip m e n ts . I m p r o v e d c o n s is te n c y o f m a n u f a c t u r in g o p e r a t io n s h a s in c r e a s e d p r o d u c tio n a n d r e d u c e e n e r g y
c o n s u m p t io n , a b ig c o s t s a v in g f o r G lo b e . A s a r e s u lt o f q u a lity im p r o v e m e n t a n d w a s te r e d u c tio n , G lo b e
c u t c o s ts b y $ 17 M illio n s - o r 1 5 % o f s a le s r e v e n u e -
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research
Postgraduate Program , Brawijaya University
Green Accounting in Indonesia ...
f r o m 1 9 8 6 to 1 9 9 0 . A n d th e c o m p a n y e x p e c t s $ 4 M il l io n s in s a v in g th is y e a r ” ( G o r e , 1 9 9 2 : 3 4 2 ).
A c tiv itie s s u c h a s m in im iz in g w a s te , i m p r o v in g q u a li ty , c o n s e r v in g
c. Waste Management.
B u s in e s s a n d in d u s tr ie s r e a liz e d th a t th e m o v e m e n t o f g r e e n
c o n s u m e r is m , p r o - n a tu r e a n d o th e r e c o lo g ic a l c o n s u m e r s b e h a v io u r
c a n im p a c t t h e i r b u s in e s s a c tiv itie s . B u t still th e y a s s u m e th a t th e
a p p li c a t i o n s o f g a s f ilte r a ir p o llu tio n in fa c to ry c h im n e y - s h a f t , w a s te t r e a tm e n t f o r s o lid a n d liq u id p o llu ta n t a re c o n s id e r e d a s c a p ita l b u r d e n
a n d e x tr a v a g a n t to b u s in e s s c o m m u n ity . E f f o r ts to r e c y c le d w a s te s
e le m e n ts , w a s te d e p o s it a n d p o llu ta n t e v e n o t h e r s tr a te g i e s h a v e b e e n ta k e n t o m a n a g e e n v ir o n m e n t r e s e r v a tio n , it s e e m s to o c o m p le x a n d
h a rm th e b u s in e s s p r o g re s s . H o w e v e r b e y o n d t h o s e f e a r n e s s , s o m e v a lu a b l e a d v a n ta g e s a w a it f o r th e m . In o t h e r c o u n tr i e s it h a v e b e e n proven
e f f ic ie n c y , c u ttin g o p e r a tio n a l c o s t a n d r e la tiv e ly p o llu tio n fre e . T h e
e a r ly process of m a n u f a c tu r e fin d th a t 15 u n til 2 0 tim e s c h e a p e r th a n m a n a g e d it a t th e
e n d o f p r o d u c tio n . M e a n w h ile , w a s te m a n a g e m e n t in s to r a g e lo c a tio n s w o u ld c o s t 2 0 u n til 5 0 tim e s m o re e x p e n s iv e th a n h a n d le th o s e w a s te in s o u r c e . S o , to g e t a d v a n ta g e fro m th is p r e v e n tiv e s tr a te g y , th e in d u s tr ie s m u s t r e q u e s tio n in g t h e i r q u a lity o f p r o d u c tio n s m e c h a n is m
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The International Journal o f Accounting and Business Society 31
2. P r io r ita s yang
d a ri sebuah proses
merangsang k e g ia ta n la in n y a ( r e d e s ig n ) . S e m p r o ta n g a s , u a p d a n a s a p y a n g d i k e ta h u i m e n ja d i s u m b e r p o lu s i
m e m p r o d u k s i d a y a lis trik , s is te m p e n d in g in a ta u p e m a n a s .
3. P r io r ita s y a n g m e n g u b a h b e b e r a p a p r o s e s b a k u d e n g a n la n g k a h
menerus ( r e m o d if ic a tio n ) . S tr a te g i ini p a d a g ilir a n n y a a k a n m e n a m p ilk a n j e n i s p e r a la ta n y a n g irit e n e r g i f o s il, h e m a t s u m b e r a ir d a n p e lr u t in d u s tr i, s e rta e fis ie n
c o n s is ts d i s tin c t s e g m e n t : S o c ia l, E c o n o m ic , P o litic a l a n d T e c h n o lo g y T h e e n v ir o n m e n t c o n s is ts o f a n a lm o s t u n lim ite d a m o u n t o f in f o r m a tio n .
Vol. 15 , No. /, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
32 Green A ccounting in Indonesia ...
in c lu d in g f a c t, tr e n d is s u e a n d id e a s . E a c h o f t h e s e s e g m e n ts r e p r e s e n t s a
f o c u s e d a r e a o f in f o r m a tio n , a p o r tio n o f w h ic h is im p o r ta n t a n d r e le v a n t to th e b u s in e s s ” ( F a h e y a n d N a r a y a n a n , 1 9 8 6 : 2 8 - 2 9 ).
A c c o r d in g to th e m , e x te r n a l e n v ir o n m e n t d iv id e d in to f o u r d if f e r e n t b u t in te r la c e d s e g m e n ts w h ic h o f te n ly c a lle d a s m a c r o e n v ir o n m e n t. S o c ia l r e s p o n s i v e n e s s s tr a te g y w a s c o n s tr u c te d b y f ir s tly c o ll e c t i n g a ll p o s s ib le in f o r m a tio n a n d p u ttin g th e m in f r a m e w o r k o f e n v ir o n m e n ta l in f o r m a tio n
w h ic h h a s a f u n c tio n a s a n in p u t s o u r c e re la te d to a n y e x te r n a l m a tte r s o c c u r o u ts id e th e c o m p a n y . S e v e ra l s te p s n e e d to b e ta k e n a r e d o i n g e n v ir o n m e n ta l
a n a ly s is th a t its p r o c e s s c o n s is t : e n v ir o n m e n ta l s c a n n in g , e n v ir o n m e n ta l m o n ito r in g , e n v ir o n m e n ta l f o r e c a s tin g a n d a s s e s s m e n t.
“ Scanning m e n c a k u p p e n g a m a ta n te r h a d a p s e m u a p a n g s a u n tu k m e n d a p a tk a n a ta u m e n e m u k a n p e r u b a h a n - perubahan
k e m u n g k in a a n p e r u b a h a n di m a s a d e p a n . Monitoring menyangkut
terhadap p e r is ti w a - p e r i s t i w a y a n g te r ja d i, j u g a t e r h a d a p a r u s k e g ia ta n y a n g te r ja d i. M e la lu i m o n ito r in g d ih a r a p k a n
d e n g a n is y a r a t y a n g b e n a r. Forecasting m e .y a n g k u t u p a y a m e n c a r i ta h u h a l- h a l y a n g d ip e r k ir a k a n a k a n te r ja d i d i m a s a d e p a n . F o r e c a s tin g d ila k u k a n p a d a d u a
j a l u r , y a itu j a l u r te n ta n g h a l- h a l y a n g m a s u k k a te g o r i
expected
d a n j a l u r t e n ta n g h a l- h a l y a n g m a s u k k a te g o r i
unexpected. A k h ir n y a , scanning , monitoring dan forecasting m e n g h a s ilk a n
d in ila i d a n d ita f s ir k a n u n tu k d a p a t m e n e n tu k a n b e r a p a ja u li trend y a n g d ib u tu h k a n itu d a n p e r k e m b a n g a n n y a
b e r p o te n s i u n tu k m e m p e n g a r u h i d a n b e r d a m p a k b a g i p e r u s a h a a n b e r s a n g k u ta n ” ( A d n a n p u tr a , 1 9 9 3 : 16).
Vol. IS, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
The International Journal o f Accounting and Business Society 33
6 . E n v ir o n m e n ta l p r o te c tio n ( S to n e , 1995: 9 7 )
E c o - e f f ic ie n c y h a s a d e f in itio n i.e. b u s in e s s m a n a g e m e n t th a t is a im to in c r e a s e e c o n o m ic a l a n d e c o lo g ic a l e f f ic ie n c y w h ic h f o c u s e d o n m in i m i z in g th e u s a g e o f r a w m a te r ia l, w a te r , e n e r g y a n d e n v ir o n m e n ta l
e f f e c t p e r u n it p r o d u c t in m a n u f a c tu r in g p r o c e s s . A c tu a lly , w a s te is u n u s a b le r a w m a te r ia l a t th e e n d o f p r o d u c tio n p r o c e s s a n d c a s te d o u t ( u s e l e s s & t h r o w n a w a y ) . R e d u c in g a n y p a rt o f o u t c a s t e d ra w m a te ria l w ill m in im iz e t h e q u a n tity o f w a s te a n d d e c r e a s e th e r is k s o f d a m a g i n g th e
e n v ir o n m e n t a l. T h e u s a g e le s s w a t e r a n d e n e r g y p e r u n it p r o d u c t w ill a ls o m in im iz e t h e e n v ir o n m e n ta l d a m a g e s . D e c r e a s in g o u tc a s te d r a w m a te ria l le a d to b i g g e r p a r t o f r a w m a te r ia l u s e d a t th e o f p r o d u c tio n p r o c e s s . It m e a n s in c r e a s i n g p r o d u c tio n e f f ic ie n c y . I f e f f i c i e n c y r a is e d , lo g ic a lly it w o u ld r e d u c e c o s t o f m a n u f a c tu r e p e r u n it p r o d u c t. In t h is w a y e c o
e f f i c i e n c y d im in is h e d e n v ir o n m e n ta l d a m a g e s a n d c o s t o f p r o d u c tio n at th e s a m e tim e .
E c o - e f f ic ie n c y is in c r e a s in g ly b e in g s e e n a s in h a r m o n y w ith m a in s tr e a m ( g r o w th - o r i e n te d ) e c o n o m ic th r o u g h , w e s te r n c a p it a l i s m , fre e m a r k e t e c o n o m i c s y s te m . It m a y c h a lle n g e o u r c r e a tiv ity a n d m a n a g e m e n t s k ills , b u t n o t o u r b a s ic a s s u m p tio n s , v a lu e s , lif e s ty le , a n d p r e v a ilin g
Vol. 15, No. I, August 2007 © Centre fo r Indonesian Accounting and Management Research
Postgraduate Program , Brawijaya University
Green Accounting in Indonesia .
1. I n te r - g e n e r a t io n a l e q u ity ( h o ld in g th e s c a le o f e c o n o m y c o n s is te n t w ith th e r e g e n e r a tiv e a n d a s s im ila tiv e c a p a c i ti e s o f g lo b a l life s u p p o r t s y s te m ).
The demand
f r ie n d ly product in
f a c to r. In g lo b a liz a tio n te r m in o lo g y th is s tr a te g y is m o r e f a v o u r a b le i f it is a p p lie d in lo n g te r m s tr a te g y th a n in s h o r t o r in m id d le te r m . T h e r e a re s e v e r a l r e a s o n s w h y th e m a n a g e r s s h o u ld ta k e s h o u ld ta k e r e s p o n s ib ility s te p s to o p e r a te e c o lo g ic a l p r in c ip le s in th e ir c o r p o r a te m a n a g e m e n t. A c c o r d in g to W in te r in h is b o o k , Eco-management
The
Elm wood Guide to Ecological Auditing and Sustainable Business , s ta te d
( 1 ) K e b e r la n g s u n g a n H id u p M a n u s ia , T a n p a k e s a d a r a n p e r u s a h a a n b e r w a w a s a n e k o lo g i, k ita tid a k d a p a t mencapai
kesadaran ekonomi
b e r w a w a s a n e k o lo g is , k e b e r la n g s u n g a n h id u p m a n u s ia b e ra d a d a k in ,
b a h a y a. (2) Konsensus Umum,
Vo 1 .
15, \ o , /, \ ugust 2007
0 C entre f o r Indonesian A ccounting a n d M an agem en t Research Postgraduate P rogram , B raw ijaya U niversity
The International Journal o f Accounting and Business Society 35
T a n p a k e s a d a r a n p e r u s a h a a n b e r w a w a s a n e k o lo g i, tid a k a k a n a d a k e s e p a k a ta n d e n g a n m a s y a r a k a t b is n is , ta n p a k e s e p a k a ta n s e m a c a m itu , e k o n o m i p a s a r a k a n b e r a d a p a d a b a h a y a p o litik .
b a n y a k p e lu a n g p e n g u r a n g a n b ia y a y a n g h ila n g . ( 6 ) I n te g r ita s P e r s o n a l. Tanpa
c o n s id e r / a w a r e e c o lo g ic a l f a c to rs . M a k in g th e c o m p a n y b e h a v io u r w a lk s to th a t d ir e c tio n , it n e e d e d th e c h a n g in g in th e w a y o f th in k i n g a n d n e w p o in t o f v ie w f o r th e m a n a g e r s , t h a t is fro m e x p a n s io n s to c o n s e r v a tio n ; f ro m q u a n tity to q u a lity ; f ro m d o m in a ti o n to p a r tn e r s h ip .
Vol. 75 , No. I , August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
36 Green Accounting in Indonesia .
F u r th e r t h e w a s te i t s e l f w ill c r e a te / i n c r e a s e s o c ia l c o s t a s a c o n s e q u e n c e o f p o llu tio n o n e n v ir o n m e n t d a m a g e s .
R e g a r d in g to a ll th a t m a tte r s a n IS O ( I n t e r n a ti o n a l S ta n d a r d O r g a n iz a ti o n ) w h ic h it h e a d q u a r te r s in G e n e v a , in 1 9 9 3 f o r m e d a T e c h n ic a l C o m m itte e c a lle d T C 2 0 7 , w h ic h h a s a s p e c ia l a s s ig n m e n t to
h a n d a c c e p t in g “ d irty p r o d u c t’’ m a k e s its a “ p o llu tio n h a v e n t o r d e v e lo p
of such
in te r n a tio n a l m a r k e tin g s tr a te g ie s th ro u g h n a tio n a l a n d in te r n a tio n a l n e g o ti a ti o n , in o r d e r to s tr e n g th e n its b a r g a in in g p o s itio n in in te r n a tio n a l tr a d e u n d e r IS O 1 4 0 0 0 .
IS O 1 4 0 0 0 is n o t in te n d to n o n - ta r if f b a r r ie r o r c h a n g e th e la w r e i n f o r c e m e n t n e e d to o b e y . N e x t, IS O 1 4 0 0 0 c a n b e a p p lie d to a ll t y p e s in o r g a n i z a t i o n s s c a le . In o r d e r to r e a c h th e o b je c tiv e s a n d e n v ir o n m e n ta l t a r g e ts , s o id e a lly th is c o n c e p t s h o u ld b e s u p p o r te d b y th e u s e d o f th e b e s t
p o llu tio n c o n tr o l te c h n o lo g y a v a ila b le . < T C 2 0 7 d e v e lo p e d s ta n d a r d s th a t a p p lie d in IS O 1 4 0 0 0 , it c o v e r e d :
e n v ir o n m e n t a l m a n a g e m e n t s y s te m , e n v ir o n m e n ta l a u d itin g , e c o - la b e llin g ,
e n v ir o n m e n ta l p e r f o r m a n c e e v a lu a tio n s , life c y c le a n a ly s is , te r m a n d
d e f i n i ti o n s ( J e b a r u s , 1 9 9 6 : 6 8 ).
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The International Journal o f Accounting and Business Society 37
ISO 14000 Standard
Guideliness and Specification of A p p r a is a l o f P r o d u c t “ L if e C y c l e ”
E n v ir o n m e n t a l M a n a g e m e n t ISO 14041-44 ISO 14000-001
E n v ir o n m e n t a l
E n v ir o n m e n t a l
Product A u d it S t a n d a r d !
E n v ir o n m e n t a l ! E n v ir o n m e n t a l L a b e l l in g
Performance (Ecolabelling) ISO ISO 14020-24 ISO 14000-012
Source : Power (1995: 30-32)
T h e a p p li c a t io n o f I S O 1 4 0 0 0 is a im t o a c h i e v e b e tt e r e n v ir o n m e n t a l p e r f o r m a n c e t h r o u g h t h e a p p li c a t io n o f e n v ir o n m e n t a l m a n a g e m e n t s y s t e m e f f e c t i v e l y s u p p o r te d b y c e r t if ic a t io n s y s t e m , in o t h e r w o r d t h is
I S O 1 4 0 0 0 t o t a l ly in t e g r a t e d e n v ir o n m e n t r e s p o n s ib i l it y a n d e v e r y d a y
activity of corporate management.
consumers w h ic h
of commencing
Environmental Management System (EMS)
A n e n v ir o n m e n t a l m a n a g e m e n t s y s t e m e m p h a s i z e s p r e v e n t io n o f a d v e r s e
e n v ir o n m e n t a l e f f e c t s ra th er th a n d e t e c t io n a n d r e p a ir m e n t a f te r p o llu t io n
happened. T o w a r d t h is e n d , t h e s y s t e m s h o u l d make it e a s ie r f o r an
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
38 Green Accounting in Indonesia ...
need to be conducted
to B r itis h Standard-7750,
organization^ existing or purposed activities, product or services;
2 . I d e n t if y a n a s s e s s o f e n v ir o n m e n t a l e f f e c t s a r is i n g f r o m in c id e n t s ,
a c c id e n t a n d p o t e n t ia l e m e r g e n c ie s s it u a t io n ; 3 . I d e n t if y t h e r e le v a n t r e g u la t o r y r e q u ir e m e n ts ;
4 . E n a b le p r io t ie s t o b e id e n t if ie d a n d p e r t in e n t o b j e c t i v e s a n d t a r g e t t o
be set;
6 . B e c a p a b l e o f e v o lu t i o n t o s u it c h a n g i n g c ir c u m s t a n c e ( B r it is h
members of the legal,
the organization’s v a r io u s f u n c t io n a l ,
p r o c e s s , a n d a c t i v i t y d e p a r t m e n ts .
Activities would included
Vol. 15, No. 1, August 2007 © Centre f o r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The International Journal o f Accounting and Business Society 39
T h e r e ’ s a w i d e o p p o r t u n it y f o r a c c o u n t a n t s t o i n v o l v e in im p l e m e n t i n g
E M S in t h e ir c o m p a n y , a n d s o m e w a y s t h e y c a n e n c o u r a g e t h e f ir m t o m e e t
those objectives.
e c o n o m i c im p a c t o n t h e o r g a n iz a t i o n in e f f e c t N o . 1 A c c o u n t a n t c a n h e lp a s s e s s t h e la tter. O b j e c t iv e N o . 4 r e f e r s t o p r i o r it iz in g e n v i r o n m e n t a l o b j e c t i v e s , w h ic h is u n r e a s o n a b le t o d o w it h o u t t h e c o s t s a n d b e n e f it s o f a lt e r n a t iv e s . A c c o u n t i n g s h o u ld b e part o f t h e t e a m th a t is in v o lv e d in t h is p r o c e s s . In a d d it io n , t h e
e x p l a in e d “ o t h e r b e n e f it s o f in s t a lli n g a n E M S b e s id e c o m p a n i e s c a n a v o i d fu tu r e e n v ir o n m e n t a l p r o b l e m s , t h e y c a n r e d u c e c o s t o f p r o d u c t io n . H e t o ld that w h e n h e v i s i t e d o n e o f e n v i r o n m e n t a l in S in g a p o r e , “ t h e r e is a b ig c o m p a n y t e s t if i e d t h a t t h e y c a n s a v e U S $ 41 M illio n a n n u a lly b y f o l l o w i n g E M S sta n d a r d .
resources for next generations”.
Eco-labelling
In r e c e n t c l i m a t e o f lib e r a li z a t io n , I n d o n e s ia w i l l s a v e a g r e a t e r a m o u n t o f im p o r t e d g o o d s a n d s e r v i c e s , c o m p e t i n g w ith d o m e s t i c p r o d u c ts . T h e r e f o r e , th e q u a lit y o f p r o d u c t d e m a n d in g b y d o m e s t i c a n d o v e r s e a s c o n s u m e r s h a v e
c h a n g e d . M e a n w h i l e , e x p o r t r e g u la t io n s f o r t h e p r o d u c t f ro m I n d o n e s i a a n d o th e r d e v e l o p i n g c o u n t r ie s w i l l s h o r t ly r e q u ire “ g r e e n l a b e ll in g ” . T h is m e a n s that in te r n a tio n a l c o n s u m e r s d e m a n d s fo r in t e r n a tio n a l p r o d u c t h a s g r o w i n g m o r e
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
40 Green Accounting in Indonesia ...
A lth o u g h e c o la b e l m a in ly d ir e c te d to r e a c h e n v ir o n m e n ta l o b je c tiv e s , t h e r e ’s p o s s ib i li ti e s th a t s o m e d if f ic u ltie s c o u ld b r in g e f f e c t o f in te r n a tio n a l tr a d i n g to a n u m b e r o f d e v e lo p i n g w h ic h m ig h t b e th o u g h t t h a t e c o la b e ll in g is a
n e w v e r s io n o f non ta riff barrier. S e v e ra l lo g ic a l r e a s o n s c a n b e e x p o s e d f u r t h e r :
( a ) E c o b e llin g c e n d e r u n g le b ih m e m p e r h a tik a n k e b ija k a n lin g k u n g a n
In 1995 a p p r o x i m a t e ly 2 0 p r o g r a m s o f E c o la b e llin g h a v e b e e n c o n s tr u c te d b y 16
c o u n tr ie s . D r a f t o f n a tio n s a n d n a m e o f e c o la b e ll in g p r o g r a m m e a r e ; Ecomark ( J a p a n , I n d ia , a n d S o u th K o r e a ), Environmental Choice ( C a n a d a , N e w Z e a la n d ,
A u s tr a lia , S w e d e n ) , Green Mark ( T a iw a n ) , Green Label ( I s r a e l, S ) n g a p o r e ) , Austrian Ecolabel ( A u s tr ia ) , Green Seal, SCS, and Smart Wood ( th r e e o f th e m fro m A m e r ic a ) . Blue Angel (Germany), NF-Environmental (France), Stiching Meliukeur ( N e th e r la n d ) , European Flower (EU) and Environmentally Friendly
( K r o a s ia a n d th e re s t o f th e w o r ld ) ( S a id i, 1 99 5: 8 3 )
W ith s im p le in te r p r e ta tio n , it c a n b e s a id th a t th e im p a c t o f e c o la b e ll in g in
I n d o n e s ia is : w e w ill s e ll in lo w e r q u a n tity w ith lo w e r p r ic e b e c a u s e w e h a v e 'u n d e r s t a n d a r d ’ p r o d u c ts , i f w e c o u ld n o t m e e t w ith th e e n v ir o n m e n ta l s ta n d a r d o f p r o d u c t a p p lie d in im p o r te d c o u n tr ie s . T h e d if f e r e n c e o f s ta n d a r d u s in g
ta riff barrier th a t h a s its s p e c if ic m e a s u r e m e n t in q u a n tif y in g .
a m o n g t h o s e c o u n tr i e s m a k e e c o la b e ll in g b ia s a n d u n c le a r , c o m p a r e w ith
L o o k in g th r o u g h th e d e v e lo p m e n t o f e c o la b e llin g tr e n d in m a n y c o u n tr ie s , it s e e m s im p o s s ib le f o r I n d o n e s i a ’ in d u s tr y a n d b u s in e s s in te r e s t to ig n o r e s u c h m a tte r s . In a lo n g te r m , in te r n a tio n a l t r a d in g c o m m u n ity w ill d e m a n d in g
e c o la b e l a s a n e w in te r n a tio n a l s ta n d a r d o f q u a lity a n d th e im p le m e n ta tio n o f IS O 1 4 0 0 0 is h a rd to b e a v o id e d .
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The International Journal o f Accounting and Business Society 41
Life Cycle Analysis and Assessment (LCA)
usage and
use/ re-use / m a in t e n a n c e ; r e c y c lin g ; fin a l d is p o s a l.
and
d is tr ib u tio n ;
T h is a p p r o a c h a ls o k n o w n a s ‘ fro m Cradle to Grave ” w h ic h is u s e d to m e a s u r e d th e e n v ir o n m e n t im p a c t o c c u r r e d f ro m in p u t u s a g e u n til w a s te d is p o s a l in e v e r y
lin e p r o d u c tio n p r o c e s s a n d v a r io u s c o n s u m p tio n , i.e. s in c e d e s ig n o f p r o d u c t w a s m a d e , m a n u f a c t u r e p r o c e s s , in d u s tr y w a s te t r e a tm e n t s y s te m u n til o n h o w th e c o n s u m e r c o n s u m p t th e o u tp u t. It c a n b e im a g in e d to g e t c e r tif ic a tio n o f
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
42 Green Accounting in Indonesia ...
A n o v e r v i e w o f L C A a n a l y s is : a s im p l if i e d f r a m e w o r k .
INPUT OUTPUT
W a t e r E f f lu e n t
Energy > Airborne Emission
S o l id a n d H a z a r d o u s
Water Wastes
-> Usable Product
Adapted from Rob Gray (1993: 169)
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
The International Journal o f Accounting and Business Society 43
USES OF LIFE CYCLE ANALYSIS
Information to external parties • shareholder, reimpact of their investment; • consumers to assess product; • pressure regarding a product’s aand organization’s environment
impact; • policy maker concerning environmental impact of product; • other interested parties, for example : ethical investor, eco-label,
regulatory bodies, eco-audit regulatory bodies. Informations fo r external parties
• Establish comprehensive baseline information on product's overall
resources, reqqquirement and emission; • help determine priorities for environmental care action, • provide managers with information to set target and measure;
environmental-related performance; • guide product development; • provide a basis for advertising claims and public relations exercises; • BS 7750, • as part of the supplier audit process; • aid in the selection of the best practical environmental operation
(BPEO)
A d a p te d fro m S E T A C A T e c h n ic a l f ra m e w o r k f o r L ife C y c le A n a ly s is ( 1 9 9 1 ) Source : Gray (1993: 174)
Environmental Auditing (Eco-Audit)
e n v ir o n m e n ta l r e s p o n s ib ility to r e la te d c o m p a n y o r in d u s tr y .
Vol. 15, No. 1, August 2007
V Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
44 Green Accounting in Indonesia .
T h e la u n c h i n g o f e n v ir o n m e n ta l a u d itin g w a s s tim u la te d o c c u r r in g th e
c h e m ic a l p o llu tio n d i s a s t e r in j u s t la s t d e c a d e , th e le a k o f M e th y l I s o ly a n a te a t a U n io n C a r b id e p e s ti c id e p la n t in B h o p a l, In d ia , 1 9 9 4 , k illin g 4 ,0 3 7 p e o p le ; th e r e le a s e o f r a d i o n u c li d e s b y a m is m a n a g e d R u s s ia r e a c to r w ith a m a tu r e fue l s u p p ly a t C h e r n o b y l in U S S R , k illin g t h ir ty - o n e p e o p le in 1 9 8 6 ; a n d th e r e le a s e o f 2 5 0 ,0 0 0 g a llo n s o f c r u d e o il fro m g r o u n d in g o f th e
Exxon Valdez in 1 98 9
illu s tr a te c a ta s th r o p e f a ilu r e s o f in d u s tr ia l p r o c e s s to c o n ta i n s p o llu ta n ts . Y e t p o llu tio n
R e g a r d in g to a v o id s u c h o f te r r ib le d is a s te r o c c u r in th e f u tu r e , th e e c o - a u d it p r o g ra m w a s d e v e lo p e d to fu lfill th e r e q u ir e m e n t o f c o r p o r a te e n v ir o n m e n ta l s ta n d a r d .
o f B ritis h
I n d u s tr y
(C B 1 ) (1989)
c o n s tr a in t; th e e f f e c ts o n th e n e ig h b o r in g c o m m u n ity ; l a n d s c a p e a n d e c o lo g y ; a n d th e p u b l i c ’s p e r c e p tio n o f th e o p e r a tio n c o m p a n y in th e lo c a l a r e a ...E n v ir o n m e n ta l a u d it
d o e s n o t s to p a t c o m p lia n c e w ith le g is la tio n . N o r is it a 'g r e e n - w a s h i n g ' p u b lic r e la tio n s ...R a th e r it is a to ta l s tr a te g ic a p p r o a c h to th e o r g a n iz a tio n a c tiv itie s
Vol. 15, No. 1, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program , Brawijaya University
The International Journal o f Accounting and Business Society 45
Major Element in an Environmental Audit or Review
• identity the most important of the organization’s environmental interactions; • assess the degree of environmental impact; • learn about how to deal with and reduce or improve the
organization’s impact; • identifying a priority list of interactions to be dealt with this will develop, in part, from the first two and in part in response to actual and potential changes in law and society’s attitude;
• establish standards and policies; • identify responsibilities;
• train staff; • change practices and put policies into action; • develop environmental information systems; • monitor performance and performance appraisal; • assess performance against standard; • reappraise this list, starting from the top, on systematic and
continuing basis.
A d p a te d fro m G r a y ( 1 9 9 3 : 8 8 ) T h e c o n s e q u e n c e s o f s e v e r a l w e a k n e s s e s in la w e n f o r c e m e n t c o n c e r n in g
e n v ir o n m e n ta l la w , s u p p o r te d b y u n c o m m o n ly e c o - a u d it p r o g r a m m e a m o n g in d u s tr ia l s o c ie ty , w e b e c o m e a w itn e s s o f m a n y p o llu tio n a n d in d u s tr ie s w h ic h p u t th e i r e n v ir o n m e n t a l o b lig a tio n s a t th e b o tto m lis t o f p r io r itie s . B u t i f th e
lib e r a liz a tio n s y s te m a n d f re e tr a d in g e r a ta k e p la c e a n d m a n y f o re ig n
e n v ir o n m e n ta l a u d it o r w o u ld c o m e to I n d o n e s ia , th e r e w ill b e a b ig p o s s ib ility a lo t o f in d u s tr ie s f in d t h e m s e lv e s in g r e a t d i f f ic u ltie s o c c u r r in g p e n a lty .
In s u s ta i n a b l e d e v e lo p m e n t , th e r e is a m o tto : “Produce more , with less resources , with less energy and with less waste".
E n te r in g t o n e w m ille n n iu m , t a r i f f b a r r i e r w o u ld d i s a p p e a r a n d th e w o r ld w o u ld b e c o m e g lo b a l m a r k e t.
B e s id e s f ro m c o n s u m e r s p e r s p e c tiv e , e n v ir o n m e n ta l a u d it s o o n e r o r la te r w o u ld
b e a n e w d e m a n d in t r a d i n g m a r k e t. W e h a v e to p r e p a r e it e a r l ie r a n d s o c ia liz e d th e e c o - a u d it t o w a r d c le a n in d u s tr y in o r d e r to in c r e a s e c o m p e t it iv e a d v a n ta g e o f o u r p r o d u c t a g a in s t g lo b a l m a r k e t.
Vol. IS, No. /, August 2007 © Centre fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
46 Green Accounting in Indonesia ...
It s e e m s th e i m p le m e n ta tio n o f IS O 1 4 0 0 0 w o u ld h a v e n o l o n g e r r e a s o n to b e ig n o r e d , to g e t c e r t if ic a t io n o f IS O 1 4 0 0 0 , th e c o r p o r a te s h o u ld r o le s e v e r a l
i d e n tif ic a tio n s p r o c e d u r e to e n v ir o n m e n ta l a s p e c ts r e la te d w ith e v e r y a c tiv itie s th a t h a v e s ig n i f ic a n t i n f lu e n c e to th e e n v ir o n m e n t. T h e c o r p o r a te s h o u ld r e c o r d ta r g e t a n d o b j e c t iv e s to e n v ir o n m e n t m a tte r s a n d try to p e r f o r m c o m m it m e n t in p o llu tio n p r e v e n tio n p r o g r a m m e . T h e c o m p a n ie s a ls o h a v e t o tra in th e ir
e m p lo y e e s w h o its j o b h a s a d ir e c t n e g a tiv e im p a c t to th e e n v ir o n m e n t. M o r e o v e r , th e c o m p a n i e s s h o u ld c r e a te /r u n th e a u d it s y s te m to c o n f ir m th a t th e p r o g r a m m e h a v e b e e n im p le m e n te d p e rf e c tly .
The Implication of Environmental Accounting And Accountant Role
Concerning Global Environmental Issue
It is c o n ti n u in g o n b r o a d e r a s p e c t o f c o r p o r a te r e s p o n s ib ility th a t h a v e b e e n
e x p la in e d in p r e v io u s d is c u s s io n s . E s p e c ia lly in f a c in g h o w th e e n v ir o n m e n ta l im p a c t s h o u ld b e tr e a te d in g o o d m a n n e r o f c o r p o r a te a c tiv ity .