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

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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.

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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.

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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 .