As a business, being sustainable can reducing company costs.Tags: Essay On The African-American Civil Rights MovementHow To Write A Good Essay For CollegeCover Letter Medical SecretaryHello Kitty Writing PaperWhat Is A Good Thesis Statement For Gay MarriagesExample Of A Conclusion For A Research PaperCapital Punishment Research PaperHow To Write An Abstract For A Dissertation123 Help Essay Writing
Reputation and stakeholder theory go hand in hand when it comes to sustainability, A Stakeholder is a unit of constitutions with a relative stake and claim on the organisation (Freeman, 1984; Pearce, 1982).
Stakeholders are important because some may have significant power over the company (Hill & Jones, 2001).
In saying that, there is still a major trend moving towards sustainability, it is possible to say that essentially all companies will become more sustainable, in one way or another.
Companies who have implemented sustainability are aware of the benefits which comes with being more sustainable, they frequently use management accounting systems to help them observe where, how and why to be more sustainable (" Reasons Businesses Go Green", 2017).
A sustainable business will have a great image and reputation, having a good sustainable business image will result in many advantages (Friendman, 1970).
The main advantage of being a company known to be sustainable is that It will attract ecoconscious shareholders; in the long run, being sustainable will increase the companies share values and ultimately, increase income.Relevant costs will show future profitability and what actions can be taken to reduce these environmental costs.Environmental costs should be viewed either as the costs of environmental protection or as the cost of material and energy flows that could be reduced through an increased level of environmental protection.Unfortunately, there are cons of trying to be sustainable while using environmental management accounting systems.Managers may face an increase in the opportunity cost of environmental protection (Schaltegger & Burritt, 2000).Due to this reason, not all managers choose to include environmental research into the mix as they believe it might cost more.Managers use management accounting to make decisions; to make concise decisions however, they need both relevant and reliable information.This process will enable the business to reduce its staff turnover rate; by hiring eco-conscious staff, the company should be able to provide staff members to allow them to be more sustainable (Schaltegger & Burritt, 2000).An example of maintaining an eco-conscious staff is by establishing special parking zones for staff that wish to bike to work, instead of driving (" Reasons Businesses Go Green", 2017).Many businesses nowadays have started undertaking the implementation of sustainability into their operations; the main question is, why is there a sudden prominence being paid to sustainability, within the business world? A business may have many reasons as to why they may wish to promote sustainability.A manager of a company may feel as though they are morally obligated to help save the environment; therefore, by implementing sustainability he is able to do just that (Friendman, 1970).