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Accountability & Corporate Environmental Performance

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Suggestions have been made that the most appropriate mechanism for the linking of accountability and corporate social responsibility for the physical environment is through a demonstration that a positive relationship exists between corporate responsibility and environmental performance. The assumption underlying such suggestions is that the profit motive will cause corporations to adopt and implement policies that protect the physical environment. Unfortunately, empirical research on the relationship between profitability and environmental performance has been inconclusive. Fogler and Nutt (1975) and Rockness, Schlachter, and Rockness (1986) found no significant link between profitability and environmental performance, while Bragdon and Marlin (1972) and Spicer (1978b) found a positive link between the two variables, and Holman, New, and Singer (1985) found a negative link.

Suggestions also have been made that an effective mechanism for the linking of accountability and corporate responsibility for protecting the physical environment is through requirements that corporate performance within this context be disclosed in notes to annual corporate financial reports. The assumption underlying these suggestions is that public knowledge of actual corporate performance with respect to the protection of the physical environment will motivate corporations to adopt and implement policies that protect the physical environment. Again, however, the empirical research conducted in

. . .
ancial accounting practice. ASD, if it is to be of optimal value in linking corporate accountability and corporate environmental performance, must be integrated into business processes that are crucial to the productive operation of corporations. Two research questions were investigated through the conduct of this study. These research questions were as follows: 1. Is incorporating non-market values through ASD into financial accounting analyses in support of commercial bank decision-making processes for the extension of commercial loans feasible from the perspective of financial accounting practice? In essence, the issue concerns the likelihood that such incorporation can occur while maintaining the integrity of both financial accounting and ASD. 2. Will incorporating non-market values through ASD into financial accounting analyses in support of commercial bank decision-making processes for the extension of commercial loans create an effective link between accountability and corporate responsibility for protection of the physical environment? In essence, the issue concerns the probability that such incorporation will make any significance difference in business loan decisions made by commercial banks. Purpose of the Stu
. . .

Some common words found in the essay are:
ASD ASD, Purpose Study, Terms Sustainable, Holman Singer, Bennett James, Baucus Near, , Overview Study, Freedman Jaggi, Schlachter Rockness, physical environment, accountability corporate, financial accounting, sustainable development, environmental performance, corporate responsibility, protection physical, protection physical environment, accountability corporate responsibility, link accountability corporate, responsibility protection, link accountability, corporate social, responsibility protection physical, corporate responsibility protection,
Approximate Word count = 1383
Approximate Pages = 6 (250 words per page)

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