The purpose of this study was to assess the feasibility of integrating the concept of sustainable development generally and ASD more specifically into financial accounting analyzes used by commercial banks in the decision-making process for the extension of business loans. The ultimate objective of this study was the validation of an effective mechanism for linking accountability and corporate responsibility for the protection of the physical environment through typical business processes involving commercial bank business lending that are both routine and crucial to the productive functioning of corporations.
Sustainable development is defined as meeting the needs of the present, without compromising the ability of future generations to meet their own needs (Feltmate, 1997).
Externalities are defined as the positive and negative consequences associated with the production or consumption of a good or service imparted to a third, external party (Feltmate 1997).
Full cost accounting is defined as the integration of three processes. These processes are (1) the valuation of non-market factors in market terms (values), (2) the internalization of external costs, and (3) the replacement of fixed with variable costs ("Full cost accounting principles," 1998).
The scope of this study focused on the full cost accounting approach to ASD. The application of ASD in managerial accounting was not addressed in this study.
The research design for this study was structured as a cast study. Following this introductory chapter, a review of the literature relevant to the problem investigated is presented. A full description of the research methodology is presented in Chapter 3, while the case study analysis results are presented in Chapter 4. The conclusions drawn from the research results, together with the implications of the results and conclusions, are presented in the final chapter.
Literature relevant to the problem to be inves...