Environmental Management Accounting in a Manufacturing Arm of a Financial Services Sector Organization - A Case of a Sri Lankan Organization

K.K. Edirisooriya, P.U. Noopehewa, S.A.D.C.U. Perera, M.N.I. Silva


Purpose - The purpose of this paper is to examine why and to what extent a
manufacturing arm of a financial sector organization in Sri Lanka adopts and
implements environmental Management Accounting practices.

Design/methodology/approach - The study followed a case study approach. The
primary data were collected by conducting semi structured interviews and
observing organizational processes. Secondary data were collected through
analyzing documents such as internal records, online sources including the
organization’s web site and various other records. In the data collection process
higher emphasis was placed on data triangulation. Data analysis was carried out
following an explanation building approach.

Findings - The study identified that although the waste management initiatives are
practiced to a great extent, they do not encompass a comprehensive and an
integrated approach. The intention for cost savings and the significance of the
output being generated are the main drivers for adopting environmental
management accounting practices. Top management awareness remains poor and
an integrated strategic approach for sustainability management is not well
established within the organization.
Research limitations/implications - Due to the context specific characteristics, the
findings of the study will be difficult to generalize. Also, the study mainly
emphasized on the process of collecting and re-using gold dust, but other critical
areas such as waste water and air pollution was not investigated.

Originality/value - The study attempts to fill the gap of environmental management
accounting research in a manufacturing operation of financial sector of a
developing country. The findings of the study will be expedient to the sector in
developing and retaining environmental management accounting practices.

Key words – Developing country; environmental management accounting; financial
service sector; waste management initiatives.

Paper type - Case Study

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Journal of Accounting Panorama, University of Sri Jayewardenepura, Sri Lanka