TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.0 Background to the Study
1.1 Statement of Problems
1.2 Objectives of the Study
1.3 Significance of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope and Limitation of the Study
1.7 Research Methodology
1.8 Plan of the Study
1.9 Definition of Terms
1.10 Outline of
other Chapters References
CHAPTER TWO: LITERATURE REVIEW
2.1 Environmental Accounting as a Conceptual
2.2 Need of Environmental Accounting at
2.3 Environmental Auditing
Environmental Issues Impact on Financial Statements
2.5 Corporate Social Responsibility
CHAPTER THREE: RESEARCH
3.1 Restatement of Research Questions
3.2 Research Hypothesis
3.3 Research Design
3.4 Population and Sampling
3.5 Research Instrument
3.6 Administration of Questionnaires
3.7 Procedure for Data Processing and Analyzing
3.8 Limitation of the Methodology
CHAPTER FOUR: PRESENTATION AND
ANALYSIS OF DATA
Characteristics and Classifications
Presentation and Analysis of Data
CHAPTER FIVE: SUMMARY
5.4 Suggestions for Further Study
1.0 Background to the
business has an overriding responsibility to make the fullest possible use of
its resources both human and material. An enterprise is a corporate citizen. .
Like a citizen, it is esteemed' and judged by its actions in relation to the
community of which it is a member as well as by its economic performance. The
corporate sectors in Nigeria has not been performing as a good citizen that is
why there are so many laws that have been laid down and further amended from
time to time as when required to bound the corporate sector to fulfil their
social responsibility for better development. Chauchan (2005), stated that
"Responsibility towards environment has become one of the most crucial
areas of social responsibility. Recent years have witnessed concern for
environmental degradation, which is 'taking place mainly in the form of
pollution of various types, viz, air, water, sound, soil erosion,
deforestation, etc. It is a
worldwide phenomenon. It spoils human health,
reduces economic productivity and leads to loss of amenities (Chauchan
of environmental accounting is an emerging and dynamic one. It is also a
fruitful attempt to identify and bring to the light of the resources exhausted
and cost rendered reciprocally to the environmental. Bartolomeo, et al (2000),
described environmental information of interest to the public and to the financial
community. Internal use is better termed Environmental Management Accounting
(Bartolomeo et al, 2000:31).
Environmental accounting is an expansion path. With increasing social
focus on the environment, accounting fills an expectation role to measure
performance. The status of environmental awareness provides dynamic for
business reporting its environmental performance. Environmental accounting is
described as involving the identification, measurement and allocation of
environmental costs, the integration of these costs into business, identifying
environmental liabilities, if any, and finally communicating this information
to the company's stakeholders on a part .of general purpose financial
statements (Pramanik, Shil and Das, 2007: 18). In many countries, environmental
accounting is taken to mean the identification and reporting of environment
specific cost such as liability cost and waste disposal costs. It is accounting
for any costs and benefits that arise from change to a firm's products and
processes where the change also involves a change in environmental impact
(Chauchan, 2005:720). Environmental accounting needs to work as a tool to
measure the economic efficiency of environmental conservations activities and
the environmental efficiency of the business activities of company on a whole.
In this sense, it is comprehensive approach to ensure governance that includes
transparency in its societal activities. It is seen as by corporate managers
and environmental advocates alike as a necessary complement to improve
environmental decision making within the private sector.
From a public
perspective, poor environmental accounting means that the private sector is
likely to miss investment and predict design opportunities that have 'financial
and environmental benefits. It is widely believed that environmental
accounting practices, working in organization with the private sector's own
profit motive will crease significant environmental benefits. However,
environmental accounting is a broader term and more expansive when compare to
the traditional accounting paradigm in that it allows the taking of corrective
management action to reduce environmental impacts and cost plans, where
appropriate, the external reporting of the environmental and financial benefits
in verified corporate environmental reports or published annual reports, thus
serving as a vital tool to assist management of our environmental risks and
operational costs and for understanding the role played by the natural
environment in the economy.
1.1 Statement of the Problems
It is amazing
that despite the technological advancement worldwide, the development of human
cultures, together with man's capacity to store, retrieve knowledge and apply
informed foresight to the conduct of affairs, man is yet to possess adequate
capacity and holistic responsibility which would enable him to ensure a total
harmonious relationship with the environment. In Nigeria, where the population
is more than 150 million yielding an average density of more than 120 persons
per square kilometer.
fact, it is obvious that' Nigeria is already experiencing high population
density. The interaction of these millions of Nigerian with their
respective" environment has left indelible mark on the landscape. The manifestation
of these impacts includes: urbanization, deforestation, desertification,
overpopulation and all kinds of pollution. These impacts have both negative and
positive effects on the natural environment. It is the negative
impacts of man's interaction with the environment that is emphasized in this
study (Omofonmwan and Osa-Edoh, 2008).
years, environmental pollution becomes so acute and the stakeholders' awareness
to the issue becomes so serious that environmental accounting has become a
strong branch of accounting. The present civilization has involved us in varied
activities. The ultimate disposal of the waste leads to environmental
pollution: In many parts of the world, the magnitude of pollution has already
reached an alarming level. During fifties through sixties of the 19th century,
people all over the world become more concerned about the quality of their
environment. Well-known environmental tragedies such as the massive oil spill
in the Niger-Delta region of Nigeria has reinforced in people's mind the sense
that the quality of air, water and a wide range of other natural resources was
being seriously degraded. The intensity of danger from chemicals can be gauged
from the extent of havoc caused by the accident in some of the multinational companies
which has killed and affected several people. The awareness of the
environmental and man's ability to cause damage started from the fifties of the
environmental effect of economic development has become a matter of great
public concern all over the world. Gradually, environment is becoming a much
more urgent, economic, social and political problem.
as the basic custodian and light bearers of economic development can no longer shut
their eyes to the effect of environmental issues on business management,
accounting, auditing and disclosure system.
environmental and the potential involvement of accountants is becoming a common
subject of discussion among the accountants all over the world. Nowadays,
accountants are expected to take a proactive role in the environmental
protection process. With the advent of liberalization, removal of trade
barrier makes it logical that the costs of environmental degradation due to industrial
activities should be internalized in corporate accounts to the extent
possible. That is why environmental accounting is of paramount important today.
Objectives of the Study
objectives of the study are stated as follows: To
(a) Discuss the
principles and theories of environmental accounting.
the causes of population in the Nigerian industries
(c) Assess the
impact of the social responsibilities of the Nigerian oil companies on its
businesses understand the full range of environmental costs they incur and how
to incorporate these costs into their decision making.
possible solutions on how efficiently and effectively to properly manage our
Significance of the Study
significance of the outcome of this study is as follows:
(a) It will help
companies improve their environmental performance, achieve cost savings or
accounting will also help in supporting rational making in an organization by
having a better insight into the potential befit of investment and costs.
(c) It will also
help in the disclosure of environmental accounting results which will function
as a means for companies to fulfil their responsibility to stakeholders and simultaneously, as a
means for appropriate evaluation of environmental conservation activities.
(d) It will help
companies and other organizations boost their public trust and confidence and
are associated with receiving a fair assessment.
1.4 Research Questions
(a) What are the
principles and practices of environmental accounting?
(b) What are the
causes of pollution and other environmental problems in the Nigeria industries?
(c) What are the
impacts of the-social responsibilities of the Nigerian oil companies on its
operating environment and how can it be assessed?
(d) What are those environmental costs to be incorporated into
business costs for decision making?
(e) What are the
'possible solutions to the environmental problem?
hypotheses are postulated for the study.
accounting is not useful in the identification of environmental costs and benefits.
accounting is useful in the identification of environmental cost as benefits.
Ho: Environmental Accounting does
not translate to profitability.
Hi: Environmental Accounting
translates to profitability.
1.6 Scope and
Limitations of the Study
work is designed to cover the various business undertakings in Nigeria, in
particular, the MTN Telecommunications, Chevron PIc. However, the study was
constructed' by the various factors which hindered in bringing about a broader
scope of the study. These factors include:
(i) The time
with which the study was to be submitted.
(ii) The negative
attitude of the personnel in the various organizations in Nigeria.
(iii) Distrust of
the personnel due to their thinking that the study was meant to disclosure
(iv) Finance i.e.
Distance was also a limitation of this study.
1. 7 Research Methodology
shall be used in the course of this research work. It shall be sourced via the
survey method i.e. the questionnaire designed by the researcher and distributed
to the respondents. The researcher would then collect the filled questionnaire
from the respondents in order to analyses the data collected with the
appropriate statistical instrument(s).
which will be collected from the questionnaire, will be analyzed using the
simple percentage method and chi-square. The simple percentages will be
calculated by dividing the total number of questions answered by the total
number of questions and then multiply by 100.
1.8 Plan of the Study
work will be divided into five chapters. The first chapter will be
introduction. Chapter two will focus on the literature review and theoretical
framework of environmental accounting. The third Chapter will be based on the
methodology stating the sample design and the sampling method to be used.
Chapter four would comprise the interpretation and analysis of responses from
the questionnaire that would be
collected using the Chi-square (X2) statistical tool while the final chapter, which is
chapter five, comprises the summary of findings, conclusion, and
Degradation: It is defined as the abuse of the environment due to
improper resources management (Omofonmwan and Osa-Edoh, 2008).
(ii) Environmental Conservation: This is the prevention, reduction and/ or avoidance
of environmental impact, removal of such impact, restoration following the
occurrence' of disinter and other activities (Omofonmwan and Osa-Edoh, 2008).
The act of cutting down or burning the trees in an area (Oxford Advanced
The process of becoming or making something a desert (Oxford Advanced
of other Chapters
The rest of
the researches carried out were as follows: