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Environmental Accounting as a Tool for Environmental Management System
Seetharaman, A.; Mohamed, Ismail & Saravanan, A.S.
Abstract
This paper reviews about the relationship of environmental accounting and environmental
management system in order to determine the sustainability of organization. In past, the traditional approach of
operations management has been used to evaluate an organization’s performance based on cost, quality and profit
without giving due consideration in preserving the environment. It also identified the lack of awareness and interest
by organization about environmental preservation distinguish the context for environmental management needs in
developing and newly industrialized countries compared to western countries. However, the growing awareness and
pressure by community, customer, and stakeholders has forced the organization to accept the introduction of
environmental protection measures into their organization. The integration of environmental accounting into EMS
will be served as a self-regulatory compliance to legal and regulation requirement, to reduce cost from customer
audits, better market impression, increase efficiency of resources and the ability to adopt changing circumstances
would contribute to the improvement of quality performance and organization’s performance as a whole. Some of the
possible benefit from environmental audit also discussed. In this paper, also discusses number of pollution prevention
strategies. It concludes with an emphasis on the use of environmental accounting for continuous improvement in
environmental corporate policies and programs by taking into account the regulatory, technical developments,
scientific developments, and it must be fully integrated into EMS along with other functional area.
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