Assessing the Influence of Green Accounting Practices on Mining Companies’ Financial Outcomes

• Published in: CECCAR Business Review
• Main Authors: Mary PHIRI, Newman WADESANGO
• Format: Article
• Language: English
• Published: The Body of Expert and Licensed Accountants of Romania 2024-11-01
• Subjects: green accounting policies; financial performance; environmental accounting; environmental audits
• Online Access: https://www.ceccarbusinessreview.ro/assessing-the-influence-of-green-accounting-practices-on-mining-companies-financial-outcomes-a428d/download-PDF/

This paper examined the influence of green accounting policies on financial performance, an area of increasing importance as organizations strive to align financial and environmental objectives. Green accounting, recognized as a vital environmental management tool, informs stakeholders about a company’s ecological practices and concerns, with standards such as ISO 14001 highlighting potential positive impacts on financial outcomes. Despite existing literature suggesting a beneficial link between green accounting and financial performance, this study aimed to investigate this relationship more deeply through a quantitative approach using questionnaires as data collection tools. Data was collected from one mining firm to explore how the adoption of green accounting practices fosters innovations in product design, enhances company reputation, and reduces operational costs. Findings indicate that these policies not only contribute to sustainable practices but also improve financial performance by driving efficiency and brand loyalty. Additionally, the study emphasizes the importance of fostering environmental awareness in host communities to strengthen the relationship between mining companies and local stakeholders. This research offers significant contributions to the literature by providing empirical insights into the mechanisms through which green accounting influences financial outcomes, thereby highlighting its value as a strategic tool in corporate environmental management.