Essay on Sustainability and Management Accounting

In the resent era, many concepts about doing business, performing business activities as well as starting new business have changed now. Most of the businesses, enterprises as well as organizations are focusing on the sustainability because the sustainability can make a better as well as effective sense of business. Several businesses in the world are broadening factors they take in the sense at the time of development of strategies as well as making decision for the company. The sustainability provides the good business sense for making business decisions as well as it also strengthen those decisions for better results. In the modern era it is significant that the organizations working in the economy are well aware about the need of the factors which are cooperating with social and organizational issues. In financial system it is considered that the sustainability is not associated with the management accounting but it could not be ignored that the skills of management professionals are used to place at a good position in the market (Burritt, 2010).

Sustainability could be achieved with the best decision making and communication skills of the expert bodies of the organization. Sustainability of the organization is achieving long term financial benefits with producing positive benefits for the society such corporate social responsibility which gives better value to the customers and stakeholders while management accounting is used to analyze and communicate with the other stakeholders in decision making process according to the financial and non-financial factors which are available to increase the value of the organization (Bebbington, 1997).

The decision making is very technical process which is performed by many organizations to handle the sustainability of the company business as well as to improve its financial condition. There are several businesses which are dealing in such kind of decision making for the organizations which are reasonable to gain profitability and get long term licenses to operate its function in the society. Sustainability is considered important in business operation from previous few decades to deal with the natural factors such as scarcity, climate change, flood and other energy issues in the region where business is operating. There are some environmental and social factors which are used to gain long term benefits in the society. Management accountants are guiding the business in such a way so that business could get competitive advantage and deal with the business issues in the marketing. They could also help to meet the business challenges to get long term benefits in the operations. They also apply management techniques which are used in getting intangible and tangible benefits in the market. The factors discussed in the article are not enough to gain sustainability in the business with the help of corporate social responsibility. The sustainability and corporate sustainability to gain the long term benefits are implemented with different skills in the organization so that sustainability could be pertain. Management accounting techniques for decision making and planning to control the policies to recover the deficiencies in the conventional accounting under the philosophy of management accounting to deal with the different quantitative measures in the social activities. There are various approaches which are used in the location of managerial resources which could be utilized in the resources to gain profitability. Sustainability is incorporated in environment in the perspective of sustainable development to meet the requirements of new generation from business. A business has to come up with promotion of sustainability in which is obligated to corporate social responsibility. It allowed a business to gain sustainability to prevail the opportunities to earn profit which is used to gain the competitive advantage. The main influence of informal controls like self-controls as well as the social control in the social instilling the decision-making responsiveness between the leaders of the organizations (Norris & O’Dwyer, 2004).

Business which earns sustainability in the operations could overcome the cost of the business and help the business to utilize alternative resources for better outcomes. The change methods which are used in the reduction of cost of resources are implemented by the top management of the companies which involves the management accounting principles in the business operations. Sustainable businesses are comparatively more beneficial as it provides social benefits to the societies which increase value of the business of the company. Stakeholders are the main factors which determine the condition and positive position in the market. When the stakeholders enjoy social benefits from the business, they will promote the business to do better activities in the society. It also helps the business to gain different advantages such as loans and grants as the sustainable business is more reliable and spend their funds for competitive as well as social benefits (Durden, 2008).

In case of dealing sustainability by the management accounting, it is considered that the managers may face the problem that there will be increase in opportunity cost of the business by developing the operations such as corporate social responsibility. The management accounting system is used to set regulations in the functioning of the operation of business as well as social works. Management accounting are used to make decision which is both for relevant and irrelevant which is incorporated in the business. Businesses are becoming more mobilize with the help of globalization as the business is connecting with different situation and resources which could be beneficial for the business (Gray, 2010).

References of Sustainability and Management Accounting

Bebbington, J. (1997). Engagement, education and sustainability: a review essay on environmental accounting. Accounting, Auditing & Accountability Journal, 10(3), 365-381.

Burritt, R. L. (2010). Sustainability accounting and reporting: fad or trend? Accounting, Auditing & Accountability Journal, 23(7), 829-846.

Durden, C. (2008). Towards a socially responsible management control system. Accounting, Auditing & Accountability Journal, 21(5), 671-694.

Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability… and how would we know? An exploration of narratives of organisations and the planet. Accounting, organizations and society,, 35(1), 47-62.

Norris, G., & O’Dwyer, B. (2004). Motivating socially responsive decision making: the operation of management controls in a socially responsive organisation. The British Accounting Review, 173–196.