Professional Documents
Culture Documents
) (2007),
Introduction, Sustainability Accounting and Accountability.
Routledge, London, pp. 1-4.
Even though future social, ecological and economic scenarios are often portrayed
in a headline-grabbing manner characterized by stark images of doom and
gloom should not prevent us from acknowledging that current human activities
will almost inevitably have a future impact on the shape of society, the ecosphere
and the economy. Some may argue that one or more of these future impacts will
be beneficial, while others may argue that one, or possible all, of these impacts
will be negative. Perhaps others may argue that negative impacts will not be as
detrimental as suggested by the scenarios of social collapse, an exosphere
unable to sustain life, and/ or an economy in long-term deep recession. It seems
incontrovertible, however, that the negative consequences of our current way of
life will cause a station where social relations and social justice and the economy
are all in a worse state than at present.
Many people argue that the growing social injustice experienced by even larger
numbers of people and the growing damage to the ecosphere, are a result of a
dominant and almost unquestioned objective of maximizing economic growth. In
these terms economic growth is socially and environmentally unsustainable. One
way to look at these ussues is in terms of the long-term need to ensure that
economic activity is socially and environmentally sustainable. In the short term it
might be possible to have economic growth, while damaging society and the
environment. In the long term this is impossible. Thus, if the quest for economic
growth causes significant damage to both society and the environment, such
economic growth is not economically, socially or environmentally sustainable in
the longer term.
Previous points might seem obvious, but what might be less immediately obvious
is how thse points relate to issues of accounting and accountability. Accounting is
a powerful tool which has conventionally been used iin optimizing the economic
performance of organizations. A range of management accounting techniques
have helped managers plan and control their activities in a manner,for
commercial organizations, designed to maximize their profits. A range of financial
accounting techniques have helped communicate aspects of the economic
performance of the organizations to a range of stakeholders who are not involved
in the day-to-day running of the business. As such, these financial accounting
techniques have provided the mechanisms through which managers have been
able to discharge duties of accountability to non-managerial stakeholders.
Just as conventional management and financial accounting has been a powerful
tool in the management, planning, control and accountability of the economic
aspects of an organization, broader techniques of sustainability of accounting and
accountability have the potential to be powerful tools in the management,
planning control and accountability of organizations for their social and
environmental impacts. Or, for the social and environmental in addition to the
more conventional economic sustainability of the organization.