Conceptual model of environmental performance.

• Author: Ionel-Alin, Ienciu

1. INTRODUCTION

   Since accounting represents that field and instrument used to obtain knowledge of the economic reality (Matis, 2005: 11) and the environmental aspects become economic realities of high present interest, importance and complexity, the environmental accounting concept would emerge, referring to activities, methods and systems for recording, analyzing and reporting the financial and ecological impact of a specific economic system on the environment (Schaltegger el al., 1996). The environmental protection becomes an opportunity, for the accounting profession and for researchers to prove that they are on top of contemporary problems and that they can master and handle the new opportunities and modern problems (Medley, 1997). Thus for us, researchers, the accomplishment of a research paper in the sphere of environmental accounting represents a challenge having as primary objective the knowledge and creation of added value in a field that systematically takes into account the facts related to the protection and restoration of natural environment, by observing the traditional role that accounting has to take into account the flows and risks in relation to natural environment, in order to be able to communicate an accurate image of the company to the users. The objective of the paper consists in the proposal of an efficient model for reflecting environmental performance within a company.

2. RESEARCH METHODOLOGY

   The use of certain research methods and instruments was necessary when conducting this scientific approach in order to facilitate the scientific research process (Mustata, 2008: 13). From the point of view of research currents, the present paper aligns to the main research current, having a positive and constructive touch, without lacking in critical approaches as well. As far as the research typology is concerned, the study is a theoretical, fundamental research. The qualitative, theoretical research where we have analyzed the conceptual framework of environmental economics and accounting, the way the financial accounting responds to the information needs of the environmental information users and we have described the environmental management accounting, respectively the mechanisms used to report environmental information, as key elements for elimination of traditional accounting systems deficiencies on reflecting environmental impact. Also, the presentation of environmental management, the role of financial and environmental audit in reflecting the objectivity of environmental information supplied is based on a fundamental, theoretical research. Amongst the research methods specific to qualitative research we have used as part of this scientific approach we would mention comparative analysis and non-participative observation.

3. ACCOUNTING STANDARDS AND ENVIRONMENTAL ISSUES

   Sustainable development, eco-efficiency and social responsibility are concepts whose value depends to a large extent on how environmental, social and economic aspects are being acknowledged, assessed and reported within the financial accounting. As a result, these concepts have to be examined in close relation to the accounting practices applicable at the international and national level.

   The main environmental aspects addressed by financial accounting are connected to acknowledgement, assessment and reporting of company's financial impact to environment (ACCA, 2003). The increase of importance given to environmental aspects has determined a large number of national and international bodies (IASB, FASB, UN, OECD, professional accountants' organizations and other groups) to issue standards, regulations, recommendations and guidebooks regarding the accounting treatment applicable to environmental aspects. Accounting standards and regulations have a large influence on the accounting information that is collected, analyzed and reported by the management; therefore the approach of environmental aspects is highly important.

   We raised the following question: are accounting principles, promoted by financial accounting, sufficient for supplying an accurate image of the company's environmental impact in order to meet the information requirements from the environmental information users?

   However, there are...