Strategic Environmental Management Accounting and the Environmental Systems of Management in Czech Companies

STRATEGIC ENVIRONMENTAL MANAGEMENT ACCOUNTING AND THE ENVIRONMENTAL SYSTEMS OF MANAGEMENT IN CZECH COMPANIES

conference paper

Czech

Capital budgeting involves a process of development of the companys planned environmental investments. When making decisions regarding environmental investments, managers face increasing problems. On the one hand, these include legal requirements, introduction of voluntary tools (environmental systems of management, the National programme of cleaner production, etc.), which make environmental protection more demanding and expensive, and, on the other, information on costs to meet those demands is not available in time, and it is not accurate. Most companies find it difficult to quantify cost savings in their systems of environmental management. In any assessment of potential capital investments, environmental costs, cost savings and the benefits associated with those investments should be taken into account and compared with other investment opportunities. An integration of environmental accounting to capital budgeting quantifies and allocates environmental costs and benefits. To assess environmental costs include them to capital budgeting, Total Cost Assessment can be used.

Capital budgeting involves a process of development of the companys planned environmental investments. When making decisions regarding environmental investments, managers face increasing problems. On the one hand, these include legal requirements, introduction of voluntary tools (environmental systems of management, the National programme of cleaner production, etc.), which make environmental protection more demanding and expensive, and, on the other, information on costs to meet those demands is not available in time, and it is not accurate. Most companies find it difficult to quantify cost savings in their systems of environmental management. In any assessment of potential capital investments, environmental costs, cost savings and the benefits associated with those investments should be taken into account and compared with other investment opportunities. An integration of environmental accounting to capital budgeting quantifies and allocates environmental costs and benefits. To assess environmental costs include them to capital budgeting, Total Cost Assessment can be used.

capital budgeting, environmental investments, environmental costs, environmental management, Total

KOCMANOVÁ, A.

2003

1. 1. 2003

VŠB - Technical University of Ostrava, Faculty of Economics

Ostrava

80-248-0405-0

Strategic management and its support by information systems

103

112

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