Environmental accounting and reporting also creates accountability to the business entities regarding how much they are protecting the environment in their.
ENVIRONMENTAL ACCOUNTING AND REPORTING OF LISTED BANKING COMPANIES OF DEVELOPING COUNTRY: BANGLADESH PERSPECTIVE.
Introduction…. Environmental accounting and reporting also creates accountability to the business entities regarding how much they are protecting the environment in their corporate decision making. In decision making, an organization consider different pressures from internal and external parties and try to legitimize the impact of its activities on the environment in the eyes of societal and different pressure groups. Environmental Accounting and reporting also could be help businessmen to identify how much they are destroying the environment in monetary value and how much they are giving back to the environment in monetary value. EAR can also be played an active role in the environmental protection process and disclosing environmental information to the interested users.
Introduction…. Bangladesh is a developing country and in the recent trend the country is in the position of middle income. Its economy is mostly depends on manufacturing and financial sectors. Banking sector has a great contribution and influence on the economic development of Bangladesh as a financial institution. At present Bangladesh faces a number of environmental problems including water pollution, air pollution, land degradation, loss of bio-diversity, dearth waste management, coastal erosion, poor chemical waste processing and so on. Banking sector can play a tremendous role upgrading the present environmental position of the country.
Introduction. The study provides preliminary evidence on EAR performance of banking sector of developing country, Bangladesh. Specifically, it examines major activities of banking companies regarding twelve categories of EAR information. The study also made an attempt to judge the legal position of EAR and environmental finance of the banks. At this moment, there is no study found on particularly EAR performance of Bangladeshi banking sector along with environmental financing. So far, this research would be unique in our banking sector. The study will help us to know the overall EAR performance of Bangladeshi banking sector and their underlying intentions of environmental disclosures.
Review of Literature…. Although increasing in nature of environmental accounting and reporting but few studies have explored in the name of sustainability, corporate social responsibility, corporate environmental reporting, corporate social reporting, corporate humane disclosure and so on in the developing countries (Sahay, 2004; Belal, 2000, 2006; Azim et.al, 2009; Belal and Owen, 2007; Imam, 1999, 2000; Belal et.al, 2015; Masud and Hossain, 2012; Hoque et.al, 2016; Meena, 2013; Sobhani et.al, 2015; Khan et.al, 2011).
Review of Literature. South Asian countries like India, Pakistan, Sri Lanka and Bangladesh have a smaller number of companies that report corporate environmental and social information (Jamali and Mishak, 2007; Dissanayale et.al, 2016). Gupta (2012) examined 23 listed companies annual report of India and describes the theoretical considerations relating to environmental accounting and founds that a very few companies in India are voluntarily disclosing the environmental issues in their Annual reports. He further states, lack of environmental legislations are behind the poor disclosing information on environmental in the annual report that is also supported by previous study (Belal, 2000; Imam, 2000).
METHODOLOGY AND DATA COLLECTION.
SAMPLE AND DATA SIZE: • The nature of the study is descriptive and purely based on the information from secondary data sources of banking companies. The main source of information is the annual report of listed companies in Dhaka Stock Exchange (DSE).
• For the study 12 listed companies are selected among the 30 companies of DSE.
• For the study, annual report for the period of 2010 to 2014 (total 5 year) have been selected. As a result, total observation of the study is (12*5) 60 companies that is considered to be highest observation of study on environmental accounting and reporting of listed banking sector in Bangladesh as a descriptive one.
RESEARCH METHOD… • Content observation is widely accepted methods of SER for that the study used general content analysis for systematic categorization and analysis of the contents reported in the annual report. • The study involves analyzing content of environmental performance on major twelve areas or categories. Major twelve categories or areas of environmental disclosure are such as, air pollution information, water pollution information, waste management information, renewable energy information, energy saving information, environmental policy information, award for environmental protection information, separate department for environmental information, green banking information, tree plantation information, environmental education information and climate change risk information.
RESEARCH METHOD.
• The major twelve areas or categories are used to measure the performance of the selected banks ER. • All selected categories are related with environment, environmental investment and environmental performance. • Air pollution, Water pollution and Energy saving information out looked selected banks environmental practice of day to day operations. • Waste management, Renewable energy, Environmental policy and Green banking policy information provided environmental long tern policy and investment of banks. • The remaining areas are concentrated the environmental supervision. • The study made a score based on the selected twelve categories.
Environmental Project Financing..
Environmental Project Financing.
Ranking of banks .
Yearly ER disclosure.
Legal Status of Environment in Bangladesh.
Environmental Disclosures of Banks.
Mode of Disclosing Information.
Place of Environmental Information.
Conclusion…. The result of study indicate that that environmental accounting concept and reporting of listed Bangladeshi banking companies are quite significant and upward in trend. The research is conducted in the period of 2010 to 2014 for examining all sample banks annual report regarding environmental accounting issues and developed a model of twelve categories of ER disclosure. ER on categories provides a better understand of banking companies environmental policy and strategy.
Conclusion…. The results of this study contribute to the existing knowledge on environmental reporting in Bangladesh mainly to the management level. Corporate manager is now being able to judge, gap of their environmental activities particularly on twelve areas. The scoring model is used to collect the ER information on different years that is comprehensively suggests the strong and weak areas of the sample banks. This study also has implication of policy maker of Bangladesh government especially for non-performing environmental laws into action.
Conclusion. The findings also have practical implication of sustainability reporting. The results suggest that corporate laws of Bangladesh could improve by including enough social and environmental provision so that social, environmental, CSR, human resource, climate change or sustainability reporting and practicing will become more holistic over the period of time. It is also recommended that professional accounting bodies of Bangladesh along with international and government policy maker should develop a separate conceptual framework on EAR for the whole financial and non-financial sector of the country (mentioning the objectives, reasons, assumptions, qualitative characteristics, application consequence for the companies).
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