Abstract:
This study focuses on the implication of environmental accounting practices on
creating a sustainable-triangulate value for the environment, economy, and society
while considering the mediator role of the Responsive Environmental Dynamism
(RED) that focuses on organizational resources and capabilities in coping with
environmental changes. The study employed the theory of planned behaviour to
determine the antecedents of the application of environmental accounting practices.
Then, the practices concentrated on environmental management accounting, cost
accounting, external reporting practices, auditing practices, accounting information
systems, and reporting responsibility measured through a Likert scale questionnaire
along with the environmental, economic, and societal value creation through
RED. Questionnaires were distributed among accounting practitioners applying the
snowball sampling technique. Then, 122 responses received were analysed using the
partial least square structural equation model (PLS SEM). The results revealed that
the sustainable value creation process is significantly influenced by environment
reporting practices, and the RED has moderated the given relationship. Furthermore,
the study indicates that a large proportion of sustainable value creation is influenced
by the environment's external reporting practices and environmental auditing
practices. The business entities should integrate environmental accounting practices
into their extant financial reporting framework. In turn, it will enhance the long-term
economic benefits, ensure legitimacy and improve the efficacy of critical resources.
This study sheds light on contribution to environmental accounting theory and
practices where the extant literature is deficient and fragmented.
