Green accounting, also known as environmental accounting, is a guaranteed path to expansion. By applying or using this tool, a whole lot of environmental cost can be reduced by implementing greener technologies. This study was aimed at assessing the level of the understanding of Nigerians about environmental accounting. Another objective of this study was to find out the level of compliance of companies in Nigeria. This study employed both primary and secondary source of data collection. Further to this, it employed survey research method and data were analyzed via percentages and tables. The outcome of the analysis revealed that green accounting plays very vital role in the corporate social responsibility of a firm. More so, it engenders sustainable development. The study recommended among others that the Government must take stringent measures to ensure that environmental norms are followed and penalties meted on companies and firms that fail to comply.
One major characteristic of multinational organizations in the world today is that their activities have negative and positive impact on the environment and the people. However in time past and even recently, organizations have only focused on their positive impact on the society, thereby failing to accept the fact that their activities to a great extent contribute in depleting the world natural resources and also polluting the environment. According to Wikipedia, Green or environmental accounting is the variety of accounting which tries to combine the financial cost and environmental cost which culminate in the final summary of the operations of a firm or company. It is crystal clear that there are no laws or policies by the federal or states governments in Nigeria which makes environmental accounting compulsory for the central or state governments. More so, it is expedient to state that for the fact that a company, firm or organization is gaining something from the environment, it is important for it to take critical steps regarding the environment’s protection.
Nasiru (2011) posited that a study commissioned by the World Bank in 2007 affirmed that Nigeria accounts for roughly one-sixth of the worldwide gas flaring which, in turn, spews some 400 million tons of carbon dioxide into the atmosphere. Beredugo and Mefor (2012) have explained that most environmental degradations and emissions are anthropogenic, a lifestyle traceable to industrial revolution of the 18th century where economic activities in most communities moved from subsistence agriculture to manufacturing (Beredugo & Mefor, 2012). The result of these changes was that production moved from its traditional locations in the local houses to factories. Furthermore, Akinbami and Adegbulugbe (1998) have agreed that indeed the use of natural resources including energy is indispensable to the economic development and growth of the Nigerian state. However this cannot be achieved without causing environmental degradation and atmospheric pollution (Akinbami &Adegbulugbe, 1998).
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