Environmental Impact Cannot Be Measured By The Financial Report Accounting Essay


Environmental impact can non be measured by the fiscal study and was regarded as an irrelevant issue to stand for the public presentation of a company in the yesteryear. With the rise of environmental protection consciousness, the environment revelation ( sustainability coverage ) has become voluntary. These sustainable coverage should match to the information that released in the fiscal study every bit good as supplying excess information to the investors.

In July 2010, nevertheless, British Petroleum ( BP ) oil spill raise the concerns of what environment voluntary revelation done for the past two decennary. British Petroleum should responsible for this catastrophe and how does it disclosure in the sustainable study in the hereafter will be discussed in the undermentioned research.

We will write a custom essay sample on
Environmental Impact Cannot Be Measured By The Financial Report Accounting Essay
or any similar topic only for you
Order now

While there is still so much argument on the grade to which environmental issues lay a serious menace to our present manner of life, a consensus has been formed to manage environmental jobs in an progressively sophisticated manner. Such attempts must work both to guarantee human sustainability and to gain environmental benefits without degrading other facets that are critical to a merely and free society. The intent of the survey is to supply theoretical grounds that will lend to strategic precedences in connexion with better ordinance and increasing environmental good health. We explore the function of revelation quality, we acknowledge the trouble in theoretically separating revelation quality from the content of the revelations, peculiarly utilizing British Petroleum as our instance survey.

Unfortunately, the deeper one excavation into possible solutions to such standards, the more the restrictions of any one attack is exposed to the complexness inherent to environmental jobs. The most familiar job faced at this degree is that human beliefs are basically different, on the bases of the relationship that human existences ought to hold with their environment. Take for case, some people believe that inventiveness of worlds can or must be used to continue the environment while increasing the stuff wealth of humanity, others think that such positions are improper and topographic points human existences apart and superior to the natural universe, this position has been the beginning of many present jobs. An illustration includes British Petroleum among many, it serves as an illustration of the complexness in analyzing such places ; one would necessitate to understand economic mechanisms of be aftering an environment, the philosophical justification of worlds as superior to nature and the historical function of economic development on environmental debasement.

The Environmental Voluntary Disclosure analysis environmental jobs from the position that our linguistic communication ( i.e pick of words ) affects how we pursue solutions, job resolution can be conducted in a manner that is morally sensitive. Furthermore, concentrating on the framing of our environmental voluntary revelation we critically analyse the important impressions that inform our attitudes towards the natural universe.

To adequately turn to the jobs of environmental sustainability in the twenty-first century, it is indispensable that a broad assortment of constructs are studied. In this research, secondary information is widely used to supply a comprehensive understanding the whole subject. These secondary informations chiefly focus on two sorts of resources. First resource would be the one-year and environmental studies released by BP. There would be a basic apprehension through reexamining the historical information of BP. it will be helpful for us to develop the mythology and happening out several cardinal jobs of voluntary revelation. Second one is the information presence in media and new over the increased of the Gulf of Mexico oil spill. There are rich of relevancy information focal point on the environmental issues after the oil spill. This issue provided both quantitative and qualitative effect steps of both environmental impact and companies state of affairss. These secondary informations besides allow us to develop the whole image between fiscal study and sustainable study.

We explore the function of revelation quality, we acknowledge the trouble in theoretically separating revelation quality from the content of the revelations, peculiarly utilizing British Petroleum as our instance survey to supply a comprehensive rationale/significance for a assortment of houses to supply high quality voluntary disclosures non merely the British Petroleum entirely. In add-on, we document that, the locale for the voluntary environmental revelations ( within a stand-alone study or as portion of the one-year study ) significantly affect the relationship.

There exist conflictions between prosecuting of net income and revelation of fiscal study. There are two decisions we would accomplish. First one is that environmental study discloses non-financial subdivision issues and it is truly a inquiry that whether it can afford investors or public with utile information to understand the whole physical environmental impact. On the other manus, it might be window dressing under the force per unit areas of authorities or for other intent to accomplish the company ‘s benefits. Obviously, most of the environmental studies did non provide sufficient or utile information to the populace and fail in its map.

Literature Review

At the beginning, environmental revelations were confined to fiscal statements of concern endeavors as extra fiscal information. Environmental revelations are now widely viewed as a strategic tool that embraces all facets of concern public presentation. Empirical findings suggest that environmental revelations do supply benefits to a concern. Such benefits include lower cost of capital ( Lev, 1992 ; Skinner, 1994 ; Blacconiere and Patten, 1994 ; Botosan, 1997 ; Botosan and Harris, 2000 ) .

Earlier literature besides indicates that environmental revelations transcending normal fiscal public presentation steps are extremely regarded by investors as it assist investors in contracting the turning spread between conventional fiscal statements and market rating demands ( Leuz, 2003 ; Botosan and Harris, 2000 ; Healy and Palepu, 2001 ) .

With regard to environmental revelation finding, anterior researches suggest there are three chief types of concerns that drive directors to include environmental revelations in their fiscal statements. These concerns are: industry and merchandise concerns ( rivals and industry regulators ) , public force per unit areas ( media ) , and stock markets ‘ concerns ( fiscal analysts ) ( Bowen et al. , 1995 ; Henriques and Sadorski, 1999 ; Healy et al. , 1999 ) .

The grounds from the environmental revelation literature of Anglo-American states indicates that voluntary environmental revelation of house is extremely related to the house size and rank in environmental-sensitive industries such as oil and gas, chemicals and paper merchandises ( Cowen et al. , 1987 ; Alnajjar, 2000 ; Barth et al. , 1997 ; Bewley and Li, 2000 ; Cormier and Gordon, 2001 ; Neu et al. , 1998 ; Patten, 1991, 1992, 2002b ; Elijido-Ten, 2004 ) . Besides, environmental revelation as a tool will let flow of information from a house ‘s environmental activities to others ( rivals, investors and analysts ) . On the one manus, the directors make environmental revelations and effort to legalize and to understate the possible negative effects of their environmental activities. On the other manus, with regard to house ‘s environmental revelations, its rivals may be able to derive advantages over its environmental activities ( Healy and Palepu, 2001 ) . More specifically, the environmental revelation may supply peculiar information on production procedure inefficiencies, bing constructions and other production information.

A figure of surveies point out that higher degree of information exposure relation to environmental issues increase the public concerns and that public force per unit area force houses to respond and publish higher degree of environmental revelations. Directors besides have an inducement to heighten their environmental revelations as to bring on a favorable response to comprehend claims that are put frontward by authorities or public social agents ( Neu et al. , 1998 ; Brown and Deegan, 1998 ; Deegan et al. , 2002 ) .

With regard to the relationship between environmental revelations and stock markets, many environmental information points have a direct impact on a house ‘s future net incomes: environmental capital outgos, environmental mulcts and punishments ( Clarkson et al. , 2004 ) . Empirical surveies show that enhanced corporate fiscal revelation does cut down the uncertainness environing analyst prognosiss and interpret into more precise net incomes prognosiss ( Hope, 2003 ) . Therefore, directors have an inducement to supply high quality environmental revelations.


Longitudinal instance survey design

Harmonizing to Humphrey & A ; Lee ( 2008 ) the research worker must look into a topic that involvements him plenty to maintain him at it, in that sense the subject about environmental revelation has been chosen for this research purpose thanks to the involvement of this field of survey. The probe proposed will non follow the hypothesis-and-test attack, instead qualitative method and analysis will take topographic point in order to entree rich secondary informations. A longitudinal survey of this sort provides penetrations on the inter linkages between the revelations and the developing societal context.

The presence of voluntary environmental revelation surveies is comparatively more abundant in states like the USA, Australia and within Continental Europe harmonizing to Campbell ( 2004 ) and Gray et Al ( 1996 ) , whereas in the UK there is a lesser treatment concentrating on it. Environmental revelation has been an go uping concern when surveies on corporate administration are carried out. In order to supply the penetrations and results demanded by this survey ‘s inquiries an explorative research would be developed, chiefly due to the fact that there are few old research works aimed to critically reexamine the environmental information released by a entirely company matching with some media imperativeness analysis. The consequences are limited to an exploratory and longitudinal single-case survey of a company established in the UK ‘s oil and gas industry. Harmonizing to Humphrey & A ; Lee ( 2008 ) the instance survey design represents a preliminary probe which is aimed to supply thoughts and penetrations for a latter strict empirical undertaking. Yin ( 2003:6 ) defends that “ … in this sort of instance survey, fieldwork and informations aggregation are undertaken prior to the concluding definition of survey inquiries and hypotheses. Research may follow intuitive waies, frequently perceived by others as sloppy. ”

The instance survey proposed in this work would be carried out through the application of a revelation grid ( Appendix A ) . Aerts et Al ( 2008 ) and Cormier & A ; Magnan ( 2003 ) developed surveies about environmental revelation accross European states. Both documents used an environmental grid incorporating 39 points related to of import environmental issues like `Emission of Pollutants` , the grid was structured in a manner that allows the research worker to analysis and hit some groups of likely environmental issues, within each group there are several points concentrating more exactly on some action taken or in advancement. In this sense the one-year studies every bit good as the environmental stand-alone studies were analysed and scored as follows: 3 for qualitative and quantitative information, 2 for specif information found sing the point, 1 for by and large account and 0 for no reference at all. Although these documents have been positively accepted by the diaries, the determination footing for either hiting 2 or 1 has seemed well subjective due to the affair of the research workers ‘ sentiment to set up the boundary between the specific description and the general one. Thus it has been decided to use an altered marking method where 2 would be given to a point described both in quantitative and qualitative footings ; 1 to a point described qualitatively and 0 for no reference about it. Other methods of analyzing informations has been mostly used, i.e. numeration words, sentences and phrases extracted from the one-year studies. However, this survey ‘s chief method is the content analysis which may be more suited to fulfill the inquiries developed, this technique can let the research worker to measure more in deepness what has been stated in these studies and, accordingly, to supply a more fruitful analysis.

Annual study revelations have often been used for societal revelation surveies ( Wiseman, 1982 ; Freedman and Jaggi, 1986 ; Patten, 1991 ) thanks chiefly to the informations entree and besides to the common perceptual experience that it represents an of import communicating vehicle for the houses. In this longitudinal instance survey, focal point would be given based upon the one-year and environmental studies released to the market by BP for ten old ages clip, get downing with the 2000 study which was available to the market in 2001 and stoping with the 2010 study which will be released in 2011. This period was defined to capture the development of the environmental contents, sing the intense force per unit area from environmental arguments has been done by a broad scope of stakeholders like conservationists, national leaders, and renowned academic research workers and besides by the media. The company has been chosen due to the fact that its presence in the media has steadily increased since the Gulf of Mexico oil spill occurred in April 2010 and besides backwards, subsequent conservationist force per unit area every bit good as from the international media as a whole. Another of import factor of this pick has been the ill-famed place of BP as an of import planetary participant within the Oil & A ; Gas industry. In that sense, secondary informations beginnings can offer rich qualitative informations to underpin the critical reappraisal proposed.

Associating to the bounds of this paper, the subjective nature of the interpretative attack and the usage of a individual instance limit the generalisability of the consequences. However, the longitudinal attack is indicated to bring forth worthwhile penetrations on how corporate revelations are used as a communicating tool to portray the house in a certain visible radiation. Besides, following this same position, Sanjaya & A ; Milne ( 2010 ) argue that “ there are some built-in restrictions with this design research, and cautiousness is needed to non exaggerate the findings. The consequences are limited to a individual experiment, and more robust findings need to come from farther surveies to assist construct assurance in such consequences ( Lindsay, 1995 ; Lindsay & A ; Ehrenberg, 1993 ; Liyanarachchi & A ; Milne, 2005 ) . ”

Exploratory research and utilizing secondary informations

One of the chief facets of explorative research is the usage of secondary informations. So it is really of import to look into the chief advantages of utilizing secondary informations analysis in our research.

In our research, we are traveling to utilize Secondary informations as our research scheme. Since our research subject is, “ Environmental revelation by BP ” we find secondary informations to be the most relevant scheme to cover with it. Our research inquiry is chiefly based on happening out some grounds as to why companies like BPs environmental revelation.

There are many advantages of utilizing secondary informations as our research scheme. The grounds why we chose secondary informations or some of the advantages of secondary informations can be as follows:

Have fewer resource demands: The chief advantage is the tremendous economy in the resources, in peculiar clip and money ( Ghauri and Gronhang 2005 ) . This means that if we use secondary informations, it will salvage us a batch of clip and money since we are chiefly depending on other stuffs which are already available to us. So there is no ground to work on acquiring informations from the beginnings or acquiring primary informations.

Can ensue in unanticipated finds: Re-analyzing secondary informations can besides take to unanticipated or unexpected finds. Dale et Al. ( 1988 ) citation set uping the nexus between smoke and lung malignant neoplastic disease is an illustration of such a serendipitous find. Therefore one of the chief advantages can be the usage of the bing information published by BP or related beginnings, and to re-analyze the information to get at new or different decision based on that.

The usage of secondary informations would give the research worker more clip to analyse the information since the clip to roll up the information is minimized vastly as mentioned in the first point. This means that alternatively of seeking to acquire the information from BP, we can pass more clip on analysing the informations published by them or other related beginnings

Unobtrusive: If we need informations rapidly, so secondary informations is the most ideal of all. Secondary informations are more likely to be higher-quality than could be obtained by roll uping your ain ( stewart and Kamins 1993 ) . So the usage of this high quality secondary informations will be straight reflected on our research.

Secondary informations besides helps us to compare the informations in different ways giving the research worker the chance to research things in different dimensions. This means that we can put our ain findings within a more general context or instead triangulate your findings. Research methods for concern, M.Saunders, P.Lewis, A.Thornhill, 5th Edition ( 2009 ) .

Permanence of informations: Secondary informations can by and large supply a beginning of informations that is both lasting and available in signifiers that may be checked comparatively easy by others ( Denscombe 2007 ) . This means that this information can be available for more public examination.

Evaluation of the research scheme

The research scheme that has been proposed above has covered some of import documents dedicated to the environmental revelation released by several companies every bit good as the broad scope of schemes and attacks employed in those surveies. The research scheme proposed has been elaborated harmonizing to chief of import points: the research workers ‘ expertness and capablenesss, the entree to informations and handiness of literature, the research inquiries proposed and the deadline proposed. Taking these factors into history, the chief strengths can be considered as the properly pick has made sing all these nucleus factors in order to analyze environmental revelation issues. The research workers ‘ expertness was considered thorough a simple inquiry: “ Which sort of research we could successfully develop ourselves ” and harmonizing to Humphrey & A ; Lee ( 2008 ) which field seems the most interesting for the members as a whole. Then a qualitative research seemed more appropriate and executable. Second, the entree to informations in order to develop the research has proved been rich and easy approachable thanks to the cyberspace and related engine hunt tools. The one-year studies, for illustration, can function as a high quality informations beginning to transport out the longitudinal instance survey of BP, some writers defends the usage of one-year studies for revelation analysis due to the fact that they are under changeless examination non merely from the fiscal community but besides from the other stakeholders. When considered how suited the research methods have been designed, the revelation grid presented in Appendix A has been chosen taking strongly into consideration the research inquiries and the outcomes/insights would be required by these inquiries, besides the hiting method that focuses non merely on the qualitative facets but besides on the quantitative descriptions was defined in order to avoid hiting rhetoric and doubtful contents which sometimes can be merely replicated by the company twelvemonth after twelvemonth.

Associating to the chief failings of this survey, the subjective analysis and the usage of a individual instance limit the generalisability of the consequences. Besides, harmonizing to Sanjaya & A ; Milne ( 2010 ) “ there are some built-in restrictions with this design research, and cautiousness is needed to non exaggerate the findings. The consequences are limited to a individual experiment, and more robust findings need to come from farther surveies to assist construct assurance in such consequences ( Lindsay, 1995 ; Lindsay & A ; Ehrenberg, 1993 ; Liyanarachchi & A ; Milne, 2005 ) . ” This means that the findings of this sort of research may supply a specific corporate analysis ; hence, they could non be automatically replicated to another one house. Even sing a dual reappraisal from the revelation analysis, the mark would be subjective to the research ‘s affair of sentiment ; hence another research may supply different readings.

In add-on, the analysis that is intended to be carried out in this research is secondary informations analysis. The sensitive nature of the research country means that the entree to primary informations is extremely restrictive and even when audience is granted ; the information provided could be biased. This accordingly affects credibleness. The acceptance of secondary informations analysis could besides ensue in limitations as respects the country of survey of the research, every bit good as the clip skyline. Harmonizing to D. S. Corday ( 2001 ) , the being of secondary informations can short-circuit one aspect of the scientific procedure, alluring the research worker to instead than behavior analyses based on theories and hypothesis, ‘mine ‘ the informations.


While admiting the fact that secondary informations analysis has its defects, proper analysis of the relevancy, usefulness and credibleness of each information sourced and used would travel a long manner in assisting to stem this unpleasant tide. It should besides be borne in head that attempts to generalize the findings of this research should n’t be over-elaborated.

As before stated, through empirical observation, the primary purpose of this research is to supply an in-depth analysis of the environmental coverage form of the British Petroleum ( BP ) , United Kingdom. The development of the revelation forms and tendencies will be analysed, paying attending to important alterations that occur over this clip period and accordingly measure their impacts on the company ‘s corporate behavior. In add-on, the inquiry as to whether the studies unwrap non-financial information would besides be investigated, accordingly giving grounds whether the environmental information contained in the one-year studies are inserted for some signifier of originative accounting.

= & gt ; Final rating staying subjects:



Appendix A: Environmental revelation grid

Beginning: Cormier et Al ( 2003 ) .


Hi there, would you like to get such a paper? How about receiving a customized one? Check it out