CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Accounting is a science that uses measurements and quantities to provide specific quantifiable information about a company’s financial status; it provides detailed accounting logs to enable managers to make responsible decision that maximize profit and reduces waste and spending. In this modern age of globalization, major global business entities worldwide and in Nigerian world, have dedicated accounting units that submit financial to various bodies and stakeholders. Stakeholders attempt to evaluate through these reports and other financial and accounting data, institutional performance during a given time period and whether this performance is balanced and inclusive of all stakeholders without neglecting any particular group. Environmental corporate social responsibility accounting first emerged in developed countries as a result of pressures exerted by environmental and human rights groups and has been known by various term such as; social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting.
As a result of the above, the researcher is prompted to write to evaluate or appraise the impact of environmental corporate social responsibility accounting in a manufacturing company with special consideration on Nigeria Brewery Plc Enugu.
1.2 Statement of problems
The implementation of corporate social responsibility accounting in Nigerian companies faces many hurdles and obstacles that prevent its real and effective implementation.
These include but are not limited to the scarcity of technical know-how and expertise along with the absence of social accounting system also lack of awareness amongst auditors and neglect by higher management and lastly the absence of legislations and approved methodologies that would support the focus of this study can be represented by the following questions:
vAre public shareholding companies committed to implementing corporate social responsibility accounting?
vDo auditors have a good grasp and understanding of corporate social responsibility accounting?
vIs the required technical expertise available?
vAre there enough legislative laws to implement corporate social accounting?
vWhat is the key bench mark for corporate social responsibility accounting?
1.3 Objective of the Study
The main objective of this research work is to appraise the impact of environmental corporate social responsibility accounting in the manufacturing company.
The study further aims to establish the following:
vGauge the level of understanding senior management, internal and external auditors, require and constraints to the implementation of corporate social responsibility accounting (CSRA) and its impact on their institutional accounting.
vExplore the concept of social responsibility accounting in the Nigeria public sector
vIdentify standards, regulations and legislation that regulate the implementation mechanisms of corporate social responsibility accounting in Nigerian public sector/companies
vIdentify obstacles to the implementation of corporate social responsibility accounting in Nigerian companies.
1.4 Research Questions
vTo what extent does environmental corporate social responsibility accounting and organization productive?
vIs there any relationship between the performance of the manufacturing company and corporate social responsibility accounting?
vTo what extent does this strategy adopted by manufacturing company help in determining corporate social responsibility accounting in a company?
1.5 Research Hypotheses
In order to answer the question posed by this study, the following hypothesis was formulated to test.
H0: there is no relationship between environmental corporate social responsibility accounting and performance of the manufacturing industry.
H1: there is relationship between environmental corporate social responsibility accounting and performance of the manufacturing industry.
H0: strategies adopted by manufacturing company have not helped in determining corporate social responsibility accounting in a company.
H1: strategies adopted by manufacturing company have helped in determining corporate social responsibility accounting in a company.
1.6 Significance of the Study
This refers to the effectiveness of the research to the public and manufacturing companies in Nigeria.
The ultimate aim of every research is to provide knowledge and information that will bring about a better understanding of the environmental corporate social responsibility accounting in Nigerian context. It is aimed at providing an understanding of the impact of environmental corporate social responsibility accounting on the manufacturing company. The researcher will be able to know the extent to which corporate social responsibility accounting system has helped the management in the realization of their firm’s objective especially in large company. It is an existing material for further research that will enable the management to appraise the environmental corporate social responsibility accounting in operation with a view to correcting any lapses which may be evidenced during the investigation process.
1.7 Scope of the Study
A good research needs to be delimited to a manageable scope. Delimitation of research refers to the definition of the scope (extent or boundary) covered by the research.
Therefore, the scope of the study is the appraisal of the impact of environmental corporate social responsibility accounting in a manufacturing company. The scope of the study is limited to manufacturing companies in Nigeria.
1.8 Limitations of the Study
The major factor of the limitations of study is time and scarcity of material on this topic. The researcher found it difficult to cope with time factor and financial aspect of it as there is little that has been written on this topic.
Nevertheless, the researcher was able to collect all basic necessary facts to ensure objectivity in the result of the project.
1.9 Definition of Terms
To arrive to the essentials of environmental corporate social responsibility accounting on the manufacturing company, it is highly important to known the definition of some terms incorporated from time to time in this work.
Accounting: this is an information system that is used for communication purposes and for the purpose of aiding decision making.
Corporate social responsibility accounting: it is defined as a branch of accounting that aims to define the results of an institution or organization and it’s financial position from a social perspective since companies are relevant and affect societies as a whole.
Financial reporting: it is the process through which companies communicate to the public their operations.
Efficiency: ability to work or produce well, without wasting of time or resources.
Relevance: this means that information contained in the financial statements of companies should be complete, reliable and relevant to user’s needs.
Financial statement: statements are written records of business financial including balance sheet and profit or loss statement.
Financial accounting: this is concern with the recording of transaction for a business enterprise or other economic units and such preparation of various reports from such records, can as well summarize and report business transaction in monetary term informed judgment by the users of such information.