Tag Archives: sustainability accounting

Effect of Sustainability Accounting and Reporting on Financial Performance of Firms in Nigeria Brewery Sector (Published)

This paper evaluates the effect of sustainability accounting on the financial performance of listed manufacturing firms in Nigeria. Firms used for the study were chosen from the Nigerian brewery sector. Data were sourced from the financial statements of three sampled firms. Data were analysed using the ordinary linear regression.  The study reveals that sustainability reporting has   positive and significant effect on financial performance of firms studied. Following the findings, the study recommends that firms in Nigeria should invest reasonable amount of their earnings on sustainability activities while specific accounting templates be articulated by professional accounting regulating bodies to guide firms’ reportage on sustainability activities. The Financial Reporting Council of Nigeria (FRC) and others alike should make sustainability reporting compulsory while adequate sanctions are spelt out and enforced on defaulting organizations to serve as a deterrent

Keywords: Financial Performance, Nigeria, Return on Assets, Return on Equity, sustainability accounting

The Influence of Legitimacy and Marketing in the Context of Accounting for the Environment in a Sub-Saharan African Country (Published)

Purpose – The paper intends to serve as a contribution to the requirements for organizations to account for and disclose the social and environmental (SE) consequences of their activities, aspects of the concept of sustainability accounting (SA). In particular, this research study investigates the current practices of environmental accounting (EA), whether it is influenced by the same values as that of society and is used as a marketing tool of the oil and gas sector in Uganda, a less developed country. Design/methodology/approach – The study involved 57 oil and petroleum supply chains. Major data collection methods included a review of 13 annual reports/statements by oil companies and both a structured and a semi-structured questionnaire involving 272 respondents, with a response rate of 57.0%. A mixed-methodological approach was employed to analyze the qualitative and quantitative data together. Findings – (1) There are no detailed archival records related to EA; (2) respondents’ (106) responses to the possible consequences of not accounting for the environment were almost indifferent on issues that influence marketing, indicated by the small differences in the mean (1.83 to 2.50) and standard deviations (0.504 to 0.925); (3) responses on the influence of legitimacy and marketing on accounting for the environment ranged from 8.3% to 90.0%, while the mean ranged from 1.92 to 3.90 and the standard deviations from 0.303 to 1.482; (4) we suggest that EA is currently not being done, which is an indicator of poor management of the environment; (5) the results support that a marketing tool is not a significant determining factor of accounting for the environment, despite having a social role to fulfill; and (6) the results do support the theory of legitimacy, because oil and petroleum products suppliers in the country respond to environmental laws, regulations and guidelines. Originality/value – The highlighted perspective on how organizations account for and disclose the environmental trends of their activities – an aspect of the concept of SA in Uganda, a country with a youthful population, open markets, abundant resources and significant unexploited oil and gas reserves – distinguishes this study from others on similar topics.

Keywords: Environment, Legitimacy., Marketing, oil and gas sector, sub-Saharan Africa, sustainability accounting


The purpose of this study is to explore environmental impacts and responses in Uganda, an African country where a sustainability accounting approach is of growing significance and relevance. This is still a relatively new field of practice as well as a new academic endeavor, and thus entails originality. Oil and petroleum and energy-sector activities are generally key ingredients in the fast-growing economy, and are in the categories of being high risk with immensely negative social and environmental impacts. Petroleum companies dominate the top taxpayers in the country, which justifies a focus on the oil industry sector. This study is conceived as an improvement on one of the objectives of a wider study by the first author that investigated the relations among legitimacy, marketing and environmental accounting practices, focusing on oil companies in Uganda. Data collection methods included analysis of the way in which environmental accounting is developed and assessment of the credibility of inputs at various levels. Other data collection methods included a review of companies’ environmental reports/statements and ethnographic interviews at oil companies, formal and informal garages and filling stations. A questionnaire was also administered to 155 respondents drawn from 57 oil supply chains. Our major findings are that the main negative impacts on the environment in all oil marketing chains were soil and water pollution. There is an emphasis on profit margins at the expense of environmental factors in an equatorial country that induces climate change. The study results add to the body of knowledge on sustainability accounting to mitigate the environmental problems in place and minimize further occurrences. We suggest that future accountants need to understand and have knowledge of sustainability issues and how they can be captured in reports for a sustainable future.

Keywords: Africa, Environment, Uganda, impacts and resources, oil companies, sustainability accounting