Introduction
Overview of increasing scrutiny on business sustainability by stakeholders.
Impact of new laws and regulations on business and accounting sectors.
Shift in the role of management accountants due to sustainability pressures.
The Integration of Sustainability into Decision Making
A major part of management accountants work is their decision-making processes.
Importance of integrating sustainability measures into decision-making processes.
Enhancement of organizational performance through sustainability tools.
Management Accountants Levels of Involvement in Sustainability
(Ascani, Ciccola, and Chiucchi, 2021) found that non-accountant professionals often take the lead in sustainability initiatives, leaving management accountants with a more passive role.
Gatekeeping Role- (Schaltegger and Zvezdov, 2013) describe management accountants as often assuming a “gatekeeping role” between sustainability managers and higher-level management. In this capacity, they primarily filter and transmit information rather than actively participating in the formulation and execution of sustainability strategies.
Education and Competence Development -Future involvement of management accountants in sustainability practices depends significantly on their ability to expand their expertise through targeted education and training.
Barriers to Involvement- These include a traditional focus on financial metrics, resistance to change, and a lack of standardized sustainability metrics. (Egan and Tweedie, 2018).
Strategies for Increased Involvement- linking performance metrics and rewards to sustainability outcomes.
Impact on Organizational Performance- Research indicates that organizations with active involvement of management accountants in sustainability tend to perform better in terms of sustainability and financial metrics (Burritt and Schaltegger, 2010). Integrating sustainability into management accounting can lead to improved risk management, cost savings, and enhanced stakeholder satisfaction.
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