Environmental Management Accounting (EMA) for environmental management and organizational change

TLDR

The study aims to identify and apply Environmental Management Accounting (EMA) and eco‑control practices in Sri Lankan hotels, exploring their development and implementation. The authors used a case‑study of a Sri Lankan hotel, gathering primary data through semi‑structured interviews and observations, and secondary data from accounting records, the Green Book, and other documents. The hotel revitalized EMA practices during a financial crisis, then expanded them into comprehensive, stakeholder‑supported integrated practices, illustrating a progression from survival to integration and offering insights into eco‑control EMA in developing countries.

Abstract

Purpose – The purpose of this paper is to identify the development and implementation of Environmental Management Accounting (EMA) and environmental management at the level of a firm in the hotel sector in Sri Lanka. Design/methodology/approach – Case study method was used in the study. The primary data were collected through semi-structured interviews supported by observations of various facility centers (on-site assessment). Accounting records such as the Green Book, daily and monthly material and energy records, online resources and various other documents were content analyzed as sources of secondary data. Findings – The study observed that the hotel had reinvigorated some of its environmental management and EMA practices in an urgent, cost-saving bid when faced with a financial crisis. Having realized their cost-saving potential and strategic benefits, the management developed these selective practices over time into comprehensive practices that are integrated into the daily management process supported by all stakeholders. The development stages of EMA reflect how the hotel moved from a survival phase to an integration phase. Originality/value – The paper attempts to apply an integrated eco-control approach in an emerging South Asian country, Sri Lanka. Because eco-control of EMA is a new approach in developing countries, this paper provides important insights into the development of eco-control and EMA.