The application of environmental management accounting on financial performance of cement industry in Uganda: case of Tororo Cement Industry and Mountain Enterprise Tororo (Uganda) Limited.
Wabuyi, Jimmy Franklin
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Social and environmental accounting became a topic of both academic and practitioner research approximately 25 years ago. Environmental Management Accounting (EMA) is becoming increasingly important not only for environmental management decisions and development of environmental management systems (EMS), but also for all types of routine management activities, such as product and process design, cost allocation and control, capital budgeting, purchasing, product pricing and performance evaluation. This research studied the application of environmental management accounting on the perceived financial performance of the cement industry in Uganda. A conceptual framework was developed, relating the environmental management accounting application to the perceived financial performance. A cross sectional research design was used in carrying out the research. The research found that the environmental management application determinants were effective, adequate, good, and the perceived financial performance of the cement industry was in good status. The research study revealed that there is a strong correlation between environmental management accounting application and perceived financial performance. The study recommends that stake holders be provided sufficient timely environmental information, environmental evaluation be carried out yearly, companies keep pace of the government regulatory framework, and that the businesses, investors and society do conveniently understand and track corporate environmental performance to enhance financial performance.