An in-depth look at the status of environmental financial accounting in Mexico from the point of view of stakeholder theory: myth or reality?

Saulo Sinforoso Martínez,Arístides Pelegrin Mesa

doi:10.7819/rbgn.v23i2.4107

Saulo Sinforoso Martínez, Arístides Pelegrin Mesa

Open Access

https://doi.org/10.7819/rbgn.v23i2.4107

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Abstract

Purpose – This research project analyzes the use of the theoretical contributions regarding environmental financial accounting (EFA) by Mexican companies. Design/methodology/approach – The methodology is divided into two sections. The first part involves a document analysis of the sustainability reports issued by 29 sustainable companies from the Mexican Stock Exchange. The second section describes the correlation between the EFA components and revenue. Findings – The preliminary findings show that the ideas regarding social and environmental accounting written over two decades ago by Gray (1992), Laringa (1995), Moneva and Llena (1996), Bebbington (2001), and Llull (2001), among others, have been applied within the context of the Mexican economy. However, there are some theoretical gaps that will continue to make EFA a myth for emerging economies due to the lack of public policies. Originality/value – This study identifies that the Mexican economy requires two actions in order to legitimize the stakeholder theory. First, the concepts of environmental accounting need to be applied across micro, small and medium-sized businesses. Second, the relationships among stakeholders (suppliers, customers, shareholders, etc.) need to be analyzed in the environmental reports in order to assess their level of influence on decision making. The starting point for this analysis should be the methodology applied in developed economies.

Highlights

Over the past 20 years, several authors (Bebbington, 2001; Gray, 1992; Larrinaga, 1995; Llull, 2001; Moneva & Llena, 1996, among others) have stressed the need for companies to disclose environmental and social information
environmental financial accounting (EFA) started in developed economies and has been moving into emerging economies during the past 10 years, according to Larrinaga, Moneva, and Ortas (2019, p. 12): “there are voices that are eager to bring different perspectives to the foreground, from emerging economies.”
The inspiration for this study emerges from the idea that studies conducted in first-world countries could provide numerous perspectives regarding the application of environmental accounting (Déniz, Verona, & De la Rosa, 2019)

Summary

Introduction

Over the past 20 years, several authors (Bebbington, 2001; Gray, 1992; Larrinaga, 1995; Llull, 2001; Moneva & Llena, 1996, among others) have stressed the need for companies to disclose environmental and social information. Decades have passed since Tua (1995) defined accounting as a science He argued that accounting professionals have attempted to fulfill the needs of society by processing and presenting information. Environmental accounting identifies measures and assigns environmental costs that should be considered in commercial decisions as well as in communications between the parties of a given company (Mussa, Feku, & Mussa, 2018). It deals with activities, methods, recording, analysis, and the reporting of the environmental and ecological impacts of defined economic systems (Azizul, 2017). With aims to move in a different direction, the idea is to create a social accounting that evaluates to what degree a company meets the social contract.”

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