How material flow cost accounting contributes to the SDGs through improving management decision-making

Abstract

The purpose of this study is to clarify how material flow cost accounting (MFCA) can contribute to the SDGs and indicate how to introduce it into a company. First, we undertake a literature review to examine which SDGs MFCA can potentially contribute to. We then analyse the interplay between MFCA and management decision-making on the SDGs using an MFCA-LCA integrated model. Finally, we discuss how to introduce MFCA into a company to integrate the SDGs into management decision-making with reference to the SDG Compass. The main contributions are as follows: First, we revealed that MFCA could potentially contribute to multiple goals in the SDGs. Second, we clarified that MFCA could integrate the SDGs into actual management decision-making. Third, we suggested appropriate steps for implementation, regarding how managers should introduce MFCA into the management process on the condition that it does not prioritise economic benefit over social and environmental benefits in contributing to the SDGs. Therefore, this study provides evidence that MFCA can contribute to the SDGs by integrating them into management decision-making, and suggests appropriate implementation steps for promoting the pursuance of SDGs in any company.