The Use of Social-Environmental Accounting Information by Managers of Non-Government-Organization to Support Decision Making
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Published:
Feb 19, 2022
Keywords:
Social and Environmental Accounting, Managers Decision, Stakeholder Theory, Social Entrepreneurship
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Computer Science
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Abstract
In order to achieve sustainability, organizations are starting to pay attention not only to financial issues, but also social and environmental issues. Then, recently, sustainability accounting or social-environmental accounting has emerged in order to convey information on financial, social and environmental responsibility for business sustainability. Various studies are still limited to the use of this information by external stakeholders (investors), this study uses internal parties, particularly managers, whether to consider social and environmental information in their decision making. In an attempt to fill the gap in social environmental accounting literature, this study explores the managers in nonprofit companies, particularly non-government-organization who claim to be social entrepreneurs. This research is bridged by stakeholder theory, with the hypothesis that internal parties (social entrepreneurship managers) consider social and environmental information in their decision making.
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Dari, W. and Kurniyati, N. N. . . (2022) “The Use of Social-Environmental Accounting Information by Managers of Non-Government-Organization to Support Decision Making”, Jurnal Mantik, 5(4), pp. 2567-2577. Available at: https://www.iocscience.org/ejournal/index.php/mantik/article/view/2036 (Accessed: 2May2026).
References
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[13] Chong, V.K. and Suryawati, R.F. (2010), “De-escalation strategy: the impact of monitoring control on managers’ project evaluation decisions”, Journal of Applied Management Accounting Research, Vol. 8 No. 2, pp. 39-50.
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[29] Henri, J-F. and Journeault, M. (2010), “Eco-control: the influence of management control systems on environmental and economic performance”, Accounting, Organizations and Society, Vol. 35 No. 1, pp. 63-80.
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[32] Ingram, R.W. (1978), “An investigation of the information content of (certain) social responsibility disclosures”, Journal of Accounting Research, Vol. 16 No. 2, pp. 270- 285.
[33] Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360.
[34] Jones, T.M. (1995), “Instrumental stakeholder theory: a synthesis of ethics and economics”, The Academy of Management Review, Vol. 20 No. 2, pp. 404-437.
[35] Jones, T.M and Wicks, A.C. (1999), “Convergent stakeholder theory”, The Academy of Management Review, Vol. 24, No. 2, pp. 206-221.
[36] Kerlinger, F.N. and Lee, H.B. (2000), Foundations of Behavioral Research, Thompson Learning, Australia.
[37] KPMG (2013), “The KPMG Survey of Corporate Responsibility Reporting 2013”, available at: http://www.kpmg.com/Global/en/IssuesAndInsights/ ArticlesPublications/corporate-responsibility/Documents/corporate-responsibility-reporting-survey-2013.pdf (accessed 06 April 2014).
[38] Larson, E.W. and Gray, C.F. (2011), Project Management: The Managerial Process, McGraw-Hill/Irwin, New York, NY.
[39] Liyanarachchi, G.A. and Milne, M.J. (2005), “Comparing the investment decisions of accounting practitioners and students: an empirical study on the adequacy of student surrogates”, Accounting Forum, Vol. 29, No. 2, pp. 121-135.
[40] Mathews, M. R. (1997), “Twenty-five years of social and environmental research: is there a silver jubilee to celebrate?”, Accounting, Auditing, and Accountability Journal, Vol. 10 No. 4, pp. 481–531.
[41] Milne, M.J. and Patten, D.M. (2002), “Securing organizational legitimacy: an experimental decision case examining the impact of environmental disclosures”, Accounting, Auditing, and Accountability Journal, Vol. 15 No. 3, pp. 372-405.
[42] Murray, A., Sinclair, D., Power, D. and Gray, R. (2006), “Do financial markets care about social and environmental disclosure?: Further evidence and exploration from the UK”, Accounting, Auditing and Accountability Journal, Vol. 19 No. 2, pp. 228-255.
[43] Pallant, J. (2011), SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS, Allen and Unwin, Australia.
[44] Phillips, R., Freeman R.E. and Wicks, A.C. (2003), “What stakeholder theory is not”, Business Ethics Quarterly, Vol.13 No. 4, pp. 479-502.
[45] Rikhardsson, P. and Holm, C. (2008), “The effect of environmental information on investment allocation decisions – an experimental study”, Business Strategy and the Environment, Vol. 17 No. 6, pp. 382-397.
[46] Rutledge, R.W. and Karim, K.E. (1999), “The influence of self-interest and ethical considerations on managers' evaluation judgments”, Accounting, Organizations and Society, Vol. 24 No. 2, pp. 173-184.
[47] Schaltegger, S., Bennett, M. and Burritt, R. (2006), “Corporate sustainability accounting, a catchphrase for compliant corporations or a business decision support for sustainability leaders?”, in Schaltegger, S., Bennett, M. and Burritt, R. (Eds.), Sustainability Accounting and Reporting, Springer Publishing, Dordrecht, pp. 37-59.
[48] Silver, D. (2012), “Citizens as contractualist stakeholders”, Journal of Business Ethics, Vol. 109 No. 1, pp. 3-13.
[49] Simpson, W.G. and Kohers, T. (2002), “The link between corporate social and financial performance: evidence from the banking industry”, Journal of Business Ethics, Vol. 35 No. 2, pp. 97-109.
[50] Starik, M. (1995), “Should trees have managerial standing? Toward stakeholder status for non-human nature”, Journal of Business Ethics, Vol. 14 No. 3, pp. 207-17.
[51] Staw, B.M. (1976), “Knee-deep in the big muddy: a study of escalating commitment to a chosen course of action”, Organizational Behavior and Human Performance, Vol. 16 No. 1, pp. 27-44.
[52] Surroca, J., Tribo, J.A. and Waddock, S. (2010), “Corporate responsibility and financial performance: the role of intangible resources”, Strategic Management Journal, Vol. 31 No. 5, pp. 63-490.
[53] Teoh, H.Y. and Shiu, G.Y. (1990), “Attitudes towards corporate social responsibility and perceived importance of social responsibility information characteristics in a decision context”, Journal of Business Ethics, Vol. 9 No. 1, pp. 71-77.
[54] Theory: The State of the Art, Cambridge University Press, Cambridge, UK. Freeman, R.E. and Phillips, R.A. (2002), “Stakeholder theory: a libertarian defense”, Journal of Business
[55] Velasquez, M.G. (2012), Business Ethics: Concepts and Cases, Pearson Education, Upper Saddle River.
[56] Wall, F. and Greiling, D. (2011), “Accounting information for managerial decision-making in shareholder management versus stakeholder management, Review of Managerial Science, Vol. 5 No. 2, pp. 91-135.
[2] Anderson, J.C. and Frankle A.W. (1980), “Voluntary social reporting: an iso-beta portfolio analysis”, The Accounting Review, Vol. 55 No. 3, pp. 467-479.
[3] Atkinson, A.A., Kaplan, R.S., Matsumura, E.M. and Young, S.M. (2011), Management Accounting: Information for Decision Making and Strategy Execution, Pearson Education, New Jersey.
[4] Baker, G., Gibbons, R. and Murphy, K.J. (1997), “Implicit contract and the theory of the firms”, working paper No. 6177, NBER, Cambridge, September, available at: http://www.nber.org/papers/w6177.pdf, (accessed 23 January 2014).
[5] Belkaoui, A. (1976), “The impact of the disclosure of the environmental effects of organizational behavior on the market”, Financial Management, Vol. 5 No. 4, pp. 26-31.
[6] Boddy, D. (2002), Managing Projects: Building and Leading the Team, Prentice Hall, London.
[7] Booth, P. and Schulz, A.K.-D. (2004), “The impact of an ethical environment on managers’ project evaluation judgments under agency problem conditions”, Accounting, Organizations and Society, Vol. 29 No. 6-7, pp. 473-488.
[8] Borkowski, S.C. and Ugras Y.J. (1998), “Business students and ethics: a meta-analysis”, Journal of Business Ethics, Vol. 17 No. 11, pp. 1117-1127.
[9] Bruns, W.J.Jr. (1968), “Accounting information and decision-making: some behavioral hypotheses”, The Accounting Review, Vol. 43 No. 3, pp. 469-480.
[10] Business Ethics Quarterly, Vol 12 No. 3, pp. 331-349.?Gibson, K. (2012), “Stakeholders and sustainability: an evolving theory”, Journal of Business
[11] Chan, C.C.C. and Milne, M.J. (1999), “Investor reactions to corporate environmental saints and sinners: an experimental analysis”, Accounting and Business Research, Vol. 29 No. 4, pp. 265-279.
[12] Chang, C.J. and Yen, S.H. (2007), “The Effects of Moral Development and Adverse Selection Conditions on Managers? Project Continuance Decisions: A Study in the Pacific-Rim Region”, Journal of Business Ethics, Vol. 76 No. 3, pp 347-360.
[13] Chong, V.K. and Suryawati, R.F. (2010), “De-escalation strategy: the impact of monitoring control on managers’ project evaluation decisions”, Journal of Applied Management Accounting Research, Vol. 8 No. 2, pp. 39-50.
[14] Clarkson, M.B.E. (1995), “A stakeholder framework for analyzing and evaluating corporate social performance”, Academy of Management Review, Vol. 20, No. 1; pp. 92-117.
[15] Davidson, H.J. and Trueblood, R.M. (1961), “Accounting for decision-making”, The Accounting Review, Vol. 36 No. 4, pp. 577-58.
[16] Demski, J.S. and Feltham, G.A. (1976), Cost Determination: A Conceptual Approach. Iowa State University Press, Iowa.
[17] Donaldson, T. and Preston, L.E. (1995), “The stakeholder theory of the corporation: concepts, evidence, and implications”, The Academy of Management Review, Vol. 20 No. 1, pp. 65-91.
[18] Elkington, J. (1997), Cannibals with Forks: The Triple Bottom Line of 21st Century Business, Capstone Publishing Limited, Oxford.
[19] EY and Boston College Center for Corporate Citizenship (2013), “Value of sustainability reporting”.
[20] Freeman, R.E. (1984), Strategic Management: A Stakeholder Approach, Pitman, Boston. Freeman, R.E., Harrison, J.S., Wicks, A.C. Parmar, B. and de Colle, S. (2010), Stakeholder.
[21] Ethics, Vol. 109 No. 1, pp.15-25.
[22] Gray, R. (2002), “The social accounting project and accounting organizations and society privileging engagement, imaginings, new accountings and pragmatism over critique?”, Accounting, Organizations and Society, Vol. 27 No. 2, pp. 687-708.
[23] Grit, K. (2004), “Corporate citizenship: how to strengthen the social responsibility of managers”, Journal of Business Ethics, Vol. 53 No. 1-2, pp. 97-106.
[24] Guidry, R.P. and Patten D.M. (2010), “Market reactions to the first-time issuance of corporate sustainability reports: evidence that quality matters”, Sustainability Accounting, Management and Policy Journal, Vol. 1 No. 1, pp. 33-50.
[25] Hall, M. (2010), “Accounting information and managerial work”, Accounting, Organizations and Society, Vol. 35 No. 3, pp. 301-315.
[26] Harrison, P.D. and Harrell, A. (1993), “Impact of "adverse selection" on managers' project evaluation decisions”, Academy of Management Journal, Vol. 3 No. 3, pp. 635-643.
[27] Hassel, L., Nilsson, H. and Nyquist, S. (2005), “The value relevance of environmental performance”, European Accounting Review, Vol. 14 No. 1, pp. 41-61.
[28] Hendricks, J.A. (1976), “The impact of human resource accounting information on stock investment decisions: an empirical study”, The Accounting Review, Vol. 51 No. 2, pp. 292-305.
[29] Henri, J-F. and Journeault, M. (2010), “Eco-control: the influence of management control systems on environmental and economic performance”, Accounting, Organizations and Society, Vol. 35 No. 1, pp. 63-80.
[30] Henriques, I. and Sadorsky, P. (1999), “The relationship between environmental commitment and managerial perceptions of stakeholder importance”, The Academy of Management Journal, Vol. 42, No. 1, pp. 87-99.
[31] Hill, C.W.L. and Jones, T.M. (1992), “Stakeholder-agency theory”, Journal of Management Studies, Vol. 29 No. 2, pp. 131-152.
[32] Ingram, R.W. (1978), “An investigation of the information content of (certain) social responsibility disclosures”, Journal of Accounting Research, Vol. 16 No. 2, pp. 270- 285.
[33] Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360.
[34] Jones, T.M. (1995), “Instrumental stakeholder theory: a synthesis of ethics and economics”, The Academy of Management Review, Vol. 20 No. 2, pp. 404-437.
[35] Jones, T.M and Wicks, A.C. (1999), “Convergent stakeholder theory”, The Academy of Management Review, Vol. 24, No. 2, pp. 206-221.
[36] Kerlinger, F.N. and Lee, H.B. (2000), Foundations of Behavioral Research, Thompson Learning, Australia.
[37] KPMG (2013), “The KPMG Survey of Corporate Responsibility Reporting 2013”, available at: http://www.kpmg.com/Global/en/IssuesAndInsights/ ArticlesPublications/corporate-responsibility/Documents/corporate-responsibility-reporting-survey-2013.pdf (accessed 06 April 2014).
[38] Larson, E.W. and Gray, C.F. (2011), Project Management: The Managerial Process, McGraw-Hill/Irwin, New York, NY.
[39] Liyanarachchi, G.A. and Milne, M.J. (2005), “Comparing the investment decisions of accounting practitioners and students: an empirical study on the adequacy of student surrogates”, Accounting Forum, Vol. 29, No. 2, pp. 121-135.
[40] Mathews, M. R. (1997), “Twenty-five years of social and environmental research: is there a silver jubilee to celebrate?”, Accounting, Auditing, and Accountability Journal, Vol. 10 No. 4, pp. 481–531.
[41] Milne, M.J. and Patten, D.M. (2002), “Securing organizational legitimacy: an experimental decision case examining the impact of environmental disclosures”, Accounting, Auditing, and Accountability Journal, Vol. 15 No. 3, pp. 372-405.
[42] Murray, A., Sinclair, D., Power, D. and Gray, R. (2006), “Do financial markets care about social and environmental disclosure?: Further evidence and exploration from the UK”, Accounting, Auditing and Accountability Journal, Vol. 19 No. 2, pp. 228-255.
[43] Pallant, J. (2011), SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS, Allen and Unwin, Australia.
[44] Phillips, R., Freeman R.E. and Wicks, A.C. (2003), “What stakeholder theory is not”, Business Ethics Quarterly, Vol.13 No. 4, pp. 479-502.
[45] Rikhardsson, P. and Holm, C. (2008), “The effect of environmental information on investment allocation decisions – an experimental study”, Business Strategy and the Environment, Vol. 17 No. 6, pp. 382-397.
[46] Rutledge, R.W. and Karim, K.E. (1999), “The influence of self-interest and ethical considerations on managers' evaluation judgments”, Accounting, Organizations and Society, Vol. 24 No. 2, pp. 173-184.
[47] Schaltegger, S., Bennett, M. and Burritt, R. (2006), “Corporate sustainability accounting, a catchphrase for compliant corporations or a business decision support for sustainability leaders?”, in Schaltegger, S., Bennett, M. and Burritt, R. (Eds.), Sustainability Accounting and Reporting, Springer Publishing, Dordrecht, pp. 37-59.
[48] Silver, D. (2012), “Citizens as contractualist stakeholders”, Journal of Business Ethics, Vol. 109 No. 1, pp. 3-13.
[49] Simpson, W.G. and Kohers, T. (2002), “The link between corporate social and financial performance: evidence from the banking industry”, Journal of Business Ethics, Vol. 35 No. 2, pp. 97-109.
[50] Starik, M. (1995), “Should trees have managerial standing? Toward stakeholder status for non-human nature”, Journal of Business Ethics, Vol. 14 No. 3, pp. 207-17.
[51] Staw, B.M. (1976), “Knee-deep in the big muddy: a study of escalating commitment to a chosen course of action”, Organizational Behavior and Human Performance, Vol. 16 No. 1, pp. 27-44.
[52] Surroca, J., Tribo, J.A. and Waddock, S. (2010), “Corporate responsibility and financial performance: the role of intangible resources”, Strategic Management Journal, Vol. 31 No. 5, pp. 63-490.
[53] Teoh, H.Y. and Shiu, G.Y. (1990), “Attitudes towards corporate social responsibility and perceived importance of social responsibility information characteristics in a decision context”, Journal of Business Ethics, Vol. 9 No. 1, pp. 71-77.
[54] Theory: The State of the Art, Cambridge University Press, Cambridge, UK. Freeman, R.E. and Phillips, R.A. (2002), “Stakeholder theory: a libertarian defense”, Journal of Business
[55] Velasquez, M.G. (2012), Business Ethics: Concepts and Cases, Pearson Education, Upper Saddle River.
[56] Wall, F. and Greiling, D. (2011), “Accounting information for managerial decision-making in shareholder management versus stakeholder management, Review of Managerial Science, Vol. 5 No. 2, pp. 91-135.
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