In this article, we will learn in-depth about how accounting creates a relationship with the environment and society, and much more.
Accounting has a relationship with the environment and society. Accounting is not only used for profit acquisition. It also contributes to society and the environment in addition to profit-making, so it is not affected by that. Accounting plays an important role in the development of society and the environment.
Contribution of Accounting towards Society and Environment
In the following illustrations, certain accounting contributions to society and the environment can be determined.
- Organizations will contribute to environmental pollution resistance, and accountants will maintain their records. This record will tell us about the owner’s awareness and contribution to society and the environment. In particular, oil refinery companies generously contribute to the pollution of the environment.
- There is harm to humans and the environment from smoke emitted from industry and factories. The owner and the accountant should spend a large amount of money on environmental protection issues. To do this, it is necessary to follow the rules and regulations of the government.
- While hygienic raw materials are used to produce a product, less electricity is consumed, the sound of the machine must be at a tolerable limit and waste should be dumped in the correct places. There are certain expenses to be made to ensure these. Apart from allocating this fund, an accountant must also record those expenses properly.
- As part of social engagement, every business organization has to spend some money, such as providing scholarships to poor and meritorious students. In order to do this, accountants must be kept for the proper allocation of funds.
- The organization also has to spend money in the areas of prevention of climate pollution, the use of healthy raw materials, proper disposal of waste, etc. For this, the accounting department of the organization has to keep an account of the expenditure of these sectors.
In addition to the above, accounting works for the betterment of society and the environment. The accounting system always tries to provide the necessary information to the organization to do good deeds for society and the environment.
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