Accounting Term Paper:
Green accounting is the type of accounting which takes into consideration the problems of the natural environment and tries to organize the financial activity of the company according to the eco marketing and trade. The concept of green accounting appeared in 1980s when the humanity started to think about the environmental issues and the ways of their solution. It is natural that the majority of the environmental problems come from the human intention of making money and constant development of business. It is impossible to develop industry without the increased pressure on the natural environment and as a result such problems as pollution, deforestation and extinction of the biological species occur. In order to reduce the negative impact on the environment the companies from all over the world develop their own ways of the improvement of their production and making their model of marketing ecologically safe.
First of all the firms decide to work due to the use of the renewable energy in order to reduce the pressure on the resources which can exhaust soon. the company can get involved into the active green accounting with the help of the special marketing strategies, for example, using the ecologically safe paper bags which substitute plastic bags, using glass bottles instead of the plastics ones (glass bottles can be reused several times); raising vegetables and fruit without the practising of the genetic modification; the practice of sorting wastes into categories with the purpose of their reuse. Every company can do something small for the environment introducing green accounting into its activity.
Green accounting is the special branch of the company’s activity aimed at the intensive contribution into the protection of the natural environment. It is a plus that the company is able to improve the environment on the basis of its own example and special policy. The student who is going to observe the issue on green accounting is supposed to explain the meaning of the term, focus on the main principles and elements of green accounting and enumerate the basic elements of this accounting and its effect on the financial situation of the firm and the natural environment.
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