The Effect of Environmental Management Accounting Practices on Performance of Mining Companies. Case of Bindura Mining Companies.

Abstract

This research was set up to investigate the effect of environmental management accounting practices on the performance of mining companies operating in Bindura. The study objectives were to identify environmental management accounting practices employed by mining firms, establish the roles of environmental management accounting practices, and identify limitations on the adoption of EMAPs, and to assess the relationship of environmental management accounting practices on environmental performance (EP) and on return on investment (ROI). A mixed method research strategy which blends characteristics of both quantitative and qualitative research design were used. Data was collected from a sample of 61 participants using questionnaires and interviews as data collection instruments. Descriptive statistics and inferential statistics analysis tools were employed. Data analysis and presentation employed the convenience of MS Excel packages. The research concluded that mining companies mainly use environmental budgeting, environmental capital appraisal, and environmental performance tools in their mining processes and activities. Further, the investigation established that EMAPs are mainly used for compliance with regulatory authorities, for external reporting, for environmentalism decision-making, and less for strategic reasons. It also concluded that EMAPs improve environmental performance (EP) and ultimately financial performance. To the primary beneficiaries, the research study suggested that mining firms should embrace EMAPs as part of the strategic management process so that they maximise the benefits associated with the adoption of EMAPs. The research also recommended that the Central government should consider designing fiscal incentive policies to encourage more investment in environmentalism. Furthermore, educational institutions were recommended to develop an environmental management accounting framework and all stakeholders have been challenged to develop an environmental management accounting curriculum. Lastly, Media has been recommended to stimulate public interest in environmentalism for it is anticipated that public interest pressure groups' activism will accelerate the speed of adoption of environmental management accounting practice.