Aims and objectives of the study

This paper aims at evaluating the environmental accounting strategic practices that Chinese corporations undertake in their corporate social and environmental responsibility endeavors. The objectives include;

• Get a background on past practices in environmental accounting strategies
• Identify and be conversant with some of the important environmental responsibility accounting theories
• Undertake a study of the environmental responsibility accounting strategic practices of Chinese corporations and make conclusions (and recommendations)

Background of the study

Environmental accounting identifies the use and measures of resources and communicates the cost of an organizations’ economic impact upon the environment (Uno and Bartelmus, 2013). Rapid industrialization and the use of fossil fuels have led to huge pollution and environmental quality challenges in China creating a worsening crisis (Yardley, 2007), (Chen, 2009). As a result, there has been increasing pressure for the Chinese firms to voluntarily make environmental reports and disclosures (Li et al., 2008). The pressure comes from government and local authorities, relevant ministries, environmental groups and consumers (Zeng et al., 2011). Corporations are being encouraged to make disclosures, although local authorities have also resorted to using underhand tactics to ensure reporting and disclosure, including through naming and shaming corporations (Peiyuan and Welford, 2016). The concept of environmental reporting and disclosure is still nascent in China, although progress is being made (Mol, 2009), (Schick-Chen, 2015).

Research Question

What is the level of environmental impact reporting and disclosure by Chinese Corporations and is the concept being taken up by more corporations?

Design of the study

This research proposes to undertake a descriptive quantitative and qualitative primary research method (Pole and Lampard, 2002), in which a sample of Chinese corporations will be chosen and a questionnaire submitted to them on environmental accounting and reporting as well as disclosure (Makrakis and Kostoulas-Makrakis, 2016). The study will make use of the internet and carry out an online questionnaire to willing firms and use the findings to answer the research question, employing graphical, descriptive, and statistical analysis skills.

Sample and testing

Approaching potential participants

Potential participants will be communicated to through e-mail or by telephone to the relevant persons after doing a brief background study of the company online. They will then be asked to participate in the research after the purpose and intent of the study is stated to them and the terms of the proposed research (Close et al., 2013)

Proposed sample size

A sample of fifty companies is proposed for this research; the firms should be Chinese or have significant Chinese ownership and be primarily operating out of China. This research proposes that these firms be involved in production/ assembly/ value addition; the companies will be randomly chosen from a list of the top 500 corporations/ companies in China.

Relationship between the researcher and the chosen sample

The author will have a professional/ formal relationship with the chosen sample that will be randomly selected; simple randomization ensures validity and reliability of the research while ensuring there is no bias (Collis and Hussey, 2003). Random sampling offers each possible participant from the population an equal opportunity for being chosen as research participants (Stangor, 2011)

Measures to ensure fully informed consent by participants

A cover letter will be sent through e-mail stating the research topic, the researcher, and the intent of the research (Nishimura et al., 2013). The participants will have to confirm, in writing using official means their consent. The consent letter will specify the research topic, purpose and background of the research, procedures, risks, confidentiality, alternatives, cost implications and the research questions (Jackson, 2008).

Research Procedure, Intervention, and Measurements

After obtaining consent and willingness to participate in the study, the questionnaire will be sent to the participants through e-mail. The participants will be required to fully fill the questionnaire as required (Zikmund, 2003) and submit the duly filled questionnaire within five working days

Management of the study

Potential for physiological / physical discomfort

The study will not have any physical discomfort, for firms that have not complied with environmental reporting and disclosure, there may be some anxiety leading to distress; however, the disclosure by the researcher is aimed at tackling this issue.

Maintaining data and participant anonymity

The research will be done such that participants will respond to the questions via a web based research tool; the e-mail sent will have a link to the website to guarantee linked anonymity; while the participants may be known, who responded with what will remain unlinked ensuring total anonymity, this is consistent with Schmuck (2009) on social research.

Maintaining confidentiality of the participant

This will be assured while seeking consent; the data as well as correspondence between the participants and the researcher will be kept confidential and not mentioned anywhere in the research write-up or while presenting the data.

Safe and secures storage of field data

The data will be downloaded from the survey website; it will not have details of the participants and the data will be used strictly for the purposes of this research and not shared. All correspondence with participants will be deleted and not mentioned at all during report writing, as advised by Aiyer et al., (2015)

Data management and access

Participant privacy will be ensured by having no names or references, including e-mail; only the researcher will have access to the data for the duration of analyzing the data and writing the report (Ferrari, 2010). The online survey web portal will not be given access or freedom to use the data and all external data locations (such as web survey database) will be deleted as soon as the report is written.

 

 

References

Aiyer, V., Bhutkar, R., Anvekar, S. and Chavan, D. (2015). Guaranteeing Data Storage Security in Cloud Computing. IJER, 4(5), pp.231-234.

Chen, G. (2009). Politics of China’s environmental protection.

Close, S., Smaldone, A., Fennoy, I., Reame, N. and Grey, M. (2013). Using Information Technology and Social Networking for Recruitment of Research Participants: Experience From an Exploratory Study of Pediatric Klinefelter Syndrome. J Med Internet Res, 15(3), p.e48.

Collis, J. and Hussey, R. (2003). Business research. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

Ferrari, E. (2010). Access control in data management systems. [San Rafael, Calif.]: Morgan & Claypool Publishers.

Jackson, S. (2008). Research methods. Belmont, CA: Thomson Wadsworth.

Li, Y., Clarkson, P., Richardson, G. and Vasvari, F. (2008). Revisiting the Relation Between Environmental Performance and Environmental Disclosure: An Empirical Analysis. SSRN Electronic Journal, 33(4-5), p.306.

Makrakis, V. and Kostoulas-Makrakis, N. (2016). Bridging the qualitative–quantitative divide: Experiences from conducting a mixed methods evaluation in the RUCAS programme. Evaluation and Program Planning, 54, pp.144-151.

Mol, A. (2009). Environmental governance through information: China and Vietnam.Singapore Journal of Tropical Geography, 30(1), pp.114-129.

Nishimura, A., Carey, J., Erwin, P., Tilburt, J., Murad, M. and McCormick, J. (2013). Improving understanding in the research informed consent process: a systematic review of 54 interventions tested in randomized control trials. BMC Medical Ethics, 14(1), p.28.

Peiyuan, G. and Welford, R. (2016). CSR Asia. [online] Csr-asia.com. Available at: http://csr-asia.com/csr-asia-weekly-news-detail.php?id=3993 [Accessed 5 Jul. 2016].

Pole, C. and Lampard, R. (2002). Practical social investigation. Harlow, England: Prentice Hall.

Schick-Chen, A. (2015). X. Wang: Open environmental information upon disclosure request in China: the paradox of legal mobilization. China-EU Law J, 4(2-4), pp.247-250.

Schmuck, R. (2009). Practical action research. Thousand Oaks, Calif.: Corwin Press.

Stangor, C. (2011). Research methods for the behavioral sciences. Australia: Wadsworth Cengage Learning.

Uno, K. and Bartelmus, P. (2013). Environmental accounting in theory and practice. 3rd ed. Dordrecht: Kluwer.

Yardley, J. (2007). China – Pollution – Environment. [online] Nytimes.com. Available at: http://www.nytimes.com/2007/08/26/world/asia/26china.html?_r=0 [Accessed 5 Jul. 2016].

Zeng, S., Xu, X., Yin, H. and Tam, C. (2011). Factors that Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information. J Bus Ethics, 109(3), pp.309-321.

Zikmund, W. (2003). Business research methods. Chicago: Dryden Press.

 

 

Appendices

Appendix I: Questionnaire Questions

Are you familiar with the local/ national requirements for environmental reporting and disclosure?  	Yes No
Does your organization report and disclose its environmental impact?	Yes No
If yes, how is the reporting; voluntary and done under duress?  	Voluntary Directed
Does the organization feel obliged to voluntarily report and disclose its environmental impacts?  	Yes No
How old is the organization?	0-1  years 2-4 years 5-8 years 9-12 years Over 13 years
For how long has the organization been doing environmental impact reporting and disclosure?	0-1  years 2-4 years 5-8 years 9-12 years Over 13 years
What has been the trend in your organizations’ environmental impact; is it reducing or decreasing?	Increasing Decreasing No change
If it is increasing, what measures has the organization put in place, or intends to put in place to arrest the situation?	Reduce wastage Undertake environmental impact assessment Improve reporting standards
Do you feel the environmental impact reporting is helping improve the image of the company?	Yes No Not sure
Does environmental impact reporting and disclosure have any benefits to the organization?	Yes No Not sure
Are the benefits monetary or non-monetary?	Monetary Non-monetary (CSR)