ASSESSING THE USE OF SUSTAINABILITY BALANCED SCORECARD AS AN ENVIRONMENTAL MANAGEMENT ACCOUNTING TOOL BY FIRMS IN NIGERIA

Abstract

There are heightened concerns from several stakeholders about businesses' economic, social, and environmental implications, with each stakeholder demanding distinct sorts of information but traditional accounting prioritised economic information. Due to increasing pressure, businesses are employing environmental management tools like the sustainability balanced scorecard (SBSC) to complement the conventional accounting system. Sustainability balanced scorecard which serves as a comprehensive framework for assessing and reporting environmental, social and financial implications of companies has recently been regarded as a vital instrument for formulating and attaining the primary goals of corporate sustainability management. However, the SBSC is still limited to use by businesses in Nigeria due absence of legal requirements. This study sampled some corporate entities, and a study was conducted to examine the extent to which the sustainability balanced scorecard is used as a management accounting tool. Data collected were analysed using the one-sample chi-square test and the results show that a sustainability balanced scorecard is still used in selected business sectors is grossly inadequate.