Achievement of Environmental Goals at Visy: Management Accounting 1

Management Accounting 1
Achievement of Environmental Goals at Visy

Introduction
With the increasing awareness among the public concerning the environmental
related issues, business organizations are finding it essential to implement certain
measures so as to protect the environment from the day to day activities undertaken
by them. They have realized that in order to survive in this competitive era, it
becomes essential for them to take initiatives that helps them in protecting the
environment in a most effective manner. This essay is concerned with analyzing the
management accounting system of Visy, the world’s largest privately owned paper,
recycling and packaging company in helping the organization to achieve its
environmental goal. In assessing the major steps undertaken by the organization in
order to achieve its environmental goal, the National Packaging Covenant and
Environmental Report for the financial year 2004 will be examined in detail.
Environmental Goal of Visy
Visy has been quite focused with respect to its environmental goal of
becoming a more environmentally sustainable packaging manufacturer and also the
user in Australia. In order to become an environmentally sustainable packaging
manufacturer, Visy has integrated its environmental code of practice for packaging
with that of its management systems. It has also been constantly engaged in reducing,
recycling and reusing the more used packaging and avoiding disposal. Thus the main
goal of Visy towards the environment is to comply with the regulations so that the
negative impacts on the environment can be avoided and this could be possible by
being committed towards increasing the sustainability of the packaging and recycling
industry. In order to achieve its goal, the company has taken various initiatives such
as improvement in the recovery rates, light weighting and also the better designing
and development of new markets (Environmental Management System (EMS) 2010).
Role of Management accounting in attaining the Environmental Goal
Accountants have a major role to play in helping the organization in attaining
its environmental goal in a most effective manner. Management accounting is
basically concerned with satisfying the informational needs of the internal
management of the organization. The focus of such management is on the monetary
as well as the non monetary information that basically helps in addressing the
activities such as formulation of business policies and the most effective use of the
available resources. The accounting and the accountant has a major role to play in
ensuring the proper management of environmental management system as they have
access to both the monetary and the non monetary information of the organization.
They also have the skills to make the most appropriate use of such available
information for decision making. Accounting in general plays an important role in
organization by framing rules and regulations concerning the management of finance
to which all the organizations have to comply with. Similarly, the accountant and the
accounting can help in implementing an Environmental Management Systems (EMS)
within the organization by bringing the traditional functions of accounting in the day
to day environmental management process. An effective implementation of EMS
would result into better management of the issues related to the environment as it
helps in incorporating the accounting mechanism that basically deals with the
environmental performance evaluation, valuing the impact of the environmental
activities undertaken by the organization and helps in monitoring the success achieved
with regard to environmental related actions (Wilmshurst and Frost 2001).

It has also been proved by the studies conducted in the past that the
accountants and the accounting have a major role to play in the proper management of
environmental system within the organization. According to Wilmshurst and Frost
(2001), accountants can help an organization in identifying the information related to
environment so that they can take important decisions (Wilmshurst and Frost 2001).
In another study conducted by Ans Kolk (2006), on sustainability, accountability and
corporate governance, it has been found that the companies are constantly engaged in
striving for the transparency and accountability by offering important information
pertaining to its environmental, legal and ethical aspects to the public. In the study, a
clear linkage between the corporate governance and sustainability which includes
environmental aspects has been found (Kolk 2006).
Assistance of Management Accounting in attaining Environmental goals at Visy
At Visy, the top management has identified that the good business practice
and good environmental outcomes go hand in hand. As such, the management has
been highly concerned with the environmental related aspects from the packaging
business run by the company. The management accounting is basically concerned
with the internal management of the organization, by having a focus on the physical
flow of information such as water, energy, materials and waste and also on the
monetary information concerned with the earnings, costs and savings. The
management at Visy has issued a series of values to its staff in order to provide
guidance on the day to day activities performed by them so as to remain
environmentally effective. The management at Visy is also considering the integration
of Environmental code of practice for packaging into its management system so as to
comply with the rules and procedures as laid down in the code. In order to make the
internal operation effective toward the environment, the management accounting at
Visy is designed in a way that provides higher prioritization to the capital allocated to
water and energy as these have been considered as a major resource management
issue in Australia. Further, in order to achieve the efficiency in the environment
related aspects, Visy also conducts Energy Audits so that its water management plans
can be developed that results into the efficient use of water and recycling at Visy sites.
The management accounting is very effective at Visy as, there has been target set for
every division with respect to the usage of Energy and Water as these are considered
to be the scarcest resources. Thus the overall management accounting at Visy aims at
achieving internal efficiency within the organization so that it remains
environmentally competitive and able to achieve its environmental goal (The Visy
Report 2010).
Conclusion
This essay is basically concerned with assessing the effectiveness of the
management accounting at Visy in achieving its environmental goal. The accountant
and the accounting have a major role to play in making an organization
environmentally effective. This has been proved by the various studies as undertaken
in the past concerning the role of accounting in the environmental management
system. By assessing the management accounting system at Visy, it can be concluded
that it is quite effective in enabling the organization to achieve its goal of
environmentally effective in packaging and recycling.

References
Environmental Management System (EMS), 2010 [Online]. Available at:
http://www.visy.com.au/index.php?id=109 [Accessed: 18 September 2010].
Kolk, A. 2006. Sustainability, Accountability and Corporate Governance: Exploring
Multinationals’ Reporting Practices. Business Strategy and the Environment, Vol 17,
pp. 1-15.
T he Visy Report, 2010 [Online]. Available at:
http://www.visy.com.au/index.php?id=106 [Accessed: 18 September 2010].
Wilmshurst, T. D. and Frost, G. R. 2001. The role of Accounting and the Accountant
in the Environmental Management System. Bus. Strat. Env., Vol 10, pp. 135–147.

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Management Accounting 1

Achievement of Environmental Goals at Visy

related issues, business organizations are finding it essential to implement certain

recycling and packaging company in helping the organization to achieve its

environmental goal. In assessing the major steps undertaken by the organization in

Environmental Goal of Visy

becoming a more environmentally sustainable packaging manufacturer and also the

user in Australia. In order to become an environmentally sustainable packaging

and development of new markets (Environmental Management System (EMS) 2010).

Role of Management accounting in attaining the Environmental Goal

Accountants have a major role to play in helping the organization in attaining

its environmental goal in a most effective manner. Management accounting is

basically concerned with satisfying the informational needs of the internal

management of the organization. The focus of such management is on the monetary

ensuring the proper management of environmental management system as they have

information for decision making. Accounting in general plays an important role in

organization by framing rules and regulations concerning the management of finance

accounting can help in implementing an Environmental Management Systems (EMS)

to day environmental management process. An effective implementation of EMS

environmental performance evaluation, valuing the impact of the environmental

with regard to environmental related actions (Wilmshurst and Frost 2001).

environmental system within the organization. According to Wilmshurst and Frost

(2001), accountants can help an organization in identifying the information related to

In another study conducted by Ans Kolk (2006), on sustainability, accountability and

striving for the transparency and accountability by offering important information

environmental aspects has been found (Kolk 2006).

Assistance of Management Accounting in attaining Environmental goals at Visy

business run by the company. The management accounting is basically concerned

guidance on the day to day activities performed by them so as to remain

environmentally effective. The management at Visy is also considering the integration

of Environmental code of practice for packaging into its management system so as to

internal operation effective toward the environment, the management accounting at

issue in Australia. Further, in order to achieve the efficiency in the environment

achieving internal efficiency within the organization so that it remains

This essay is basically concerned with assessing the effectiveness of the

management accounting at Visy in achieving its environmental goal. The accountant

and the accounting have a major role to play in making an organization

in the past concerning the role of accounting in the environmental management

system. By assessing the management accounting system at Visy, it can be concluded

that it is quite effective in enabling the organization to achieve its goal of

environmentally effective in packaging and recycling.

http://www.visy.com.au/index.php?id=109 [Accessed: 18 September 2010].

Kolk, A. 2006. Sustainability, Accountability and Corporate Governance: Exploring

T he Visy Report, 2010 [Online]. Available at:

http://www.visy.com.au/index.php?id=106 [Accessed: 18 September 2010].

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