ACCOUNTING PROPOSITIONS FOR ENVIRONMENTAL PERFORMANCE INFORMATION SYSTEMS: CASES FROM UK HOTELS

Abstract

Current business trends in the global hotel industry are strongly oriented towards sustainable development, including especially the explicit recognition of environmental attributes. The aim of this paper is thus to analyze and propose key steps toward the effective incorporation of environmental management accounting (EMA) within hotel performance information systems. Research evidence was obtained via in-depth case studies undertaken with 20 environmentally-oriented hotels located in the UK. Sources especially drawn on included organizational environmental policies and archival documentation, interviews with key personnel and an online survey which specifically focused on 10 business areas considered vital for successful EMA and overall environmental management integration. The research results indicate a number of information patterns by which hotels can determine the existing level of their sustainable business. Furthermore, the ‘broad’ understanding of the sustainability concept was found to lead to a relatively subjective appreciation and presentation of sustainable hotel operations and their performance. Fundamentally, though, it was determined that hotel organizations need to ‘rethink’ their typical short-term, financially oriented performance information by developing effective sustainability accounting systems which incorporate a pertinent balance of performance management indicators. Such systems, moreover, should clearly focus on improving the environmental [ie energy consumption, waste management, carbon emissions etc] as well as the financial aspects of a hotel’s business – so better creating long-term value for all relevant stakeholders.

Keywords

• accounting
• environmental management accounting