ENVIRONMENTAL MANAGEMENT ACCOUNTING AS A PERSPECTIVE FOR HOTEL SUSTAINABILITY A CASE STUDY FROM A SRI LANKAN HOTEL

Abstract

The consequences of the global climate change and degradation of ecosystems have created a tendency for the hotel industries to adopt and implement cleaner and safer environmental practices to their business operations. Since Environmental Management Accounting (EMA) has been witnessed around the globe as an effective tool which directs an organization to achieve the goals of sustainability, this study is designed to examine how EMAcan be used as a tool to assess a hotel’s impact on the environment and its contribution towards the Triple Bottom Line (TBL). To proceed the study, a qualitative approach is adopted using a case study method. Since Environmental Management Accounting and sustainability accounting are broader concepts, an in-depth analysis was undertaken in an environmentally friendly hotel in Sri Lanka. The data collection process was mainly done using semi structured interviews as well as non-participative observations and document analysis. The findings of this study reveal that even though hospitality industries in the developing countries lag behind the commitments to the concepts such as sustainability and Environmental Management Accounting, the selected hotel has implemented EMA techniques and practices to a greater degree of success. This greater adoption of EMApractices has not only ensured effective use of energy and water sources, improved employee and customer satisfaction, ensured compliance with legal requirements but also paved the way to gain a competitive position in the market place as a brand that upholds the green visionary and sustainability as their main strategic imperative.