EFFECT OF ENVIRONMENTAL AUDIT PRACTICES ON PROFITABILITY OF TEA PROCESSING FACTORIES IN KISII COUNTY KENYA
Abstract
The purpose of the study was to evaluate the effects of environmental audit practices on profitability among tea processing factories currently operating in Kisii County. The study used descriptive research design. This study was carried throughout the six tea factories in Kisii County. The target population for the study was all the 145 employees in finance department who consisted of auditors, accounts staffs procurement officers in 6 tea processing factories in Kisii County. Survey approach was preferable because the population was small to allow the use of a sample. A five point likert scale self-administered structured questionnaire was used to collect primary data and also secondary data of the factories on their financial reports and statements was used. Validity was assured by supervisors and research experts while reliability was assured by consistency in administering the research instrument. The data collected was analyzed using descriptive statistical measures of central tendency such as mean and percentages and measures of relationship using multiple regression technique. The information arising from analyzed data was presented in tables and figures. The study found that effective environmental audit systems resulted to improved profitability. The study concluded that there was a positive and significant relationship existed between environmental audit and profitability. The study recommended for better audit policies to be put in place to halter those failed to comply with environmental audit practices.
Key Words: environmental audit, Profitability
CITATION: Kiage, E., Nyang’au, A., & Chesoli, W. (2019). Effect of environmental audit practices on profitability of tea processing factories in Kisii County Kenya: A study of listed companies in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 240 – 247.
Full Text:
PDFReferences
Adams, C.A, Hill, W.Y., and Roberts, C.B., (2018) Corporate Social Reporting Practices in Western Europe: Legitimate Corporate Behaviour, British Accounting Review, 30(1), pp. 1-21.
Agbiogwu, B. E., Effiok S. O., & Eton, O. E., (2014), “The Impact of Environmental Accounting and Reporting on Organizational Performance of Selected Oil and Gas Companies in Niger Delta Region of Nigeria”, Research Journal of Finance and Accounting, Vol. 4, No. 3, pp. 57-74.
Bennett, M., & James P., (2017), "Environmental-related management accounting: current practice and future trends", Greener Management International, Vol. 17 pp.33-51.
Deegan, C., (2012) Financial accounting theory. Australia, McGraw Hill Australia Pty Ltd.
Kimani R. N.(2014) The effect of budgetary control on effectiveness of non-governmental organisations in Kenya a research project submitted in partial fulfillment of the requirements for the award of the degree of master of science finance, school of business, University of Nairobi
Okoye A. E., & Ngwakwe C. C., (2014), “Environmental Accounting: A Convergence of Antecedent Divergence”, A C Ezejelue and A E Okoye (Eds.), Accountancy; Management Companion, Nigerian Accounting Association (NAA), Nigeria.
Osisioma, B.C. & Enahoro, J.A. (2016).Creative Accounting and option of Total Quality Accountingin Nigeria. Journal of Global Accounting, 2(1) September.
Owolabi, A. A., (2017). Incorporating Environmental Costs into Nigeria Oil and Gas Accounting, A thesis submitted to the Department of Management and Accounting, Faculty of Administration, ObafemiAwolowo University; Ile-Ife, Nigeria.
Pearce, D.W., & Warford, J.J., (2013). World without End – Economic Environment and Sustainable Development, New York: Oxford University Press.
Razeed A., (2017), “Determinants of Environmental Disclosure Practices of the US Resource Companies: Hard Copy Versus Internet Reporting”, A Paper Presented at Australasian CSEAR, Sydney.
Sada, P. O. (2018)., “Development and the Environment audit: A Conceptual Framework for Environmental Management Australia
Hammeed, I, Hasbullah, H., & Norani, A. (2014) Environmental audit Issues and Financial Reporting Trends, A Survey in the Chemical and Oil & Gas Industries, The FondazioneEni Enrico Mattei
Shield, D; Beloff, B., & Heller, M., (2016) Environmental Cost Accounting for Chemical and Oil Companies; A benchmarking study, June, Gulf of Mexico
Wei, Q., & Roger, B (2018) Environmental accounting for waste management: A study of local governments in Australia.IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 9.Ver. I (Sep. 2014), PP 82- 92 www.iosrjournals.org
Werhane P. H., & Freeman R. E., (2015), “Business Ethics: The State of the Art”, International Journal of Management Reviews, Vol. 1, No. 1, pp. 1-16.
(www.iso.org/iso 14001 environmental management.html).
Yakhou M., & Dorweiler V. P., (2014), “Environmental Accounting: An Essential Component of Business Strategy”, Business Strategy and the Environment, Vol. 13, No. 2, pp. 65-77.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1386
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.