The impact of environmental costs on financial performance: An explorative analysis of two plastic companies
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Author(s)Kansilembo Freddy AliamutuLink to ORCID Index: https://orcid.org/0000-0003-3870-7549
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Anrusha BhanaLink to ORCID Index: https://orcid.org/0000-0001-5577-6728
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Sachin SuknunanLink to ORCID Index: https://orcid.org/0000-0002-7296-8059
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DOIhttp://dx.doi.org/10.21511/ee.14(1).2023.02
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Article InfoVolume 14 2023, Issue #1, pp. 13-23
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- 715 Views
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135 Downloads
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Creative Commons Attribution 4.0 International License
There is little research on the impact of environmental costs on plastic manufacturing companies’ financial performance and sustainability. This paper aims to explore the relationship between environmental costs and financial performance of two large national plastic manufacturing companies, namely Bowler Metcalf Limited (BML) and Nampak Ltd, between 2018 and 2019 since research allows for five year old information. Further, the study used pre-Covid-19 data to conceptualize. It adopted a qualitative method of inquiry using content analysis to analyze the financial statements and reports of the two companies (secondary data analysis) available in the public domain. The interpretative analysis further supported the analysis and interpretation of the two variables of environmental costs and financial performance. The results showed a positive relationship between environmental costs and profits in the financial statements of these two companies during 2018 and 2019. BML had a decrease in plastic penalties from R 23.171 million in 2018 to R 14.596 million in 2019, which supported a reduction in spending on legal and constructive obligation items. Nampak also decreased stakeholders’ equity from R 10,140.3 million in 2018 to R 8,932.33 million in 2019, which meant that the stakeholders’ equity funds were reduced, possibly due to reduced spending on environmental costs during that period. It can be concluded and established that when these two plastic companies spend more on environmental costs, this positively affects overall financial performance and improves financial sustainability. It is recommended to allocate more resources/funding to support environmental costs to increase the profitability of the two plastic manufacturing companies.
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JEL Classification (Paper profile tab)D02, L25, M41
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References35
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Tables2
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Figures0
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- Table 1. Abstract of the two plastic companies’ revenue, profits, and shareholder’s equity in the financial statements for 2018–2019 (In millions of the reported Rand currency)
- Table 2. Abstract of the two plastic companies’ environmental costs in the financial statements for 2018–2019 (In millions of the reported Rand currency)
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Management of enterprise’s financial sustainability and improvement of its methods
Galyna Azarenkova ,
Olena Golovko ,
Kateryna Abrosimova
doi: http://dx.doi.org/10.21511/afc.02(1).2018.01
Accounting and Financial Control Volume 2, 2018-2019 Issue #1 pp. 1-14 Views: 5365 Downloads: 760 TO CITE АНОТАЦІЯThe article is dedicated to the solution of the relevant issue, concerning management of enterprise`s financial sustainability. Financial sustainability assessment is one of the most important principles of enterprise`s activity, which provides information about financial capabilities of the company at the time of its evaluation and for the future. It is a requirement for the enterprise activity, which provides a high level of competitiveness, efficiency and intensity. Thus, the restoration and strengthening of financial sustainability is a priority task for the enterprise, a basic precondition for its effective functioning. The purpose of the research is to analyze financial sustainability and to improve the methods and approaches of its evaluation. The following methods were used in this research: financial and economic analysis, economic and mathematical modeling, analysis and synthesis, comparison. The main results of the study are following: the theoretical and essential characteristics of enterprise financial sustainability has been determined; the financial status of PJSC “Turboatom” has been analyzed; the taxonomic index of financial sustainability has been calculated and the forecast of its significance has been made, the approaches to increase enterprise financial sustainability have been proposed.
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IFRS convergence: opportunities and challenges in India
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Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
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