A study on the ECOAccountancy through Analytical Network Process measurement

Abstract

Enterprises have always sacrificed the benefits of the human and environmental causes in order to pursue the maximization of companies' profits. With more awareness of the concept of environmental protection and Corporate Social Responsibility (CSR), enterprises have to commence to take the potential duty for the human and the environment beyond the going-concern assumption and the achievement of profits maximization for stockholders. Further, with reference to vigorous environmental issues (unstable variation of climate, huge fluctuation of the Earth's crust, abnormal raises of the sea and so on), the traditional accounting principles and assumptions do conform to the contemporarily social requirement. Therefore, based on the full disclosure principle, enterprises are further supposed to disclose the full financial cost of complying with environment regulations (regarding the dystrophication resulted from operation, amended honorable of contamination, environmental protection policies and so on) which are going to lead to enterprises are still able to achieve "economy-efficiency" for the environments under the go-concern assumption. Hence, the innovative accounting theory (the ECOAccountancy Theory) is created to establish new accounting principles and regulations for confronting these issues. This paper utilizes three essential relations in consolidation that are evaluated by nineteen assessable sub-criteria of four evaluated criteria through the comparison of the Analytical Network Process (ANP). Specifically, the specific feature of the three-approach models is to calculate the priority vector weights of each assessable characteristic, criteria and sub-criteria by pairwise comparative matrix. Furthermore, in the content, the analytical hierarchical relations are definitely expressed in four levels among each criterion which enable enterprises to choose the potential role of ECOAccountancy in CSR in a thriving hypercompetitive commerce environment. © 2011 Springer.Verlag Berlin Heidelberg.