Perceptions of Environmental Accounting in the Jordanian Pharmaceutical Industries (Applications and Disclosure)

Abstract

This study aims to identify the extent of awareness on environmental responsibilities in the Jordanian Pharmaceutical industries, identifying how the Pharmaceutical industries in Jordan apply the environmental accounting policy in their factories, Measure the level of commitment of Jordanian Pharmaceutical industries with the Jordanian Environmental Protection Act No. 52 of 2006. Finally, determine the level of environmental accounting disclosure in the Jordanian Pharmaceutical industries. To attain these objectives, a combination of research methods have been conducted, namely, questionnaire and content analysis; 10 valid questionnaires were returned, giving a 62% response rate, followed by 10 content analysis for annual financial statements. descriptive analysis and statistical analysis were used to analyze the responses. The findings reported that Jordanian Pharmaceutical industries utilize high technology in accounting departments, 60% of them utilize environmental information system (EIS) in the company. The need by the management of the organization was the main cause of measurement of environmental impact of their activities followed by obligatory causes mainly the Jordanian Environment Protection Act No. 52 of 2006. In the same aspect the study revealed that the industries committed to Environment accounting by both internal policies and governmental regulations. The study indicated that the availability of electronic accounting system, internal environmental control units, and educational programs and courses were main essential requirements to keep pace with the development through environmental accounting functions. Furthermore, the study indicated that industries were concerned in the disposal of industrial waste which separates them from others, by the efficiency and effectiveness of the organizations activities through environmental accounting, alongside with the calculation of production cost and determining prices. Finally, the study revealed that the majority of the industries disclose their environmental accounting information in their financial statements.