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80 © Dina, Lindrianasari, and Asamaranti 2016 | Environmental Management Activity
Table 1 (2012) which stated that environmental ac-
Green Accounting Measure counting positively influences companies’ per-
formance. Richardson et al. (2001) has done the
Description Green Accounting Issues and Scope observation on social disclosure of the compa-
Pollution Pre- Costs incurred to prevent air and water nies. Richardson reported that there is a positive
vention Costs pollution along with water treatment fa- and significant relationship between the level of
Environmental cilities and other activities. environmental disclosure and the cost of capital.
Protection Costs of energy saving measures as He further argued that companies will do better
Costs well as costs of global warming reduc- disclosure when companies’ profitability is bet-
Costs of Re- tion measures. ter.
source Recy- Costs incurred for waste reduction and
cling disposal as well as for water conserva- Amran and Devi (2008) discuss how green
tion, rainwater usage and other accounting literature has paid little attention to
Environmental measures aimed at efficient resources either organizational influences on a company’s
Restoration usage. practices or the ways a company’s practices
Costs Cost of environmental restoration oper- influence the organization. Dinah Shelton (2004)
Management ations (eliminating soil and ground wa- described the importance of and impact on the
Costs ter contamination, environmental com- green auditing system in relation to environ-
pensation, etc.) mental development. She pointed out that green
Social Promo- Management-related environmental auditing and accounting is the same and plays a
tion Activities protection costs including environmen- critical role in promoting the public and the
Costs tal promotion activities and costs asso- environmental organizations that could be
ciated with acquiring and maintaining worked on based on the human rights approach.
Research and ISO14001 certification. This means that environmental education is
Development Environmental protection costs stem- working in line with the human rights docu-
Costs ming from participation in social activi- ments context.
ties such as participation in organiza-
tions concerning with environmental This research is supported by the triple bottom
preservation etc. line concept where this concept implements 3
Environmental protection costs for re- pillars, that are people, profit and companies’ en-
search and development activities and vironmental. This concept concern that focus of
costs of environmental solutions busi- the companies not only on profit but also the
ness activities (green prod- companies must focus to environmental activi-
uct/environmental technology design ties. There are also some theories that support
and development costs, environmental this theory, stakeholder and legitimacy theory
solutions business costs, others) etc. where both of theories concern about compa-
nies’ responsibility of environmental and social
Previous Literature, Theoretical Concept, to stakeholders’ needs and the development of
and Hypothesis Development the companies
Influence of environmental management ac- Along with the increase of environmental dam-
tivity toward finance performance of mining age and society’s awareness to protect their en-
companies vironment, companies, as a part of the environ-
ment, need to pay attention to environmental
There were various results from the previous re- sustainability. The company itself as a legal en-
search that explained the influence of environ- tity must be responsible to shareholders and
mental management toward companies’ perfor- stakeholders for their company’s management.
mance. This research supports Al Sharairi’s re- The management must be able to show their
search (2005), which stated that environmental good performance to the group related to finan-
costs positively influence a company’s competi- cial performance and environmental perfor-
tive advantage and support the results of Aniela mance. Because of this, when company conduct
Science Target Inc. www.sciencetarget.com
