ПРИЛАГОЂАВАЊЕ РАЧУНОВОДСТВА ЗАХТЕВИМА ЦИРКУЛАРНЕ ЕКОНОМИЈЕ
ADAPTATION OF ACCOUNTING TO THE REQUIREMENTS OF THE CIRCULAR ECONOMY

Author(s): Dejan Malinić, Savka Vučković Milutinović
Subject(s): Business Economy / Management, Energy and Environmental Studies, Environmental interactions, Accounting - Business Administration
Published by: Savez računovođa i revizora Republike Srpske
Keywords: circular economy; green economy; sustainability; performance measurement; circular economy corporate reporting; assurance;
Summary/Abstract: The facts that the planet is threatened by climate change and environmental degradation, that social costs have become extremely high, and that the main cause of this situation are companies are -very disturbing. The long-term focus on economic performance and disregard of environmental impacts have called into question the sustainability of such behavior not only at the corporate level, but also at the global level. In this sense, it is necessary to change the way of thinking and behaving of the key participants in these processes. This implies a change in the business model and the transition from a linear to a circular economy model. In such circumstances, the business world is forced to respond to existing challenges, which means ensuring sustainable activities, emphasizing both economic and environmental performance. This means simultaneously efficient use of natural resources, saving materials, energy, water and similar inputs of the production process, reducing waste, recycling and reusing products and materials. Under the pressure of the facts about the ecological state of the planet, managers have no choice but to look for establishing an acceptable balance between the economic responsibility of companies and the requirements of ecological sustainability. In that regard, quality decision making depends on transparent reporting for both external and internal stakeholders. In this way, it is possible to evaluate the potential for improvements in each company, as 'well as to measure the economic, environmental and social effects of corporate activities.

• Details
• Contents