IIARD International Institute of Academic Research and Development

JOURNAL OF HOTEL MANAGEMENT AND TOURISM RESEARCH. (JHMTR )

E- ISSN 2756-5807
P- ISSN 2695-2408
VOL. 6 NO. 2 2025
DOI: 10.56201/jhmtr.vol.6no2.2025.pg18.30

---

Sustainability Accounting in the 21st Century Economy

IHENYEN, Joel Confidence PhD, TEIBOWEI, Henry Ekpoamumemi, IMBAZI, Lucky, Lando

---

Abstract

This study explores literature survey approach with content search analysis on existing reports, research papers and publications bordering on Sustainability Accounting and the theoretical foundations and applications of Sustainability Accounting in modern economic systems. Grounded in stakeholder theory, legitimacy theory, institutional theory and normative theory, the study underscores how Sustainability Accounting expands the scope of Traditional Accounting to include Environmental, Social, Governance and Economic (ESG-E) metrics. Reporting frameworks such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the European Union’s Corporate Sustainability Reporting Directive (CSRD) illustrate the institutionalization of sustainability practices and reflect the growing demand for transparency and accountability. The study revealed that Sustainability Accounting is essential for promoting responsible business conduct and sustainable development and that for businesses to be relevant with greater market share, the non-financial reporting aspect (ESG report) should be taken seriously as it enhances the credibility, reliability and acceptability of the financial reporting aspect (Economic report) in the 21st century economy. As economies become more interdependent and sustainability risks intensify, the integration of non- financial reporting into mainstream accounting practices is not just beneficial, it is imperative. Thus, the study concludes that Sustainability Accounting advances accounting thought by recognizing the interconnectedness of environmental, social, governance and economic performance.

keywords:

Environmental reporting, Social reporting, Governance reporting, Economic report, Traditional accounting, 21st century economy.

---

References:

Adams, C. A., & Larrinaga-Gonzalez, C. (2007). SA and organizational change. Accounting,
Auditing & Accountability Journal, 20(3), 344–365.
Bebbington, J., & Larrinaga, C. (2014). Sustainability and accounting: An exploration of the
interface. Accounting, Organizations and Society, 39(6), 395–413.
Bebbington, J., Larrinaga, C., & Moneva, J. M. (2014). Corporate social responsibility and
sustainability reporting in the mining industry. SA, Management and Policy Journal, 5(1),
38–55.
Buallay, A. (2019). Between cost and value: Investigating the effects of sustainability reporting
on a firm’s performance. Journal of Applied Accounting Research, 20(4), 481–496.
Burritt, R. L., & Schaltegger, S. (2010). SA and reporting: Fad or trend? Accounting, Auditing &
Accountability Journal, 23(7), 829–846.
Cho, C. H., Laine, M., Roberts, R. W., & Rodrigue, M. (2015). Organized hypocrisy,
organizational facades, and sustainability reporting. Accounting, Organizations and
Society, 40, 78–94.
de Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated reporting: Insights, gaps and an
agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), 1042–
Deegan, C., & Rankin, M. (2008). The relationship between sustainability reporting and
corporate performance. Australian Accounting Review, 18(2), 136–148.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and
collective rationality. American Sociological Review, 48(2), 147–160.
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st-century business.
Capstone Publishing.
Etim, E. (2023). Sustainability reporting and financial performance in the Nigerian healthcare
sector. IJRSI.
European Commission. (2023). Corporate Sustainability Reporting Directive (CSRD).
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Global Reporting Initiative. (2022). GRI Standards: The world’s most widely used sustainability
reporting standards.
Gond, J. P., Cabantous, L., & Krikorian, A. (2012). The institutionalization of CSR: A
conceptual framework. Journal of Business Ethics, 111(2), 271–284.
Gray, D. E. (2010). Doing research in the real world (3rd ed.). Sage Publications.
Gray, R., & Bebbington, J. (2001). Accounting for the environment. Sage Publications.
Gray, R., Bebbington, J., & Collison, D. (2014). NGOs, civil society and sustainability reporting.
SA, Management and Policy Journal, 5(1), 56–75.
Gray, R., & Milne, M. J. (2002). Sustainability reporting: Who’s kidding whom? Chartered
Accountants Journal of New Zealand, 81(6), 66–70.
GRI.
(2021).
Global
Reporting
Initiative
Standards.
Retrieved
from
https://www.globalreporting.org
Hall, A., Mabit, N. L., & Mardones, C. (2015). Integrating stakeholder theory and SA. SA,
Management and Policy Journal, 6(1), 38–55.
Harrison, J. S., & van der Laan Smith, J. (2015). Stakeholder theory and SA. Journal of Business
Ethics, 131(2), 357–371.
Hassan, A., & Romilly, P. (2018). Corporate non-financial disclosure and corporate performance.
Journal of Accounting and Public Policy, 37(3), 258-274.
King, W. R., & He, J. (2015). A meta-analysis of the technology acceptance model. Information
& Management, 52(5), 457–468.
KPMG. (2022). 2022 Survey of Sustainability Reporting in Nigeria.
Lamberton, G. (2005). SA: A review of the literature. Journal of Accounting Literature, 24, 1-26.
Maroun, W. (2019). Accounting for sustainability: Past, present and future. Meditari
Accountancy Research, 27(6), 889–914.
Mitchell, R. K., Agle, B. R., & Wood, D. J. (2015). Toward a theory of stakeholder identification
and salience. Academy of Management Review, 22(4), 853-886.
Muhammad, M. (2023). Sustainability reporting and financial performance in the Nigerian oil
and gas sector. IJRSI.
O'Dwyer, B. (2011). The case of sustainability assurance: Constructing a new assurance service.
Contemporary Accounting Research, 28(4), 1230–1266.
Rawls, J. (1971). A Theory of Justice. Harvard University Press.
Richard F. (2002). The Rise of the Creative Class. Basic Books.
Schaltegger, S., Bennett, M., & Burritt, R. L. (2006). SA and reporting. Springer.
Schaltegger, S., & Burritt, R. L. (2000). Contemporary environmental accounting. Greenleaf
Publishing.
Simnett, R., & Huggins, A. (2015). Integrated reporting and assurance: Where can research add
value? (1), 29–53.
Stubbs, W., & Higgins, C. (2018). Stakeholders’ perspectives on the role of regulatory reform in
integrated reporting. Journal of Business Ethics, 147(3), 489–508.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy
of Management Review, 20(3), 571–610.
Sudha, S. (2020). Corporate environmental performance, climate change disclosures and
financial performance: Evidence from India. International Journal of Climate Change
Strategies and Management, 12(2), 281–298.
United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable
Development.
Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a
literature review. MIS Quarterly, 26(3), xiii–xxiii.
Yang, S., Wang, Y., & Zhang, Y. (2019). Corporate non-financial disclosure and firm value.
Journal of Business Research, 98, 421–432.
Zhou, S., Simnett, R., & Green, W. (2017). Does integrated reporting matter to the capital market?
Abacus, 53(1), 94–132.

DOWNLOAD PDF

---

Back