The role of accountants in sustainability reporting and the challenges faced by them in Malaysia

Abstract

Sustainability is responsible growth achieved by striking a balance between economic needs and social and environmental requirements. Sustainability is a lifestyle that is concerned with fulfilling the current human needs (social, environmental, and economical aspects) without harming the needs of the future generation. Sustainability Reporting (SR) is considered a critical monitoring tool used to present a firm’s accountabilities to its impacts on the environment and society. This study explores the role of accountants in the SR process and the challenges faced by them in Malaysia. The study used the resource-based view theory to explain how accountants’ participation in SR can help organization to generate sustainable competitive advantages for the benefit of all stakeholders. A total of 354 questionnaires were distributed to accountants and people associated with financial reporting in environmentally sensitive sectors. Only 107 responses were received. The data were analysed using descriptive analyses. The results show that over 75% of respondents’ companies include the accountants in the reporting process; they also indicate their agreement that accountants should be involved in the process of SR.