1. The document discusses environmental accounting reporting practices of listed pharmaceutical companies in Bangladesh. It reviews literature on environmental accounting and reporting and examines prior studies on the topic. 2. The objective of the research is to determine if Bangladeshi pharmaceutical companies listed on the Dhaka Stock Exchange are following rules and disclosing environmental impacts as required. 3. The research will use content analysis to examine annual reports of selected pharmaceutical companies over a five year period to analyze their environmental accounting and reporting practices based on set categories. It aims to contribute to holding companies accountable for environmental pollution.

1. 1
Environmental Accounting Reporting Practices of Listed
pharmaceutical companies in Bangladesh.
Submitted To:
Dr. MOHAMMAD MONIRUZZAMAN
Assistant Professor
Department of Accounting & Information Systems
University of Dhaka
Submitted By:
Team Galaxy
Members’Name ID
AnamikaHore 22-015
Tahera Akhter 22-059
IrinAfrinLuna 22-220
SyedaRiyaNadiaChowdhury 22-254
ShaguftaBushraMishma 22-122

2. 2
Table of Contents
Introduction :............................................................................................................................... 4
Rationale of the Research :..........................................................................................................4
Literature Review:........................................................................................................................ 5
Research Question:....................................................................................................................... 5
Research Methodology : ............................................................................................................... 6
Contribution :............................................................................................................................... 7
Conclusion :..................................................................................................................................7
References...................................................................................................................................7

3. 3
Environmental Accounting Reporting Practices of Listed
pharmaceutical companies in Bangladesh.

4. 4
Introduction :
Accounting is a informationsystem whichprovides informationregarding the entity to its userslike
investors and other stakeholders . Green accounting or environmental accounting is a subset of
accounting which deals with environmental information disclosure. So it considers CSR,
environmental costalongwithenvironmentalinformation disclosureandsustainablemanagementof
natural and human resources (Shabuz,Issa,Nazmul 2013) i
.Many developing countries like India,
Bangladeshetc. are not aware of it. Bangladeshi GDPrate isincreasingbut sustainable development,
greenaccountabilityandresponsibility haven’tyetensured. Sowe face environmental pollutionand
ecological rifts.
In Bangladesh, Pharmaceutical sector has succeed to capture domestic market (almost 98%) ii
along
with contribution of exporting into global market. Exporting rate is increasing from fiscal period to
period.In2020 it has earned 5.7%higherthanlast fiscal periodthroughexportintoglobal market.So
it can be said thatresponsibility towards environmenthasalsobeenincreasedovertime. Astheyare
directlyanddirectly causingenvironmental pollution.
Pharmaceutical sector are responsible for nuclear waste, agrichemical waste, environmental waste,
biomedical waste andchemowaste exposure tothe human being throughits production ( D.Kapoor
2015)iii
.BeximcoPharmaceutical company, one of the biggestmarket participants, hasnegative EIV or
Environmental Impact Value ( - 43) (Wahi,Rahman and Mahmud 2012)iv
. In this situation green
accounting can make the corporations accountable to environment through disclosure of numerical
and non numerical value of environmental effects. Thus corporation will consider environmental
effectswhiletakingdecisioninfuture.
Rationale of the Research :
Bangladesh’s GDPgrowthrate is increasing.In2019 GDP growthrate was 8.20. Globalisation,cheap
labourand rapidurbanisation causesexpansionof industrialsectorof our country.As aresultthe dark
sides of industrialisation and globalisationcan be seen on environment and human life according to
Eden & Lenway (2001)v
. Environmental pollution and unsuitable workplace has become common
scenarioin our country.Proper safetymeasureshave notbeentaken to preventandprotect worker
from unwanted accidents. Bangladesh having 165 index rankedfirst for having most polluted air in
2019vi
.In thiscase itshightime tocheckwhethercorporationsandmanufacturingcompanies are really
accountable andresponsibletothe sufferersasspecifiedrulesandregulations ornot.ETP isaeffective
way to reduce the effect of water pollution through treatment of contaminated water which can be
usedfor any other thingexceptdrinking (Zaman,Akter&Muhit 2015)vii
.But in realitythis ETP are not
usedonce afterits installationdue toitsheavy maintenancecost( Belal & Ahmed2015)viii
Objective OfThe Research:
Despite of having regulations ithasbeenfound inthepriorresearchthatonlyfewMNCsandBanking
companies are following EAR and green accounting. So the objective is to determine whether
Bangladeshi DSElistedpharmaceutical companiesare followingthe rulesanddisclosing the exposure
to environmentornot.

5. 5
Literature Review:
Stakeholder theory is corporate governance theory which suggests society and environment as
related parties who are to be considered and so it ensures corporate responsibilities towards
environment . According to Freeman (2007)ix
stakeholder theory makes managers to think about
environment along with other influenced parties in the time of taking decision. Caroll (1991)x
has
definedapyramidconsistingof corporate'sresponsibilitiesregarding philanthropic,ethical ,legaland
economic. Thus EAR reporting and green accounting disclosure will ensure the basis of stakeholder
theory.Apartfrom stakeholdertheoryitisalsosupportedbylegitimacytheory.
EAR reportingandgreenaccountingare widelypracticed indevelopedcountries andpeopleof those
countries are also aware of it. In a study it has been found that Australia's listed companies
environmental disclosure issignificantly correlatedtoitsstandards(Yusoff,Yatim&Othman,2013)xi
.
In Bangladesh there are seen few studies conducted on EAR. In a study it has been foundthat some
of corporate officials have shown indifferent perspective towards green accounting and one
government official has referredabout political unwillingness regarding implementationof laws and
regulation (Belal, Ahmed & Cooper 2015). In Bangladesh only few companies like some MNCs and
Banksare followingGreenAccountingReporting,butmanyof the companiesare completelyunaware
of itand greenGDP ( Nazmul,2013).
Shill andIqbal (2005)xii
&Rahman& Muttakin(2005)xiii
have conducted studiesbasedonconsecutively
DSE& CSE.Both have foundextremelyfailureonEARpractice inBangladesh.InDSEonly13companies
among121 companies andinCSEonly5of 125 companiesshowngreenaccountingdisclosure intheir
annual report. Bangladesh banking industry has been changed in case of EAR after the Bangladesh
BankgreenBankingpolicy2013 ( revised2014& 2015). Thishasleftaclearindicationinarecentstudy
conducted by Masud, Bae & Kim (2017) xiv
on banking companies listed in DSE, showing 85%
informationis reportedinAnnualReportof respectivecompanies. Inanotherrecentstudies ( Ahmad,
Rashid & Khan 2017) xv
pharmaceutical companies show very limited amount of environmental
information. They have found that only 7 items out of 18 items are presented on average of their
selected companies' annual report .Musharraf in 2016 has conducted research on pharmaceutical
companiesconsidering 15 companiesfrombothDSE and CSE. In his study highStandard of deviation
was foundwhich indicates clearlackingof properplanningand practicesof greenaccounting. Sothis
studywill be conducted oncompanies to see the effectivenessof prior findings.Moreover,there are
lackingof studies regardinggreenaccountinginBangladesh.
Research Question:
In orderto achieve objectivethisstudy will be focusedontwoquestion.Theyare givenbelow:
1. Do pharmaceutical companiespractice environmental accountingreportorEAR?
2. How do pharmaceutical companies make the disclosure of the environmental pollution
causedby them?

6. 6
Research Methodology :
Sample:
Thisstudywill be conducted onthe Pharmaceutical andChemicalCompanieslistedonDSE. Among32
companies,only 23companieswill be selecteddue tounavailabilityof annualreport.Time periodwill
be selectedforfive years from2014 to 2018.
Along with footnotes and explanation , vision statement, mission statement,directors' report and
chairman’sreport of annual reportwill be consideredforcontentanalysis.
ResearchDesign:
In the prior research content analysis has been given priority for the determination of green
accounting practice. Content analysis is the study of numerical and non numerical information of
annual report and arranging them under specific category. The categorization is done to determine
the style of presentinganddisclosinginthe annual report( Guthrie &Abeysekera2006)xvi
.Inthisstudy
content analysis will be used to see whether EAR is practiced or not . Ullah and Rahmanxvii
used
number of words, graphs and picture in his study (2015) conducted on banking companies listed in
DSE.Like Hossian(2016)xviii
numberof wordsandsentenceswillbe alsousedtodeterminethe pattern
of reportinganddisclosing.The categorieshasbeentakenfromthepriorstudiesof Wiseman(1999)xix
,
Hossain(2016),Ullah& Rahman (2015)and Nimer(2015)xx
.The 14 categoriesare givenbelow:
Categories Research
Environmental Policy, Air
pollution,Waterpollution,
Waste management,
Separate Environment
Department.
Wiseman
Employee training,
Environmental Financial Data,
environmental power,
Environmental Audititems.
Hossain(2016)
Employee training,
Environmental performance,
Environmental Protection.
MuntherAl Nimer(2015)
Tree plantation, Environmental
awarenessprogram.
Ullah& Rahman
The study will follow scoring system like Ullah & Rahman and Masud, Bae & Kim to determine the
patternof disclosure of EAR. Accordingtothe scoringsystem company will be likegiven1forshowing
disclosure and 0 for not showing of each category specified . After calculating Sum of EAR normal
statistics( standard deviation,mean,mode,medianandaverage value) will be usedtointerpretthe
result.

7. 7
Contribution :
Along with passing implementation of rules, laws and regulation is required to protect our
environment.Thisstudywill contribute toshow the realityof accountability andthe transparencyof
corporation regarding environmental pollution. As this study will be conducted on a specific sector
whichisemerginginourcountry,itwill helpfor furtherresearchon othersectors.Itwillhelptocreate
corporate images in front of general public. Aware consumersand investors will get help from this.
Their purchase decision or investment decision will be affected by it. With fear of being exposed
corporationswill be aware of theirdecisionwhichpollutesenvironment.
Conclusion :
Due to extreme environmentalpollutionpeople cantgetaccessto safe waterto drinkandsafe water
to breath. All are black side of emerging economy.In this situation, green accounting can make the
corporationsaccountable toenvironmentwhile makingdecision.Alongwithdifferentlawspassedin
our country,BFRS 6 ( adoptedbyICABfrom IFRSin 2013) directlyincorporatesenvironmental matter
with accounting reporting. Moreover BAS 20( Disclosure of Government Assistance) are BAS 24 (
RelatedpartyTransaction) alsoindirectly givesguidelinestodisclosethe mattersinaccountingreport.
Moreoverif the real practice of greenaccounting isanalysed,peopleWill be aware of environmental
pollutioncreatedbythese corporations.Thusgreenaccountingorenvironmentalaccountingmustbe
practiced mandatorily in our country in every sector like banking sector has adopted. It will ensure
sustainable development.
References
iShabuz Mahmud, Issa Ahmmad & Nazmul Islam.(2013) “Concept Of Green Accounting and Its PracticeIn
Bangladesh,Journal Of Science and Technology, pp 481.
ii Bangladesh Pharmaceutical Industries Blooms Bigger – Dhaka Tribute 2019.
iii D Kapoor, (2015) “ Impact of Pharmaceutical Industries on Environment, Health and Safety”, Journal Of
Critical Review, Vol 2, pp 26 & 28.
iv Wahi Rahman & Mahmud, 2012.“Assessment of Pharmaceutical Industries Of Bangladesh -An Effective Step
towards the achievement of Environmental Sustainability”
v Eden,L & Lenway. S, (2001), Introduction to the symposiummultinationals:The Janus Face of Globalization,
Journal Of International Business Studies 32,pp 383-400.
vi 2019 AQI Country Ranking
vii Zaman, Akter & Muhit (2015),“Pharmaceutical wastewater treatment and the efficiency of ETP in the
Context Of Bangladesh”.
viii Belal & Ahmed (2015),“ Corporate environmental Responsibility and Accountability :What Chance in
VulnerableBangladesh?”.
ix Freeman,R.; Harrison,J.;Wicks,A.;Parmar,B.;Colle,(2010) S.Stakeholder Theory: The state Of the art;
Cambridge University Press:New York, NY,USA.
x Archie B. Carroll,(1991),“ The Pyramid Of Corporate Social Responsibility,:Toward The Moral Management
Of Organisation Stakeholders.”Business Horizons 34(4) ,pp 39-48.
xi Yousuf, Yatim & Othman, (2013),” Strategic Framework for Green Accounting & Reporting”, Asia Pacific
Management and Business Application 1 (3),pp 183-200.
xii Shil,N. C. And Iqbal,M.(2005),“ Environmental disclosure– A Bangladesh Perspective”, The Cost&
Management 33(4), pp 85-9.

8. 8
xiii
Rahman and Muttakin (2005), “Corporate EnvironmentalReportingPractice InBangladesh -A
studyof some selectedcompanies”The costand management 33(4),pp13-21.
xiv Masud,Bae and Kim (2017),”Analysis Of Environmental Accountingand Reporting Practices Of Listed Banking
Companies Of Bangladesh”.
xv Ahmed, Rashid and Khan (2017), “Environmental Disclosure:A study on some selected Pharmaceutical and
chemical companies in Bangladesh.”
xvi Guthrie and Abeyshekera (2006),“Content AnalysisOf Social Environmental Reporting: What Is New?”,
Journal Of Human Resource Costingand Accounting, 10(2).
xvii Ullah & Rahman (2015),“ Corporate Social Responsibility Practices in Bankingcompanies in Bangladesh :
Impact Of Regulatory Change.” FinanceReport Account 13, pp 200-225.
xviii Md Musharof Hossain (2016),“Environmental Reporting Practices in Annual Reports of Selected
Pharmaceutical Companies In Bangladesh”,International Journal Of Businessad Management Invention, 5(7),
pp 20-28. S
xix Wiseman,J.(1982) An Evaluation o Environmental disclosure made in corporateannual reports.”
Account.Organ.Soc 7,pp 53-63.
xx
Munther Al Nimer,(2015), “ EffectOf Corporate Governance Rues onvoluntarydisclosur