BUSINESS SUSTAINABILITY PERFORMANCE MEASUREMENT: ECO-RATIO ANALYSIS

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Abstract

Eco-aware customers and stakeholders are demanding for a measurement that links environmental performance with other business operations. To bridge this seemingly measurement gap, this paper suggests ‘Eco-Ratio Analysis’ and proposes an approach for conducting eco-ratio analysis. It is argued that since accounting ratios function as a tool for evaluating corporate financial viability by management and investors, eco-ratio analysis should be brought to the fore to provide a succinct measurement about the linkage between environmental performance and conventional business performance. It is hoped that this suggestion will usher in a nuance debate and approach in the teaching, research and practice of environmental management and sustainability accounting.

Keywords: Sustainability Measurement, Sustainability Performance, Divisional Performance, Eco-Ratio Analysis, Sustainable Development, Responsible Business

How to cite this paper: Ngwakwe, C., & Ambe, C. (2016). Business sustainability performance measurement: Eco-ratio analysis. Risk governance & control: financial markets & institutions, 6(4, special issue), 516-520. https://doi.org/10.22495/rgcv6i4siart10