Environmental Cost Accounting Practices on the Business Performance of the Hospitality Industry in Panglao, Bohol, Philippines

Abstract

This research study aimed to determine the effect of environmental cost practices on the business performance of the hospitality industry in Panglao, Bohol, Philippines. Environmental cost accounting (ECA) practices were measured by the extent to which environmental cost items were identified, assessed, and allocated. Business performance was measured based on profit margin, return on assets (ROA), return on equity (ROE), public image, and customer loyalty. The descriptive-correlational method was utilized in this study. Questionnaires were used as the data collection instruments to measure the study variables. The survey questionnaire was divided into three major sections: respondents' profiles, environmental cost accounting practices, and entities' business performance. The results revealed that ECA practices significantly affect business performance. It was also concluded that company size and industry type significantly affect respondents' ECA practices. On the other hand, respondents' years of operation and industry rating have no significant effect on their ECA practices. An entity that addresses environmental costs can make better decisions, creating a positive image and reputation among investors and customers, ultimately leading to better business performance.