Work

From measurement to impact: How resource efficiency accounting strengthens corporate environmental performance and social responsibility

Year: 2025

Type: article

Abstract: Purpose This study examines how five resource efficiency accounting (REA) tools—Material Flow Analysis (MFA), Life Cycle Assessment (LCA), Product-level Resource Accounting (PRA), Carbon Accounting (CA), and Natural Capital Accounting (NCA)—affect Corporate Environmental Performance (CEP) and Corporate Social Responsibility (CSR) in a developing economy. It fills a research gap by analyzing both direct effects and the mediating role of CEP, instead of studying each tool separately. Methodology Survey data were collected from manufacturing firms listed on Vietnam’s stock exchange. Structural Equation Modeling (SEM) was applied to test the relationships among REA tools, CEP, and CSR. Data quality was verified through screening, validity checks, and factor analysis before modeling. Findings PRA, MFA, and NCA are strongly linked to better environmental performance. PRA and CA also have a direct positive impact on CSR. CEP acts as a channel that transfers environmental practices into social outcomes. LCA shows the opposite effect or in some situations specific conditions must be met, depending on how results are used and communicated. Firms that adopt multiple REA tools in an integrated way achieve stronger and more consistent sustainability gains than those using a single tool. Practical implications The study shows the importance of a comprehensive resource efficiency strategy that combines different tools. For managers and policymakers in emerging markets, this highlights the need for training and policy support to promote integrated adoption. Originality This is one of the first empirical studies in an emerging economy to model the joint impact of several REA tools on CEP and CSR. It also provides new evidence on the role of CEP as a bridge between operational efficiency and social responsibility.

Source: Journal of Open Innovation Technology Market and Complexity

DOI: 10.1016/j.joitmc.2025.100636

Authors: Nguyen Phu Giang, Cao Hong Loan, Hoang Thi Tam

Institution: Thuongmai University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: gold

Estimated APC paid: $1,250