Theses and dissertations (Accounting and Informatics)
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Item An assessment of environmental costs on financial performance : a case study of two plastic manufacturing companies in South Africa(2022-04-06) Aliamutu, Kansilembo Freddy; Bhana, AnrushaEnvironmental sustainability has become a somewhat, “trendy” expression for the corporate, public, private and government sectors. Different theoretical reviews and empirical research investigations have, in previous years, examined the relationship between environmental responsibility and financial performance, proving that further research is required. Subsequently, having better than average environmental costs and including financial performance is important for organisations to make sustainable progress in the long-term. Environmental cost activity is a high cost which usually affects a company's net profit. The study investigated two national plastic manufacturing companies in South Africa. The research objectives are to examine the relationship between environmental costs and financial performance, and to examine the effect of environmental costs on investors or stakeholders’ interest in the organisations. The research aims are to investigate the assessment of the environmental cost of plastic on financial performance at the two national plastics manufacturing companies in South Africa. The study utilised Stakeholder theory, which sees companies as a major aspect of a social system, while concentrating on different stakeholder groups in society. Additionally, the study focused on the two companies using their financial statements in the period between 2016 and 2019. Further statements were unavailable. The research used interpretative analysis because it includes precision and clearer comprehension of qualitative data. The unit of analysis are organisations of two plastic companies, the chosen criteria because they have an environmental cost, and their data is available on the public domain. A case study approach was utilised to get a more profound and extensive comprehension of the phenomena. The study found that an increase in environmental costs may influence financial performance and environmental costs. In addition, it contributed to research relating to the impact of plastic manufacturing companies’ environmental costs in South Africa. The study concluded that environmental costs have a positive and important effect on financial performance. The study recommends that the two companies should continue placing resources into environmental cost funds as much as practicable due to result in growth in financial performance.Item Assessing the impact of environmental cost on the capital investment decision-making of the Electricity Supply Commission, South Africa(2020-09) Oyewo,Toyese Titus; Olarewaju, Odunayo Magret; Cloete, Melanie BerniceThe availability of energy (electricity) is a key factor in economic growth and the sustainability of production processes. The need to quantitatively measure the environmental risk and hazard associated with energy sources for the environment is useful in evaluating capital investment for decision-making. Coal (fossil fuel) is the main source of energy in South Africa, based on its availability and cost-effectiveness. Specifically, quantitative research using mathematical marginal social cost modelling to evaluate the environmental cost of emissions emanating from the Electricity Supply Commission’s (ESKOM) coal power stations is employed. It was discovered that the price of electricity has trebled over the lifespan of coal power plants. Therefore, the need to construct coal power plants with optimum levels of production was highlighted. The net present value (NPV) technique was used to evaluate ESKOM's capital investment and the marginal social cost mathematical model was developed for measuring and quantifying the emission costs associated with the lifespan of the coal power plants. Results revealed that the optimum level production of 2,150,000 Gigawatts per annum within the range of the present capacity of ESKOM of 2,292,000 gigawatts annually is required and profitable to ESKOM. The net present value yielded a positive value of R1, 448,713,000,000-00 over a period of 30 years of coal power plants’ life-span. However, various technologies used to minimize emissions were also considered and investigated to confirm the feasibility and profitability of investment in coal- powered stations using environmental management accounting and marginal social cost approaches.