Environmental Assets and Expenses Accounting as an Indicator of Social Responsibility in Spanish Energy Companies on the IBEX 35

Abstract

Purpose: The aim is to prove that traditional accounting does not have the ability to report, in a clear and reliable way, through its financial statements, the environmental activities performed by the companies, hindering their commitment to corporate social responsibility. Design / methodology / approach: This is a qualitative and quantitative study, of a documentary design, of a descriptive type, using the biblio­ graphic review of primary sources and the financial analysis of the annual accounts and management reports of energy companies in a period of 10 years. Findings: Accounting, which gathers the records of economic and social issues, cannot neglect current environmental problems. Companies should seek solutions to improve collection and presentation of environ­ mental information in their financial statements, helping to minimize the environmental impacts caused by their production systems and become socially responsible companies. Current accounting systems are not able to reflect the environmental reality of companies, and therefore cannot be used for decision–making in the environmental field. Originality / value: The study shows that the analysed energy compa­ nies do not devote enough effort to the environment or their accounting systems do not sufficiently inform about taken actions. Nevertheless, Journal of Corporate responsibility and leadership the Case studies in Corporate soCial responsibility 50 Maripaz Muñoz Prieto a positive trend in their investments and expenditures on the environment manifesting their commitment to social responsibility is observed. Paper type: Article.