Green Accountability Strengthens Waste Management Through Carbon Cost Recognition and Community Engagement

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FORMOSA NEWS - Jakarta - Stronger environmental accountability can significantly improve the sustainability of waste management enterprises when organizations recognize carbon-related costs and actively involve local communities in environmental programs. This conclusion comes from a study conducted by Hamidah Rosidanti Susilatun of STIA LAN Jakarta Polytechnic, published in 2026 in the International Journal of Management and Business Intelligence (IJBMI). The research highlights that integrating environmental accounting with community participation not only improves transparency but also strengthens public trust and long-term sustainability.

The rapid growth of waste generation, climate change, and increasing public demand for sustainable development have pushed waste management enterprises to rethink how they measure environmental performance. Traditionally, many organizations focused primarily on operational efficiency, paying less attention to the environmental costs generated by their activities or the role of surrounding communities in environmental governance.

According to Hamidah Rosidanti Susilatun, waste management companies occupy a strategic position in supporting the transition toward a circular economy through waste collection, recycling, and resource recovery. However, many organizations still struggle to integrate environmental costs into their accounting systems and rarely engage communities in environmental decision-making. As a result, environmental reports often fail to reflect the true ecological impacts of business operations, limiting transparency and public accountability.
Rather than conducting field surveys, the study analyzed existing scientific evidence using a Systematic Literature Review (SLR) based on the internationally recognized PRISMA 2020 framework. The researcher examined publications from Scopus, Web of Science, ScienceDirect, SpringerLink, Emerald Insight, and Google Scholar.

The review initially identified 245 scientific articles published between 2015 and 2025. After removing duplicate and irrelevant publications through several screening stages, only 10 peer-reviewed studies met the research criteria and became the basis for the final analysis.
The selected studies originated from several countries, including Indonesia, Australia, South Africa, Germany, Denmark, and Peru, providing diverse perspectives on environmental accounting, carbon accounting, sustainability, and stakeholder participation.

The review identified three major elements that consistently strengthen green accountability within waste management enterprises.

First, carbon cost recognition improves environmental transparency. Organizations that identify, measure, and disclose carbon-related costs are better able to understand the environmental impacts of their operations. This information supports better managerial decision-making, encourages cleaner production, and helps organizations evaluate environmental risks more effectively. Carbon accounting is therefore not merely a reporting requirement but a strategic management tool for sustainable operations.

Second, community environmental engagement builds stronger public trust. The review found that involving local communities in waste segregation, recycling programs, environmental education, and monitoring activities significantly improves sustainability initiatives. Active community participation strengthens organizational legitimacy because environmental responsibility is shared between enterprises and society rather than remaining an internal corporate activity.

Third, integrating accounting systems with stakeholder participation creates comprehensive green accountability. Organizations that combine environmental management accounting, carbon cost recognition, and transparent stakeholder communication consistently demonstrate better environmental performance and greater public acceptance. These integrated practices allow companies to address increasing societal expectations regarding sustainability while improving long-term organizational resilience.

The research also summarizes evidence from previous international studies showing that:

  • Environmental accounting improves sustainability performance in waste management.
  • Carbon cost recognition enhances operational efficiency and environmental control.
  • Environmental management accounting supports sustainable corporate governance.
  • Green accounting increases environmental transparency and disclosure quality.
  • Community participation strengthens environmental accountability and sustainability initiatives.
  • Environmental cost measurement is essential for achieving sustainability goals and organizational legitimacy.

According to Hamidah Rosidanti Susilatun of STIA LAN Jakarta Polytechnic, effective environmental accountability cannot rely solely on technical accounting systems. Carbon cost recognition provides measurable evidence of environmental responsibility, while community participation supplies the social legitimacy needed for successful environmental governance. Together, these two elements enable waste management enterprises to become more transparent, accountable, and sustainable.

The findings carry important implications for business leaders, policymakers, and environmental regulators. Waste management enterprises are encouraged to incorporate carbon-related costs into their environmental management accounting systems so that sustainability performance can be measured more accurately. Companies should also improve environmental disclosures by providing clearer information about carbon emissions, environmental expenditures, and sustainability initiatives.

At the same time, governments and local authorities can strengthen environmental governance by promoting community participation through environmental education, recycling programs, waste reduction campaigns, and collaborative monitoring initiatives. Such partnerships help build public confidence while improving environmental outcomes.

The study further recommends that future research move beyond literature reviews by conducting surveys, case studies, or mixed-method research to measure how carbon cost recognition and community engagement directly affect organizational sustainability performance in real-world waste management enterprises.

Author Profile

Hamidah Rosidanti Susilatun is a researcher at STIA LAN Jakarta Polytechnic. Her academic interests include environmental management, green accountability, environmental management accounting, sustainability governance, and public sector management, with a particular focus on integrating environmental responsibility into organizational accountability systems.

Research Source

Title: Green Accountability Practices in Waste Management Enterprises Through Carbon Cost Recognition and Community Environmental Engagement

Author: Hamidah Rosidanti Susilatun

Affiliation: STIA LAN Jakarta Polytechnic

Journal: International Journal of Management and Business Intelligence (IJBMI), Vol. 4, No. 3, 2026, pp. 621–636.

DOI: https://doi.org/10.59890/ijmbi.v4i3.21

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