Sustainable development and integrated report in environment-the case of Albanian companies

ALBANA JUPE1, FLUTURA KALEMI1, ALBANA GJONI1, FLORINDA ZHERRI1

1Department of Finance –Accounting, Faculty of Economy and Agribusiness, Agricultural University of Tirana

*Corresponding author e-mail: albanajupe@ubt.edu.al

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Abstract:

Climate change in Albania indicates several consequences such as increase in temperature, decrease in availability of water resources. Important sector in Albania such agriculture or electricity highly depend on climate conditions. Governments in Albania have addressed the negative consequences in adapting the sustainable development policies. Companies operating in heavy industrial sector and not only should respect the rules and legislation within the country, being responsible of a sustainable society. Reporting on nonfinancial information of a company performance has many challenges in practice and on other hands orientates the stakeholders on company’s measures on respecting the environmental social and governance rules. The latest information is disclosed in the so-called integrated reporting, where accounting practice is incorporated with management strategies on corporate social responsibility. This paper highlights the importance on integrated reporting approach on corporate behaviour towards environment and social issues of society. Furth more, the practice of adopting integrated reporting and gaps in accounting legislation and regulation in Albania are discussed. In this paper, the concept of integrated report will be stated reviewing the latest authors on the topic. Analysis of the current Albanian accounting practices and possibilities on adapting the integrated reports will come as recommendations of the study. A comparative analysis method of accounting legislation and environmental rules on green responsibility of companies in Albania will results in gaps and needs for reporting in sustainable way. The objectives of this study are, to collect, analyse and compare accounting legislation, environmental legislation applied in Albania to develop an application guidance on how to report in a sustainable way; to analyse the recent development on integrated reported in global level, to analyse the challenges faced by companies in reporting in sustainable way in Albania. As a result, we expect the establishment of a national filing program on integrate report would clarify the companies status towards its obligation on society and environment.

Keywords: sustainability; integrated report; laws on environment; laws on accounting.

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