Corporate sustainability from a management accounting perspective and Egyptian reality

The article explores the critical relationship between corporate sustainability and management accounting practices, emphasizing that businesses must operate within environmental and social frameworks to achieve long-term financial success. As global economic expansion pressures ecosystems, stakeholders increasingly demand transparency regarding the environmental and social impacts of corporate operations. This demand compels firms to enhance their sustainability reporting and integrate environmental and social performance metrics into traditional financial reporting and management control systems.
The article elaborates on the challenges firms face in balancing financial objectives with sustainability goals, pointing out the lack of empirical research into what motivates corporations to adopt various sustainability strategies and how managers can effectively implement management control systems to support these initiatives. By addressing these gaps in the literature, the article aims to spark further research on the adoption of sustainability strategies, their implications for firm performance, and the development of robust sustainability accounting systems.
The Egyptian Reality of Corporate Sustainability: The article examines initiatives undertaken by the Egyptian Exchange (EGX), including the issuance of a comprehensive guide for listed companies emphasizing the importance of disclosing sustainability performance. This guide outlines responsibilities and governance structures, provides a framework for preparing sustainability disclosure reports, highlights the board of directors’ role, promotes stakeholder engagement, defines material disclosure topics and significant events, and introduces performance measurement indicators.
 
Ultimately, the article underscores the necessity for the accounting profession to evolve beyond its traditional boundaries to include assessments of environmental and social impacts. This evolution in accounting practices is crucial not only for complying with external pressures but also to create strategic advantages in an increasingly resource-constrained and environmentally conscious market. The findings suggest that businesses that actively monitor and manage sustainability issues are better positioned to maintain their legitimacy and enhance shareholder value in a rapidly changing economic landscape.