The Relationship between Waste Management Expenditure and Waste Reduction Targets on Selected JSE Companies

Thabo Gerald Maleka, Gibson Nyirenda and Michael Bamidele Fakoya
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Thabo Gerald Maleka: Africa Centre for Sustainability Accounting and Management (ACSAM), School of Accountancy, University of Limpopo, Sovenga 0727, South Africa
Gibson Nyirenda: Department of Financial Accounting, School of Accountancy, University of Limpopo, Sovenga 0727, South Africa
Michael Bamidele Fakoya: Africa Centre for Sustainability Accounting and Management (ACSAM), School of Accountancy, University of Limpopo, Sovenga 0727, South Africa

Sustainability, 2017, vol. 9, issue 9, 1-20

Abstract: Waste generation and waste management are critical environmental issues faced by countries all over the world. Furthermore, there are greater environmental, economic, and social demands on firms to reduce the environmental impacts due to environmental problems brought about by their operating activities. There is a current debate as to the financial implications of waste management expenditure on waste reduction targets. This study examines the relationship between waste management expenditure on waste reduction targets, and the impact of waste reduction targets on firms’ profitability. This study used the quantitative method that utilizes the multiple regressions method to analyses data from selected South African Johannesburg Stock Exchange’s (JSE) Socially Responsible Index (SRI) listed manufacturing and mining firms for ten years (2007–2016). The study tests if there is a relationship between waste management expenditure and waste reduction targets, as well as the impact of waste reduction targets on firms’ profitability. Results show that waste reduction targets have a positive, but insignificant, correlation on the profitability of firms, and also indicate that there is a relationship between waste management expenditure and waste reduction targets. The study recommends that firms should focus more on minimizing waste generation to reduce costs.

Keywords: waste management expenditure; waste reduction targets; firms’ profitability; waste generation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:9:p:1528-:d:110025

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