Environmental Reporting Practices of Minerals Extraction Companies in Ghana: a Case Study of Shaanxi Mining Company and Upper Quarry Ghana Limited

Abstract

In recent years, concerns about sustainability and Environmental Accounting and Reporting (EAR) disclosures have received a great amount of discussion in various countries and industries, particularly in the mining industry. The purpose of this study was to assess the motivations of mineral extraction firms in Ghana to undertake environmental reporting practices and the perceived benefits accrued from it. A case study method was employed involving primary data from a census of management and accounting staff from Shaanxi Mining Company Limited and Upper Quarry Limited in the Upper East Region. Descriptive statistics were used to analyse the determinants of EAR practices of the two firms. The study offered support for the political economy, legitimacy and stakeholder theories generally applied to the study of EAR practices. Specifically, the study concluded that EAR practices are common to mining and quarry firms in Ghana. Pressure from government, media influence, shareholders‟ influence and the existence of environmental committee in the firms are perceived to influence mineral extraction firms‟ level of EAR practices. Meanwhile, perceived benefits from EAR practices include fostering cordial relationship between mining and quarry firms and the society, preventing government fines and improving firm reputation. The study recommends that government should adopt green tax policy to encourage EAR practices while regulatory bodies make the practices mandatory.