These days, there's an increasing interest in the identification and analysis of costs and benefits of business activities related with environmental activities. Therefore EPA and WRI introduced the case studies of environmental accounting.
This paper presents a model of links between environmental activity and business competitiveness using Porter's Value Chain dealing the control of the costs for environmental activity by environmental accounting.
The model developed in the respect of relationship between environmental accounting and the competitive ability of company according to the changes of business conditions. This model is applied to the case studies of Amoco, Xerox, Ontario-hydro, Boxter International, Dow Chemical and S corporation.
The case of S corporation is reviewed as an introduction of environmental accounting because S corporation has never applied environmental accounting.
This study shows the results as follows: First, environmental accounting enables the company to increase its competitiveness by improvement of business activities. Second, when a company introduces environmental accounting, it is important the company should choose the main business activity and design the environmental system to maximize its efficiency.
