Japanese management accounting practices for facilitating ...

University of WollongongResearch Online

University of Wollongong Thesis Collection University of Wollongong Thesis Collections

Japanese management accounting practices forfacilitating eco-efficiency: the experience ofPanasonicAkiko PhillipsUniversity of Wollongong

Research Online is the open access institutional repository for theUniversity of Wollongong. For further information contact the UOWLibrary: research-pubs@uow.edu.au

Japanese management accounting

practices for facilitating eco-efficiency:

the experience of Panasonic

A thesis submitted in fulfilment of the requirements for the award of the degree

Master of Accountancy

University of Wollongong

Akiko Phillips

School of Accounting, Economics and Finance

Certification

I, Akiko Phillips, certify that this thesis, submitted in fulfilment of the requirements for the

award of Master of Accountancy in the School of Accounting, Economics and Finance at the

University of Wollongong, is wholly my own work unless otherwise referenced or

acknowledged. The document has not been submitted for qualifications at any other academic

institution.

Akiko Phillips

March 2014

Acknowledgements

The most importantly I acknowledge my supervisors; Dr Anura de Zoysa and Dr Kathleen

Rudkin, whose support and encouragement for completing my thesis. I, hereby, express my

sincere appreciation for their patience and their precious time they offered to me. I thank my

friendly supervisors; Kathy and Anura.

I also would like to express my gratitude for all faculty staff who organises seminars and

workshops to help me acquiring knowledge and skill for my research. I thank Heather and

Celeste from leaning development who gave me guidance of effective writing in English.

Lastly, I thank to my husband Len and children; Tomas, Kazuma and Hannah. Their love and

support with encouraging words always cheer me up, so my determination and motivation

lasted.

合掌 (Gatt-shou: put both hands together and showing gratitude for all)

Abstract

Companies change their strategies in response to changes in their business’

environment. A deteriorating natural environment is an external factor influencing the

operations of businesses. This deterioration has seen a change in society, resulting in an

increasing demand for eco-efficient products and services. Incremental awareness by society

of environmental issues creates new opportunities for the business community. Organisations’

performances change with their new strategies for meeting the demands for environmentally

conscious businesses.

This phenomenon is examined through the example of the Japanese company

Panasonic Corporation, which regards accounting as the first step of business management.

This thesis argues that accounting serves sustainable management because environmental

accounting provides the basis for resource management in an organisation. The nation of

Japan is committed to accomplishing strong environmental performance, and Japanese

companies have an historical reputation of introducing innovative management accounting

methods and techniques in response to changes in their business environment.

Due to Japan’s geographic position and its inability to be self-sufficient in natural

resources, it is reasonable that Japanese companies regard resource management as a critical

area to seek solutions for eco-efficiency strategy. This research uses the examples of

Panasonic Corporation and a contingency approach to explore the impact of ‘eco-efficiency’

demand on Panasonic Corporation’s management accounting practices. The demand for eco-

efficient products and production entices Panasonic Corporation to change its operational

activities, reporting contents, corporate structure and business strategies. Consequently, it

designs its management accounting practices to fit its context and in so doing accomplish its

strategic objectives.

Specifically this research identifies and explicates how eco-efficiency demand is

reflected in designing management accounting practices. The consequential impact of eco-

efficiency consciousness has thus grown largely owing to a response to the eco-efficiency

demands. The basis of this study is an examination of Panasonic Corporation’s performance

in the context of accounting for the environment. Observations are taken both prior to and

after Panasonic’s responses to the Kyoto Protocol.

Table of Contents

Certification ............................................................................................................................................. i

Acknowledgements ................................................................................................................................. ii

Abstract .................................................................................................................................................. iii

Table of Contents ................................................................................................................................... iv

List of Charts.......................................................................................................................................... vi

List of Figures ........................................................................................................................................ vi

List of Tables ......................................................................................................................................... vi

Table of Abbreviations ......................................................................................................................... vii

Table of Japanese Terms ...................................................................................................................... viii

Chapter 1: Introduction ........................................................................................................................... 1

1.1 Introduction ................................................................................................................................ 1

1.2 Objectives of the study ............................................................................................................... 3

1.3 Research design ......................................................................................................................... 3

1.4 Research contribution ................................................................................................................ 4

1.5 Structure of the thesis ................................................................................................................. 4

Chapter 2: Background of the Research ................................................................................................. 6

2.1 Introduction ................................................................................................................................ 6

2.2 Change and management accounting practices.......................................................................... 7

2.3 The Kyoto Protocol and its impact on businesses’ environmental performance ....................... 8

2.4 The role of accounting in the new environment....................................................................... 10

2.5 Japanese context ....................................................................................................................... 11

2.5.1 Poor natural resource country ........................................................................................... 12

2.5.2 The historical context of changing Japanese commerce ................................................... 13

2.5.3 Japanese culture and disposition ....................................................................................... 19

2.6 Environmental issues ............................................................................................................... 21

2.7 The impact of environmental issues on Japanese management accounting ............................. 22

2.8 Summary .................................................................................................................................. 23

Chapter 3: Literature Review ................................................................................................................ 25

3.1 Introduction .............................................................................................................................. 25

3.2 Management accounting practices and change ........................................................................ 25

3.2.1 Change, internal factors, and MAPs ................................................................................. 27

3.2.2 Change, external factors, and MAPs ................................................................................. 30

3.3 The eco-efficiency approach in the context of accounting for the environment ...................... 34

3.4 Management accounting changes in Japan .............................................................................. 37

3.5 The environmental management accounting research in Japan ............................................... 38

3.6 Summary .................................................................................................................................. 43

Chapter 4: Research Design and Methodology ................................................................................... 45

4.1 Introduction .............................................................................................................................. 45

4.2 Research objective ................................................................................................................... 45

4.3 Research questions and issues.................................................................................................. 47

4.4 Research review ....................................................................................................................... 48

4.5 Research design ....................................................................................................................... 49

4.6 Theoretical approach ................................................................................................................ 55

4.6.1 Conceptual underpinnings of contingency theory ............................................................. 55

4.6.2 Contingency theory in the context of accounting ............................................................. 56

4.7 Research method ...................................................................................................................... 59

4.8 Data collection ......................................................................................................................... 61

4.9 Contextual background of Panasonic’s environmental reporting ............................................ 67

4.10 Summary ................................................................................................................................. 69

Chapter 5: Eco-efficiency: the Experience of Panasonic ...................................................................... 70

5.1 Introduction .............................................................................................................................. 70

5.2 An overview of Panasonic Corporation ................................................................................... 71

5.2.1 Panasonic - structural reform and its history of brands ..................................................... 73

5.2.2 Kaisha ............................................................................................................................... 76

5.2.3 The Panasonic culture - the founder’s intention and spirit................................................ 77

5.2.4 Panasonic’s business strategies: accounting and reporting ............................................... 80

5.2.5 Environmental issues and Panasonic’s response and reporting ........................................ 86

5.3 The Panasonic in-house MAPs: eco-efficiency conscious production ..................................... 88

5.3.1 Raw material management -the starting point for value creation ..................................... 89

5.3.2 Green production management -the challenge ‘a zero emission factory’ ......................... 91

5.3.3 Resource circulation: Panasonic and total product responsibility ..................................... 94

5.3.4 Green supply chain management ...................................................................................... 98

5.4 Summary ................................................................................................................................ 101

Chapter 6: Conclusion ......................................................................................................................... 102

6.1 Summary of the study ............................................................................................................ 102

6.2 Discussion of the findings ...................................................................................................... 102

6.3 Contributions of the study ...................................................................................................... 105

6.4 Strengths, constraints and recommendations ......................................................................... 107

Appendix 1: Brief History of Panasonic ............................................................................................. 109

Appendix 2: Panasonic - IR Summary ................................................................................................ 112

Appendix 3: Not Favourable Impact – A Merger with SANYO (1) ................................................... 113

Appendix 4: Calculation Model for Figure 7 (chapter 5) ................................................................... 115

Appendix 5: Illustration of Akari-Anshin Service System ................................................................. 116

Appendix 6: Applying the Panasonic Case for the Research Model .................................................. 117

References ........................................................................................................................................... 119

List of Charts

Chart 1: History of Japanese Yen ......................................................................................................... 17

Chart 2: Archive of e-R&D cost allocation of Panasonic ..................................................................... 82

Chart 3: Reduction of CO2 emitted amount from production activities of Panasonic .......................... 85

List of Figures

Figure 1: The model ‘eco-efficiency consciousness reflecting organisational changes’ ...................... 53

Figure 2: Panasonic’s new corporate structure - ‘Business Domain System’ in 2003 ......................... 72

Figure 3: Brand History of Panasonic ................................................................................................... 75

Figure 4: The scope of ‘Matsushita’s Environmental Accounting System’ ......................................... 86

Figure 5: Panasonic’s management accounting practices for sustainability ......................................... 88

Figure 6: Panasonic Green Factory assessment system indictors ......................................................... 92

Figure 7: Overview of environmental impact from business operation ................................................ 96

Figure 8: Akari-Anshin Service – take back service program .............................................................. 97

List of Tables

Table 1: Japan's Imports of Non-Renewable Resources in 1989 .......................................................... 12

Table 2: Archive of the changes in the Panasonic environmental and annual reports .......................... 63

Table 3: The leading Japanese green brands and environmental Report 2013 ..................................... 67

Table 4: History of environmental activities prior to the Kyoto Protocol ............................................ 68

Table 5: Panasonic Structural Changes ................................................................................................. 74

Table 6: The timeline of environmental issues and Panasonic responses ............................................. 87

Table of Abbreviations

3R Reuse, Reduce and Recycle

B2B2C Business to Business to Consumer

BE Business Environment

CCM Capital Cost Management

CSR Corporate Social Responsibility

EA Environmental Accounting

e-LCC Environmental effects oriented LCC

eco-VC eco-Value Creation (ecological value adding activities)

EMA Environmental Management Accounting

e-R&D Environmental related R&D

FCF Free Cash Flow

GHG Green House Gas

GRI Global Reporting Initiative

ISO International Standards Organization

JIT Just In Time (strategy/ manufacturing system)

JMA Japanese Management Accounting

KPMG-AZSA SC KPMG AZSA Sustainability Co. Ltd

LCA Life Cycle Assessment

LCC Life Cycle Costing

MAC Management Accounting Change

MAP Management Accounting Practice

MAS Management Accounting System

MEIC Matsushita Electric Industrial Corporation

MEMA Monetary Environmental Management Accounting

METI Ministry of Trade, Economic and Industry of Japan

MFCA Material Flow Cost Accounting

MOE Ministry of the Environment, Government of Japan

NE Natural Environment

Panasonic Panasonic Corporation

Panasonic-eco Panasonic ecology systems group

PAS Product Assessment Sheet

PEMA Physical Environmental Management Accounting

P-FEMS Panasonic Factory Energy Management System

PHP Peace and Happiness through Prosperity

PMS Performance Measurement Systems

RoHS Restriction of Hazardous Substances

Sanyo Sanyo Electric Corporation

SEAR Social and Environmental Accounting and Reporting

SE-Link Save Energy Link

TC Target Costing

TNS The Natural Steps

TQC Total Quality Control

UNFCCC United Nations Framework Convention on Climate Change

WEEE Waste from Electrical and Electronic Equipment

Table of Japanese Terms

あかり Akari Light, Lamp or Lighting

安心 Anshin Relief (ease your mind)

原価企画 Genka-

Kikaku

Japanese way of Target Costing

板粉 Itakona Plate and powder

会計 Kaikei Accounting

会社 Kaisha A Japanese Corporation

改善 Kaizen Contiguous improvement

カンバン Kanban Kanban System – the Toyota’s logistic management

system for Just-in-Time production

Original ideas comes from a product administrative card

which contains information for production

管理 Kanri Administration, broad meaning of management procedure

管理会計* Kanri-Kaikei Managerial Accounting

(interchangeable with Keiei-Kaikei)

経団連 Keidanren Japan Business Federation (of Economic)

The purpose is to establish consensus in the business

community on a wide range of vital domestic and

international issues for their stability and apt resolution

経営 Keiei Management, Administration or operation

経営会計* Keiei-Kaikei Management Accounting

(Interchangeable with Kanri-Kaikei)

系列 Keiretsu the grouping of enterprises

松下幸之助 Konosuke

Matsushita

The founder of Panasonic and a management philosopher

共生 Kyosei Symbiosis

松下政経塾 Matsushita

Political

Economic

Institution

Konosuke Matsushita established the Institution in 1979,

with a view to educate the future leadership of society.

This supplementary private Institution civilise youth to

have prescience and vision of Japan’s future.

メタゲジ Metagegi Compound noun of ‘Meter and Gauge’

One of the Panasonic eco-device

物作り Monozukuri Honest Craftsmanship spirits

もったいない Mottainai Too precious to waste – Japanese idiomatic expression

加工貿易 Processing

Indicate the style of Japanese manufactures’ business.-

Products are assembled domestically and exported

overseas

商学部 Shougaku-bu Faculty of Business Administration or Commerce

衆知 Syu-chi Employees to integrate their knowledge

(employee empowerment)

Chapter 1: Introduction

1.1 Introduction

The milieu in which business organisations operate has changed drastically over the

last few decades due to a number of factors, such as: the advancement of technology; greater

intensity of global competition; and, changing customer demands (McWatters et al. 2001).

Responding to such changes, businesses adjust their strategies accordingly in order to at least

maintain and ideally increase both their customers’ value and their organisational value. This

thesis, through the examination of the case study of the Japanese company Panasonic

Corporation, explores one such factor, ‘eco-efficiency1’.

It is argued that the emergence of the concept eco-efficiency has initiated significant

change in the consciousness of both manufacturers and their customers with respect to an

expectation of how goods are produced and consumed. That is, in meeting an increasing

demand for the manufacture of eco-efficient products, companies can develop a competitive

edge for their products. Fraj-Andrés et al. (2009) point out competition is one of the main

factors motivating organisations to incorporate environmental aspects into their strategic

planning process. This thesis explores, through the analysis of Panasonic Corporation’s

operation, how accounting practices and systems are integral and respond to this process.

Changes in the design of management accounting practices (MAP) are required so that they

can provide the necessary new information needed to introduce and assure eco-efficiency in a

manufacturing process.

Since the 1970s, Japan has seen a drastic increase in the amount of toxic and synthetic

waste produced, as a result of rapid economic growth in the country (Nomura & Kamii 2004).

1 Eco-efficiency is defined as “a concept describing a vision for the production of economically valuable goods

and services while reducing the ecological impacts of production” (Gaffikin 2008, p.244).

The environmental impact of rapid development in Japan is significant, because it is a highly

industrialised country reliant on manufacturing, and lacking in natural resources. This

circumstance is considered a catalyst for Japan being a leader in taking initiatives to address

environmental issues. Japan did this earlier than many other countries in the world.

Japan signed the Kyoto Protocol (United Nations Framework Convention on Climate

Change [UNFCCC] 2011)2

in 1997, compelling Japanese companies to address their

environmental impacts, including the incorporation of an eco-efficiency consciousness within

their operations. There developed a trend of increasing innovations for eco-production each

year in Japan, reducing emissions and waste significantly, and in doing so meeting increasing

demand for such products worldwide.

Japan’s government agencies and their regulatory requirements supported eco-

production. Progress towards adopting environmental factors into management accounting

systems (MAS) was slow until the 1990s (Kokubu et al. 2009). However, since the signing of

the Kyoto Protocol in 1997, the Ministry of the Environment, Government of Japan (MOE)

promoted optimising Japan’s limited resources and advocated the development of

environmental management accounting (EMA) (MOE 2000). The MOE promotes reducing,

reusing and recycling materials and they initiated a project to build a ‘resource circulating’

society (MOE 2006). As a major initiative to achieve this goal, in 2000 the Ministry of

Economy, Trade and Industry of Japan (METI), jointly with the MOE undertook a pilot

project to examine EMA (METI 2007a). The MOE also set up a training course for

researchers and bureaucratic officials to educate them in EMA and associated techniques used

for reducing, reusing and recycling resources (Morioka 2011, p.15).

2 The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on

Climate Change, committing its parties to internationally binding emission reduction targets. It was set in

December 1997 in Kyoto Japan. Numerous industrialized countries and the European community adopted this

treaty with an aim to reduce greenhouse gas (GHG) emissions (UNFCCC 2011).

The Japanese Government’s focus on MAS is consistent with the perception of Burns

and Scapens (2000, p.3), who view management accounting change (MAC) as an institutional

framework for delivering strategy. Management accounting alters in order to adapt and fit an

organisation’s objectives. MAP need to be sensitive to “revolutionary change” that is a result

of significant external environmental changes (Burns & Scapens 2000, p.13). A key example

of this in Japan is the Kyoto Protocol. However, in this broader context companies’ responses

to environmental changes do vary between companies as there are distinctive differences

between companies in relation to their traits and cultures. For example, Benn et al.’s (2011)

study of the Fuji Xerox Australia case perceives a distinct culture, describing it as “justifiable

pride in its technological achievements” (Benn et al. 2011, p.40). This thesis argues that a

company with a strong culture of embracing new ideas and striving for innovation is likely to

initiate changes to their MAP in line with the company’s strategic policy directions.

1.2 Objectives of the study

This research examines how the management accounting system of an innovative

Japanese company responded to a company strategy of achieving a higher level of eco-

efficiency in their operations. For this purpose, this study examines the processes, methods

and techniques used by Panasonic Corporation (hereafter Panasonic) to achieve this objective.

1.3 Research design

This is a qualitative exploratory study using text analysis because it enables the

researcher to examine the underlying issues in detail. As Neuman (2006, p.40) states this

allows “an in-depth examination of an extensive amount of information about very few units

or cases for one period or across multiple periods of time”. In this study, research questions

are formed using a research framework built on the premises of contingency theory. The

details of the research design and framework are given in Chapter 5.

1.4 Research contribution

The contribution of this study is to twofold. Firstly, it contributes to the richness of

examples of accounting-in-action in the context of accounting for the environment. Secondly,

this study also makes a contribution by investigating and reporting on the results of many

studies undertaken by Japanese researchers and reported in the Japanese language, making

them accessible to a western audience. It is anticipated that the findings of this study can

provide valuable insights about various processes, techniques and methods that can be used to

increase the environmental performance of manufacturing companies.

Panasonic is one of a number of globally acknowledged sustainable Japanese

manufacturers. The study of its MAP allows this research to capture examples of common

insights of Japanese enterprises’ environmental approaches. Contributions of this research are

to demonstrate how Japanese companies deal with environmental issues for other entities that

seek an effective environmental strategy in their changing business environment. Japan’s

signing of the Kyoto Protocol impacted on the business community and forced changes to

their internal systems. Hence, it is of relevance to shed a light on a leading eco-efficient

company’s environmental approaches.

1.5 Structure of the thesis

This thesis comprises six chapters. The outlines of the remaining five chapters are

illustrated in this section. Chapter two provides the background of the research. The topic of

MAC is introduced and the historical influence of the Kyoto Protocol is discussed. The

foundations of this thesis are contextualised in terms of the Japanese geographic position,

disposition and culture. This section gives special emphasises to the origins of Japanese

corporate culture and its influences in forming corporate culture.

Chapter three presents a literature review of MAC. This research specifically

investigates how Japanese companies have responded to environmental changes. It also gives

a necessary explanation of the unique nature of Japanese management accounting. This

section will review both the western and Japanese literatures on MAC.

The design, methodology and theoretical approach are described in chapter four. A

contingency approach (Birkin et al. 2005) is used as the theoretical underpinning to form the

framework of the study. A contingency approach allows this study to introduce the new

contingent variable of eco-efficiency consciousness into the selected research model. Details

of data collection, selection and accessibility are depicted. Potential impediments regarding

data quality are considered.

Chapter five is concerned with the analysis of Panasonic’s MAP. This section presents

an overview of Panasonic’s environmental strategy, particularly the impacts on it of changing

eco-efficiency consciousness on Panasonic’s transition to an eco-efficiency oriented business

strategy. The inter-relationships of corporate culture, strategy and MAPs are explicated in an

historical context. The origin of Panasonic’s corporate culture is discussed in relation to its

founder’s management philosophy. Panasonic’s unique MAPs are presented in detail.

On the basis of the research outcomes, chapter six gives a discussion and summary of

this study’s findings. The contributions and significance of this research are presented

followed by a discussion of the study’s limitations and recommendations. Finally this thesis

concludes with identified areas for future research.

Next, chapter two provides the discussion of the background of study and the

research topic of MAC. It is the commencement of this study.

Chapter 2: Background of the Research

2.1 Introduction

The world of business is changing dramatically due to continuous technological

developments and changing customer needs, etc. Businesses change their strategies in order

to match their capabilities with emergent opportunities in the business environment, in order

to create value for their customers and shareholders. Consequently MAPs change accordingly

so that they can provide to management the information required resulting from changes to

business strategy. This research investigates the changes to MAPs introduced by a large and

mature Japanese company, Panasonic in response to greater eco-efficiency consciousness.

This chapter provides the background of this research in the context of Japanese

disposition. It comprises the following eight sections: section 2.2 explains the process of

MAP changes; section 2.3 gives a description of the major developments in Japan after it

signed the Kyoto Protocol; section 2.4 undertakes an overview of the changing role of

accounting and its characteristics; and, section 2.5 expounds the reasons for the relevance of

the Japanese context. Specifically in section 2.5, the Japanese geographic context in terms of

the implications for MAPs of its limited natural resources is explicated in section 2.5.1. An

overview of the historical context of Japanese commerce is outlined in section 2.5.2. Japan’s

national traits and cultural context and their consequences for developments of Japanese

management accounting are explored in section 2.5.3. The specific event of Japan’s signing

of the Kyoto Protocol, and the resulting pressure for eco-efficiency on Japanese public and

private organisations is illustrated in section 2.6. Section 2.7 discusses the consequential

impacts of these factors on Japanese management accounting (JMA). The prominent Japanese

company, Panasonic, is introduced as a unique example. The final section 2.8 provides a

concluding discussion and summary of this chapter.

2.2 Change and management accounting practices

The discussion about the nature of MAC has been found in academic literature for

decades (Burns & Scapens 2000, p. 3). Drury et al. (1993), and Burns and Scapens (2000)

believe that the fundamental nature of management accounting is unchanged, but that MAPs

are modified and developed as a business’ environment changes. New Institutional Theory3

was introduced into the management accounting literature to theorise the complex inter-

organisational processes of MAC. This theory refers to the institutional perspectives of

management accounting and builds the outline for an institutional framework (Scapens 1994,

as cited in Burns & Scapens 2000). Collier (2001) employs New Institutional Theory to a

field study he conducted. Modell (2001) also utilises this theory and emphasises the

sociological aspects of performance measurement as a contribution.

New Institutional Theory with its sociological approach became a popular avenue to

research MAC. For example; Dambrin et al. (2007), Nor-Aziah and Scapens (2007), and

Ezzamel et al. (2007) use this approach. The main objective of their research is to understand

MAC so that managers will be able to make better decisions for emerging issues and to

predict consequential impacts (Burns & Scapens 2000). While this approach gives attention to

the influence of economically powerful stakeholders on MAC, it has given less attention to

the impact of external environmental factors on MAC.

In contrast, the model proposed by McWatters et al. (2001) “Framework for

Organizational Change” illustrates the impact of external factors on an organisation,

3 New Institutional Theory explains MAC within institutional contexts (Abernethy & Chua 1996; Burns &

Scapens 2000; Collier 2001; Modell, 2001). Sociological and organisational aspects of MAC are emphasised in

explaining the processes of MAC.

indicating factors that influence organisations to change their strategies and MAP. Although

the framework suggested by McWatters et al. (2001) is still valid, it needs to be updated to

include new factors that are now contributing significant changes to the MAPs of businesses.

It is proposed that the introduction of a major treaty such as The Kyoto Protocol has a

profound impact on the practices of businesses and thereby to their MAPs. Burns and Scapens

(2000, p.13) point out “the revolutionary change [that] is likely to be possible only as a result

of major external change”. This study considers eco-efficiency consciousness of

manufacturers and customers as one of the main external factors to make an impact on

business strategy and MAP.

2.3 The Kyoto Protocol and its impact on businesses’ environmental

performance

There is no doubt that the Kyoto Protocol, which set emission reduction targets for

countries, has had a significant impact on the way business operations are run. It compelled

governments, organisations and people to shift towards producing and consuming

environmentally friendly products. This eco-efficiency consciousness by the parties involved

has resulted in a significant drop in emissions in the signatory countries. It has also

encouraged companies to increase their efforts to recycle and reuse materials in their

operations. As a direct result of Japan’s signing of the Kyoto protocol, the METI and the

large Japanese manufacturers commenced developing MAS aiming to reduce the emissions

produced by companies (METI 2002). As a consequence, a costing method called Material

Flow Cost Accounting (MFCA) was introduced in Japan as a mechanism that a company can

use for reducing environmental impacts and costs of production. The MFCA concept

originated in Germany but was developed in Japan to suit its requirements. MFCA measures

the flows and stocks of material in the manufacturing process, in terms of physical and

monetary units so that it enables the identification and accurate costing of waste and

emissions (METI 2007a). Commenting on the positives of MFCA, Jasch (2003) points out it

allows companies to focus on materials flows with an ability to review production cost

computations.

The development of MFCA to reduce environmental impacts was a collaborative

effort involving more than 40 experts from 24 countries (Kokubu et al. 2009). They

endeavoured to develop the MFCA to fit the objectives of the Kyoto Protocol (Kokubu et al.

2010). The idea of using an engineering oriented approach, such as MFCA, is supported by

Möller (2010, p.572) who suggests using a framework of material and energy flow-based cost

accounting to optimise economic evaluation and environmental impact. Hence, MFCA can be

recognised as an accounting system for EMA. With regard to the development of EMA,

Soonawalla (2006, p.360) concludes that it is a product of “the emergence of the

environmental movement within the context of corporate responsibility and sustainability

management.”

The increasing interest in the concept of eco-efficiency by Japanese companies,

especially after the signing of The Kyoto Protocol, has led many Japanese companies to

change their business strategies in order to create value for their customers, who are

increasingly demanding eco-efficient products. Boons (2009, p.66), who examined the impact

of eco-efficiency on business strategy and its links to customer value, provides the following

statement from the Royal Philips Corporate Sustainability Report (2003, p.2).

[W]e are committed to being the world’s leading eco-efficient company in

the electronics industry. Seeking environmental improvement as an

opportunity for innovation, we work continuously to minimise the impacts

of products, processes and services. To meet this challenge we establish

solid action programs to drive progress in this important area.

As in the case of Royal Philips, being eco-efficient, a company can distinguish itself

from its competitors. This is important for a company as the key to a company’s success lies

largely in its ability to create value for customers while distinguishing it from its competitors.

2.4 The role of accounting in the new environment

McWatters et al. (2001) stress the need for an organisation to redesign its operational

system when it changes strategy due to the influence of external environmental factors.

Referring to the role of management accounting in a changing environment, they state:

[I]f the evolution of the management accounting system lags behind the

evolution of the organization, the systems will act as an anchor

preventing the organization from successfully dealing with a changing

environment. Organizations must adapt to changing environments and

management accounting must adapt to changing organizations (p.4).

However, McWatters et al.’s (2001) position does not go uncontested. There are two

contrasting positions in the literature on the relationship between organisational change and

accounting. Larrinaga-Gonzales and Bebbington (2001, p.269) describe these two competing

perspectives as follows:

[T]here are two contrasting positions in the literature on the relationship

between organisational change and accounting. The first suggests that

organizations can and do change in substantive ways when they respond to

the environmental agenda and that environmental accounting is part of the

process of enabling these organizational changes. In contrast, the second

position posits that organizations will not change in response to

environmental demands. Rather, they will change the environmental agenda

itself in order to ensure that organizational activities can carry on as before.

These two positions are characterized as “organizational change” and

“institutional appropriation”.

After having outlined these propositions, Larrinaga-Gonzales and Bebbington (2001)

went on to examine their validity through a case study of a Spanish electricity utility.

However, the findings of the study were not very convincing as they could not identify

substantive organizational changes due to accounting interventions made by the company.

Despite having contrasting views regarding the relationship between the accounting

and organisational change, the observations of company practices show most management

accounting techniques have been developed to support managers’ changing needs created by

changes in a business environment. At the outset of this study, eco-efficiency consciousness

is identified as a new factor that influences organisations to change their strategies and create

value for their customers. Given the fact that Japan as a country is committed to improving its

environmental performance at both macro and micro levels, it is interesting to investigate the

MAPs that Japanese companies have adopted in the new business environment. Moreover,

historically Japan has responded to the substantial changes in the business environment in the

late 1980’s by implementing highly innovative MAPs such as Just In Time (JIT), Total

Quality Control (TQC), Target Costing (TC), and Kaizen (Monden & Hamada 1991; Monden

& Lee 1993). By using these methods, Japanese organisations achieved remarkable results.

2.5 Japanese context

Change takes place in both the natural and business environments from which social

issues are continuously emerging. In the arduous effort of reducing carbon emissions, in

Japan a collaboration of public and private organisations was formed. Since Japan’s signing

of the Kyoto Protocol, the cooperation of the Japanese Ministries; METI and MOE, with

Japanese companies was sought to develop an environmental management system in order to

sustain Japan’s business and natural environment simultaneously. Knowing this process

enables this research study to understand a key motivation for internal systems changes in

Japanese companies.

2.5.1 Poor natural resource country

Economic growth post WWII is the beginning of Japanese modernisation, where

industrialisation proceeded toward mass production and greater consumption of natural

resources (MOE 1992). Consequently Japan’s industries had become dependent on natural

resources. Due to Japan’s geographical position, Japan was not self-sufficient in meeting its

mineral needs compared with a resource rich country such as Australia (METI 2011a).

According to ‘Table 1’ data of 1989 (MOE 1992), the significant proportion of the

world’s output of resources are imported by Japanese companies, for example 18% of world

production of iron ore output is being exported to Japan. The 2011 annual report of METI

displays Japan as a heavy natural resource importer; 99.6% of Japan’s crude oil is imported,

and the middle-eastern countries provide 86.6 % of this amount (METI 2011a). Malaysia,

Indonesia and Australia are main suppliers of liquid natural gas to Japan, meeting 57.8% of

its demand. Japan’s coal imports are almost 100% with 62.3% of this being supplied from

Australia (METI 2011a).

Table 1: Japan's Imports of Non-Renewable Resources in 19894

World Output

(in thousand tons) Japan’s imports

(in thousand tons) Rate for Japan (%)

Iron ores 590,000 106,494 18.0

Copper ores 9,178 1,419 15.5

Lead ores 3,476 233 6.7

Zinc ores 7,086 599 8.5

Manganese ores 23,862 1,639 6.9

Chrome ores 11,960 984 8.2

Tungsten ores 43 2 4.7

Molybdenum ores 118 22 18.6

Antimony ores 61 5 8.2

Coal 3,474,184 101,509 2.9

Crude oil 2,952,427 178,343 6.0

Natural gas 70,496,366* 1,805,230* 2.6

* Measurement for Natural gas is in trillion joules ** Data in 1988

Source: Table 3-1-1in ‘Quality of the Environment in Japan’ (MOE 1992)

4 1) In trillion joules for natural gas. 2) Crude oil for 1988. 3) Imported ores include those produced at overseas

mines. Original data refers to ‘Illustrated States of Countries in the world’ in Handbook on Mining Industry and

Comprehensive Energy Statistics in Chap4 (MOE 1992)

Due to its geographic position, Japan is neither resource rich nor self-sufficient in

minerals. Furthermore the rapid economic growth after the war makes Japan heavily

dependent upon importing resources (Yoshikawa 1988, as cited in Bromwich & Bhimani

1989). These historical roots led to Japan’s adoption of its ‘3R’ Policy: Reduce, Reuse and

Recycle (3R). This policy has been promoted by the 3R Promotion Association of Japan since

1991. It encourages manufacturers to reduce waste in corporations by drawing on the spirit of

the Japanese concept of “Mottainai”. The global energy expert Yergin (2011) translates

Mottainai as “too precious to waste” stating “Japan's success as a global role model in energy

efficiency is rooted in a deep-seated cultural value of Mottainai” (p.634).

The term Mottainai was promoted by the Kenyan environmentalist Professor Wangari

Maathaiaround globally in 2005 as an environmental conservation concept (Mottainai 2012).

In this spirit MOE promotes ‘a sound material-cycle society’ to make the most of limited

resources, and in doing so promotes an eco-efficiency conscious community (MOE 2006,

2008 & 2011b). In 2012 the official resource management project ‘material-cycle society’

proceeded in both the public and private sectors to advance eco-efficient technology (METI

2012). In this way approaches to resource management reflect the Japanese geographic

context of being resource poor. This explains Japan’s necessity to cherish limited resources.

2.5.2 The historical context of changing Japanese commerce

Japan’s inability to be self-sufficient in resources is not only due to its geographic

position and lack of geological resources, but it is also due to the changing nature of

commerce in post WWII Japan (Bromwich & Bhimani 1989, p.30). With the advancement of

Japanese industrialisation in the 1950’s and 1960’s, Japan grew its wealth by “importing

resources as low-processed materials, and exporting processed products of secondary industry”

(Weblio 2013). This arrangement is termed in Japanese ‘Processing Trade’ (加工貿易).

Japanese industry has grown through the development of Processing Trade where they

partially processed products, through to full processing of products for sale overseas, termed

in Japanese ‘Full Set Type’ (METI 2011a).

During this period of high economic growth in Japan, accounting was first largely

utilised by the manufacturing sector as a tool for computing the price of products, rather than

for controlling production costs (Yanagita 2006, p.220). In this respect western accounting

systems were absorbed by Japanese manufacturers and the adaptation of an American

perspective of management accounting was main-stream for Japanese accounting researchers

(Yanagita 2006, p.221). However, Japanese manufacturing companies then came to

emphasise cost control through managerial accounting, introducing a wider role of accounting

in organisations (Yanagita 2006). This broader perspective resembles accounting in Germany

where the term ‘management accounting’ is interpreted as ‘controlling and managerial

accounting’, supporting administrative procedures as a controlling tool (Yanagita 2006).

Resulting from the dramatic growth of the world economy since the 1950’s, many

Japanese manufacturers expanded their market shares in the west (Bromwich & Bhimani

1989). They created high quality products that are valued by customers globally as reliable

brands such as Sony and Honda (Sturgeon 2007). Bromwich and Bhimani (1989, p.30) note

the changes these economic conditions in Japan brought about: “Japan has held its leadership

position in large-scale repetitive manufacturing operations and continues to uphold its high

quality/low cost production philosophy”. Furthermore, Japanese living standards rose and

Japan formed a strong financial position in the world economy especially in Eastern Asia

(Cobb 1993). This change impacted on the structure of Japan’s economy transforming it from

‘Full Set Type’ to ‘International Specialization’; that is production functions are shifting to

offshore locations such as China and Malaysia (METI 2011a).

This shift in the structure of Japan’s economy has exposed Japan’s dependence on

externally sourced natural resources, and created a greater demand for foreign currency to

purchase these resources from overseas. As a consequence of the focus on secondary

processing, transportation and energy costs increased. These circumstances led the Japanese

firm Daihatsu to develop Kaizen costing (Monden & Lee 1993). Kaizen is a MAP where

“budgeting explicitly incorporates continuous improvement anticipated during the budget

period into the budget numbers” (Horngren et al. 2011, p.433). Imai (1986 p.xx5) describes

Kaizen (改善 ) contextually as being continuous improvement in every occasion of life

including the work place. Furthermore Kaizen is considered to create “a corporate culture

where employee suggestions are valued, recognised and rewarded” (Horngren et al. 2011,

p.433). Thus, the Japanese concept Kaizen is not only a MAPs, rather it is general attitude or

perception where those who implement it endeavour to change their state in the hope of a

better outcome.

In order to control the surge in transportation and energy costs resulting from Japanese

industrialisation and the move to ‘International Specialization’, appropriate MAPs are

required to support managers. An example of such a MAP is the inventory and production

system JIT, established by Ohno of Toyota (Cobb 1993). JIT is described as “a

comprehensive system for controlling the flow of manufacturing in a multistage production

environment” (Langfield-Smith et al. 2012, p.1056), while Imai (1986, p.xx) describes JIT as

a production and inventory control technique designed to reduce waste in production. Similar

to Kaizen, the benefits of JIT are not only in financially lowering inventory costs, but also are

in the improvement of quality and minimisation of waste (Langfield-Smith et al. 2012, p.

684). Since JIT manages the minimisation of resources use without losing value to customers

5 The author uses Roman numerals for a page number in the first section.

Cobb (1993, p.5) considers JIT to be a ‘Green Philosophy’ reflecting the Japanese sentiment

for eco-efficiency in production.

Understanding the structure and nature of production costs led Japanese

manufacturers to transform their manufacturing sector from the ‘Processing trade’ of raw

materials to the advanced manufacturing technology of ‘Full Set Type’ (METI 2011a). The

manufacturing sector now concentrates on exporting products that contribute more

significantly to economic growth. This form of strategic management was indispensable to

maintaining competitiveness by pursing heightened productivity and product quality during

periods of recession (Nomura & Kamii 2004). This approach is augmented by the sector’s

approach to labour. The Japanese management style has long been to regard a quality labour

force as integral to cost planning. The contributions of long term skilled employees are valued,

and the employees are provided with “large-scale corporate training programmes and a well-

executed and integrated industrial policy” (Garvin 1984 as cited in Bromwich & Bhimani

1989, p.30). Hence, the Japanese manufacturing sector is characterised by advanced

manufacturing technology and the production of high-technology products for an export

orientated economy.

During the 1960’s and 1970’s, Japan experienced drastic economic growth in its

manufacturing sector which was made possible because of unique Japanese MAPs inherent in

JIT and Kaizen systems. It was at this time that Japan’s exchange rate impacted negatively on

its reliance on overseas resources. Consequently Japanese manufacturers expanded their

production systems offshore in order to minimise the effects of the appreciation of their

currency. In 1949 a prescribed exchange rate of 360 Japanese yen to the US dollar was

implemented. However after the adoption of a floating exchange rate system in 1973, the yen

started appreciating (Bank of Japan 2013). In the late 1980’s, the exchange rate JPY/USD

appreciated to around 200 yen (The World Bank 2012). Chart 1 below shows the exchange

rate fluctuations from 1980 to 2012.

Chart 1: History of Japanese Yen

Source: ‘主要時系列統計データ [Time series of primary statistic data]’ (Bank of Japan 2013)

The yen has appreciated over a long period of time. The rise in the currency led to the

transformation of supply chain systems, causing manufacturing to maximise the value of their

yen by shifting out of Japan, and in doing so creating an industrial ‘hollowing-out’

phenomenon (Das 1993). However, as price competitiveness had vanished, competitive

advantage was created through technological competitiveness achieved by highly skilled

workers pursuing engineering innovations (Okano & Suzuki 2007, p.1130).

Such engineering innovations and proficiency were demonstrated in the automobile

and electronics industries (Ozawa 1996). Many of the founders of companies in these

industries were engineering entrepreneurs who were deeply involved in line management.

Langfield-Smith et al. (2012, p.29) define line management as “managers who are directly

involved in the core business activities”. Japanese manufacturers took an interdisciplinary

team approach to their manufacturing activities, attempting wider participation and

cooperation of employees in order for them to share responsibility for production (Okano &

Suzuki 2007).

Yoshikawa (1994) describes the concept of value engineering, where costs are

identified and minimised at every engineering stage of a product’s life cycle. Value

engineering is a system that is used to improve the value of goods or services by analysing the

functions of the manufacturing process. This is a technique originally used in western

manufacturing processes. However, the Japanese took this basic concept and developed it and

applied it in their factories together with Kaizen costing and TC (Okano & Suzuki 2007,

p.1129). This approach has limitations. Conventional functional cost analysis and value

engineering do not consider environmental considerations although it is possible to do so

(Yoshikawa 1994).

Management accounting is seen as providing resilience to Japanese manufactures’

competitiveness because it enables costs’ control and reduction (Bromwich & Bhimani 1989,

p.33), enabling communication across organisational target and actual production functions

(Okano & Suzuki 2007, p.1133). An example of such a MAP is that described by Hiromoto

(1988) who identified the concept of an ‘allowable cost’ as an ultimate outcome of TC, An

allowable cost is one which permits a price that is acceptable to the market and the target

profit margin of the organisation.

TC provides data to vertical and cross-functional management to enable them to

manage their costs within the range of their allowable cost; that is, these MAPs facilitate the

unique Japanese notion of cost-planning ‘Genka-kikaku’ (Okano & Suzuki 2007, p.1130).

This is illustrated in the comparative study of Wijewardena and De Zoysa (1999), which

reveals that such MAPs contribute to cost control throughout various production stages

differently in manufacturing in Australia compared with that in Japan. Their survey results

indicate Japanese companies’ “emphasis on cost planning and cost reduction tools at the

product design stage”, while Australian companies place an “emphasis on cost control tools at

the manufacturing stage” (Wijewardena & De Zoysa 1999, p.49). That is, Australian

manufacturing did not integrate cost management into the early stages of engineering design

of their products as is Japanese manufacturers’ practice. Thus, MAPs enhance the export

competitiveness of Japanese manufacturers.

The economic growth that resulted from effective cost management had unintended

consequences for Japan. Expansion of manufacturing exports fuelled a social crisis by

creating a demand for manufacturing labour. This drew people from the countryside to the

city for well-paid and secure jobs. Consequently all major cities became over-populated and

small country towns were turned into ghost towns (Nomura & Kamii 2004). Furthermore,

while the living standards and welfare of large organisations’ employees (the elite) were

enriched, the employees’ conditions of small to medium sized firms were left behind

(Nomura & Kamii 2004). As the result, a widening gap in society was created, which now

forms part of current social structure in Japan. This is despite the benefits arising from

continuously increasing Japan’s market share through the export of durable Japanese goods

(Nomura & Kamii 2004). This rapidly growing economy in the 1980’s constructed a ‘bubble’,

and entering the 1990’s it reached its peak and the bubble economy burst into recession

(Nomura & Kamii 2004, p.36). The policies and the deficiencies in accounting information

disclosures of the banking sector also contributed to the bubble economy (Rahman 1998).

2.5.3 Japanese culture and disposition

Unique Japanese MAS such as JIT and Kaizen systems supported Japan’s economic

modernisation during the 1970’s. Most of the principles of MAS originated from western

commerce, and were modified by the Japanese to fit into Japanese cultural values. These

values are informed by Japan’s geographical position, cultural disposition, and the needs of

its developing economy. Hopper (1999, p.58) raises the issue of how transferable JMA is to

the West and he provides a discussion of the conceptual differences between Japan and the

United Kingdom between value engineering and the accounting function. Loyalty and

skilfulness of employees are strong characteristics of the Japanese manufacturing sector in the

1980s’ (Nomura & Kamii 2004). The Japanese approach of integrating engineering and

management accounting through MAPs is distinct.

Changes resulting from the period of economic growth since the 1950s were largely

influenced by Japan’s national disposition and culture. In 1959, Drucker and Wartzman

(2010) predicted Japan would be the next powerful economic country, due to its national

disposition to individuals’ responsibility to the community, and its historic context, stating

“statistics didn’t prove it; but the spirit was there - the commitment that I make a difference”

(Drucker & Wartzman 2010, p.152). Furthermore, Drucker and Wartzman (2010) described

Japan’s unique culture as “the richest tradition of community organisation, of community

association, of non-profit organisations” (Drucker & Wartzman 2010, p.153). Aligned with

Drucker and Wartzman (2010), Yergin (2011, pp.635-636) depicts how the Fukushima

Daiichi Nuclear accident has cause Japan to reconsider their duty to and strategy for energy-

efficiency.

Japanese corporations are distinctly characterised by ‘Kaisha (会社)’ and Keiretu (系

列), which are “networks of companies formed through historical association and cross-

ownership” (Drucker & Wartzman 2010, p.154). An example of a Keiretu is the Panasonic

Group. The representative body of large organisations in Japanese society is called Keidanren

(経団連); which is a not for profit federation of economic organisations, charged to oversee

corporate actions and social responsibilities (Drucker & Wartzman 2010, p.154).

After the bust of the Asian “bubble economy”, a new era of the knowledge worker has

commenced (Drucker & Wartzman 2010). Prior to this in the economic growth phase, the

Japanese manufacturing sector expanded its global market share through productivity

efficiency supported by MAS. The successes of Toyota and Daihatsu are attributed to JIT and

Kaizen, as they are compatible with the Mottainai concept, supporting each company’s

corporate cultural uniqueness and the value of their engineering entrepreneurship. The

intrinsic value of Japanese manufacturing is emergent from Japan’s cultural disposition and

Japanese historical context.

2.6 Environmental issues

Criticism against severe air and water pollution, and the consequential diseases

associated with pollution, became apparent in the late 1960s, as consequence of Japan’s rapid

economic growth. In the 1970s, the mass media released a series of criticisms against

organisations’ environmental contaminations (Nomura & Kamii 2004, p.x). Subsequently the

Japanese government set regulations to restrain business activities, such as the Basic Law for

Environmental Pollution Control enacted in 1967 and the Waste Disposal and Public

Cleaning Law enacted in 1970 (MOE 2011b).

Such criticisms were made poignant by the first oil shock in 1973 (Nomura & Kamii

2004). The spotlight was placed on the social responsibility of manufacturing industries.

Some organisations responded to criticisms of poor environmental practices of manufacturers,

such as the Matsushita Electric Industry Corporation (MEIC: currently Panasonic), who

established a pollution survey committee in 1970. They then went on to establish

environmental management regulations (in-house) in 1975 (Panasonic 2011a). This is the

seed of eco-efficiency demand in a Japanese society that was experiencing diminishing

precious resources.

Such attention to resource management and conservation of the natural environment

by society was precipitant to Japan’s signing of the Kyoto Protocol in 1997. Increasing ‘eco-

efficiency’ demand alongside rapidly diminishing natural resources meant organisations

needed to produce more eco-efficient products in order to maintain a sustainable production.

Inevitably organisations changed their existing strategies and internal systems accordingly, in

order to endure in a competitive market. Consequentially, MFCA continuously developed

under the MOE and METI in order to meet Japanese companies’ aspirations (Kokubu 2004).

Individuals in society were also influenced by the Kyoto Protocol, which promoted

the purchase of eco-efficient products by individuals (Fraj-Andrés et al. 2009). This has

continued on to the recent past, as Japan deals with carbon pricing followed by carbon

permits and their trading in 2008. An example of one such initiative in Japan is that of the

official eco-efficiency promotion of the ‘eco-point system’. Consumers are offered an indirect

subsidy for replacing their appliances with energy efficient home appliances such as

televisions, refrigerators and washing-machines (MOE 2011a). Such a scheme is an example

of the framework put in place jointly by bureaucratic and private organisations to assist

stakeholders in dealing with current environmental issues.

Japan’s notion of eco-efficiency is derived from: awareness of its limited natural

resources; consideration of its geographic conditions; and, its historical context.

2.7 The impact of environmental issues on Japanese management

accounting

Numerous Japanese companies advocate “co-exist of environment” (a literal

translation) which challenges corporations to minimise waste and focus all their strength upon

preserving their natural resources. This is a challenge for Japanese manufacturers who must

meet numerous regulations to diminish pollution. Advancements in material science facilitate

manufacturers’ removal of harmful substances from materials (Panasonic 2012e). Japanese

companies’ R&D demonstrates their innovation in inventing eco-efficient materials such as

lead-free soldering and halogen-free materials (Panasonic 2012e).

The Restriction of Hazardous Substances (RoHS); Directive 2002/95/EC (Ueda et al.

2010) was set by the European Union in 2003. The RoHS “restricts the use of six hazardous

materials found in electrical and electronic products” (RoHS Guide 2012), Many Japanese

manufacturing participants in the EU market were required to comply with RoHS before July

2006. The impact of the rigor of RoHS was enormous for Japan, because the whole

electronics industry and its numerous component product suppliers were affected by this

regulation (RoHS Guide 2012). Since the electronic manufacturing industry is fundamental to

Japanese commerce, compliance with RoHS was inevitable. It created a crucial need for

management accounting to predict and evaluate the consequences in both monetary and

physical terms.

RoHS is not the only stringent legislation enforcing producers to be responsible for

their products. Similarly to RoHS, the legislation Waste from Electrical and Electronic

Equipment (WEEE); Directive 2002/96/EC (Ueda et al. 2010) was enacted in early 2003

(WEEE Forum 2012). It imposes obligations on importers and producers to take back and

recycle products when they are discarded by their end users (WEEE Forum 2012). Both the

RoHS and WEEE regulations drove eco-efficiency demand. The impact on Japanese

manufacturers motivated them to discover innovative solutions for environmental material

management.

2.8 Summary

A major change in Japanese society is a demand for eco-efficiency consciousness in

economic performance. This is due to an incremental awareness of environmental

consciousness by companies and their customers. This change creates new business

opportunities and requires organisations to change their business strategies. Previous research

has identified a number of external factors that affect the business environment and the

consequential changes to business strategies. In terms of eco-efficiency in commerce, the

impact of external factors has not received much attention in the academic literature to date.

This chapter provides a background for this study which investigates the impact of such

change in the environment on the MAPs of a company in Japan. Japan as a country is

committed to achieve high environmental performance and Japanese companies have a

reputation of introducing innovative management accounting methods and techniques in

response to changes in their business environment.

Due to Japan’s geographic position and characteristic of resource self in-sufficiency,

direct and indirect management of natural resources is the key in seeking strategic solutions.

This background informs Japanese companies’ challenge of eco-efficiency consciousness.

This approach represents the concept of Mottainai and the spirit of commitment that Drucker

described as ‘I make a difference’ (Drucker & Wartzman 2010, p.152). Understanding an

historical context elucidates the origins of a well-organised Japanese corporate community

culture, in which a Japanese spirit of commitment distinguishes the uniqueness of Japanese

corporate culture (Drucker & Wartzman 2010).

Although Japan is experiencing tremendous economic transformation, the

fundamental characteristics of Japanese corporate culture are unchanged. Next, Chapter 3

reviews the literature of EMA from both western and Japanese traditions.

Chapter 3: Literature Review

3.1 Introduction

The background of this research topic; MAC, was discussed in the previous chapter.

This chapter reviews the literature of changing MAPs from both the western and Japanese

traditions. As such, the chapter is organised as follows: Section 3.2 provides a literature

review on the discussion of MAPs and MACs. Internal factors of MACs are reviewed in

section 3.2.1 followed by external factors’ impact on MAPs in section 3.2.2. This is followed

by a discussion of the eco-efficiency approach in EMA in section 3.3. An overview of

Japanese MAC is in section 3.4. Subsequently, section 3.5 reviews the studies on EMA

practices in Japanese organisations. The last section 3.6 provides a summary of the chapter.

3.2 Management accounting practices and change

Before exploring the impact of organisational change on MAPs, the nature of

organisational change is first considered. Quattrone and Hopper (2001, p.403) ask the

question; “what constitutes change?” They identify competing assumptions in the literature

about organisational change. The first approach is functionalist, assuming that change is

purposive and intended to meet an objective in a known external world. The alternate

assumption evident in the literature is constructivist, assuming that change is a result of

contextual pressures on organisations from prevailing institutions. In this second approach

institutional theory is often employed, looking for isomorphism and routines. However,

Quattrone and Hopper (2001) argue, whatever assumption is adopted, a modernist stance is

taken where both approaches concern themselves with a linear process across time and space.

They take exception to this notion of process, arguing for a concept of ‘drift’, and the need for

contextual studies of management accounting and change. They criticise the premises of

institutional theory based approaches and their limitations. The view of Quattrone and Hopper

(2001, p.429) is given as:

[…] how and why the extant literature, whether inspired by a theory of rational

choices or by the search for contextual factors explaining change, is trapped in a

problematical modernist constitution that grants the object of change and

observers a definite ontology and methodology……accounting change are

trapped within a modernist dichotomy which defines boundaries such as in

versus out, external versus internal, organization versus context.

Extending this notion of drift introduced by Quattrone and Hopper (2001), Andon et al.

(2007) develop the notion of relational drifting as an explanation of organisational change.

This study of an Australian telecommunications organisation reviews a suite of performance

measurement metrics that were trialled to improve performance. They argue organisational

change highlights “the situated and experimental means through which accounting

inscriptions are fabricated” (Andon et al. 2007, p.273). This study found the process of change

to be not linear and developments of MAPs were relational, loosely coupled and fabricated to

work. Regarding processes of change, Andon et al. (2007, p.277) state the importance of

influential negotiators supporting elements of change where politics and other factors

influencing organisations shape the process of change.

The findings of Quattrone and Hopper (2001) and Andon et al. (2007) that

organisational change is a contestable ‘drifting’ concept is supported in the review of

literature on MAC that follows. Section 3.2.1 examines the internal factors affecting

organisational change and MAPs, and section 3.2.2 explores the external factors affecting

organisational change and MAPs.

3.2.1 Change, internal factors, and MAPs

Changes in natural environments and more generally business environments influence

technological advancements, innovation and scientific discovery. These influences shape

stakeholder expectations and drive firm value. Logically, the impacts of these factors change

organisations’ internal systems. MAC, specifically innovations in MAPs occur as a result of

this change. MAPs and modified or developed to new forms. There is contention in the

literature whether or not such changes are for legitimisation purposes, or to achieve real

efficiencies by management, or are a combination of both purposes.

Modell (2001) in a study of the Norwegian health care sector focuses on MAC

resulting from reform of public sector organisations. The study emphasises the relationship

between institutional processes and performance measurement, examining whether or not

managers passively adapt to change. Modell concluded that adoption of a new MAP for

performance management by a hospital was perceived as both legitimacy-seeking to external

stakeholders and efficiency-enhancing by senior management. Model observed “extensive

efforts to make a highly complex control system operational for internal use alongside

conscious attempts to ‘sell’ the new control practices to important external audiences”

(Modell 2001, p.458).

Modell’s observations are close to the findings of the previous study of Lowe (2000),

who examined the implementation of a sophisticated case-mix budgeting system in a large

public hospital in New Zealand. This study observed work practices and clinical procedures

change when MAPs for case-mix accounting were introduced. Lowe (2000) found that the

main impacts of changing MAPs were not just to provide legitimation to external constituents,

but that they changed behaviours of professional work patterns and management structures.

Modell’s (2001) and Lowe’s (2000) conclusions are contrary to the earlier argument

of Abernethy and Chua (1996), that simple and unsophisticated financial controls are viewed

as sufficient for the purpose of legitimisation to external stakeholders.

Burns and Scapens (2000) perhaps offer an explanation for these different findings.

They note the environment in which MAC occurs is becoming increasingly volatile due to

changes in information technology, markets, organisational structures; and MAPs. They

present the view that amongst such changes MASs and MAPs constitute organisational rules

and routines that mediate relationships between individuals’ actions and their institutions.

Hence they argue that MASs and MAPs are fundamental to both understanding and enacting

organisational change.

Dambrin et al.’s (2007) later findings are consistent with those of Burns and Scapens

(2000). Dambrin et al. (2007) examined how institutional changes are introduced inside

organisations, and specifically how changes in an organisation’s institutional logic are

disseminated through the firm by its MAS and MAPs. They find change is not solely

technical, systemic or linear in its process, but that it also invokes cultural discourses within

an organisation to deploy new ideals.

Thrane (2007) also studies the nature of change in MAPs in inter-organisational

systems that are dynamic and complex. This study noted that MAPs develop in two ways:

first they evolve new organisational ‘space’ or configurations; and, secondly they are a source

of instability rather than stability and unintended order rather than planned change. Thrane

(2007) discusses institutional pressure; however there is no discussion of where institutional

pressure comes from and what external forces impact organisations.

Nor-Aziah and Scapens (2007) examine the role of MAPs affecting organisational

change in an extreme event: a case of the corporatisation of a Malaysian public utility.

Through the lens of institutional theory, they determine that new MAPs associated with

budgeting over time become separated from other organisational activities, determining such

MAPs to be both a process and an outcome of organisational change. However, the focus,

being similar to Thrane (2007), does not discuss the external factors impacting MAPs in

depth.

Busco and Scapens (2011) undertake a longitudinal case study of the former state-own

cast iron foundry in Italy. In processes of organisational transformations, evolutionary and

revolutionary accounting changes were observed when the Italian foundry was acquired by

the powerful American company. An institutional framework is applied for examining “the

nature of these processes of change, and has tried to interpret how and why organisational

culture and MAS evolve across time and space” (Busco & Scapens 2011, p.348). Their

findings are in line with Thrane’s (2007) that evolutionary MAPs occur at new organisational

‘space’ but they are not a source of stability. Busco and Scapens (2011) argue that key factor

of change resides in culture and the institutional framework does not capture this factor.

Contrafatto and Burns (2013) examine the interrelationship between organisational

change and the role of accounting in MAPs for sustainability. They investigate the social and

environmental accounting and reporting (SEAR) of an Italian multinational organisation.

Theoretically they draw upon Laughlin’s (1991) framework of organisational change and

Burns and Scapens’ (2000) conceptualisation of accounting change. This framework provides

an explanation of evolutional changes in organisations. The impact of external jolts shape

organisational rules and routines (Contrafatto & Burns 2013); however impacts of external

factors receive less attention. Since the ultimate objective of a private sector organisation is

profit maximisation; the authors suggest a profit-oriented model is more suitable rather than a

sustainability oriented one (Contrafatto & Burns 2013, p.365).

Since the introduction of the model of McWatters et al. (2001) “Framework for

Organisational Change”, society has changed and management accounting follows

accordingly. This implies the model needs to be modified to incorporate the new factor of

eco-efficiency consciousness and its impacts on MAC.

3.2.2 Change, external factors, and MAPs

Burns and Vaivio (2001) advocate the importance of understanding the impact of

external change on management accounting, stating that the ‘new economy’ requires MAS to

meet new technology driven information requirements such as enterprise resource planning

systems, e-commerce, the internet and data mining. Specifically, they see the move from flat

and horizontal organisational structures as new challenges for traditional MAPs. Thus, the

role of management accounting requires transforming from controller or score-keeper to

business support or internal business consultant (Burns & Vaivio 2001, p.390). They note the

decentralisation of MAPs through the organisation as a result of external influences.

Seal (2001) has findings consistent with Burns and Vaivio (2001). Seal (2001)

undertook a case study of management accounting in a highly diversify conglomerate that

was changing its strategic focus to a multinational product market focus. This was driven by

external forces such as globalisation and technological development. Seal (2001) drew the

conclusion that MAPs’ development was paradoxical in this case: while it became

increasingly focused on specific markets and technologies, its MAS and associated MAPs

became increasingly diffuse and differentiated. He advocated that MAPs struggle with non-

financial measures, and that they should remain an autonomous sub-system from

management systems generally.

Laitinen (2001) studied MAC in a group of small Finnish technology firms. The

approach taken is a mathematical method of factor analysis using an application of behaviour

theory to identify motivation patterns for organisational change. The key finding of this study

is that while MASs that are beneficial to management in large organisations in identifying

strategic directions appropriate to external factors, MASs are more ineffective in smaller

technology companies. Smaller technology companies with their high growth in unstable

environments of high competition must change their MASs more frequently than more stable

firms in less competitive environments. Laitinen (2001) also proffers behavioural theory is

not capable of explaining how external factors impact on organisations, rather it only explains

internal variables, types, and patterns. Therefore, Laitinen (2001) suggests underlying

economic forces should not be disregarded in a MAC study.

Lee (2011) conducted a survey to identify factors that lead to the adoption of

environmental cost accounting within Korean manufacturing organisations, in the context of

their response to the introduction of the Korean Government’s regulatory guidelines for

environmental cost accounting in 2004. This study found that “conventional management

accounting systems typically underestimate environmental costs” (Lee 2011, p.46), both with

monetary and physical information. There is no systemic approach to the implementation of

environmental cost accounting. This study also finds that existing MAS in the firms cause

resistance and difficulties in adopting environmental MAPs.

Haldma and Lääts (2002) conducted a case study of MAPs in Estonian manufacturing

companies. They explore how the social revolution of Estonia impacted on MASs with

reference to its economic and social environment. Haldma and Lääts (2002) specifically

examine the impacts of the external factors of fundamental political and structural change

resulting subsequent to the nation’s independence in 1991. A questionnaire survey is analysed

through a contingency theory framework. Haldma and Lääts (2002) find that firms have not

found it easy to change from socialist concepts embedded in MAPs. They conclude the

effectiveness of a MAP depends on its adaptability to change precisely to shifts in the

business and external contingencies. This study identifies the legal accounting environment

and a shortage of properly qualified accountants as impacting on the effectiveness of MAS

design and associated MAPs. This case illustrates the framework of contingency theory being

capable of explaining the changing aspects of MACs.

The contingency framework is used for analysing empirical survey data of Estonia’s

service industry (Lääts et al. 2011). The validity of performance measurement systems (PMS)

in a changing business environment is investigated. As Ferreira and Otley (2009, as cited in

Lääts et al. 2011) claim PMS are reflected MAC, thus the broad area of MAC offers a scope

for managers to be cognizant of the relationship among business activities, specific strategies

and objectives (Lääts et al. 2011, p.360). Chenhall (2003) discusses the broader use of

contingency-based research such as management control systems because contingency-based

research has its foundations in organisational theory, which considers contextual variables

only at the organisational level (Chenhall 2003, p.157).

The premise of contingency theory embraces appropriation of accounting changes in

an organisational frame so that an appropriation of PMS is to achieve desired organisational

goals (Lääts et al. 2011, p.361). Therefore, “Ferreira and Otley (2009) argue that a study of

PM systems use must take external and internal contextual variables into account” (Lääts et al.

2011, p.361). Hence, adoption of both external forces and consequential internal changes

such as sustainable strategies is critical for an organisation’s success and survival. From the

study of Lääts et al. (2011) it is evident that as the service companies’ PMS develop further

sophisticated systems, the higher the usage of non-financial performance measures (pp.370-

371). Hence, their findings highlight an appropriate cost accounting system enhances the

accuracy of cost information for PMS (p. 373).

Birkin et al. (2005) argue that changes are needed in MAPs to revise those practices

that damage social and ecological systems. That is, they focus on the impact of MAPs on the

external environment, calling for a “conscious cultural evolution” in accounting practice to

recognise our interdependence of existence (Birkin et al. 2005, p.185). They call for

accounting change to validate the environmental, social and sustainable development. The

meaning of cultural consciousness includes an awareness of the external impact of accounting

controls (Birkin et al. 2005). A conscious cultural evolution embraces culture as “pre-

dominate attitudes and behaviours that characterise the functions of a group or organisation as

well as the totality of socially transmitted behaviour patterns” (Birkin et al. 2005, p.186). This

study thus anticipates reflexive consciousness as a critical driver of MAPs.

Birkin et al.’s (2005) conceptual approach of the “conscious cultural evolution” was

originally proposed by Ornstein and Ehrilch (2000, as cited in Birkin et al. 2005, p.187). The

concept is to “overcome a particular biological inheritance whereby people are not

accustomed to take as much notice of something that happened slowly”. An important aspect

of their predisposition is the long-term effects of slow environmental changes (Ehrlich 2000).

Since slow reflexes are the process, people sense and accept continuing issues in society and

values which reside within (Birkin et al. 2005).

Similarly, conceptual frameworks also widen its boundary to inter-disciplinary fields

such as sociological, psychological and biological perceptions, for example; Birkin et al.

(2005) and Johansson and Siverbo (2009). Birkin et al (2005) combine a biological norm and

sociological perception to elucidate the sustainability phenomenon in society. This social

change has an impact on organisational culture, thus changes in accounting practices are

unconsciously executed due to ‘a slow reflexive’ of human nature. In line with Birkin et al.

(2005), Johansson and Siverbo (2009) use the framework of evolutionary theory and

universal Darwinism to discuss the slow and gradual changes in accounting. Within the

boundary of an institution, they discuss human actors and their behaviours in conjunction

with cognitive and normative routines and rules. However, their investigation does not

explain accounting actors’ behaviour. Alternatively, Johansson and Siverbo (2009) suggest

using pluralistic theoretical frameworks and to develop of an integrated theory for MAC.

The connotation of ‘consciousness’ means an association, or an awareness and control

of a whole process (Birkin et al. 2005). A conscious cultural evolution embraces culture as

“pre-dominate attitudes and behaviours that characterise the functions of a group or

organisation as well as the totality of socially transmitted behaviour patterns” (Birkin et al.

2005, p.186). The proposition is culture that is embedded in consciousness links to the

concept of eco-efficiency. This study thus anticipates reflexive consciousness as a critical

internal driver.

Similar to Latinen (2001), the Fraj-Andrés et al.’s (2009) case study adds further

explanation of the conscious mind in terms of strategic motivation. This case perceives

environmental pressures as opportunities to project organisations’ environmental

consciousness to their stakeholders (Fraj-Andrés et al. 2009). The study utilises mathematical

method. However, their findings could not identify the factor which determines the choice of

environmental strategies.

3.3 The eco-efficiency approach in the context of accounting for the

environment

Corporate strategy to achieve an eco-efficiency approach is discussed by Burritt and

Schaltegger (2001). They develop an approach to exercise budgetary control over

environmental costs. They claim such information is needed as a tool to help managers and

regulators assess value adding environmental management (Burritt & Shcaltegger 2001).

They offer a comprehensive framework to map possibly recognisable EMA tools (Burritt et al.

2002). Their proposed definition of EMA includes monetary environmental management

accounting (MEMA) and physical environmental management accounting (PEMA). Both

generate information for internal management; while MEMA focuses on financial impacts of

corporate environmental activities, PEMA focuses the impact of corporate activities on the

natural environment measured in physical terms (Burritt et al. 2002, p.9). The ultimate

objective is to make managers understand the utility of MEMA and PEMA; that is, they

promote the effectiveness of EMA and encourage corporations to adopt EMA tools.

Burritt (2005) studies the scope of EMA with respect to eco-efficiency, specifically

the recognition of environmental issues as fundamental to conventional management

accounting, rather than treating environmental impacts and costs as less important matters

(Burritt 2005, p.27). He summarises a wide range of challenges for EMA, and notes some

countries still have not developed EMA measurements. He argues benign EMA systems that

encompass economic, physical and social factors are better than only economically focused

EMAs (Burritt 2005). The benefits of EMAs are demonstrated through the case study of

Japanese companies; that is, MEMA successfully reduces the production costs and saves

material and energy usages achieved by PEMA (Burritt & Saka 2006). The links between

EMA and eco-efficiency measurement are thus evaluated. They also reveal

underdevelopment of EMA information and underutilisation of eco-efficiency information in

the practical links to eco-efficiency measurement.

When production costs are assigned, there is a direct causal link which leads to a cost

object, while indirect costs need to be allocated to the appropriate cost object. Burritt (2010)

discusses cost allocation through eco-performance indicators to assign environmental costs

towards ecologically-sustainable development. According to Hiromoto (1988), the role of

JMA is perceived as ‘a behaviour influencing role’, rather than ‘an information role’ in the

management process (Burritt 2010, p.210). This “reconditions accountants to change their

measurement systems towards an eco-centric approach6” (Burritt 2010, p.216).

6 Burritt (2010, p.217) depicts an eco-centric approach as “encourages activities that are in harmony with nature;

recognises that all nature has intrinsic worth; promotes elegantly simple material needs; recommends use of

appropriate technology rather than high technology solutions; perceives the virtue in doing with enough; and

places focus on bio-regions”.

Despite increasing attention on EMA, it is still under-developed. Some literature

utilises contingency theory as a way of analysing the impact of contingent variables that

influence and are anticipated to influence an organisation’s EMA (Bouma & van der Veen

2002; Qian et al. 2011, as cited in Christ & Burritt 2013). Christ and Burritt (2013) research

the role of accountants’ behaviours in influencing MAPs. The accountants’ perceptions

toward future EMA procedures in their organisations were extensively associated with three

variables; environmental strategy, the environmental sensitivity of the industry and

organisational size (Christ & Burritt 2013, p.170). Christ and Burritt (2013) conclude, a

direction of future research is proposed to extend the contingency based approach in the field

of EMA. An opportunity thus exists to develop the current framework through the

introduction of additional contingency variables.

There is a dearth of literature in the area of EMA, and diversification of research into

this area is required. Environmental issues are driving recent changes in MAPs. MAC studies

tend to be concentrated on examining control, power, and motivations of change. However,

all issues are not completely explained. Numerous researchers complain of a lack of

longitudinal research in the topic (Burns & Scapens 2000; Busco et al. 2007; Scapens &

Bromwich 2010; and Chenhall & Smith 2011).

The objective of this research is to contribute to the literature by examining how a

Japanese company responds to external impacts in a way that affects the designs of its MAPs.

It also amends a model to incorporate eco-efficiency consciousness in the process of MAC.

Due to cultural and language barriers, the introduction of recent developments in Japanese

MAPs to western literature is often delayed. Therefore, this research attempts to contribute by

informing the west how Japanese deal with current environmental changes in their MAPs.

Prior to examining the literature on EMA in Japan in section 3.4 the next section provides an

overview of MAC in Japan as reported in western academic literature.

3.4 Management accounting changes in Japan

There have been previous studies examining JMA practices that Japanese companies

have introduced in response to the changes in the business environment (Burritt & Saka 2006;

De Zoysa & Herath 2007; Benn et al. 2011). JIT, TQC, the Kanban System, Kaizen and TC

are known to be some of the popular MAPs used by Japanese companies. However, as Okano

and Suzuki (2007) argue the notion of JMA is hard to define in simple terms because of the

lack of wider research about JMA in the western literature. In their opinion, what is reported

in western accounting literature as JMA are accounting methods, techniques and practices

used in leading Japanese companies although many of these methods, techniques and

practices have originated in other countries but have been improved vastly to suit the needs of

Japanese companies.

Okano and Suzuki (2007) further add that the vast majority of studies on JMA, which

appeared in western accounting literature, had looked at such practices from the western

perspectives and do not portray the real picture of the origin and stages of the development of

many known JMA practices. As Burrows and Chenhall (2012, p.127) point out many known

JMA innovations have predecessors or parallels in the West.

One of the best known JMA methods that has attracted worldwide attention is

‘Genka-kikaku’7 (原価企画) which is a tool used by Japanese companies for planning their

costs (Maruta 2009; Yamamoto 2012; Nishii et al. 2010). Burrows and Chenhall (2012) in

their review of the history of TC identified evolutional features of this method. They express

that Japanese MASs were well developed in the reflection of reality in descriptive publicised

papers. As Burrows and Chenhall (2012) point out irrespective of the debate whether the

Genka-kikaku method originated in Japan or not, there is no question about the fact that

7 While, numerous management accounting literature used the original term ‘Genka-kikaku’ some of the

literature in English use the term ‘Target costing” to describe this concept, although direct translation of this

term into Japanese does not generate the term ‘Genka-kikaku” (Yanagita 2006, p.226). Therefore, many

consider the English term ‘Target costing’ is incapable of describing the practice of Genka-kikaku.

Japanese manufacturers have developed it to the current form and proven how this method

could be used effectively. In terms of the transferability of TC, Kato (1993) states that TC

applications fit better in Japanese culture which focuses on non-financial information than in

the North America which focuses predominantly on the financial. Referring to the studies on

TC, Burrows and Chenhall (2012, p.139) argue that because of the descriptive nature of

Japanese researchers who study TC Japanese scholars explore broader issues within the topic

which result in rich descriptions of actual practice of TC, rather than the writers of this

method in the west (Burrows & Chenhall 2012).

Okano and Suzuki (2007) view JMA as performance oriented as against the financial

figure-oriented western management accounting. Vaivio (1999) exploring non-financial

aspects of MAC conclude that such measures are more powerful in an organisational context

and align with Hiromoto’s (1988) perspective in which he suggests that organisations create

favourable organizational conditions through practices such as TQM. It offers more detailed

appreciation of how these extra organizational influences become interlinked with

organizational circumstances and become connected to MAC (Vaivio 1999, p.428). The next

section will review the literature on EMA in Japan.

3.5 The environmental management accounting research in Japan

The use of the term EMA for studies examining environmental accounting (EA)

issues in Japan is a recent phenomenon. When the environmental issues were conspicuous

around 1970s, the studies examining environmental issues were generally discussed under the

theme ‘Social Accounting’ (Tokutani & Kawano 1978, p.185). However, there was a dearth

of research in the area of ‘social accounting’ at this time. This is confirmed by Kawano (1993,

p.276) who points out that the social accounting research carried out in Japan was not

adequate to highlight the problems with CSR practices of Japanese companies in 1970s which

is known to be the time that the Japanese companies paid least attention to fulfilling their

corporate social responsibilities. As a result of discursive research and the inadequate efforts

made by corporations in addressing social issues in Japan, the development of Japanese social

accounting has been slow until recently. However, the growing attention on serious

environmental and social issues has created a need for developed accounting practices for

reporting CSR practices of Japanese companies (Kawano 1993).

Prior to the introduction of the Kyoto Protocol, Japanese EA research was

concentrated on application and analysis of western theories in the Japanese context (Kokubu

et al. 2009). The application of Life Cycle Costing (LCC) for EA practice and examination of

associated problems has been one of the main topics undertaken in EA research (Kawano

1993). For example, Tomimasu (1996), while carrying out a theoretical examination of the

contents in company environmental reports, examined the challenges faced by companies to

integrate LCC and Life Cycle Assessment (LCA) in order to form an EA system. Furthermore,

Okano (1999) evaluated the validity of LCC in terms of its potential and practical features of

LCC through the cases of the United States’ national defence and concluded the need for

further development of LCC to expand its methodological feature in managing non-financial

environmental accounts.

Similarly, Makido (2003, p.10) while criticising the current state of the Japanese EA

in which a higher emphasis has been placed on CSR reporting than on the environmental

conservation efforts, emphasised the need for developing LCC in order to increase

environmental conservation efforts. To this effect, he proposed the “Design to Cost” system,

which is an accounting system for managing costs within a given range in which quality and

functional conditions of products are being satisfied at the design stage. The new approach

proposed is based on the micro economic concept of environmental costs’ analysis and

depends upon stakeholders’ eco-efficiency values and corporations’ environmental

consciousness, as a trade-off point. In developing a conceptual framework for LCC, Okano

(2010) considered this ‘Design to Cost’ system should be treated as an environmental cost

controlling tool.

Yanagita and Yamada (2005), examining the CSR reports of leading Japanese

companies, discuss the emergence of ‘CSR accounting’ which view the societal issues from

the perspective of stakeholders. They observed the willingness of companies to disclose their

environmental data and their discernible efforts in addressing environmental issues. However,

the reports they examined were found to have complex structures and high lag-times in

reporting information. Interestingly, this study distinguishes ‘CSR accounting’ from EA and

considers CSR accounting is equivalent to EMA or ‘sustainability accounting’ found in the

western accounting literature. Kokubu (2007, p.232) also expressed his concerns regarding

the state of ‘CSR accounting’ and views it as a system that still was required to be properly

standardised and developed methodologically before being accepted as an accounting system.

In contrast, Yanagita (2011, p.42) considers ‘CSR accounting’ as an EA system in which

environmental conservation as well as broader social issues such as human rights and stability

of employment are dealt with.

Another area of EA research that has attracted the attention of researchers after the

signing of Kyoto Protocol is MFCA8 which is an accounting system that incorporates material

and energy flows into accounts. MOE has undertaken the role of developing MFCA

principles while METI has taken the role of developing practical aspects of MFCA (MOE

2002 and METI 2002). The EMA Guidelines issued in 2002 introduces the ‘environmental

budgeting matrix’ which provides organisations a means to assign environmental costs within

the scope of materials and energy flows (METI 2002) as outlined in the guidelines. As a

result, many leading Japanese companies were compelled to participate in the pilot project of

8 See chapter 4 for details.

MFCA (METI 2007b). A number of academics examined the application of MFCA practices

on Japanese companies involved in the projects and published their findings in the form of

case studies (Kokubu et al. 2009).

The case analysis of the MFCA practices at Canon Company revealed that the

company has been able to achieve significant reduction in the lens processing costs and

significant benefits of cost and waste reduction in material usage and process time through

the use of MFCA (METI 2008). Anjyo’s (2003 & 2006) analyses of the Canon case found

that in the aspect of material and cost management, the validity of MFCA has developed both

theoretically and practically. Subsequently, Anjyo (2007) expands the MFCA concept to

embrace broader social aspects which is close to Yanagita and Yamada’s (2005) view for

‘CSR accounting’.

Through an analysis of Ricoh’s EMA, Kokubu and Kurasaka (2002) discuss the

Japanese corporate perspectives for EMA. They claimed that EMA of Ricoh is comprised of

an external disclosure function and internal management information, which identifies any

reduction in environmental costs and economic benefits. Thus, although EMA is

underdeveloped, financial accounting is utilised for reporting and internal operations. In such

a circumstance, Ricoh has developed an in-house “environmental accounting information

system for decision makers which is linked to the corporate accounting system” (Kokubu &

Kurasaka 2002, p.171). Subsequently, the results of a survey reveals the characteristics of a

Japanese EMA disclose largely oriented environmental information more than Western

countries. However, the new trend is that more companies apply the EMA application in

conjunction with the internal management tool (Kokubu 2004 and Kokubu & Nashioka 2005).

The integrations of MFCA and LCA are researched by Kokubu and Shimogaki (2007).

Their focus is to develop the theoretical framework and practical applications. This

framework is examined through the Toyo Ink case9 (METI 2010). An application of MFCA

analyses for input and output quantity centred at the individual production stages identified

losses separately at the five processes. The captured data is defined and converted into

economic value at cost assigning points. Successively, visualised improvements points are

optimised to reduce loss and waste based on the MFCA analysis (METI 2010).

Tokyo Ink has applied this system for one production line. Afterwards, the company

considered implementing the system for other internal production lines (METI 2010). Thus,

Toyo Ink used the utility of MFCA for assessment for improvement and LCA analysis for an

operational line (METI 2010).

Kokubu (2011a) discussed the applications of MFCA for supply chains in conjunction

with waste management. Although the analysis of the Canon case exhibited a positive impact

on results due to collaboration between suppliers and Canon (METI 2010), the conceptual

framework development precedes practical enhancement in this area of research. A further

detailed discussion of the disposal and recycling of products is needed with regards to the

supply chain. In relation to waste management, Hashimoto (2007) proposed to integrate EA

with ‘waste accounting’ which is designed to identify costs for recycling and disposal.

However, since the system used for disposal and recycling is a complex and expensive one,

he did not attempt to include cost-benefit measurements and details of accounts.

Hashimoto’s (2007) paper illustrates the tendency of Japanese EMA research where

often the conceptual development proceeds to the practical EMA development. Kokubu

(2009) criticises this tendency in the recent MFCA research. Its objectives are shifting from

the original controlling and managing environmental issues to a cost management emphasised

9 Material Flow Cost Accounting: Case Examples - II. Case Examples in the Manufacturing Industry; Case 4:

TOYO INK MFG. CO., LTD. Production characteristics: MFCA implementation in production of colouring

pellets for plastic. From ‘The framework of; Environmental Industries Office, Industrial Science and

Technology Policy and Environment Bureau’ (METI 2010)

Japanese MAP tool (Kokubu 2009 & 2010), that is, accounting reflects Japanese corporations’

perspectives because of its passive nature (Modell 2001).

The review of the literature on EMA in Japan shows that researchers have paid

increased attention to EMA studies in recent years. Although from the evidence it cannot be

ascertained whether the Japanese organisations are genuinely interested in improving their

environmental performance, it is certain that businesses’ approach to the environment in

Japan has changed in recent years to the extent that companies are compelled to demonstrate

eco-efficiency consciousness in their business operations. However, despite the growing

interest in EMA and increasing number of EMA studies undertaken form various

perspectives10

, studies examining how the recent environmental changes affect the design of

MAPs are still limited.

3.6 Summary

In both the western and Japanese MAC literature, the impact of external factors on the

motivations for changes to MAS and MAPs has received less attention than internal factors or

other issues. This chapter illustrates the necessity to diversify MAC studies into this area.

Chenhall and Smith (2011) suggest that current developments in Japanese MAPs are worth

exploring, particularly non-financial features of MAC, as they may reveal their powerful

effects on an organisation in a given context. The study of contingent variables offers another

layer of context for the study of EMA. Vaivio (1999) argues external factors influence the

state of organisations and MAC.

Although EMA is becoming a popular research area, MAPs for EMA are still

underdeveloped. Financial functions of EMA such as cost analysis are favoured for reporting

and internal operations. It is also noted that Japanese companies, for example Ricoh, tend to

As Suzuki and Okano (2007, p.1120) points out most of the Japanese accounting literature has not been

subjected to rigorous peer review process and therefore limits the validity of their claims.

develop in-house management accounting systems which link to their corporate accounting

systems, meaning they must develop internally to fit changes in their business environment

(Wijewardena & De Zoysa 1999).

Japanese companies’ environmental consciousness is growing and they are leaders in

incorporating eco-efficiency into their MAPs. Cultural and language barriers prevent the

rapid transfer of JMA innovations to the west. Thus, this research attempts to contribute by

including how Japanese companies deal with current environmental changes affecting MAPs.

Chapter 4: Research Design and Methodology

4.1 Introduction

This chapter narrows the focus of discussion so far by deliberating on the research

design and methodology of this study. Chapter four considers the case of Panasonic as a way

of understanding the broader context and the Japanese national disposition in order to

appreciate the imperative for Japanese corporations to effectively manage resources and be

environmentally responsible. Specifically, sections 4.2 and 4.3 provide the research objective,

research questions and issues respectively. Section 4.4 describes the research review and

section 4.5 explicates the research design. Section 4.6 introduces the theoretical framework of

contingency theory and its basic ideas in section 4.6.1. Contingency theory in the context of

accounting is exhibited in section 4.6.2, followed by the research method of content analysis

is introduced in section 4.7. Data collection scope and approach is identified in section 4.8;

section 4.9 gives a contextual background of Panasonic’s environmental reporting; and,

section 4.10 summarises key aspects of this chapter.

4.2 Research objective

The objective of this research is to examine how a Japanese organization responded to

recent changes in the business environment due to the increasing eco-consciousness of its

customers and other stakeholder organisations. This is illustrated by the experience of

Panasonic.

There are two main reasons for choosing Panasonic. First, Panasonic is a globally

renowned Japanese manufacturer: it comprises 538 Keiretsu in 2013 (Panasonic 2013d) and

about 300 manufacturing sites throughout the world (Panasonic 2013c, p.2). Its R&D unit

specifically researches drivers of eco-efficiency consciousness, and pursues the development

of innovative eco-efficient materials to be used in its products, for example the innovation of

a process of lead-free soldering (Takeuchi & Takeda 2008).

The second reason for choosing Panasonic is that it has a unique corporate culture

derived from its founder’s management policy. This conservative style of customer-oriented

management is believed by Panasonic to maintain their employees’ morale and sustain their

business mission (Panasonic 2013e). The founder, a renowned management philosopher,

introduced this policy as a unique management tool, differentiating Panasonic’s corporate

culture from others.

The basic concept of Panasonic Corporate culture is to contribute to society through

its business activities. The founder expressed this concept as the company being “a public

entity of society” and emphasised honourable management. Accountability and fairness in

management is the main criterion of “a public entity of society” (Panasonic 2013e). This

original ideology is deeply rooted in Panasonic’s corporate culture and forms its CSR concept.

This feature thus differs from others, such as Toyota’s Guiding Principles11

(Toyota 2013a)

and Canon’s corporate philosophy Kyosei (共生)12

(Canon 2013a).

Since Panasonic aims to provide a wide range of products to enhance people’s daily

lives globally, this research suggests that Panasonic has a capacity to influence other

manufacturers with its innovations in eco-efficiency, consequently leading other

manufacturers to change their strategies and internal procedures.

Guiding Principles at Toyota were set in 1992, based on Toyota’s founder’s ‘Five Main Principles of Toyota’

(Toyota 2013b).

KYOSEI means symbiosis (Weblio 2013). Canon uses KYOSEI to convey its corporate philosophy and

Canon’s contribution to all people, regardless of culture, custom, language and race. It also includes CSR

concepts (Cannon 2013b & 2013c).

4.3 Research questions and issues

The following questions are examined:

1) What are the major changes in the Japanese business environment in response to

increased attention on eco-efficiency?

2) How does Panasonic use MAPs to respond to the increased attention on eco-

efficiency?

In addressing these questions, given that Panasonic operates globally, it is necessary

to discuss how prevailing Japanese culture and language impede the transfer of Panasonic’s

eco-efficiency strategies to the west. Recent developments of Japanese MAPs have not

substantially transferred to the west, and where they have, this has not been in a timely

manner. The language barrier creates a lag for management accounting researchers writing in

English. Although an increasing amount of the Japanese research is published in English,

Japanese researchers usually do not write their papers in English. Even if Japanese

researchers write their articles in English and publish in English language journals, it is hard

to deny the potential contextual gap due to the heterogeneous linguistic structure of the two

languages. Therefore, this research takes this issue into consideration and attempts to lower

the language barrier in data analysis.

In addition, Japan has a different peer review system for publication to the west

(Okano & Suzuki 2007). These points need to be overcome to accomplish advancement of

management accounting research. Scapens’ and Bromwich’s (2010) inquiry notes such gaps

between the Japanese and western culture. Hence, the significance of this research is

contextualised by the barriers that reside between Japanese culture and language, and the

West. Thus, fulfilment of the research objective will contribute to the topic of MAC.

4.4 Research review

The business environment in which Japanese companies operate has changed

drastically over the last few decades due to a number of factors such as: expanding market

and production sites globally, development of fast and convenient innovative trading systems;

and, changing customer behaviours. An objective of this research is to reveal how a Japanese

company responded to a changing business environment, and examine what MAPs a

company used to aid its survival in a competitive market.

The more recent economic state prevalent after the global financial crisis exhibits a

tightening of global competition. This has specifically hit the electronics industry severely.

The idea of a digital evolution has become the critical driver of Japan’s current business

environment. This digital evolution provides fast and convenient access to global markets and

international social networks also creating a social transformation. This social transformation

contributes to broaden access to digital resources for all. Predominantly use of internet

facilitates people investigating their questions and issues in a timely manner. The research

issues raised previously may be overcome partially due to expanding accessibility of

information.

This research employs bilingual data analysis of Panasonic material in order to close

the conceptual and contextual gap of the linguistic issues. Panasonic’s official reports

between 1997 and 2013, such as their environmental reports and financial reports, are

published in Japanese and English. Panasonic is a leading Japanese company that is aware of

its external image, and demonstrates keen attention to public relations. This research

examines Panasonic’s disclosures regarding their accountability to eco-efficiency, and

evaluates the reasonableness of the quality of information for the public.

Panasonic’s reports have generally been released within reasonable time frames and

their contents are well organised. There is a high volume of reporting generally. The quality

of data needs to be given more attention. Specifically, translation of materials from Japanese

into English (and vice versa, but generally the Japanese version is the original), means the

linguistic structure may incidentally cause ambiguity and contextually misappropriate a

concept in translation. Reading reports in both Japanese and English languages provides for

an in-depth examination of descriptions of MAPs.

A native Japanese speaker, who has been living in English speaking countries for

twenty years, undertakes this research. It has been supported by two supervisors; a native

English speaker who offers essential feedback about nuance and some incomprehensible

expressions in materials. Another supervisor, who lived in Japan for numerous years and who

is fluent in Japanese, advises on conceptual differences between the two languages and

cultures. As such a unique research circumstance, this research anticipates to lowering the

language barrier and gets closer the conceptual and contextual gap between English and

Japanese in management accounting research. This approach is applied to the analysis and

evaluation of Panasonic data. In conjunction it focuses on specifically MAPs that are used in

response to external environmental demands.

4.5 Research design

Having discussed the research issues and reviewed the research approach, this section

describes procedures of this research, which took place as follows;

1) Secondary data and related resources of Panasonic was gathered from both private

and government sources. Japanese materials were collected from official Japanese

websites, while English materials were obtained from the global website of the

company. Over the course of collecting data for the study, some observations of

online content were deleted or changed in time, for example the archiving of

financial information not related to the most recent years. This research has

assessed the materials in Japanese and English when they are both available,

however some data are only available in Japanese, such as some Japanese

academic management accounting literature.

2) Data was gathered and analysed under the following categories:

a. Natural Environment and Business Environment - The content analysis of

Panasonic’s environmental reports, sustainability reports and annual reports

are assessed to count the word ‘environment’. After counting, they were

analysed contextually and sorted refining the term by distinguishing between

its reference to the natural environmental setting and the business

environmental setting.

b. Environmental Strategy and Business Strategy - The Panasonic official

reports are analysed in terms of their features of environmental strategy and

business strategy. Through the exploration of empirical events of the

company, the impact of external factors is observed through consequential

changes in operations, for example the adoption of a new structure and

implementation of a new business strategy.

c. Environmental Accounting - The Panasonic reports and the official

publications of MOE and METI are studied in relation to the topic of

‘environmental accounting’. The frequency of the words ‘environmental

accounting’ appearing in the mentioned materials is also examined. The

MOE’s and METI’s official environmental management accounting

guidelines, pilot projects and case study reports are referenced largely.

d. Financial Data - Archives of Panasonic’s annual reports, data books and

shareholders’ communications are assessed. Environmentally related

economic and financial information was extracted in order to produce the

referential materials for this research.

e. Externality and Authority - Environmental regulations and changes to

environmental regulations are examined in order to identify any

consequential impacts on Panasonic’s business activities. Audit reports of

Panasonic’s annual reports and environmental reports are also examined.

f. Academic Literature and Related Publications - Various fields of Japanese

academic literature and publications are referenced in relation to explicate the

embedded information of this study. The fields of management, economics,

sociology, finance and accounting are referenced. One of the emphasised

fields of study is JMA, in which literature is reviewed in the scope of MAC.

g. Konosuke Matsushita - is the founder of Panasonic. His management

philosophy and bibliography are studied in conjunction with the history of

Panasonic. The inter-relationships among his basic management policy, the

Panasonic corporate culture and its influence on corporate social

responsibility are investigated through analysing the Panasonic reports, his

publications and his contributions to society.

h. Media, Business Magazines, Industrial Experts and Other - Various other

supplementary materials are resourced to identify the underlying contextual

factors such as conflicts of interest or political pressure on the Panasonic

operations. An additional investigation of the background of sources selected

is done in order to assure reliability of the information.

3) Analyses of the extracted information to identify factors influencing Panasonic’s

operations. In doing so the lens of contingency theory is utilised.

The research model used is adapted from the model “Framework for Organizational

change” introduced by McWatters et al. (2001). The original model does not include the

contingent external driver of eco-efficiency demands; however, McWatters’ model focuses on

external factors influencing managerial decisions and controlling behaviours in business

activities. Consequentially, this impact links to organisational value (McWatters et al. 2001).

As society changes, inter-relationships between these factors also are being transformed. This

is described in Figure 1 below. The adapted portion for this study is indicated as shaded.

This research adds an external factor, ‘eco-efficiency’(see Figure 1) to the model of

McWatters et al. (2001), where the critical variable of eco-efficiency is interconnected to the

other three factors of technology change, customer needs and global competition.

Organisations that fail to embrace the societal need for eco-efficiency to be incorporated in

their MAPs will find it difficult to survive in the long run. This study using the case of

Panasonic, examines the impacts on Panasonic of incorporating the environmental external

force of eco-efficiency consciousness into their internal systems.

Figure 1: The model ‘eco-efficiency consciousness reflecting organisational changes’

This new model is adapted from the model; McWatters et al. “Framework for Organizational

change” (2001)

Formulation of Strategies

The process of Management Accounting System Design

Eco-efficiency

Consciousness

External Environmental Factors (forces)

Customer

Needs Technology

Change

efficiency Global

Competition

Planning

Decisions

Control

Decisions

Green Strategy for

Customer value

Customer Value

Organizational Value

Sustainable

Corporation

The area of external environmental factors’ influence on MAPs is under-theorised.

Common theoretical approaches to studying MAPs emphasise theorising external factors

influencing MAPs using for example; institutional, sociological, and economic theories, or

those that theorise specific factors that influence MAPs, for example contingency theory.

The Gupta et al. (1994) study employs both contingency theory and institutional

theory. Contingency theory explains the relationships between external demands and internal

activities, while institutional theory explains how social expectations impact organisational

forms and behaviours and so affect performance. This study demonstrates the explanatory

power of contingency theory for organisational changes, and explains how organisational

procedures “conform to societal expectations of rational behaviour” (Gupta et al. 1994,

p.264).

There are many approaches to theorising change of MAPs. Burns and Scapens (2000)

introduce new institutional theory to explicate the inter-organisational process of MAC.

Zimmerman (2001, p.425) claims that the best research for managerial accounting is to use

economics-based theory. However, Drury (1997, p.854) earlier argued that economic based

theories tend to ignore socio-political forces. Modell (2001) and Collier (2001) employ theory

emphasising sociological aspects that contribute to MAC. Bouma and van der Veen (2002,

p.279) seek “a theory for Environmental Management Accounting” in which they draw

hypotheses from the application of contingency theory and institutional theory. However,

Baxter and Chua (2006, pp.52-53) claim later that “institutional theory has overemphasized

the influence of environmental models and underemphasized strategic options available to

organizational actors”.

Numerous MAC studies focus on factors internal to the firm, for example controls, so

that the impacts of external factors receive less attention. Chenhall (2006) considers the

context of business and the role of contingency variables in measuring the effectiveness of

organisational performance, arguing “contingency approaches provide insights into how

organisations adapt to changing situations” (Chenhall 2006, p.93). Thus this research employs

contingency theory to investigate the context of MAC.

4.6 Theoretical approach

Contingency theory has a capacity to explain the relationships between external

demands and internal activities (Gupta et al. 1994). This research applies the contingency

approach to give insight into how a company adjusts its internal operations to meet changing

circumstances. A contingency approach allows this research to explain Panasonic’s responses

to external demands in the context of accounting. This section depicts how this research

applies a contingency approach in order to explicate Panasonic MAPs response for the

business’ environmental changes.

4.6.1 Conceptual underpinnings of contingency theory

According to Galbraith (1982, p.25), the conceptual underpinnings of contingency

theory derive from the idea of differentiation (Lawrence & Lorsch 1967) and the idea of

organisation design (Galbraith 1977). The first idea comes from Lawrence and Lorsch (1967),

whose research focus is on large organisations’ behaviour patterns in conjunction with the

demands of a business environment. The concepts of differentiation and integration are

applied in their study. They seek systematic patterns in the context of complex organisational

systems and their effectiveness in the given external environment.

Although external factors shape particular attributions of organisational activities,

structural attributions are critical internal factors that need to be investigated to determine

“the pattern of cognitive and normative orientations” (Lawrence & Lorsch 1967, p.5). As

Burns and Stalker (1961, as cited in Lawrence & Lorsch 1967, p.6) note, a changing business

environment of uncertainty is best managed with an ‘organic’ structure rather than a

‘mechanistic’ one; the modern society requires organisations to design modern structures in

order to operate effectively and efficiently.

Another aspect considered in the scope of contingency theory is ‘organisation design’

(Galbraith 1977). Galbraith (1974) takes a view that when processing information the design

of the organisation’s form is relevant, and explicates the relationship between task uncertainty

and organisational form. Given incremental uncertainty in commerce, organisations are

required to integrate mechanisms that efficiently process their information (Galbraith 1974).

In order to be effective, it requires redesign of organisations to cater for changing variables

such as strategic choices, organising mode choices, and integration of individuals’ choices

(Galbraith 1977, pp.26-27).

4.6.2 Contingency theory in the context of accounting

Galbraith (1977, p.28) expresses the assumptions that: “1. there is no one best way to

organise and 2. not all the ways to organise are equally effective. In accepting these

assumptions, the application of contingency theory allows a researcher to identify the factors

affecting the choices and efficacy of an organisation’s procedures (Bouma & van der Veen

2002, p.281). Contingency theory assumes contingent variables such as corporate size, culture,

leadership and the environment result in divergence in organisations’ performance (Chenhall

2006). Numerous empirical studies have employed contingency approaches to elucidate

organisational procedures and accounting systems’ techniques (Bouma & van der Veen 2002).

Drury (1997, p.854) states “the contingency theory approach to management

accounting seeks to define specific aspects of an accounting system’s design that are

appropriate for different sets of circumstances”. Haldma and Lääts (2002) apply contingency

theory to explain the effect of socio-political forces on changing accounting practices during

Estonia’s economic transition. Specifically they examined contingent factors affecting MAPs,

and in doing so identified new drivers evident in the transition which impacted on MAPs

(Haldma & Lääts 2002, p.379). Thus, contingency theory has explanatory power of the

relationship between the design of MAPs in organisations’ and various other factors (Drury

1997, p.854).

Under the contingency approach, “the external environmental factor is a powerful

contextual variable that is at the foundation of contingency-based research” (Chenhall 2006,

p.94). This model scrutinises one external factor; eco-efficiency, to determine the impact it

has on an organisations’ activities both prior and post the Kyoto Protocol. Since there is no

standardised accounting system to implement for environmental management, the premise of

a contingency approach holds (Otley 1980, p.413). The impact of the external environmental

factor eco-efficiency consciousness influences change in an organisation’s business strategy.

Contingency-based research is depicted by Haldma and Lääts as “the existing link

between nature, the use of the MAS and subsequently enhanced performance” (2002, p.384).

Haldma and Lääts are concerned about economic performance in terms of the concept of cost

allocation and objectives (Haldma & Lääts 2002, p.386). For instance, the concepts of unit

cost and notion of variable costing need to be adopted in order to provide appropriate

information for decision makers. They claim that designing effective MAPs depends on an

organisational capability to adapt to both external and internal changing circumstances.

Innovation and strategy determine internal contingencies as characteristics of an entity, and

performance measurement and evaluation depend upon the internal drivers and MAPs

(Haldma & Lääts 2002, p.384). Evidence suggests that changes in costs and MAPs are

associated with shifts in the business and accounting environment, i.e. with external

contingencies (Haldma & Lääts 2002, p.384).

The contingency-based theoretical framework, therefore, explains the impact of

internal and external factors on the processes of a MAP in order to influence and measure

performance. This study utilises the framework of Haldma and Lääts’ (2002) article to

examine how a Japanese manufacturer, Panasonic, responded to environmental change.

Furthermore, this study utilises the notion of a conscious evolution of organisational

culture as described by Birkin et al. (2005). It deliberates on the potential of accounting to

contribute to changes in both the social and natural environment. This deliberation is a form

of ‘conscious culture evolution’, which is “a deliberate, managed evolution to achieve

specific goals” that are “clearly and firmly embedded in consciousness” (Birkin et al. 2005,

p.186). That is, “the word ‘conscious’ has associations of an awareness and control with

regard to a whole process of cultural evolution rather than some part of that process” (Birkin

et al. 2005, p.186). Since culture evolves slowly and endlessly, it is necessary to have a

mechanism in human nature to adopt and overcome changes. MAPs are seen as such a

mechanism for an organisation.

The notion of ‘a conscious evolution’ is proposed by Ornstein and Ehrlich (Birkin et

al. 2005, p. 187). They see it as something “to overcome particular biological inheritance

whereby people are not accustomed to take much notice of things that happen slowly”, such

as climate change (Birkin et al. 2005, p.187). A solution being suggested by Ehrlich is that

“we overcome this evolutionary defect by consciously developing ‘slow reflexes’ and using

them consistently” (Ehrlich 2000, p.327). The notion of conscious cultural evolution

complements contingency theory to develop the framework for this research.

This research argues that by employing the concepts of ‘eco-efficiency impact’ and

‘conscious cultural evolution’ the relationship to organisations’ performances can be

explained. Management accounting is used objectively. An organisation’s strategy responds

to ‘eco-efficiency consciousness’ and eventually demands its MAPs fit this organisational

objective. That is, accounting has a passive nature and accountants do not make proactive

choices (Modell 2001). Thus the framework of contingency theory and the notion of

‘conscious cultural evolution’ offer an approach to answer the research questions concerning

how the demand for eco-efficiency creates an eco-efficiency consciousness in the

organisation which is then reflected in consequential internal changes.

4.7 Research method

This research undertakes content analysis which is defined as “any qualitative data

reduction and sense-making effort that takes a volume of qualitative material and attempts to

identify core consistencies and meanings” (Zhang & Wildemuth 2009, p.1). According to

Zhang and Wildemuth (2009), content analysis assists “researchers to understand social

reality” (2009, p.1). Content analysis supports researching in an interpretive paradigm. Zhang

and Wildemuth (2009) explicate the usefulness of this method for analysing material.

Primary and secondary sourced data of Panasonic is analysed under this method to

source information pertaining to MAPs related to environmental accounting. The research,

thus, emphasises a particular aspect of Panasonic whereby a nexus of management accounting

and environmental issues are identified (Neuman 2006, p.40). There is a large amount of

empirical data in qualitative and quantitative representations available publicly in both the

English and Japanese languages.

Panasonic is a Japanese multinational manufacturing organisation and recognised as a

leading sustainable entity globally (Sustainable Asset Management 2012). Several accounting

and management researchers are studying Panasonic’s financial performance and its

management approaches, such as Kosuga (2007 & 2009), Ookura (2008) and, Kurunsaari and

Bu (2011). Because of its size and reputation built over 95 years of operations, various

sources of secondary data are available. This study, in its selection and extraction of materials

and analysis, focuses on MAPs related to the environment.

In undertaking content analysis using both Japanese and English source material, this

research identifies conceptual and contextual gaps evident between western and Japanese

management accounting. Cognitive and linguistic gaps affecting accounting practice are

illustrated. For example, in relation to the term ‘management accounting’, in English this can

be interpreted as accounting for management and control. However, in Japanese management

accounting it can be translated as either ‘管理会計 (Kanri-Kaikei)’ or ‘経営会計 (Keiei-

Kaikei). The word ‘会計 (Kaikei)’ stands for accounting. The letters ‘管理 (Kanri)’ represent

‘administration’ which signifies a broader meaning of management procedures than the west

(Yanagita 2006). The general Japanese term of management is ‘経営 (Keiei)’ which indicates

a similar context to the western notion (Weblio 2013). Thus, significantly the role of

management accounting in the Japanese context places an emphasis on both managerial and

controlling (financial) aspects, as well as a more general concept of administration.

Monden et al. (2007) published the book ‘Japanese Management Accounting Today’.

Topics in the list of contents portray broad topics in managerial accounting such as cost

management, process management, management control systems and budgeting. All authors

belong to the Faculty of Commerce which translates in Japanese as ‘商学部 (Shougaku-bu)’

where managerial accounting is situated as a sub-major of it. This indicated structure may

illustrate an example of conceptual differences in the practice of management accounting.

Therefore, the examination of Panasonic may elucidate an understanding of this gap.

Specifically, EA was treated as an independent section in the Panasonic reports from 1999

until 2007. However, since 2008 EA is treated as a subset of environmental management

(Panasonic 2008b). This change signifies that EA is now integrated and utilised as a

managerial tool, emphasising the administrative, eco-control and technical functions of its

4.8 Data collection

Data is identified as being relevant through reference to the research questions and the

model (see Figure 1). Panasonic’s official information is normally available in both Japanese

and English. Since this research objective is to seek logical explanations through:

systematically appearing words; motives of actions; experienced impacts of external events;

consequential operational changes; and, the holistic state of Panasonic, a variety of

Panasonic’s information is analysed.

Publicly available primary data of Panasonic was collected through various sources.

Reports of environmental data have been issued since 1997. In 2001, an Environmental

Sustainability Report was released. The contents section clearly demonstrates how Panasonic

organised this report. It exhibits how regulations and regulators such as the Global Reporting

Initiative (GRI), MOE and METI, had an impact on the contents of the report (Panasonic

2001c, p.4). In the following four years, Panasonic issued a large volume of environmental

reports. Increasing pressure for eco-efficiency in production was heightened by the enactment

of the Kyoto Protocol. In 2005 Panasonic published its environmental data book and

sustainability report separately.

The following table illustrates the summary of analysis completed on the Panasonic

environmental and annual reports. The key term ‘environmental accounting’ is counted and

evaluated throughout the environmental reports. The change in its volume is also indicated,

this change assessed to be the result of the impact of the external factor of eco-efficiency

demand on Panasonic. The selected annual reports are analysed for mention of the

environment and environmental strategy specifically. The cost of environmental related R&D

is investigated, in both its proportion and the nature of allocated items. The word

‘environment’ as it appears in the annual reports is analysed in terms of its context,

categorised into two contextual meanings of ‘business environment (BE)’ and ‘natural

environment (NE)’. Numbers of NE exceed BE throughout all available annual reports. It

indicates the linkage between NE, environmental strategy and economic outcomes. This style

of reporting is appealing to stakeholders because it indicates a response to their demand for

eco-efficiency consciousness.

Furthermore, there is a small discrepancy in volume between Japanese and English

versions of documents. For example, in the sustainability report of 2010, the Japanese version

has seven more pages than the English version. This is attributed to explanations of different

conditions of supplier and buyer relationships. In the Japanese version, the section of supply

chain management exhibits the stricter Japanese reporting requirements for supplier

collaboration than that of the English sustainability report (Panasonic 2010d, pp.26-28).

Although the details are expressed as supplemental information, the three pages supplied give

the impression of detailed demands for suppliers to comply with certain factors in order to

keep their business relationships. While the English sustainability report illustrates the

selection criteria of a supplier, it takes only two thirds of a page to detail the itemised request

of a clean procurement declaration (Panasonic 2010d, p.27).

It signifies that the issuer is conscious about the conceptual differences towards eco-

efficiency in the supply chain between domestic and overseas suppliers. This alteration is

embraced by the assumption of contingency theory. It explains that organisational dealings in

different geographic circumstances fit into social expectations of eco-efficient procurement.

The depth of eco-efficiency consciousness depends on contingent variables such as national

disposition and geographical circumstances.

These features of the data are discussed as exemplars of the analysis undertaken. The

following two tables exhibit the summary of the content analysis undertaken. Attributes of

Panasonic’s management and EA are captured.

Table 2: Archive of the changes in the Panasonic Reporting

Table 2a: Content Analysis of Panasonic Reports (English Version)

Keywords: Context of 'Environment’: BE-Business Environment, and NE-Natural Environment,

EA-Environmental Accounting, AR-Annual Report, ER-Environmental Report,

SR-Sustainability Report

Source: Panasonic IR Library (Panasonic 2013s)

EA/page in

Vol. of

AR Context

Context

1997 0 N/A

1998 0 N/A

1999 9 N/A

2000 27 N/A

2001 15 62 8 20 130

2002 26 68 12 40 146

2003 19 80 11 58 176

2004 7 45 8 44 121

2005 Environmental Data Book (64) The Panasonic Report for Sustainability (56) 11 + 0 94 9 38 214

2008 Environmental Data Book (75) Sustainability Report (100) 9 + 0 114 6 100 289

2009 Eco-Idea Report (69) Sustainability Report (136) 7 + 0 120 19 108 325

2010 Eco-Idea Report ( 44) Sustainability Report (70) 4 + 1 72 10 67 186

2013 3 36 8 9 256

Environmental and sustainability Reporting name changes

(volume of Engslih version)

Environmental Report (45)

Sustainability Report (96)

The Panasonic Report for Sustainability (76)

Environmental Sustainability Report (68)

Table 2b: Content Analysis of Panasonic Reports (Japanese Version)

Keywords: EA-Environmental Accounting (環境会計) , Environment (環境)

Source: 「IR資料室」パナソニック(パナソニック 2013s)

The Sustainability Report Responsibility Guidelines ‘G3.1’ and the MOE’s

Environmental Reporting ‘Guidelines 2012’ are enforced due to increasing pressure from the

GRI (Baba 2013). Compliance with these regulations is imposed on Panasonic (Panasonic

2013c). Subsequently, Panasonic’s 2013 Sustainability Report was over two hundred pages

and has included in its contents Panasonic’s Environmental Report including commentary of

Panasonic’s broader social liabilities and ethical procurement. This is in keeping with the

standardisation of the structure of sustainability reporting13

. Panasonic claims to be a ‘global

sustainable entity’ by because Level B of the GRI and International Standards Organisation

(ISO) 26000 Core Subjects have been met (Panasonic 2013c, p.192). These credentials allow

the external perception of Panasonic as a leading sustainable entity with a depth of eco-

efficiency consciousness.

13 ISO 26000 Core Subjects and the GRI Application Levels System (Panasonic 2013c)

EA/page

in ER&SR

Vol. of

Context

1997 0 N/A

1998 0 N/A

1999 8 N/A

2000 24 N/A

2001 16 62 7 34 130

2002 24 68 12 43 146

2003 19 80 9 56 172

2004 8 45 11 43 121

2005 松下グループ環境データブック(68) 松下グループ社会環境報告 (56) 13 + 0 94 10 39 218

2008 パナソニック環境データブック(75) 社会・環境報告- 詳細版- (105) 9 + 0 114 17 95 294

パナソニックグループ

エコアイディアレポート (69) 社会環境報告- e報告書詳細版(140) 7 + 0 120 26 103 329

エコアイディアレポート (44) サスティナビリティリポート (76) 4 + 1 72 18 100 192

2013 3 36 8 9 238

環境報告書(56)

環境報告書(68)

環境報告書(78)

環境経営報告書 (92)

松下電器グループ・環境経営報告書 (76)

サスティナビリティリポート (202)

(volume of Japanese version)

環境報告書(53)

環境報告書 (49)

環境報告書 (95)

The influence of the GRI, along with the guidelines of MOE and METI, are

recognised by Panasonic itself in its Environmental Sustainability Report of 2001 (p.4). In

addition, simultaneously while meeting these regulatory requirements Panasonic engaged in a

partnership with an international non-profit environmental organisation, The Natural Step

(TNS), who provide a sustainability analysis of a firm’s environmental reports. Panasonic

claims that TNS Step recognises that Panasonic (MEIC as at 2001) has a capacity to influence

and enhance a sustainable society, and that this mission is derived from Panasonic’s founder’s

devotion to social and ecological responsibility (Panasonic 2001c, p.64).

The assessment criteria of TNS are consistent with Panasonic’s change to sustainable

practices, such as their MAPS for scarce material management. TNS is quoted in Panasonic’s

Environmental Report 2004 as saying “Matsushita’s top management has made very clear

statements about sustainability as a major driver for Matsushita’s future progress” (Panasonic

2004b, p.73).

TNS continues to conduct an analysis of Panasonic’s sustainability in operations

Furthermore an independent review of Panasonic’s environmental reporting has been

conducted by KPMG AZSA Sustainability Co. Ltd (KPMG-AZSA SC) since 2005, whereby

they certify the reports. It is proffered that this is an impact of the Kyoto Protocol enactment

on Panasonic management. The first independent review report is provided by KPMG-AZSA

SC in 2005, but it does not state any external review references and criteria; such as official

reporting guidelines, regulations and measurements. This review report is only found in the

Japanese version of the report. This creates an issue of accountability where the purpose of

such sustainability auditing is ambiguous. However such an external audit fulfils Panasonic’s

need to be seen as a leading sustainable entity.

To date in Panasonic’s environmental reports, TNS continues to provide a

sustainability analysis of Panasonic’s performance under their partnership contract. Also,

KPMG-AZSA SC continues to provide a sustainability auditing service which is conducted

with reference to the International Standard on Assurance Engagements 3000 of International

Federation of Accountants, the MOE Guidelines for environmental reporting and others

(Panasonic 2013c, p.200). Having analysed the KPMG-AZSA SC’s assurance reports issued

from 2006 to 2013, it is concluded that Panasonic’s management has been responsive to

changing environmental regulations.

The question of the independence of sustainability auditing arises with respect to

regulatory changes and the rotation rule for auditors. The independent auditor’s report for

Panasonic is placed in their annual securities reports; it is not placed in the Panasonic Annual

Report. Having analysed Panasonic’s annual securities reports issued from 2005 to 2013 with

respect to the audit function, one of the auditors was engaged in the auditing of Panasonic

auditing for 11 years until 2006. This person has got back in the audit board with an

impression of the first year auditor in 2009 and worked as a main auditor till 2011. This is

controversial with respect to the rotation rule for auditors (Financial Service Agency 2006).

The period of continuous audit engagement has changed from a 7 year engagement period

with a 2 year interval rule, to a 5 year engagement period and a 5 year interval rule in 2007

(The Japan Institution of CPA 2008). One of the largest Japanese audit firms is affiliated with

the big four audit firms that provide assurance for Panasonic’s reports. Such a situation may

give rise to a conflict of interest and agency problems between the two firms (The Japan

Institution of CPA 2013). Due to the size and nature of Panasonic business, there are only a

few audit firms capable of providing audit services for Panasonic.

Over 85% of listed entities are audited by the big four in the EU; Deloitte, Ernst and

Young, KPMG and PWC (Fuchida 2012, p.150). Fuchida argues that it is not sufficient to

only limit the audit service period of chief auditors, but that it is also necessary to change

audit provider itself (Fuchida 2012 p.151). Since Panasonic falls into the criteria of a Public

Interest Entity, Panasonic’s financial information should be audited by applying the relevant

International Audit Directive/Regulations. Specifically, an audit service provider must

conduct its procedure in a rigorous manner in order to be accountable for Panasonic’s data

and in order to give assurance to stakeholders.

4.9 Contextual background of Panasonic’s environmental reporting

Panasonic, along with Sony14

, produced their first environmental reports for the year

ended 1997. This Panasonic’s report was then issued in February 1998. It was three months

after the adoption of Kyoto Protocol in December 1997. The table 3 demonstrates, this

Panasonic report is one of the earliest environmental reports issued by a Japanese company,

because other leading Japanese companies such as Toyota, Canon, Mitsubishi, Hitachi and

Honda, had not yet commenced issuing environmental reports in 1997, but and Panasonic did.

Table 3: The leading Japanese green brands and environmental Report 2013

ER = Environmental Report, SR = Sustainability Report, AR = Annual Report

Sources: ‘Best-Global-Green-Brands-2013’ (Interbrand 2013)

‘RobecoSAM-Sustainability Rating’ (RobecoSAM 2013)

‘Survey of Environmental Brand’ (Nikkei Environmental Management Survey 2013)

According to Sony's environmental report in 1997, Sony published the first environmental report in 1994

(Sony 1997, p.1). Although the Sony Environmental Report 1994 was requested to view, it was not available.

Brand 1994 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Toyota

Panasonic SR

Sony ER* ER ER ER S&ER CSR R'ing AR+CSR

Nissan

Toshiba

Hitachi

NEC AR

Environmental AR

CSR -R

E & SR

ER CSR-R

ER E & SR

E & SR

CSR AR

E & SR

ER CSR-R SR

Environmental AR Environmental AR AND CSR-R

E & SR e-data book AND SR eco-idea R AND SR

ER E & SR

The issuing of this first environmental report by Panasonic is consistent with the

notion of the company having a public responsibility to society, a principle of its founders’

management policy and its obligation to disclose information about its environmental

sustainability. The table 4 below exhibits Panasonic’s environmental activities shown in its

environmental report 1997 (p.5). It demonstrates the depth of Panasonic’s ecological

consciousness and its articulated responses to changes in the business environment.

The following Table 4 exhibits the influence of external factors and consequential

responses of Panasonic’s internal management demonstrating their eco-efficiency

consciousness. The depth of eco-efficiency consciousness depends on organisational culture.

Panasonic’s organisational culture derives from the founder, so the extension research

material includes the Panasonic corporate history and the founder’s publications.

Table 4: History of environmental activities prior to the Kyoto Protocol

Panasonic Environmental Activities Business Environmental factors 1970 - Pollution Survey Committee

Established

- Water pollution control law enacted (Japan)

- Waste Disposal and Public Cleansing Law enacted

1975 - Environmental Management regulations

instituted

- Montreal Protocol on Substances that Deplete the

Ozone Layer adopted (in 1987)

1988 - CFC*-reduction Committee established - Ozone Layer Protection enacted (Japan)

1989 - Environmental Protection Promotion

Office established

1991 - Matsushita Environmental Charter

(Environmental Statement and Code of

Conduct) instituted

- Keidanren Global Environmental Charter enacted

by Japan Federation of Economic Organisation -

Law for promotion of Effective Utilisation of

Resources enacted (Japan)

1992 - Environmental Policy Committee

established

- The Earth summit held in Rio de Janeiro, Agenda

21 and Rio Declaration on Environment and

Development adopted

- UNFCCC** adopted

1993 - Matsushita Environmental Voluntary

Plan 2000 adopted

- Matsushita group ‘s Global

environmental internal audits launched

- The Basic Environmental Law enacted (Japan)

1997 - Corporate Environmental Affairs

Division established

- Semi-annual Environmental Conference

is inaugurated

- Keidanren announced ‘Keidanren Voluntary

Action Plan on the Environment’ (Japan)

*CFC stands for chlorofluorocarbon, **UNFCCC stands for United Nations Framework Convention

on Climate Change Source: Panasonic environmental Report (Panasonic 1997)

Panasonic’s culture is based on its founder’s management policy. Panasonic’s founder

was Konosuke Matsushita. He launched his business in 1918 and continued to contribute to

the company’s management as president until 1961. Konosuke Matsushita continued in an

advisory roll until his death in 1989. His lifetime of dedication was recognised nationally and

he received the most honourable civil award of the Grand Cordon of the Order of the Rising

Sun with Paulownia Flowers (勲一等旭日桐花大綬章) from Emperor Hirohito in 1987

(Panasonic 2013g). Consequently, archives pertaining to Konosuke Matsushita form part of

the data for this study. His biography incorporates a crucial part of Panasonic’s corporate

history and so it is considered to be relevant. These documents provide additional layers of

social context. Numerous data are collected through internet archival research and sources are

examined in both Japanese and English (when both are available). Information of the founder

is collected from the Konosuke Matsushita museum in Osaka Japan.

4.10 Summary

In summary, this research examines how the Japanese company Panasonic modifies

its activities to promote eco-efficiency. Specifically, the research examines the consequences

of a developing eco-efficiency consciousness on Panasonic’s changing MAPs, to achieve this

externally driven strategic goal. Japan’s signing of the Kyoto Protocol is used as a benchmark

of eco-efficiency consciousness to assess Panasonic’s performances. A contingency approach

is used as the theoretical lens.

Chapter 5: Eco-efficiency: the Experience of Panasonic

5.1 Introduction

The business environment of firms can change rapidly due to external influences

(McWatters et al. 2001). Firms change their business strategies in response to these external

influences. One such example is consumer demand for eco-efficient products, which drives

manufacturers to embed eco-efficiency into the lifecycle of their products in order to obtain a

competitive advantage. Consequent production costs and savings are captured by a firm’s

MAS (Hunkeler et al. 2008). In this way it can be said that changes in an organisation’s

vision, strategy, and production are passively reflected through MAPs (Modell 2001).

This example of Panasonic examines how external demands for eco-efficient products

are reflected in the organisation’s management accounting processes. Panasonic is a leading

Japanese producer of eco-efficient products. Panasonic brands this strategy as “eco-ideas for

life”. Their business activities are examined within the context of its unique corporate culture.

Panasonic claims to embed a deep eco-efficiency consciousness in its products and services

globally. It can therefore be expected this socially responsible approach is reflected in its

management accounting processes.

This chapter is organised as follows. Section 5.2 will provide an overview of the

Panasonic Corporation. In this section the details of Panasonic’s structural reforms and its

brands history are described in section 5.2.1, followed by the context of Kaisha (Japanese

company) is explained in 5.2.2. The founder’s intention and spirit are explicated in section

5.2.3. Section 5.2.4 explains Panasonic’s strategic use of management accounting and

reporting. Section 5.2.5, describes some of the responses of Panasonic to changing external

factors impacting on the organisation. In section 5.3, Panasonic’s in-house MAPs are

illustrated. This section will be divided to portray the features of the MAPs which include the

raw material management in section 5.3.1; the further extension of the eco-efficiency concept

that influences green production and linkage to CSR is section 5.3.2; the resource circulation

practices with LCC in section 5.3.3 and section 5.3.4 illustrates the implication of the MFCA

concept for supply chain management. The final section 5.4 provides a summary of the

chapter.

5.2 An overview of Panasonic Corporation15

Panasonic is a globally recognised Japanese company that manufactures home and

business electrical appliances, with net sales in 2012 of 7,300 billion yen16

(US$ 91 billion)

(Panasonic 2013a & 2013f). It was established in 1918 and incorporated in 1935 in Osaka

Japan, with the name ‘Matsushita Electric Industrial Co.’ (MEIC). The head office is located

in Kadoma City, which is one of the eastern suburbs of the Osaka Prefecture. MEIC changed

its company name to ‘Panasonic Corporation’ (Panasonic) in 2008.

The establishment of MEIC began with three people; the founder Konosuke

Matsushita, his wife Mumeno and her brother Toshio Iue. The ground floor of their residence

was converted into a workshop where subcontracted fan insulator plates were produced.

Konosuke Matsushita designed an attachment plug and a two-way socket, which was the first

original product of MEIC. Subsequently, they successfully obtained funds from a major bank

in Japan (Panasonic 2013l). Matsushita’s brother-in-law Iue became an executive manager of

MEIC. However, after Japan lost WWII, under the economic reparation enforcements

implemented by the US General Headquarters, Iue had to leave MEIC. Consequently, Iue

launched Sanyo in 1947 (Sanyo 2013).

Appendix 1 – Brief History of Panasonic is illustrated. 16

Appendix 2 – IR Summary of Panasonic FY 2013 is exhibited.

From these beginnings, Panasonic has grown into a multinational entity; however, its

origin in a typical Japanese family business is still evident. An example of this is at the end of

2008, amid the external context of global economic turmoil, Panasonic announced a merger

with Sanyo Electric Corporation (hereafter Sanyo), Panasonic’s co-founder’s company

(Panasonic 2009d, p.3).

Panasonic’s operations expanded over time to in 2013, 634 group entities globally in

80 different countries (Panasonic 2013i). The corporate governance structure comprises a

Panasonic Board made up of the offices of president, chairman, vice chairman, four senior

managing directors, six managing directors, and four directors. The organisation also has two

senior corporate auditors and three corporate auditors, a senior managing executive officer

and eight managing executive officers and twelve executive officers. The 43 executives

provide the governance structure for Panasonic’s operations. Although Panasonic’s business

has expanded overseas and provides a wide range of products and services globally, only two

female and three non-Japanese officers are members of the Panasonic Board (Panasonic

2013j). This lack of representational diversity can be conjectured to reflect Panasonic’s

characteristic of a conservative Japanese corporate culture.

Figure 2: Panasonic’s new corporate structure - ‘Business Domain System’ in 2003

Source: Panasonic Annual Report 2003 (Panasonic 2003a, p.10)

5.2.1 Panasonic - structural reform and its history of brands

There are examples in Panasonic’s past of the organisation’s strategy to undertake

structural reforms in response to changes in its economic context and other contingencies

such as environmental factors. Underpinning Panasonic’s organisational culture throughout

these reforms is the management philosophy of its founder, Konosuke Matsushita, who from

the company’s inception expanded its operations based on his vision of ‘humanism and

harmonisation’ (Matsushita 1962).

In the 1990s the impacts of advanced digital technology were significant and rapid.

The then MEIC responded strategically to this contingent factor. They restructured their

management composition in 2000 to operate more effectively in the changing competitive

global market, while at the same time still maintaining the founder’s management philosophy

(Ueda et al. 2010). This reform facilitated the transformation of MEIC from an out-dated

management structure to an organization with modern multinational management (Onishi et

al. 2008). This was done for strategic long term gain. Although this corporate restructure

resulted in an unprecedented financial loss in 2001, the regenerated MEIC successfully

increased its market share globally after the completion of reforms in 2003.

Table 5 exhibits these structural changes of Panasonic commencing in 2000 and

concluding in 2013. Panasonic changed its structure from a divisional system present in the

year 2000, to a business domain system17

commencing 2003, and with a change of CEO back

to a divisional system in 2013.

The execution of large structural changes to domains was initiated by a powerful CEO

who remained Panasonic’s Chairman of the Board until 2012. Structural change is initiated in

A business process domain is “a logical grouping of business systems dedicated to a common purpose” and its

roles takes “a set of function views, aligned with the business process structure of the enterprise” (The Open

Group Architecture Framework 2013)

response to a shift in contingency variables in the environment in which companies operate

(Donaldson 1995, p.36).

Table 5: Panasonic Structural Changes

Date Structure Segment (business units)

Prior to

2000 9 Divisions

Visual Equipment, Audio Equipment, Home Appliances, Digital and

Communication devices, Digital Components, Battery and Kitchen Appliances

and Other

Structural Reform Period

January

2003 4 Business

Domains

(Common

Platforms)

Digital Networks, Home Appliances/Environmental Systems, Components &

Devices/ Manufacturing Systems, Services and Solutions and Other

2004 AVC Networks, Home Appliances, Components & Devices, JVC and Other

August

AVC Networks, Home Appliances, Components & Devices, *MEW Panahome

and Other (MEW - Matsushita Electric Works Co., Ltd.)

2009 AVC Networks, Home Appliances, Components & Devices, **PEW Panahome

and Other (PEW - Panasonic Electric Works Co., Ltd.)

2010 5 Business

Domain Digital AVC Networks, Home Appliances, PEW Panahome, Components &

Devices, SANYO and Other

January

7 Business

Domains AVC Networks, Appliances, Systems & Communications, Eco Solutions,

Automotive systems, Industrial Devices, Energy and Other

4 Divisional

Companies Appliances Company, Eco Solutions Company, AVC Networks Company,

Automotive & Industrial Systems Company and other

*MEW (Matsushita Electronic Works), **PEW (Panasonic Electronic Works)

Source: Prior to 2000 reference to ‘Kakushin Matsushita-denki’ (Asahi 1998) and

Between 2000 to 2013 reference to Panasonic Annual Reports (Panasonic 2013s)

A new president was appointed in 2013. He again reorganised Panasonics’ structure

from seven business domains in 2012 to four divisional companies from 1 April 2013.

However, the segments of the business were retained: Appliances; Eco-solutions; AVC

Networks; and, Automotive & Industrial Systems. These four company divisions comprise 49

business units. Panasonic’s operational structure was redesigned around this framework

(Panasonic 2013a, p.8). The ultimate objective of both restructures was to increase economic

efficiency and eliminate loss and the waste of resources (Koitabashi 2013).

Another strategy Panasonic embraced in response to the external demand for

consumer products that are eco-efficient, was to raise their brand visibility. As illustrated in

Figure 3 below, since the 1960’s MEIC’s brands were Panasonic, National and Technics.

None of these brands were satisfactorily recognised in the global marketplace. Consequently

MEIC unified their brands with the company name ‘Panasonic’ in October 2008, successfully

releasing new products globally under that brand (Takeuchi & Takeda 2008).

Figure 3: Brand History of Panasonic18

Source: Panasonic official global site ‘Brand History’ (Panasonic 2013k)

Source: Figure 3 is a concise brand history of Panasonic. Full version of the Panasonic Brand History is

available at http://panasonic.net/brand/history/ (Panasonic 2013k).

5.2.2 Kaisha

Shrinking R&D investment resulted in a weakened financial position for Sanyo in

2005, when a net loss of 205.7 billion yen (US$ 2.2 billion) was recorded (Sanyo 2009).

Sanyo’s struggle continued and its accumulated losses did not improve. Declining cash flows,

loss of share value and the impact of the global financial crisis in 2008 meant that Sanyo’s

operations were in a difficult state. Drawing on the historical connection, the unification of

Panasonic and Sanyo was expedient and created a beneficial business synergy (Panasonic

2012a). The historical relationship between Panasonic and Sanyo and their bank, who is a

powerful stakeholder, demonstrates the Japanese concept of Kaisha. One significant attribute

of Kaisha is “the substantial level of banking dependence and banks’ involvement in a firm’s

affairs” (Abegglen & Stalk 1985, p.274).

Abegglen and Stalk (1985, p.270) depict Kaisha as “products of Japan’s economy, and

their effectiveness is largely controlled by the effectiveness of economy as a whole”. For

example, although Panasonic paid a high premium for Sanyo’s equity, it did not generate

economic returns from the transaction19

. This transaction was rationalised through the historic

relationship between the two companies. In fact, Panasonic later sold Sanyo’s core business

to a Chinese company (Murai & Hamada 2011). The Kaisha “are economic organisations as

well as social organisations, and nothing in Japan’s dash for affluence has allowed its

economy to repeal the basic laws of economics or change the basis and nature of economic

competition” (Abegglen & Stalk 1985, p.272). In this Kaisha relationship, thus, financial

information was not prioritised when making management decisions.

See Appendix 3- it shows each segment profits and sales of the Panasonic group in 2010. The financial results

illustrates that the merge with Sanyo is an irrational decision made by the powerful person in Panasonic.

5.2.3 The Panasonic culture - the founder’s intention and spirit

Panasonic’s founder, Konosuke Matsushita ( 松下幸之助 ) is internationally

recognised for his contributions to business. Time Magazine labelled him as the ‘genius

entrepreneur’ in 1962 (Anon. 1962). Life Magazine introduced Konosuke Matsushita as a

“top industrialist, the biggest money-maker, philosopher, magazine publisher and best-selling

author” (Mills 1964, p.107). The world was informed of the death of Konosuke Matsushita

under the heading “Exemplar of Japan’s post-war industrial success” (Anon. 1989, p.18). His

feats saw him become a popular entrepreneur in the history of Japanese industrial

development.

The founder of Panasonic: Konosuke Matsushita - the Basic Management Objective20

[R]ecognizing our responsibilities as industrialists, we will devote ourselves to the

progress and development of society and the well-being of people through our

business activities, thereby enhancing the quality of life throughout the world.

Source: ’Basic Management Objective’ (Panasonic 2013e)

His management principal is that a company is also a public entity of society and its

mission is to contribute to society (Panasonic 2009d, p.2). This basic management philosophy

Panasonic Corporation's Basic Management Objective, formulated in 1929 by the company's founder,

Konosuke Matsushita.

is the foundation of Panasonic’s approach of unifying its employees. Its culture is built on the

founder’s management policy which is reflected in the corporate vision of co-existing

harmoniously with each community and its environment (Panasonic 2009d, p.3). His

contributions to the local community include the establishment of Matsushita Memorial

Hospital in 1940, the reconstruction of the gate of the Temple in Asakusa Tokyo in 1960, and

a six billion yen donation (US$ 47 million) for the Osaka International Flower and Green

exhibition in 1988 (Panasonic 2013m).

One of Konosuke Matsushita’s significant contributions was the establishment of the

Peace and Happiness through Prosperity Institution (PHP) in 1946. The objectives of the PHP

Institution were to study human nature and to help Japanese society recover from the post

WWII depression (Kotter 1997, p.198). From 1970, an English language magazine was

commenced by PHP (Panasonic 2013n). For over 65 years, the PHP Institution has been

publishing the PHP Journal21

to provide reflections on the founder’s philosophy in order to

guide society. For example; the liability of organisations to society for their emerging

environmental issues were raised in his publication ‘Corporate Social Responsibility’ in 1974.

Subsequently, his CSR vision was expressed in the book ‘My Management Philosophy’ as:

[T]here is much discussion today regarding ‘social responsibility’, but while

the meaning of that concept can be wide-ranging depending on social

conditions at a particular time, the fundamental social responsibility of a

corporation, in any era should be to improve society through its business

activities. It is extremely important to manage all business activities based

on this sense of mission (Matsushita 1978 as cited in Panasonic 2012d, p.6)”.

After the establishment of the PHP Institution, Konosuke Matsushita’s went on to

establish another institution, The Matsushita Political Economic Institution (松下政経塾) in

1979 with a view to educate the future leadership of society. Former Japanese Prime Minister

Noda was a graduate student of this institution (Panasonic 2012f). This institution launched

The PHP journal is similar to the Reader’s Digest. It has been a popular journal for all generations for many

years.

the Kyoto Symposium in 1983 to discuss various social issues; from the world economy and

politics to education systems (Panasonic 2012f). Included in this symposium was

conservation of the natural environment. His view against pollution was strict, stating “the

destruction of nature through industrial development damages human happiness. It is against

the principle of the corporation22

” (Panasonic 2000, p.53). His firm determination towards

natural environmental issues is reflected in Panasonic’s goal of eco-efficiency consciousness.

It has appeared as ‘eco-ideas for life’ in Panasonic promotions and in their awareness of

limited resource management (Panasonic 2000). An example of eco-efficiency consciousness

is demonstrated by the development of a process for lead free soldering that eliminates

pollutant substances from production. Konosuke Matsushita’s strong beliefs endure in

Panasonic’s striving for eco-efficient production, and this serves as a point of differentiation

from its competitors.

A leading Japanese EMA researcher, Kokubu, presented the implications for Japan’s

CSR, treating the approach of Konosuke Matsushita as a raw model in the traditional

Japanese style of management, and perceived Konosuke’s CSR philosophy as legendary from

a Japanese CSR standpoint (Kokubu 2011b, pp.7-9). The interrelationship of the Konosuke’s

CSR philosophy, the Panasonic management policy and its employees’ eco-efficiency

consciousness was also depicted (Kokubu 2011b, p.8). Furthermore, Benn et al. (2006, p.160)

describe a high level employee engagement, stating “the workplace culture at Panasonic has

supported the ready development of eco-efficiency practices”. Panasonic’s employees’ eco-

efficiency consciousness derives its founder’s contributions to society, and his influence is

maintained in the firm through his publications.

Panasonic’s employees have embraced the management philosophy of eco-efficiency,

which has become a main management tool used by the company to promote sustainability

Original in Japanese “産業の発展が自然を破壊し、人間の幸せを損なうことは本末転倒である”

(Ookura 2008). This is in the form of reducing energy, materials and water usage by recycling

substances without making adverse environmental effects through “eliminating hazardous

emissions or by-products” (Weblio 2013). Research and development is a critical element for

developing innovative products to minimise their impact on the natural environment (Onishi

et al. 2008). Development of material engineering and resource management techniques are

crucial for Panasonic’s future.

5.2.4 Panasonic’s business strategies: accounting and reporting

The strategic focus of Panasonic is on sustainability to enrich customers’ lives

(Panasonic 2013c, p.5), in which the concept of eco-efficiency in production takes a crucial

role in operations (Yamakawa 2012). Panasonic’s focus is on what products are necessary or

convenient for customers to have, and is a customer oriented management strategy (Panasonic

2013a, p.6).

An example of this is Panasonic’s ‘Business to Business to Consumer’ (B2B2C)

approach, in which the core strategy of branding “eco-ideas for life” (Panasonic 2013r) is

extended to its supply chain through collaboration with business customers (Panasonic

2013q). In terms of MAPs, the flow of management accounting information and

environmental MAPs changed from a top-down style to promoting a bottom-up system,

instilling the concept of eco-efficiency consciousness throughout the whole of Panasonic’s

operations (Ookawara 2013). Both customers and employees are educated about an eco-

efficient life style by using and producing eco-products. ‘A Better World’ is created by an

individual’s contribution and awareness (Ookawara 2013).

Eco-efficiency in production is achieved through a combination of ‘cutting-edge

technology’ that makes the most of value engineering (Panasonic 2013r), and MAPs.

Underlying this approach is Panasonic’s belief that manufactures are liable for the full life-

cycle of their products sold to consumers. Each individual business unit in the Panasonic

Group is responsible for their respective products.

Simultaneously, these respective units are liable to maintain their own adequate

capital and growth. Two measurements are used in determining the performance of each unit,

Free Cash Flow23

(FCF), and Capital Cost Management24

(CCM). Okunaga (2004, p.39), a

former Panasonic accountant, claims FCF as “cash flow that allows decision makers to select

an object to utilise to their intentions”; whereas the Panasonic’s CCM is “the Panasonic way

of an economic value added tool for strategic management” (Okunaga 2004, p.31). That is,

they are tools for Panasonic’s unique cash flow management (2004, p.36). This partially

reflects the founder’s management policy, thus, it links MAP and CSR.

FCF measures on-going costs of an operation (Ookura 2008). Panasonic previously

used the target sales as a performance measurement. In 2013, however, Panasonic

commenced using operating profits as the index for measuring efficiency of performance and

effectiveness of strategic management. That is, recognising continuous growth in sales as

perhaps unsustainable, a focus on profits through margins created from innovative

environmentally conscious quality products was initiated. This strategy differentiates

Panasonic from its competitors such as Sony and Hitachi.

CCM was adopted in Panasonic as a control for capital assets to be maintained at an

adequate level (Ookura 2008). In 1999 Panasonic began using a modified CCM for

performance evaluation. The basis of CCM is to control cash flows to and from investments

and assets (Kosuga 2010). The ultimate objective of CCM is to effectively utilise resources to

FCF is “cash flow from operations less any capital expenditures necessary to maintain its current growth”

(Peterson 2013). FCF to equity is “the FCF adjusted for the debt cash flows; the debt cash flow adjustment or

net borrowings” (Peterson 2013). This is an example to calculate FCF, however, the ability to generate future

FCF depends on the current financial state and performance. 24

According to Kawakami (2000, as cited in Ookura 2008), CCM is calculated as the cost of investment and

asset management less operating profits (before deducting dividends).

increase operating profit and to reduce the cost of capital investment. These tools support

Panasonic’s managers in allocating resources to R&D efforts.

In order to be a leading manufacturer, R&D investment is a necessity in developing

goods and services of the future. The proportion of investment allocated to R&D is a critical

feature of business. According to Panasonic’s reports, the environmental R&D (here-after e-

R&D) was kept around three per cent of the consolidated R&D from 1999 until 2010; apart

from it being four per cent in 2006. It is surmised that the enactment of the Kyoto Protocol

impacted Panasonic’s operations in 2005-2006.

In 2008, a voluntary emissions trading system commenced in Japan, followed by the

total GHG reduction obligations of Tokyo which began in 2010 (Tokyo City Council

Environment Division 2013). In conjunction with the amendments of the Waste Management

and Public Cleaning Law, the Pollutant Release and Transfer Register, and the Chemical

Substance Control and Management Regulations for manufacturers, it is anticipated that these

changes drew the attention of Panasonic’s management and required an immediate response.

Although Panasonic’s operational profit fell by forty per cent between 2007 and 2010, R&D

e–investment rose almost seven times while the consolidated R&D allocation remained

steady.

Chart 2: Archive of e-R&D cost allocation of Panasonic

Source: Panasonic fact books in IR Library (Panasonic 2013s)

-300,000

-200,000

-100,000

100,000

200,000

300,000

400,000

500,000

600,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Environmental R&D Operating profit (loss)

Panasonic Operating Profit (Loss) and Environmental R&D cost (million yen)

Enviro

ental R

erating p

As shown in Chart 2 above, despite the sharp drop in Panasonic’s profit during the

global financial crisis in 2008 and volatile market conditions thereafter resulting in a high

volatility in its profit, Panasonic increased its investment in e-R&D. Figure 2 clearly shows

Panasonic has continually invested in environmentally related R&D activities despite the ups

and downs of its operational results. As the figure depicts, Panasonic invested substantially in

e-R&D in 2001 despite its record net loss in this year. Similarly, in 2011, the equivalent of

144% of operating profit was invested in e-R&D (Panasonic, 2012c & 2012d).

In fact, new tax incentives were introduced for global corporations conducting new

R&D operations in Japan. The Japanese government allows “qualified companies to reduce

their national corporate income tax base by 20% under the Business Location Law” (Ernst &

Young 2013). The tax treatment of R&D cost has expanded to increase the maximum amount

of corporate tax deduction for the total amount of R&D investment. It shifted from 20% to

30% of corporate tax within a period of 2 years. For experiments and research expenditures,

the deduction rate of 12 % is applied for additional joint research (METI 2013). Tax relief

may offer tax assets for Panasonic, thus this contingency variable has an impact on

Panasonic’s operations. This is not limited to e-R&D.

Over the years, Panasonic has taken a number of measures to increase the efficient use

of resources and to decrease its environmental costs. Japan’s signing of the Kyoto Protocol

also has a profound impact on the reduction of carbon emissions. Panasonic (2011e) set up

their environmental affairs division in 1997 and their recycling business promotion office in

1998 and launched their policy of green procurement in 1999 in order to accomplish the

objectives of the Kyoto Protocol.

As seen in chart 3 below, Panasonic has been challenged to reduce carbon emissions

across the full life-cycle of its products, from the selection of raw materials to the end of a

product’s life. Owing to the 3R policy, the end signifies that products are decomposed to raw

materials for recycling and some are circulated back into production.

The founder emphasised a Japanese concept, Syu-chi (衆知), in his management

policy which means to gather the wisdom of many people (Weblio 2013). Konosuke showed

appreciation for the merit of an individual employee’s opinion, viewing the company as being

comprised of employee entrepreneurs (Panasonic 2012b, p.6). This illustrates a feature of the

Panasonic corporate culture that managers offer opportunities to employees to be involved in

parts of decision making processes. This encourages employees to be engaged in their work

and excel in their given tasks (Onishi et al. 2008).

This policy instilled a culture of innovation in Panasonic. Progressive eco-efficiency

inventions such as the non-felon gas refrigeration and lead-free soldering illustrate the power

of Syu-chi. The employees’ motivation to work, thus, comes from this encouragement and

their pride in Monozukuri (物作り)25

Panasonic’s practice reflects Syu-chi in Monozukuri. Specifically employees are

mindful of the environmental impact of all stages of operations. In order to achieve the target

reduction amounts of carbon emissions flowing from the Kyoto Protocol, Panasonic

continuously invests in environmental R&D to develop hazardless materials and to design

energy efficient products. The reduction of emissions over time visually demonstrates to all

stakeholders the eco-efficiency consciousness of Panasonic and its achievement of

sustainable performance. According to Groen et al. (2012, p.17) favourable improvements,

consequentially impact positively on employees’ satisfaction (Panasonic 2012d). Panasonic’s

decline of carbon emissions is shown in Chart 3 below.

Monozukuri means craftsmanship, however this Japanese word implies the spirit of Japanese craftsmanship to

convey in the manufacturing process utmost quality, optimum functionality and care for the product’s users.

Chart 3: Reduction of CO2 emitted amount from production activities of Panasonic

Source: Panasonic Sustainability Report (Panasonic 2011d, p.45 & 2012d, P.41)

Panasonic has continuously responded to regulations and societal pressures by

changing both actions and reporting practices. In the following Figure 4, the scope of

“Matsushita Environmental Accounting System” (Panasonic 2003b, p.55), MEIC illustrates

the incorporation of in-house MAPs to manage environmental issues. It indicates that all

elements need to be taken into consideration in developing MAPs, such as raw materials,

energy and customers’ economic welfare and environmental conservation benefits. Moreover,

Panasonic’s principle of EA was stated as;

[I]dentifying costs and benefits in monetary terms is the first step of business

management. In this sense, environmental accounting is a tool that serves as the

base for environmental sustainability management. In addition to the

environmental conservation costs and the in-house economic benefits, Matsushita

has calculated in monetary terms the environmental conservation benefits, and the

electricity savings achieved as a result of using energy-saving products”

(Panasonic 2003b, p.55).

Panasonic restructured its business units implementing a strategy of environmental

conservation in order to accomplish the objective of eco-efficiency in their products and

services.

2005 2006 2007 2008 2009 2010 2011Sales (billion yen) Emitted Amount (million ton)

Panasonic - CO2 Emitted amount and Sales

emitted

t (millio

Sales (billio

Figure 4: The scope of ‘Matsushita’s Environmental Accounting System’

Source: Panasonic Sustainability Report (Panasonic 2003b, p.55)

5.2.5 Environmental issues and Panasonic’s response and reporting

Panasonic over time has responded to regulatory changes and societal pressures by

changing both actions and reporting practices. Panasonic has issued environmental data

reports since 1997. Between 2001 and 2004, Panasonic integrated their environmental report

with their sustainability report; however, from 2005 environmental data books and

sustainability reports were published separately. Since the enactment of the Kyoto Protocol,

the volume of these reports has increased significantly. Despite the high volume of

environmental information, the frequency in appearance of the term ‘environmental

accounting’ has been diminishing in these reports over time. The following table describes

the timeline of regulatory enforcements and Panasonic’s reporting responses (Table 6).

Table 6: The timeline of environmental issues and Panasonic responses

Source: Panasonic IR Library (Panasonic 2013s)

Regulatory enforcements and other events on society

Panasonic Action Annual Report

Volume

Total volume

Words EA/page

Pre- Energy Conservation Law enacted (METI) in 1979

Set Environment management regulations in 1975

1997 Global Reporting Initiative

(GRI) was founded,

Japan adopted Kyoto Protocol

Set Environmental affairs Division and semi-annual environmental conference

established in 1997

1998 Home Appliance Recycling Law

enacted First Environment Report is

published N/A 0

1999 Pollutant Release and

Transfer Register Law enacted Adoption of Environmental

Accounting N/A 9

Basic Law for Establishing a Sound Material-Cycle Society (MOE), Act on the Promotion

of Effective Utilization of

Lead-free solder project commenced, the first

environmental exhibition for general public in Osaka

N/A 27

Law for special measures against PCBs enacted (JAP),

Home Appliance Recycling Law enacted

Matsushita Eco technology Centre launched

62 126 15

2002 Law of countermeasures

against soil pollution enacted (JAP)

Set a position for environmental specialist , full adoption of bio-diesel fuel for

supply chain

68 146 26

2003 Set RoHS and enacted WEEE

(EU) Infusing lead-free techniques,

Zero-emission factory in Japan 80 178 18

2004 Prohibited the use and

produce products contain asbestos (JAP)

PCB management office established

45 121 7

2005 Kyoto Protocol is enacted Enactment of Kyoto Protocol Environmental Data Book (64)

Report for Sustainability

(56) 94 214 11 + 0

2006 Enactment of RoHS (EU), Relief

Law for Asbestos Victims enacted (JAP)

Set the position for environmental specialist

Environmental Data Book (70)

(44) 98 212 13 + 0

2007 REACH enacted in EU , Chinese

RoHS enacted, Restriction of product entering EU market

U.N. recognition of "Energy Conservation of its Malaysian

factory as CDM

(64) 122 255 7 + 1

2008 G20: the conference for Global

warming is held

Set the committee of Co2 reduction promoting,

establish the Environmental Strategy Research Centre

114 221 9 + 0

2009 Enacted the WEEE in China eco-ideas for housing to

demonstrate a zero Co2 lifestyle living

Eco-Idea Report (69)

120 325 7 + 0

2010 Set International Integrated Reporting Committee (IIRC), Cancun agreement (COP16)

Commenced service for the entire factory energy-saving

support

Eco-Idea Report ( 44)

72 186 4 + 1

2011 North Eastern Earthquake, the

price of rare earth soared Set Corporate Electricity saving

division across the entity Eco-Idea

Report (50) Sustainability

Report (52) 57 159 3 + 0

2012 Impact of the Earthquake promote Energy saving

MOE "the Recycle Resource Project has commenced

Eco-Idea Report (48)

61 193 3 + 0

Report for Sustainability (76)

Change in Environmental and Sustainability Report name

5.3 The Panasonic in-house MAPs: eco-efficiency conscious production

Panasonic has utilised various MAPs and other management systems to respond to the

changes in the business environment. As mentioned, CCM and FCF emphasise the financial

economic aspects of Panasonic’s eco-efficiency consciousness. This section describes

Panasonic’s uses of MAPs to support ‘green’ manufacturing (mapping in Figure 5 below).

Specifically, section 5.3 is arranged as follows: sub section 5.3.1 explicates raw

material management techniques in which Itakona Costing and MFCA are discussed; this is

followed by section 5.3.2, green production systems that are supported by Metagegi devices.

There are three devices: the Simulation Technique device, the Panasonic factory energy

management systems (P-FEMS) and the ‘Save Energy link’ (SE-link). Section 5.3.3

introduces resource process of the Akari-Anshin service in conjunction with the use of LCC

and LCA. Finally, section 5.3.4 discusses supply chain management in conjunction with

process management accounting, in which the strategic partnership of buyer and supplier

initiates clean and green procurement for the Panasonic group entities.

Figure 5: Panasonic’s management accounting practices for sustainability (evolved Figure 4)

5.3.1 Raw material management -the starting point for value creation

Panasonic’s strategic objective is a customer-oriented management focus that has a

strong commitment to develop a wide range of eco-efficient products (Yamakawa 2012). It is

not a surprise that Panasonic focused on selecting raw materials which do not contain harmful

substances that cause adverse effects on the environment (Panasonic 2009b). Raw materials

management is seen as the base element of Panasonic’s resource management in which the

process of cost appropriation is executed (Takeuchi & Takeda 2008). With respect to product

cost analysis, specification of raw materials is examined thoroughly by products’ outputs and

by the waste of raw materials in monetary and physical units.

The above cost appropriation method is called Itakona, which is a target costing

system used by Panasonic. The literal meaning of the Japanese term Itakona is, ‘Plates and

Powders’ (Panasonic 2011e). Itakona costing is an essential resource optimization technique

using the cost analysis of raw materials at powder and plate level. Itakona is not a mere cost

management tool, but rather involves the collective activities of inter-departmental employees

who integrate knowledge to create a rational outcome of products within the appropriate cost

range. Inevitably, material engineering information takes a critical role in Itakona26

(Takeuchi

& Takeda 2008).

Crucial information is shared in what is called the Itakona Board, where the concept

of MFCA27

is utilised. MFCA visualises waste and emissions in operations, thus it provides a

guideline for material management. Since 2000, the Japanese ministry METI has promoted

the implementation of MFCA, because it allows companies to capture energy flow and waste

of material. The captured waste is converted into physical and monetary units, thus accurate

In the product planning stage, the selection of raw materials is important. The cross-functional team, that

comprised participants from the different divisions, is able to grasp material information visually (White 2008).

This display at the Itakona board shows a wide range of raw material details that are exhibited at the material

selection meeting (White 2008). Thus, the team can review and examine raw materials ascending to plates and

powders at the micron level prior to manufacturing (Panasonic 2011e).

27 MFCA is defined and discussed at Chapter 2.

costs of waste and emissions are able to be identified (METI 2008, p.4). Itakona adopts this

feature and thereby reduces costs and adverse environmental impacts from the raw material

being used for products.

The framework of Itakona and MFCA facilitates the cross-functional team’s

estimation of monetary costs and physical levels of carbon emissions. As Panasonic uses

reductions of carbon emissions as a measure of productivity, this management accounting

concept encourages decreased carbon emissions from operations (Takeuchi & Takeda, 2008).

Itakona extended the MFCA conceptually, with the consequence of encouraging all

employees to reduce carbon emissions. This is called ‘CO2 Itakona activity’ and it covers a

wide range of company activities other than manufacturing (Panasonic 2012g).

In addition, the meeting to discuss material management issues is called the Itakona

meeting. Participants in this meeting perceive themselves as making contributions in

Monozukuri (the Japanese concept of craftsmanship, explained earlier). It offers an

opportunity for employees to integrate their knowledge and to have their contributions

recognised explicitly. This management concept of Syu-chi links to Panasonic’s management

philosophy and replicates the founder’s spirit (Panasonic 2009d). The Itakona process thus

embeds the corporate culture.

Panasonic’s sensitive and proactive attitude towards environmental issues is derived

from the founder. He set up the Environmental Investigative Committee for pollution in 1970

and the Environment Management Control Unit in 1972, who were responsible for

implementing environmental management regulations in 1975 (Panasonic 2011b). These

events demonstrate how the founder responded to the external changes and the level of his

concern with environmental issues. His attitude has encouraged Panasonic’s employees to

accept the theme of eco-efficiency consciousness in manufacturing. Consequently, the recent

green strategy of ‘eco-ideas for life’ affirms Panasonic’s mission as a member of a

sustainable community.

Since raw materials’ analysis is a vital phase of products’ development processes,

companies inevitably have to pay special attention to it as it not only helps reduce materials

costs but also contributes to increasing the degree of eco-efficiency. In modern society, the

products tend to be designed smaller and lighter with attention to technological improvements.

There will be less raw materials and fewer components used in eco-efficient manufacturing

(Panasonic 2012d). Consequently the company would be able to emit less. Hence, this aligns

with the environmental LCC assertions that “externalities are expected to be internalised in

the decision-relevant future” (Hunkeler et al. 2008, p. xxvii). The following section discusses

another dimension of the MFCA concept which is used in managing cleaner production.

5.3.2 Green production management -the challenge ‘a zero emission

factory’

Panasonic also attempts to reduce its environmental impacts in its production process

with its green production management philosophy. This philosophy aims for zero waste and

emissions in Panasonic’s factories (Panasonic 2012e). In 2012 the Panasonic group had 254

factories worldwide, and issues site reports on them evaluating their performance with respect

to management of waste, emissions, and energy consumption (Panasonic 2012g). Details of

the indicators of Panasonic’s Green Factory Assessment System are exhibited in Figure 6

below. As per Figure 6, environmental activities of the company are assessed under 5 areas

and 5 levels using 15 categories. The five main objectives that the Green Factory Assessment

System aims to achieve are: (1) emission reductions; (2) a strengthening of environmental

performance; (3) a reduction of activities; (4) a risk reduction; and (5) human resource

development. In 2012 the company’s factory activities are measured to be 3.8 (Level 3) and

the company is aiming to improve it toward Level 4 (Panasonic 2012b, p.10).

Figure 6: Panasonic Green Factory assessment system indictors

Source: eco-ideas Report 2012 (Panasonic 2012b, p.10)

The cross-functional management team plays an important role in the company’s

green factory assessment system. The team selects the raw materials and the suppliers taking

the view of a long term perspective (Speckman 1988). Materials engineering provides the

technical information for the team to learn about materials and deliberate ways to eliminate

toxic substances from raw materials and production processes, such as lead-free soldering

(Panasonic 2008b). There is a drive for efforts to accomplish Panasonic’s challenge of zero

emission factories (Takeuchi & Takeda 2008).

Several factories of Panasonic in Japan have already been certified as green factories

at per the criteria described above (Aoki et al. 2011). In realising this achievement, Panasonic

developed innovative technologies to identify energy flows and measure waste and emissions

amounts in physical units, through the implementation of three new devices (Panasonic

2011g). One of the group’s entities, Panasonic Eco-Systems Corporation which specialises in

environmental business solutions, developed these devices (Panasonic 2012b).

The first device is called the Panasonic Factory Energy Management System (P-

FEMS) which measures, monitors and analyses energy usage in the plant at every minute.

The second innovation is called The Simulation System. This utilises captured data to

simulate optimal energy flows, which can be implemented for efficiency without stopping a

production line.

The Save Energy Link (SE-Link) is the third device which is used to control all

equipment for it to run at its optimal operational level (Panasonic 2011g). MAPs using these

systems convert the captured waste and pollution measurements into economic values. The

values of waste and emissions are then presented in monetary unit in real time, enabling this

cost information of waste and emissions to be available to decision makers.

Panasonic’s environmental performance is enhanced through additional development

of recycling and waste management techniques. Accordingly, contaminated water from

factories’ operations is filtered and purified, and waste is recycled into reusable substances.

Through the development of these technologies, its techniques supporting eco-efficiency

consciousness help other organisations to operate eco-efficiently (Panasonic 2012g).

The utility of MFCA and Itakona also enhance they eco-efficiency of factories’

operations (Takeuchi & Takeda 2008, p.58). An additional technology and its associated

MAPs used by Panasonic to achieve energy savings is called Metagegi. It stands for ‘meter

and gauge’ in Japanese. This technology and MAP technique tracks energy use and emissions

flows. It is used by Panasonic not only in its factories, but it is also applied in Panasonic’s

administrative offices, in order to measure and reduce emissions from any of the

organisation’s activities. The Metagegi technique discriminates waste and emissions

accurately. Used in conjunction with materials engineering, it provides for optimal use of

chemicals and materials. As a result of the use of Metagegi, Panasonic has reduced emissions

and energy usage in the operation of their kilns and ventilators (Panasonic, 2012g). The

Metagegi technique is not perceived as a traditional MAP; however it is a critical supporting

tool to capture physical data and convert it into monetary information enabling Itakona

practice so as to achieve higher levels of EMA objectives.

Through the implementation of these devices and techniques, Panasonic’s MAPs

generate monetary information for the use of decision makers in assessing performance and

improving productivity. Any physical reduction of waste and emissions has both an economic

and environmental advantage (Panasonic 2012g). Information on the potential costs and

benefits of production is forecast through these processes and used by the cross-functional

management team (Langfield-Smith & Thorne 2012).

5.3.3 Resource circulation: Panasonic and total product responsibility

In 1991, the Law for Promotion of Effective Utilization of Resources was enacted in

Japan (MOE 2012). This contingent external factor led to Panasonic adopting a MAP that

utilised a Product Assessment Sheet (PAS) to evaluate its products’ details in order to capture

the requisite information for improvement of its resources use (Panasonic 1997). The PAS

contains 50 assessment items of 35 categories regarding the environmental impact of the life

cycle of Panasonic’s products (Panasonic 1997). A combination of full LCC; environmental

effects oriented LCC (e-LCC), and complementary LCA are modified as a tool for value

creation as a part of Panasonic’s eco-efficiency strategy.

Consistently assessing all costs associated with the product’s entire life cycle, the PAS

reveals the costs of waste (Hunkeler et al. 2008). The inter-relationship between waste

management, recycling and resource management is inseparable for a manufacturer in terms

of green production (Benn et al. 2011). Resource management is the key measurement and

the focus area for Panasonic, limiting resources needed for production by reusing and

recycling them. This issue is presumed as a fundamental responsibility of manufacturers.

Regulation requires it must be accounted for in a rigorous manner.

Through the advance of value engineering, use of sustainable materials and chemical

engineering Panasonic has improved its recycle ratio to a high of 98.9 % (Panasonic, 2012b).

According to Morioka’s (2011 p.50) full cost accounting for waste management supports the

minimisation of disposal.

The following section exhibits the overview of waste management and resource

circulation in Panasonic’s operations (see Figure 7). It describes Panasonic’s full life cycle of

products. It includes not only the recycling of waste; it also uses reclaimed waste, turning it

into raw materials and back into the products (Panasonic 2012b). In 2012 14.7 % of raw

materials inputs are recycled re-useable materials (Panasonic 2012b). The MAPs of

Panasonic assign relevant costs and analyse the cost and benefits for the costs of goods

recycled. It represents the economic value of circulating and recycling raw materials and the

associated energy usages recorded in the accounts.

Figure 7: Overview of environmental impact from business operation

Source: eco-ideas Report 2010 (Panasonic 2010b, p.33)

Recycling is a responsibility of the manufacturers. This cost is associated with LCC of

the product (WEEE 2012). In order to extract reusable components from consumable

products upon their disposal, one of the systems that Panasonic has initiated is to take back

the consumed products for recycling; and to reproduce raw materials from them (Panasonic

2012b). One example of Panasonic of this new type of business system is their recycling

program for consumers’ disposals of fluorescent lights. For consumers, this recycling

program adds economic value to Panasonic’s products and is attractive to consumers who

were experiencing problems in disposing of fluorescent lights at the end of their life. This

system is called the ‘Akari-Anshin service28

’ which commenced in 2002 (Panasonic 2003b,

p.15).

The Akari-Anshin service is a take-back collection program under a lease contract,

which offers consumers the opportunity to return used products to their purchase point

(Panasonic 2012h). The owners of Panasonic brand fluorescent lights proceed to dispose of

their used lights at the nominated recycling facilities (Panasonic 2012h). That is, Panasonic’s

retail outlets (the service providers of Akari-Anshin) are legally liable to collect used

florescent lights under strict contract provisions (Panasonic 2012h). According to the Akari-

Anshin service, MAPs play a critical role between the service provider and Panasonic,

assigning costs to stages of the process. MAPs record both the cost of goods recycled; their

costs of use in other products, and the costs of materials recycled (Panasonic 2012h).

Figure 8: Akari-Anshin Service – take back service program

Source: ‘What he selling? Light and Trust Service’ (Panasonic 2003b, p.15)

The details of Akari-Anshin service is illustrated at Appendix 6. This service translates to ‘the light and trust

service’ (Panasonic 2003b, p.15)

The mechanism of Panasonic’s recycling oriented manufacturing is exhibited in

Figure 8, where the contributions of value engineering and its MAPs take form. It illustrates

the innovation of the eco-business system; the Akari-Anshin service. Its success demonstrates

Panasonic’s approach to e-LCC embraces all costs in the value chain (Panasonic, 2012h).

Ultimately, some limited resources are able to be recycled endlessly through green production.

This lifts the brand value of Panasonic. Akari-Anshin is a practical example of the founder’s

management philosophy in action. It emphases value to the customer, and is a result of

Panasonic’s employees’ unique perspectives and innovation in manufacturing concepts.

This new recycling approach of the Akari-Anshin Service attracted the attention of the

United Nations Environmental Programme (2011, p.29). However, diffusion of the system is

not straightforward as it embeds Panasonic’s unique cultural characteristics. In order to

diffuse the system, it requires a commitment to eco-efficiency consciousness throughout the

supply chain (Takeda & Takeuchi 2008). This system pervades nationally in Japan, but not in

the west.

5.3.4 Green supply chain management

Historically Japanese manufacturers establish longstanding relationships with their

suppliers. Buyers tend to employ a substantial amount of time selecting a supplier (Asanuma,

1989). However, once the decision is made, a supplier gains business stability and receives

mutual benefits (Spekman 1988). Thus, it is important to understand this strategic partnership

in terms of its implications for product quality, productivity, lead time and cost reductions

(Ansari & Modarress 1990; Frazier et al. 1988; Lamming 1993, as cited in Langfield-Smith

& Greenwood 1998, p.331). Furthermore, this aspect differentiates Japanese companies’

supply chains from others (Dyer & Chu 2000).

Since manufacturing is a major part of Panasonic’s businesses, Panasonic is dealing

with nearly 13,500 suppliers globally (Panasonic 2012d). They help Panasonic to develop

products that meet customers’ expectations (Panasonic 2012d, p.56). Strategic partnership

and collaboration are emphasised in company documents. Panasonic has established a

longstanding mutual trust through cooperative activities (Panasonic 2012d). This

longstanding relationship with its suppliers has enabled Panasonic to reduce transaction costs,

production costs and switching costs (Langfield-Smith & Greenwood 1998).

Therefore, the company also has to place reliance on its suppliers to improve their

own environmental performance. It is very important that longstanding suppliers and

collaborative partners understand Panasonic’s business vision and management philosophy of

eco-efficiency consciousness for the effective implementation of company strategies on raw

material management, green production and resource circulation described in the previous

sections. Panasonic attempts to educate its suppliers. The information its company annual

reports indicate that in accordance with its CSR policy with respect to its suppliers, Panasonic

provides them with technical support and regular training on compliance (Panasonic 2013c).

Panasonic promotes ‘green’ supply chain management where the suppliers are

compliant with Panasonic’s CSR procurement policy. The business relationships are

constantly reviewed on the basis of quality, cost, delivery and service criteria with regard to

performance assessment, technical exertion and CSR activities (Panasonic 2012d).

Panasonic’s CSR procurement policy Green Procurement Standards were first issued

in 1999, with the sixth edition being issued in 2012. Since 2005 Panasonic has implemented

‘Environmental Quality Assurance System Audits’ to measure compliance with the

regulations. Consequentially, strategic partnerships are essential to facilitate this quality

assurance process, which relies to some extent on establishing mutual trust in business.

The other key Panasonic CSR procurement requirement is Clean Procurement, stating

its expectations in the appointment of suppliers (Panasonic 2013o). Obtaining the certificate

of ISO 9001 and ISO 14001 is a prerequisite condition for all suppliers (Panasonic 2013o).

Collaborative supplier relationships enhance strategic merit for Panasonic (Langfield-Smith

& Greenwood 1998, p.334). This is less common in the west.

Panasonic eco-systems group (Panasonic-eco) participated in the project that

developed the use of environmental management accounting systems of MFCA which were

promoted by the Japanese ministry METI (2002). This project applies the MFCA concept to

costing supply chain management. The result of this pilot project was that it successfully

reduced negative environmental impacts from its supply chain (METI 2011b). This project

converts emissions into economic values expressed in monetary units, such as flows of waste

and associate costs (Onishi et al. 2008). In Panasonic’s case in implementing the MFCA

project in its supply chain (METI 2011b), the buyer of Panasonic-eco and the Supplier of

Nippon Sangyo Shizai agreed to adjust the purchase cost of the scrap materials through

MFCA analysis (METI 2011b). The strategic partnership enabled them to invest in new

moulds which eliminate the captured waste, so that the raw material input amount of the

supplier became equal to the finished product amount for the buyer (METI 2011b).

Consequentially, the numbers of loads, CO2 emission and resources usages are reduced

(METI 2011b p.113). Hence, the validity of the MFCA concept for green supply chain

management was proven.

After experiencing favourable outcomes from this pilot study, Panasonic

implemented eco-VC (ecological value creation) activities which aim to save energy,

minimise resource usages, recycle materials and reduce CO2 emissions through collaborations

with its suppliers (Panasonic 2012g). Rationalising products’ life cycles is encouraged and

streamlining associate costs is archived, establishing resource recirculation. That is the

ultimate goal of Panasonic resource management.

5.4 Summary

This chapter explored Panasonic’s approaches to eco-efficiency consciousness and the

impacts on its business operations. This chapter highlights how MAPs change and are

changed by eco-efficiency consciousness and changing external contingencies affecting

Panasonic. The analysis of the chapter shows that Panasonic has responded to changes in its

business environment by introducing innovative MAPs as well as other management methods

to produce environmentally friendly products.

Since Panasonic operates in the global market, the founder’s business policy and spirit

informs the employee culture. It is the foundation of the Panasonic’s strong corporate culture,

which is the foundation of its strategic management. It informs employee’s morale,

empowerment, motivations and eco-efficiency consciousness. Consequently, it impacts on the

design and implementation of MAPs. Examples of these discussed were Itakona, Metagegi, e-

LCC, MFCA and Syu-chi.

Chapter 6: Conclusion

6.1 Summary of the study

The exploration of Panasonic’s MAPs in Chapter 5 illustrates how various MAPs are

used for improving the environmental performance of Panasonic. This chapter concludes by

answering the research questions: what are the major changes in the Japanese business

environment in response to increased attention on eco-efficiency?; and, how does Panasonic

use MAPs to respond to the increased attention on eco-efficiency? First, section 6.2

summarises the significant findings of the study, followed by an account of the research

contributions in section 6.3. Finally, section 6.4 discloses the research constraints and makes

recommendations for further investigation.

6.2 Discussion of the findings

A contingency approach allows this research to explore the impacts of the variable

eco-efficiency consciousness on the environment in which Panasonic operates. Specifically,

the impacts of an external demand for eco-efficient products on Panasonic’s strategic

objectives and operational MAPs are explored. It is concluded that Panasonic endeavours, as

an entity with a social responsibility to the public, to meet societal obligations and

expectations for eco-efficient operations and products.

Public and political pressure on Panasonic, to provide eco-efficient products and

services is seen by Panasonic’s management as opening up new business opportunities.

Panasonic sees MAPs as integral to taking up this opportunity, regarding accounting as the

first step of business management. Panasonic uses its MAPs to enable sustainable

management. It emphasises the concept of materials flows and its establishment as the basis

of Japanese EMA. The Japanese culture and Japan’s natural disposition to a dearth of

sufficient natural resources inform the focus on resources and materials management that is

characteristic of JMA. This is most relevant in pursuing solutions and strategies for eco-

efficiency in production and in achieving a sustainable society.

This study examines Panasonic’s use of MAPs in the context of their strong corporate

culture and the contingent factor of demand for eco-efficient products from stakeholders with

eco-efficiency consciousness. Panasonic uses its MAPs to make strategic changes towards

meeting the demand for eco-efficiency in all aspects from supply chain, to production to the

life cycle of its products.

Panasonic’s strategic changes are observed both prior to and after the enactment of the

Kyoto Protocol. Significant changes are observed in Panasonic’s operations, specifically

between 1997 when Japan endorsed the Kyoto Protocol until 2005, when the Protocol was

enacted. The implicated environmental issues were an imperative for an eco-efficiency

oriented management to incorporate environmental considerations into all its designs.

An internal contingency variable of eco-efficiency consciousness has thus grown

largely in order to meet social and political expectations. This internal driver inspires

innovation to underpin Panasonic’s corporate culture and research and development of its

products and services. MAPs must generate the relevant environmental information

efficiently, in order to shift strategy and support newly restructured business units in their

information needs.

Panasonic employed its bespoke Itakona costing method, based on attentive resource

management using MFCA. Itakona provides information on the cost effectiveness of

materials usage while at the same time supporting the line management to reduce the waste

and adverse ecological impacts. It bridges the artificial divide between materials engineers’

innovations for eco-efficient production with accountants’ motivation for cost minimisation.

Specifically, the production costs are decreased in light of waste reduction.

Another significant innovation is the product life cycle recycling ‘take-back’ system

of the Akari-Anshin service29

. This resource circulation system is supported by accounting for

waste management. Hence, the depth of eco-efficiency consciousness exerts an influence on

accounting-in-action in the context of accounting for the environment. Panasonic’s eco-

innovation appeals to the business community and society.

Naturally, private entities aim to increase their organizational value in both physical

and monetary terms. This aspect is captured by the research model; ‘eco-efficiency

consciousness reflecting organisational changes’. The contribution of this model is that it

incorporates eco-efficiency strategy as a contingent factor adding economic value. Efficacy of

the strategy can be measured in terms of financial results and social legitimacy.

Although inspiration for eco-efficiency consciousness may come from the fulfilment

of an economic goal, it is also motivated by other contingency factors such as culture. The

research has identified the depth of eco-efficiency consciousness of management and

employees are linked to the underlying contingency factor of organisational culture.

Panasonic’s corporate culture is derived from underlying Japanese cultural preferences in

which the basis of the founder’s management philosophy was formed.

Under the Panasonic brand, there are over 500 group entities with around 300

thousand employees globally. These entities and employees are bound together by the

founder’s management philosophy which resonates contemporarily with the environmental

imperative. This underpinning of a strong corporate culture facilitates the penetration of an

eco-efficiency consciousness in Panasonic’s global workforce, and in doing so lowers the

national cultural barriers amongst the group entities.

A take back service of consumed fluorescent light

Due to the magnitude of the company operations, it is surmised that Panasonic has the

capacity to inspire and stimulate an eco-efficiency consciousness in both the business

community and in society more generally.

Panasonic’s inclination towards innovation may be explained by its disposition to

Japanese culture, which manifests itself in different approaches to MAPs than those of the

west. While control of materials and their associated costs is emphasised in Japanese MAPs,

western approaches prioritise financial aspects. Interestingly, German MAPs more closely

resemble Japanese MAPs (Yanagita 2006).

This study illuminates the contextual issues in transferring JMA to different countries.

Obstacles occur from the beginning design stage, due to the different expression of corporate

context and objectives. For example the Japanese KAISHA is unique where culture and

quality in relationships rate, rather than economic goals alone. Note, as examples the

acquisition of Sanyo by Panasonic, and the ability to influence the cost structures of supply

chains in costing materials recovery. Such differences are presumed as cultural barriers to

non-Japanese organisations. The example of Panasonic demonstrates the link between its

culture of eco-efficiency consciousness with its founder’s underlying management philosophy,

manifest in its Itakona cost method, and its Akari-Anshin service.

6.3 Contributions of the study

This study uses a contingency lens to explicate the captured phenomenon in the

research. It scrutinises the contingency variable of eco-efficiency demand to determine the

impact on an organisation’s internal operations. Since there is no standardised accounting

system for environmental management, a contingency approach is embraced. The

contingency variable eco-efficiency consciousness is examined in the context of desired

organisational strategic outcomes in terms of social, environmental and economic perceptions.

The contingent factors of eco-efficiency demand and culture (national and

organisational) and the impact of these in shaping MAPs is the focal point of the research.

Specifically with respect to culture, this is a determinant of workers’ empowerment and pride.

It is found that the cultural gap between Japan and the west is a factor in transferring JMA.

For Panasonic, a critical contingency variable is its corporate culture. The inter-relationships

among the MAP’s utility and the corporate culture enhance Panasonic’s eco-efficiency

consciousness. This culture supported consequential changes in the business strategy needed

and then introduction of innovative ‘green’ products.

This concept is complemented for the contingency approach. Culture is a contingency

variable. It is a management control tool and an ethical basis of corporate culture. This

research extends the utility of ‘conscious cultural evolution’ within accounting context. It can

be used as a powerful tool when an organisation’s strategy intensely aims to reduce adverse

environmental effects. Hence contingency theory is capable to explain the Panasonic MAPs

and its inter-relationships with the green strategy.

A contingency approach brings to light the influences of an eco-efficiency

consciousness on an organisation’s strategies, MAPs and performances. It sets the

expectations for MAPs beyond “rational economic decision-making” (Drury 1997, p.854).

The depth of eco-efficiency consciousness was shown in Panasonic’s activities. The passive

nature of accounting is observed generally in Panasonic operations.

To sum up, the first significant contribution is the identification of the contingency

driver of eco-efficiency demand. The emergence of this factor is the result of a ‘slow

reflexive of eco-efficiency-consciousness’. Incremental awareness of eco-efficiency in

society forces a response from the business community, and accordingly MAPs are required

to serve them.

The second contribution of this study is the modification of the research model to

‘eco-efficiency consciousness reflecting organisational changes’. It explicates the ability of

contingency factors such as the environment influence to change in an organisation’s

operations.

Thirdly, the double layers of national and organisational culture in the context of a

corporation MAPs reveal internal contingency drivers that influence management. The

internal contingency variable of ‘eco-efficiency consciousness’ varies organisations’ strategic

objectives and performances.

6.4 Strengths, constraints and recommendations

This research examined a single company in the particular industry, thus it has

limitations. Although the model has highlighted the introduction of contingency variables

eco-efficiency consciousness and culture, and the consequential variables’ influence on a

company’s performance, this research has examined only the large multi-national

organisation of Panasonic. These premises have not been evaluated in different sizes of

organisations, diverse industries and countries. Further studies are needed in order to confirm

the efficacy of this approach.

Future studies on the current topic are therefore required in order to elucidate

organisations’ responses to environmental changes. It is also suggested to conduct survey for

measuring the degree of organisations’ eco-efficiency consciousness, as this was beyond the

scope of the research questions of this thesis.

Another peculiarity of this study is a bilingual research method. This method adds

uniqueness to the study; however the researcher’s background experiences inevitably

manifest a biased perception and interpretation. Furthermore, the conceptual and contextual

gap between the Japanese and English languages should not be underestimated. This

impediment may affect the whole thesis. It constrains the content analysis of data.

Specifically, it imposes the process of literature review in two heterogeneous languages.

Accounting is, thus, a semantic language of social communication in various languages. The

differences between Genka-kikaku and Target Costing illustrate the premise of this issue.

Additionally, some minor contextual discrepancies were observed between Japanese

and English data of Panasonic materials. Some of them are certified by authorities. These

conceptual differences are merely caused by epistemological issues or simply linguistic and

cultural variances; however a few simple mistakes in data presentation and translations were

unexplainable (Panasonic 2013p, p.67). It can be a humble human error; however it illustrates

a constraint.

The findings of this research elucidate the impacts of eco-efficiency on significantly

changing business activities. This factor not only affects Japanese entities; any entity in the

world should consider the sustainability of the natural and business environments for future

generations. Panasonic’s challenge illustrates what problems and actions organisations face in

their endeavour for a sustainable society.

Appendix 1: Brief History of Panasonic

Source: Panasonic - The 106th Business term; Annual Securities Report for the fiscal year

ended 31 March 2013 (Panasonic 2013p, pp.3-5)

Appendix 2: Panasonic - IR Summary

Source: ‘IR Summary’ Panasonic global site (Panasonic 2013t)

Appendix 3: Not Favourable Impact – A Merger with SANYO (1) Source: Panasonic Annual Report ‘Business at a glance’ (2010a, p.22-23)

Not Favourable Impact – A Merger with SANYO (2)

Appendix 4: Calculation Model for Figure 7 (chapter 5)

Calculation Model is used for Figure 7 “Overview of environmental impact from business

operation” (Panasonic 2010b, p.34)

Covered Are – Global

[Scope]

Production: 274 manufacturing global sites

Logistics: all participated entities in procurement, production, marketing and waste

management

Produces use: Lifetime power consumption of covered products and Cos emissions

associated therewith. Lifetime power consumption estimated based on the number of products

sold, annual power consumption, and usage time (length of years in which Panasonic defines

replacement parts and available). Following CO2/kWh) for each region used.

Recycling: Recycling of products means to use by oneself or to make into a state available

for sale or free of charge the components and materials of a separated product.

Input: An amount of purchased electricity from power utilities, a volume of heavy oil and

kerosene, and a volume of water, industrial water and groundwater.

Output: CO2 emissions associated with the use of electricity, gas, LPG and petroleum, NOx

and SOx emissions from business sites governed by legal regulations and ordinances, and

water discharge to sewage and public water districts

*1 - 30 major products with large amounts of energy and resource use

*2 – Air-conditioners, TVs, refrigerators’/freezers, washing machines/laundry dryers and PCs

*3 – Covering Japan only

The definition of 30 major products (Domestic house hold electronic appliances) - New

models in 2010 products of: Plasma and LCD TVs, DVD recorders, SD stereo systems, FAX

machines, Refrigerators, Air –conditioners, Microwave ovens, IH cooking heaters, Washing

machines and dryers, Natural coolant (CO2) hear pump water heaters, Kettle (thermos),

Electric carpets, Vacuum cleaners, Toilet seats (warmth and rinse), Irons, Humidifiers and

dehumidifiers, Ventilators (include bathroom), Air-purifiers, Range hoods, fluorescent lamps

and silica bulbs and hair dryers

Source: Panasonic eco ideas Report (2010b, p.34)

Appendix 5: Illustration of Akari-Anshin Service System

Panasonic’s full responsibility of products – ‘take back service system’

The above illustration is adapted from the original image of ‘Akari-Anshin Service’ in the

Panasonic eco-solutions official site (only in Japanese site).

Source: Environmental Products and Services; ‘Akari-Anshin Service’, viewed 2 March 2013,

http://panasonic.co.jp/es/environment/product/04/index.html

Appendix 6: Applying the Panasonic Case for the Research Model

Figure 1 – the model ‘eco-efficiency consciousness reflecting organisational changes’ (Chapter4)

This model is adapted from the model; McWatters et al. (2001) ‘Framework for Organizational change’

Internal Changes:

Waste management: R&D for Green factory innovation – Zero emission factory Metagegi devices,

Strategic partnership with suppliers, Reclaim material

Strategy for Customer Value:

‘eco-ideas for life’ –

environmental conscious

manufacturer- a leading sustainable

corporation & eco-products

External Environmental Factors: Triple bottom line: mass production, consumption and waste

Limited resources, Pollution, GHG, Global warming

Customer

Needs:

eco-efficient

products

Technology

Change:

Ubiquitous

society

Eco-efficiency

Demand:

The Kyoto

Protocol, GRI,

RoHS, WEEE

Global

Competition: Restructure,

Green R&D

- innovation

Planning Decisions:

Itakona costing,

Itakona board

concept of MFCA

Control Decisions:

The founder’s policy

Syu-chi, Collaboration

Autonomous

eco-efficiency

Consciousness: Strategy + MAPs:

MFCA, TC, e-LCC

Customer Value: Recyclable,

eco-friendly design, Energy

efficient, Reusable material,

‘Akari-Anshin service

Set Profit

margin

Organizational Value: ‘Panasonic’

Brand visibility, CSR – Green

value, Sustainable entity global

recognition

Annual Report

Total Volume

Words EA/page

Regulatory and other event Panasonic Action

Pre- Volume Energy Conservation Law enacted (METI) in 1979 Set Environment management regulations in 1975

1997 N/A 0

Global Reporting Initiative (GRI) was founded,

Japan adopted Kyoto Protocol

Set Environmental affairs Division and semi-annual

environmental conference established in 1997

1998 N/A 0 First Environment Report was published

1999 N/A 9 Adoption of Environmental Accounting

2000 N/A

Basic Law for Establishing a Sound Material-Cycle

Society (MOE), Act on the Promotion of Effective

Utilization of Resources (METI),

GRI issued the sustainability reporting guidelines

Lead-free solder project commenced, the first

environmental exhibition for general public in Osaka

2001 62 126 15

Law for special measures against PCBs enacted (JAP) Matsushita eco technology Centre launched

2002 68 146 26

Law of countermeasures against soil pollution enacted

Set a position for environmental specialist,

Full adoption of bio-diesel fuel for supply chain

2003 80 178 18

Set RoHS and enacted WEEE (EU) Infusing lead-free techniques, Zero-emission factory in

2004 45 121 7

Prohibited the use and produce products contain

asbestos (JAP) PCB management office established

2005 Environmental

Data Book (64)

The Panasonic Report

for Sustainability (56) 94 214 11 + 0 Kyoto Protocol is enacted Enactment of Kyoto Protocol

2006 Environmental

Data Book (70)

The Panasonic Report

for Sustainability (64) 98 212 13 + 0

Enactment of RoHS (EU), Relief Law for Asbestos

Victims enacted (JAP) Set the position for environmental specialist

2007 Environmental

Data Book (69)

The Panasonic

Report for

Sustainability (44) 122 255 7 + 1

Framework for Co2 reduction agreement in

Heiligendamm Summit (G8), Chinese RoHS enacted,

Restriction of product entering EU market

U.N. recognition of ‘Energy Conservation of its

Malaysian factory’ as Clean Development Mechanism

2008 Environmental

Data Book (75)

Sustainability Report

(32) 114 221 9 + 0 Hokkaido Toya-ko (Japan) Summit

Set the committee of Co2 reduction promoting,

establish the Environmental Strategy research centre

2009 Eco-Idea Report

(136) 120 325 7 + 0

Enacted the WEEE in China

The Copenhagen Accord was adopted at the COP15 eco-ideas for housing to demonstrate

a zero Co2 life-style living

(70) 72 186 4 + 1

International Integrated Reporting Committee was set

The Cancun agreement of COP 16

Commenced service for the entire factory

energy-saving support

(52) 57 159 3 + 0

The UN Durban Climate Change Conference – COP17,

The price of rare earth soared

The UN Doha Climate Change Conference – COP18

Set Corporate Electricity saving division to bridge across

the entity

(84) 61 193 3 + 0

National campaign of MOE ‘the Recycle Resource

Project’ has commenced

Environmental Sustainability Report

The Panasonic Report for

Sustainability (76)

Environmental Sustainability Report

References

Abegglen, JC & Stalk, G 1985, Kaisha – the Japanese Corporation, Basic Books, a division

of Harper Collins Publishers, New York.

Abernethy, MA & Chua, WF 1996, ‘A Field Study of Control System “Redesign”: The

Impact of Institutional Processes on Strategic Choice’, Contemporary Accounting

Research, vol. 13, no. 2, pp. 569-606.

Andon, P, Baxter, J & Chua, WF 2007, ‘Accounting Change as Relational Drifting: A Field

Study of Experiments with Performance Measurement’, Management Accounting

Research, vol. 18, no. 2, p. 273.

Anjo, Y 2003, ‘Kankyo Kaiei to Material Flow Cost Kaikei -Tokusyuu: Material Flow Cost

Kaikei [Environmental Management and Material Flow Cost Accounting - Special

Issus: Material Flow Cost Accounting]’, Sangyo Kankyou Kanri Kyoukai [Institution

of Corporate Environmental Management], vol. 39, no. 7, pp. 676-680.

Anjo, Y 2006, ‘Shokuba Kyotengata Kankyou Hoshou Katsudou no Tool to shite no Material

Flow Cost Kaikei [Material Flow Cost Accounting for Environmental Conservation

Activities at Work Place]’, Kankyo Kanri [Environmental Management], vol. 42, no.

2, pp. 46-50.

Anjo, Y 2007, ‘Canon ni okeru Material Flow Cost Kaikei no dounyuu – Tokusyuu: Material

Flow Cost Kaikei no jittsusen; Kankyou Kanri Kaikei niyoru Genka Teigen to

Kankyou Hairyo [the Canon Case of Implementation of Material Flow Cost

Accounting]’, KigyoKaikei [Corporate Accounting], vol. 59, no. 11, pp. 1568-1575.

Anonymous 1962, ‘Following Henry Ford’, TIME, vol. 79, no. 8, p. 93.

Anonymous 1989, ‘King of Japanese electronics dies; Konosuke Matsushita’, N.Y.Times,

April 29, p. 18.

Ansari, A & Modarress, B 1988, ‘JIT Purchasing as a Quality and Productivity Centre’,

International Journal of Production Research, vol.26, no. 1, pp. 19-26.

Aoki, S, Ikukawa, A, Ebuchi, T, Endo, J, Ogura, T, Takeda, S, Matsui, T & Matsubayashi, K

2011, Global Challenge with Environmental Technology - High-Tech Industry

Depart from Kansai Region [in Japanese], Nikkei Publication, Tokyo.

Asahi, T 1998, Kakushin Matsushitadenki [Reform- MEIC], Nikkan Kougyou Shinbun-sha,

Tokyo.

Asanuma, B 1989, ‘Manufacturer-Supplier Relationships in Japan and the Concept of

Relation-Specific Skill’, Journal of the Japanese and International Economies, vol. 3,

no. 1, pp. 1-30.

Baba, M 2013, ‘Sekai 350sha ga hattsukou「Tougou-Houkokusho」te nani? [350 Global

Companies issued GRI- What is GRI?]’, Nikkei BP, Nikkei Business Publications, 18

June, viewed 28 July 2013,

http://business.nikkeibp.co.jp/article/report/20130614/249684/?rt=nocnt.

Bank of Japan 2013, ‘Shyu-you jikeiretsu toukei data [Time series of primary statistic data]’,

viewed 12 January 2013, http://www.stat-search.boj.or.jp/ssi/mtshtml/m.html.

Baxter, J & Chua, WF 2006, ‘3.Reframing Management Accounting Practice: A Diversity of

Perspectives’, in A Bhimani (Ed.) Contemporary Issues in Management Accounting,

Oxford University Press, Oxford.

Benn, S, Dunphy, D & Griffiths, A 2006, 'Enabling Change for Corporate Sustainability: An

Integrated Perspective', Australasian Journal of Environmental Management, vol. 13,

no. 3, pp. 156-165.

Benn, S, Dunphy, DC & Perrott, BE 2011, Cases in Corporate Sustainability and Change: A

Multidisciplinary Approach, Tilde University Press, Prahran, Vic.

Birkin, F, Edwards, P & Woodward, D 2005, ‘Accounting’s Contribution to a Conscious

Cultural Evolution: An End to Sustainable Development’, Critical Perspectives on

Accounting, vol. 16, no. 3, pp. 185-208.

Boons, F 2009, Creating Ecological Value: An Evolutionary Approach to Business Strategies

and the Natural Environment, Edward Elgar, Cheltenham, UK.

Bouma, J & van der Veen, ML 2002, ‘Wanted: A Theory for Environmental Management

Accounting’, in M Bennett, JJ Bouma & T Wolters (Eds.) Environmental

Management Accounting: Informational and Institutional Developments, Kluwer

Academic Publication, Dordrecht.

Bromwich, M & Bhimani, A 1989, Management Accounting: Evolution Not Revolution,

Chartered Institute of Management Accountants, London.

Burns, J & Scapens, RW 2000, ‘Conceptualizing Management Accounting Change: An

Institutional Framework’, Management Accounting Research, vol. 11, no. 1, pp. 3-25.

Burns, J & Vaivio, J 2001, ‘Management Accounting Change’, Management Accounting

Burritt, RL 2005, ‘Challenges for Environmental Management Accounting’, in P

Rikhardsson, M Bennett, JJ Bouma & S Schaltegger (Eds.) Implementing

Environmental Management Accounting: Status and Challenges: Preface, Springer

Netherlands, pp. 19-44.

Burritt, RL 2010, ‘Corporate Environmental Performance Indicator: Cost Allocation - Boon

or Bance?’, in RH Gray, J Bebbington & S Gray (Eds.) Social and Environmental

Accounting, SAGE, Los Angeles.

Burritt, RL & Schaltegger, S 2001, ‘Eco-Efficiency in Corporate Budgeting’, Environmental

Management and Health, vol. 12, no. 2, pp. 158-174.

Burritt, RL, Hahn, T & Schaltegger, S 2002, ‘Towards a Comprehensive Framework for

Environmental Management Accounting — Links between Business Actors and

Environmental Management Accounting Tools’, Australian Accounting Review, vol.

12, no. 27, pp. 39-50.

Burritt, RL & Saka, C 2006, ‘Environmental Management Accounting Applications and Eco-

Efficiency: Case Studies from Japan’, Journal of Cleaner Production, vol. 14, no. 14,

pp. 1262-1275.

Burrows, G & Chenhall, RH 2012, ‘Target Costing: First and Second Comings’, Accounting

History Review, vol. 22, no. 2, pp. 127-142.

Busco, C, Quattrone, P & Riccaboni, A 2007, ‘Management Accounting: Issues in

Interpreting Its Nature and Change’, Management Accounting Research, vol. 18, no. 2,

p. 125.

Busco, C & Scapens, RW 2011, ‘Management Accounting Systems and Organisational

Culture’, Qualitative Research in Accounting and Management, vol. 8, no. 4, pp. 320-

Canon 2013a, ‘Canon's Corporate Philosophy’, viewed 14 August 2013,

http://www.canon.com/corporate/vision/philosophy.html.

Canon 2013b, ‘Kigyou-Rinen – KYOUSEI (Canon's Corporate Philosophy)’, viewed 14

August 2013, http://web.canon.jp/corporate/vision/philosophy.html

Canon 2013c, ‘Sustainability Report’, viewed 3 September 2013,

http://www.canon.com/csr/report/index.html

Chenhall, RH 2003, ‘Management Control Systems Design within Its Organizational

Context: Findings from Contingency-Based Research and Directions for the Future’,

Accounting, Organizations and Society, vol. 28, no. 2, pp. 127-168.

Chenhall, RH 2006, ‘The Contingent Design of Performance Measures’, in A Bhimani (Ed.)

Contemporary Issues in Management Accounting, Oxford University Press, Oxford.

Chenhall, RH & Smith, D 2011, ‘A Review of Australian Management Accounting Research:

1980–2009’, Blackwell Publishers Ltd, Oxford, UK, 51, 173-206.

Christ, KL & Burritt, RL 2013, ‘Environmental Management Accounting: The Significance

of Contingent Variables for Adoption’, Journal of Cleaner Production, vol. 41, no.

Journal Article, pp. 163-173.

Cobb, I 1993, JIT and the Management Accountant: A Study of Current UK Practice,

Chartered Institute of Management Accountants, London.

Collier, PM 2001, ‘The Power of Accounting: A Field Study of Local Financial Management

in a Police Force’, Management Accounting Research, vol. 12, no. 4, pp. 465-486.

Contrafatto, M & Burns, J 2013, ‘Social and Environmental Accounting, Organisational

Change and Management Accounting: A Processual View’, Management Accounting

Dambrin, C, Lambert, C & Sponem, S 2007, ‘Control and Change—Analysing the Process of

Institutionalisation’, Management Accounting Research, vol. 18, no. 2, pp. 172-208.

Das, DK 1993, ‘The Yen Appreciation and the Japanese Economy’, Japan & the World

Economy, vol. 5, no. 3, pp. 243-264.

De Zoysa, A & Herath, SK 2007, ‘The Impact of Owner/Managers’ Mentality on Financial

Performance of SMEs in Japan: An Empirical Investigation', Journal of Management

Development, vol. 26, no. 7, pp. 652-666.

Denso 2013, ‘CSR Report’, viewed 23 September 2013,

http://www.globaldenso.com/en/csr/report/index.html

Donaldson, L 1995, American anti-management theories of organization: Cambridge

University press, pp32-41.

Drucker, PF & Wartzman, R 2010, The Drucker Lectures: Essential Lessons on Management,

Society, and Economy, McGraw Hill, New York.

Drury, C 1997, Management and Cost Accounting, International Thomson Business Press,

Boston.

Drury, C, Brand, S, Osborne, P & Tayles, M 1993, ‘A Survey of Management Accounting

Practices in UK Manufacturing Companies’, ACCA Research Occasional Paper,

Chartered Association of Certified Accountants, London.

Dyer, JH & Chu, W 2000, ‘The Determinants of Trust in Supplier-Automaker Relationships

in the U.S., Japan and Korea’, Journal of International Business Studies, vol. 31, no. 2,

pp. 259-285.

Ehrlich, PR 2000, Human Natures: Genes, Cultures, and the Human Prospect, Island Press

Washington, D.C.

Ernst & Young 2013, ‘2013 Asia-Pacific R&D incentives’ viewed 24 November 2013,

http://www.ey.com/Publication/vwLUAssets/2013_Asia-

Pacific_R_and_D_incentives/$FILE/2013_Asia-Pac_RD_Incentives_Guide.pdf

Ezzamel, M, Robson, K, Stapleton, P & McLean, C 2007, ‘Discourse and Institutional

Change: ‘Giving Accounts’ and Accountability’, Management Accounting Research,

vol. 18, no. 2, pp. 150-171.

Ferreira, A & Otley, D 2009, ‘The Design and Use of Performance Management Systems: An

Extended Framework for Analysis’, Management Accounting Research, vol. 20, no. 4,

pp. 263-282.

Financial Service Agency 2006, ‘Kounin Kaikeishi・Kannsa Houjin seido no jyuujutu ・kyouka ni tsuite [Emphasis and solidity of auditing ruling for CPA/CA]’, viewed 2

September 2013, http://www.fsa.go.jp/singi/singi_kinyu/tosin/20061222.pdf.

Fraj-Andrés, E, Matute-Vallejo, J & Martínez-Salinas, E 2009, ‘Factors Affecting Corporate

Environmental Strategy in Spanish Industrial Firms’, Business Strategy and the

Environment, vol. 18, no. 8, pp. 500-514.

Fuchida,Y 2012, ‘Oubei de futatabi takamaru Kansahouji Kaikaku-ron [Increasing criticism

of Auditor Independence in EC and USA]’, Nomura capital research institution,

viewed 2 September 2013,

http://www.nicmr.com/nicmr/report/repo/2012/2012win11.pdf.

Gaffikin, MJ 2008, Accounting Theory: Research, Regulation and Accounting Practice,

Pearson Education Australia, French Forest.

Galbraith, J 1974, ‘Organization Design: An Information Processing View’, Interfaces, vol. 4,

no.5, pp.28-36.

Galbraith, J 1977, Organization Design, Addison-Wesley Publishing Company, Sydney.

Galbraith, J 1982, ‘Designing the Innovating Organization’, Organizational Dynamics, vol.10,

no.3, pp.5-25.

Groen, BAC & Wouters, MJF 2012, ‘Why Do Employees Take More Initiatives to Improve

Their Performance after Co-Developing Performance Measures?: A Field Study’,

Management Accounting Research, vol. 23, no. 2, pp. 120-141.

Gupta, PP, Dirsmith, MW & Fogarty, TJ 1994, ‘Coordination and Control in a Government

Agency: Contingency and Institutional Theory Perspectives on Gao Audits’,

Administrative Science Quarterly, vol. 39, no. 2, pp. 264-284.

Haldma, T & Lääts, K 2002, ‘Contingencies Influencing the Management Accounting

Practices of Estonian Manufacturing Companies’, Management Accounting Research,

vol. 13, no. 4, pp. 379-379.

Hashimoto, S 2007, ‘Haikibutsu-Kaikei to iwayuru Kankyou-Kaikei no Tougou ni mukete

[toward the Integration of Waste Accounting and Environmental Accounting]’,

Haikibutsu Gattukai-shi [Journal of waste management], vol. 18, no. 4, pp. 222-230.

Hiromoto, T 1988, ‘Another Hidden Edge - Japanese Management Accounting’, Harvard

Business Review, vol. 66, no. 4, p. 22.

Hitachi 2013, Archive of Sustainability Report, viewed 2 September 2013,

http://www.hitachi.co.jp/csr/download/index.html.

Honda 2013a, Archive of reports site - ‘Environmental Annual Report’, viewed 1 September

2013, http://world.honda.com/environment/report/download/index.html.

Honda 2013b, ‘Environmental annual Report’ viewed 1 September 2013,

http://world.honda.com/environment/report/download/index.html.

Hopper, T 1999, ‘Postcard from Japan: A Management Accounting View’, Accounting,

Auditing and Accountability Journal, vol. 12, no. 1, pp. 58-69.

Horngren, CT, Wynder, M, Maguire, W, Tan, R, Datar, S, Foster, G, Rajan, M & Ittner, C

2011, Cost Accounting: A Managerial Emphasis, Pearson Australia, Frenchs Forest,

N.S.W.

Hunkeler, D, Lichtenvort, K, Rebitzer, G, Ciroth, A, LLC, CRCP & Europe, S 2008,

Environmental Life Cycle Costing, CRC Press, Pensacola, Fl.

Imai, M 1986, Kaizen: The Key to Japan’s Competitive Success, McGraw-Hill, New York.

Interbrand 2013, ‘Best Green Brands 2013’, viewed 15 September 2013,

http://www.interbrand.com/en/best-global-brands/Best-Global-Green-

Brands/2013/Best-Global-Green-Brands-2013-Brand-View.aspx

Jasch, C 2003, ‘The Use of Environmental Management Accounting (EMA) for Identifying

Environmental Costs’, Journal of Cleaner Production, vol. 11, no. 6, pp. 667-676.

Johansson, T & Siverbo, S 2009, ‘Why Is Research on Management Accounting Change Not

Explicitly Evolutionary?: Taking the Next Step in the Conceptualisation of

Management Accounting Change’, Management Accounting Research, vol. 20, no. 2,

pp.146-162.

Kato, Y 1993, ‘Target Costing Support Systems: Lessons from Leading Japanese Companies’,

Kawano, M 1993, ‘Shakai Sekinin Kaikei, Shakai Kansa oyobi Kankyou Kansa [Social

Responsible Accounting, Social Auditing and Environmental Auditing]’, Yokohama

Kokuritsu Daigaku Keiei gakubu [University of Yokohama Management Research],

vol. 8, no. 4.

Keidanren 2013, ‘about Keidanren’, viewed 2 March 2013

http://www.keidanren.or.jp/en/profile/pro001.html

Koitabashi, T 2013, ‘Jijishinsou – Pana, Jigyoubu futtukatsu no shini’, Nikkei Business, 7

March, viewed 25 November 2013,

http://business.nikkeibp.co.jp/article/topics/20130301/244420/

Kokubu, K 2004, ‘Kankyou Kanrikaikei Jitsumu no fukyuu to tenkai: Nihon Kigyou no

doukou [Development and Popularisation of Environmental Management Accounting:

Japanese Corporate Trend]’, Kokumin Keizai zattsushi [Journal of National

Economic], vol. 6, no. 190, pp. 53-65.

Kokubu, K 2007, ‘CSR Kaikei no Taikei [CSR Accounting Methodology]’, Haikibutsu

Gattsukaishi [Waste Management Research], vol. 18, no. 4, pp. 231-236.

Kokubu, K 2009, ‘Nihongata Kankyou Kanrikaikei no Tokucho to Kadai – Material Flow

Cost Kaiekei o chyushin ni [the Issues and Characteristics of Japanese Model of

Environmental Management Accounting: The Foci of Material Flow Cost

Accounting]’, Genka Keisan Kenkyou [Research for cost accounting], vol. 33, no. 1,

pp. 1-9.

Kokubu, K 2010, ‘Material Flow Cost Kaikei ni yoru Seisan to Kankyou no Management (Production and Environment Management through Material Flow Cost Accounting)’,

Nihon Jyouhou Kaikeigakkai-shi [Japan Society for Information and Management],

vol. 31, no. 2.

Kokubu, K 2011a, ‘Supply Chain e no Material Flow Cost Kaikei dounyuu no Igi to Kadai the Significance for Introduction of MFCA into the Supply Chain)', Nihon Jyouhou

Gattuka-shi [Japan Society for Information and management], vol. 31, no. 4.

Kokubu, K 2011b, “CSR in Japan: what is social responsibility in Japan”, Between survival

and sustainability: The corporate social responsibility in the times of economic crisis

(Experience of the EU and Japan), European Economic and Social Committee,

Brussels, Belgium, viewed 11 June 2014,

http://www.eesc.europa.eu/resources/docs/kokubu.pdf

Kokubu, K & Kurasaka, T 2002, ‘12.Corporate Environmental Accounting: A Japanese

Perspective’, in M Bennett, JJ Bouma & T Wolters (Eds.) Environmental

Management Accounting: Informational and Institutional Developments, Kluwer

Academic, Dordrecht.

Kokubu, K & Nashioka, E 2005, ‘Environmental Management Accounting Practices in

Japan’, in PlM Rikhardsson (Ed.) Implementing Environmental Management

Accounting: Status and Challenges, Springer, the Netherlands.

Kokubu, K & Shimogaki, A 2007, ‘Jitsusen Material Flow Cost kaikei (24); MFCA to LCA

noTougou no Tejun to Jittusen – Canon o Jirei to shite [Practical Material Flow Cost

Accounting (24) Process and Practice for Integrated Use of MFCA and LCA in Case

of Canon]’, Institution of Corporate Environmental Management, vol. 43, no. 9, pp.

943-950.

Kokubu, K, Nakano, M, Ito, K, Boku, T, Ogura, N, Kajihara, T, Onishi, Y, Higashida, A,

Mizukuchi, T, Miyazaki, S, Azuma, K, Murai, H, Saka, C, Mukaiyama, A, Yagi, H &

Horiguchi, S 2009, 'Kankyou Keiei Ishi Kettsutei to Kaikei System ni kansuru

Kenkyu [the Mid-term Report: Research of Environmental Management Accounting

Systems for Decision Making and Its Development]', Nihon Kaikei Kenkyuu

Gattsukai- Tokubetsu Iinkai [Research of Environmental Management Accounting

Systems – Special committee], K Kokubu (ed), Japanese Accounting Research - the

special committee Kobe

Kokubu, K, Nakano, M, Ito, K, Boku, T, Ogura, N, Kajihara, T, Ando, T, Higashida, A,

Onishi, Y, Mizukuchi, T, Miyazaki, S, Azuma, K, Murai, H, Saka, C, Mukaiyama, A,

Yagi, H, Horiguchi, S & Kitada, H 2010, ‘Kankyou Keiei Ishikettsutei to Kaikei

system ni kansuru Kenkyuu – Saisyuu Houkokusho [the Final Report: Research of

Environmental Management Accounting Systems for Decision Making and Its

Development], Nihon Kaikei KenkyuukaiTokubetu Iinkai [Research of

Environmental Management Accounting Systems], K Kokubu (ed), Japanese

Accounting Research - the special committee Kobe.

Kosuga, M 2007 ‘The Relationship between Strategies, Organizational Design, and

Management Control Systems at Matsushita’; in Y Monden, M Kosuga, Y Nagasaka,

S Hiraoka & N Hoshi (Eds.), Japanese Management Accounting Today, World

Scientific, River Edge, NJ.

Kosuga, M 2009, ‘Business Process Innovations in Panasonic Corporation: A Case Study’,

Business Process Management of Japanese and Korean Companies, Japanese

Management Accounting Today, vol. 5, pp. 63-77.

Kosuga, M 2010, ‘Business Process Management in Japan - Lessons from Panasonic

Corporation’, Departmental Bulletin Paper of Kwansei Gakuin University Repository.

Kotter, JP 1997, Matsushita Leadership: Lessons from the 20th Century's Most Remarkable

Entrepreneur, Free Press, New York.

Kurunsaari, H & Bu, Z 2011, ‘Eco-Control in the Japanese Manufacturing Industry: A Case

Study of Toyota and Panasonic’, Business Review, vol. 62, no. 3, pp. 63-86.

Lääts, K, Haldma, T & Moeller, K 2011,’'Performance Measurement Patterns in Service

Companies’, Baltic Journal of Management, vol. 6, no. 3, p. 357.

Laitinen, EK 2001, ‘Management Accounting Change in Small Technology Companies:

Towards a Mathematical Model of the Technology Firm’, Management Accounting

Langfield-Smith, K & Greenwood, MR 1998, ‘Developing Co-Operative Buyer-Supplier

Relationships: A Case Study of Toyota’, Journal of Management Studies, vol. 35, no.

3, pp. 331-353.

Langfield-Smith, K, Thorne, H & Hilton, RW 2012, Management Accounting: Information

for Creating and Managing Value, McGraw-Hill Australia, North Ryde, Sydney.

Larrinaga-Gonzalez, C & Bebbington, J 2001, ‘Accounting Change or Institutional

Appropriation?-a Case Study of the Implementation of Environmental Accounting’,

Critical Perspectives on Accounting, vol. 12, no. 3, pp. 269-292.

Lawrence, PR & Lorsch, JW 1967, ‘Differentiation and Integration in Complex

Organizations’, Administrative Science Quarterly, vol. 12, no. 1, pp. 1-47.

Lee, KH 2011, ‘Motivations, Barriers, and Incentives for Adopting Environmental

Management (Cost) Accounting and Related Guidelines: A Study of the Republic of

Korea’, Corporate Social Responsibility and Environmental Management, vol. 18, no.

1, pp. 39-49.

Lowe, A 2000, ‘Accounting in Health Care: Some Evidence on the Impact of Case mix

Systems’, The British Accounting Review, vol. 32, no. 2, pp. 189-189.

Makido, T 2003, ‘Kankyou Kaikei no Aratana Tenkai ni mukete [Critical Perspective: The

Development of Environmental Accounting]’, Kigyou Kaikei [Corporate Accounting],

vol. 55, no. 1, pp. 4-11.

Maruta, O 2009, ‘Yoyota・Publica Kaihatsu ni okeru Genka-kikaku; Genka-kikaku no

Keifugaku he mukete [Target costing in the development of PUBLICA at Toyota:

toward genealogy of target costing]’, The Journal of cost accounting research, The

Japan Cost Accounting Association, vol. 33, no.1, pp.28-40.

Matsushita, K 1962, Watashino Ikikata, Kangaekata – Waga Hansei no Kiroku (My Way of

Life and Thinking), PHP Publication, Tokyo.

McWatters, CS, Zimmerman, JL & Morse, D 2001, Management Accounting: Analysis and

Interpretation, McGraw-Hill/Irwin, Boston, Mass.

METI – see Ministry of Economy Trade and Industry of Japan.

Mills, J 1964, ‘Meet Mr Konosuke Matsushita’, LIFE, vol. 57, no. 11, pp. 107-111.

Ministry of Economy Trade and Industry of Japan 2002, Environmental Management

Accounting Workbook, Ministry of Economy Trade and Industry of Japan.

Ministry of Economy Trade and Industry of Japan2007a, ‘Environmental Management

Accounting: MFCA’, Environmental Industries Office Industrial Science and

Technology Policy and Environment Bureau, Ministry of Economy, Trade and

Industry of Japan, viewed 22 August 2011,

http://www.meti.go.jp/policy/eco_business/pdf/EMA(MFCA)-english%20ppt.pdf.

Ministry of Economy and Trade Industry of Japan, 2007b, Guide for Material Flow Cost

Accounting (ver.1), Ministry of Economy and Trade Industry of Japan.

Ministry of Economy and Trade Industry of Japan, 2008, ‘Material Flow Cost Accounting

(ver.2), viewed 12 October 2012,

http://www.meti.go.jp/policy/eco_business/mfca/MFCA-summaryEng.pdf

Ministry of Economy Trade and Industry of Japan 2010, Material Flow Cost Accounting –

MFCA case examples 2010, Ministry of Economy Trade and Industry of Japan.

Ministry of Economy, Trade and Industry of Japan 2011a, FY2011 White Paper on

International Economy and Trade, Ministry of Economy Trade and Industry of Japan.

Ministry of Economy Trade and Industry of Japan 2011b, Material Flow Cost Accounting -

MFCA Case Examples 2011, Ministry of Economy Trade and Industry of Japan.

Ministry of Economy Trade and Industry of Japan 2012, FY2012 - White Paper on

International Economy and Trade, Ministry of Economy Trade and Industry of Japan.

Ministry of Economy, Trade and Industry of Japan 2013, Major Points of the FY2013 METI

Related Tax Reform, Ministry of Economy Trade and Industry of Japan.

Ministry of the Environment, Government of Japan 1992, Quality of the Environment in

Japan: Chapter 3 Table 3-1-1 Japan’s Imports of Non-Renewable Resources (1989),

viewed 11 September 2012, http://www.env.go.jp/en/wpaper/1992/.

Ministry of the Environment, Government of Japan 2000, Kankyou Kaikei system no kakuritu

ni mukete - 2000 nen houkoku [Towards Establishment of Environmental Accounting

System- Report Year of 2000], Ministry of Environment, Tokyo.

Ministry of the Environment, Government of Japan 2002, ‘Understanding Environmental

Accounting – Introduction to the Environmental Accounting Guidelines’, viewed 17

September 2012, http://www.env.go.jp/en/policy/ssee/eag02_p.pdf.

Ministry of the Environment, Government of Japan 2006, Sweeping Policy Reforms towards

a Sound Material-cycle Society – starting from Japan and Spreading over the Entire

World, Ministry of Environment, Tokyo.

Ministry of the Environment, Government of Japan 2008, The world in transition and

Japan’s efforts to establish a sound material-cycle society, Ministry of Environment,

Tokyo.

Ministry of the Environment, Government of Japan 2011a, Energy White Paper FY2011:

chapter 2 Energy Trend, Ministry of Environment, Tokyo.

Ministry of the Environment, Government of Japan 2011b, Annual Report on the

Environment, the Sound Material-Cycle Society and the Biodiversity in Japan 2011,

viewed 19 September 2012, http://www.env.go.jp/en/wpaper/2011/.

Ministry of the Environment, Government of Japan 2012, ‘Waste landfill technology’,

viewed 28 August 2012, http://www.env.go.jp/en/focus/docs/files/20120201-

29_14.pdf.

Modell, S 2001, ‘Performance Measurement and Institutional Processes: A Study of

Managerial Responses to Public Sector Reform’, Management Accounting Research,

vol. 12, no. 4, pp. 437-464.

MOE – see Ministry of the Environment, Government of Japan

Möller, A 2010, ‘Material and Energy Flow-Based Cost Accounting’, Chemical Engineering

& Technology, vol. 33, no. 4, pp. 567-572.

Monden, Y & Hamada, K 1991, ‘Target Costing and Kaizen Costing in Japanese Automobile

Companies’, Journal of Management Accounting Research, vol. 3, pp.16-34.

Monden, Y & Lee, J 1993, ‘How a Japanese Auto Maker Reduces Costs’, Strategic Finance,

vol. 75, no. 2, p. 22.

Monden, Y, Kosuga, M, Nagasaka, Y, Hiraoka, S & Hoshi, N 2007, Japanese Management

Accounting Today, Monden Institute of Management, Japanese Management and

International studies – Vol.2, World Scientific, Hackensack, NJ.

Morioka, T 2011, ‘Asian Perspectives of Resource-Circulating Society–Sound Material

Metabolism, Resource Efficiency and Lifestyle for Sustainable Consumption’, in T

Morioka, K Hanaki & Y Moriguchi (Eds.) Establishing a Resource-Circulating

Society in Asia: Challenges and Opportunities, United Nations University Press.

Mottainai 2012, ‘About Mottainai campaign’, viewed 10 October 2012,

http://mottainai.info/english/.

Murai, R & Hamada, K 2011, ‘Panasonic, Snayo no shiromono kaden jigyou o HiR ni

baikyaku [Panasonic Sold Sanyo White Goods Division to HiR]’, Reuters, 28 July,

viewed 7 October 2013, http://jp.reuters.com/article/topNews/idJPJAPAN-

22399720110728.

NEC 2013, ‘CSR Report Library’, viewed 3 September 2013,

http://jpn.nec.com/csr/ja/report/index.html.

Nikkei Environmental Management Survey 2013, ‘Survey of Environmental Brand’, Nikkei

BP, viewed 30 August 2013,

http://corporate.nikkeibp.co.jp/information/newsrelease/newsrelease20130704_2.shtm

Neuman, WL 2006, Social Research Methods: Qualitative and Quantitative Approaches,

Pearson International, Sydney

Nissan 2013a, ‘blue Citizenship: Nissan’s CSR’ viewed 1 September 2013,

http://www.nissan-global.com/EN/CSR/SR/2013/

Nissan 2013b, ‘CSR Library’, viewed 1 September 2013, http://www.nissan-

global.com/EN/CSR/LIBRARY/.

Nissan 2013c ‘Environmental Fact Book 2012: Revised Edition’ viewed 1 September 2013,

http://www.nissan-

global.com/EN/DOCUMENT/PDF/ENVIRONMENT/EFB/2012/FB2012_ALL.pdf.

Nishii, G, Kubota, Y & Yamamoto, K 2010, ‘Genka-Kikaku katsudou no tenkai to kadai [the

Development and Issues of Target Costing]’, University of Osaka Education and

Research Archives, vol. 3, no. 56, pp. 67-89.

Nomura, M & Kamii, Y 2004, Japanese Companies: Theories and Realities, Trans Pacific

Press, Rosanna, Vic.

Nor-Aziah, AK & Scapens, RW 2007, ‘Corporatisation and Accounting Change’,

Okano, H & Suzuki, T 2007, ‘A History of Japanese Management Accounting’, in CS

Chapman, AG Hopwood & MD Shields (Eds.) Handbook of Management Accounting

Research, Elsevier, Amsterdam.

Okano, K 1999, ‘Life Cycle Costing no kakuchou – Aratana kadai heno chousen o chuushin

to shite [A new challenge: an extension of utility of Life Cycle Costing]’, Matsuyama

University review, vol. 4, no. 11, pp. 97-118.

Okano, K 2010, ‘Life Cycle Costing no kenkyu – America Kokubouchou Life Cycle Cost

shutoku model no kenkyuu [LCC Research: Studying the Acquired LCC Model of the

U.S National Defence]’, Matsuyama University review, vol. 21, no. 5.

Okunaga, S 2004, ‘Shihon cost to free cash flow jyuu-shi no bumon gyouseki hyouka’,

Doshisha University world-wide business review, vol. 5, no. 2, pp. 27-40.

Onishi, Y, Kokubu, K & Nakajima, M 2008, ’22.Implementing Material Flow Cost

Accounting’, in S Schaltegger, M Bennett, RL Burritt & C Jasch (Eds.)

Environmental Management Accounting for Cleaner Production, Springer Dordrecht,

pp.395-409.

Ookawara 2013, ‘Erimoto kara kieta 「eco ideas」logo…Panasonic ga kankyou sennryaku o

kidou syuusei’, Nikkei Trendy, viewed 24 February 2014,

http://trendy.nikkeibp.co.jp/article/pickup/20131212/1054059/?P=3

Ookura, Y 2008, Keiei Kaikaku no tameno Kaikei Senryaku: Panasonic, Canon ni manabu

[Strategic Management Accounting for Reform; Learning from Panasonic and

Canon], Chyuo-Keizai Co., Tokyo.

Otley, DT 1980, ‘The Contingency Theory of Management Accounting: Achievement and

Prognosis’, Accounting, Organizations and Society, vol. 5, no. 4, pp. 413-428.

Ozawa, T 1996, ‘The New Economic Nationalism and the “Japanese Disease”: The

Conundrum of Managed Economic Growth’, Journal of Economic Issues, vol. 30, no.

2, pp. 483-491.

Panasonic 1997, Environmental Report 1997, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2001a, Annual Report 2001, Matsushita Electric Industrial Corporation, Osaka.

Panasonic 2001b, Fact Book: Fiscal 1996-2001, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2001c, Environmental Sustainability Report 2001, Matsushita Electric Industrial

Corporation, Osaka.

Panasonic 2002b, Environmental Sustainability Report 2002, Matsushita Electric Industrial

Corporation, Osaka.

Panasonic 2003a, Annual Report 2003, Matsushita Electric Industrial Corporation.

Panasonic 2003b, Sustainability Report 2003, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2004b, The Panasonic Report for Sustainability 2004, Matsushita Electric

Industrial Corporation, Osaka.

Panasonic 2005b, Environmental Data book 2005, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2005c, The Panasonic Report for Sustainability 2005, Matsushita Electric

Osaka.

Panasonic 2006c, Fact Book: Fiscal 2002- 2006, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2006d, The Panasonic Report for Sustainability 2006, Matsushita Electric

Osaka.

Panasonic 2007c, Fact Book: Fiscal 2003-2007, Matsushita Electric Industrial Corporation,

Osaka.

Panasonic 2008c, Fact Book: Fiscal 2004-2008, Panasonic Corporation, Osaka.

Panasonic 2009a, Annual Report 2009t, Panasonic Corporation, Osaka

Panasonic 2009b, eco-ideas Report 2009, Panasonic Corporation, Osaka.

Panasonic 2009d, The Panasonic Report for Sustainability 2009, Panasonic Corporation,

Osaka.

Panasonic 2010a, Annual Report 2010, Panasonic Corporation, Osaka

Panasonic 2010d, Sustainability Report 2010, Panasonic Corporation, Osaka.

Panasonic 2011a, Annual Report 2011, Panasonic Corporation, Osaka

Panasonic 2011c, Fact Book: Fiscal 2002-2011, Panasonic Corporation, Osaka,

Panasonic 2011e, ‘Our approaches to resources recycling’, viewed 26 June 2012,

http://panasonic.net/eco/env_data/back_number/pdf/resources2011e.pdf.

Panasonic 2011f, New Structure for the Panasonic Group, viewed 30 November 2012,

http://panasonic.co.jp/ir/relevant/2011/jn111031-2.pdf

Panasonic 2011g, ‘Panasonic Makes Visualizing Eco within a Factory Possible’, viewed 10

August 2012, http://news.panasonic.net/archives/2011/0404_4716.html

Panasonic 2012a, Annual Report 2012, Panasonic Corporation, Osaka.

Panasonic 2012e, ‘Green Factory’, viewed 14 June 2012, http://panasonic.net/eco/factory/cf/.

Panasonic 2012f, ‘The founder - Konosuke Matsushita: 158. Inauguration of Kyoto

Symposium for Global issues’ in 1983, viewed 6 August 2012,

http://panasonic.co.jp/history/person/158.html.

Panasonic 2012g, ‘Energy Saving in Factories and Offices; Promotion of CO2 Itakona

initiative’, viewed 10 August 2012,

http://panasonic.net/eco/factory/energy_conservation/index.html.

Panasonic 2012h, ‘about Akari-Anshin service’, viewed 28 June 2012,

http://www2.panasonic.biz/es/lighting/akarianshin/akari_01.html

Panasonic 2012i, ‘Yuuka Shouken Houkoku Sho (Annual Securities Report for the fiscal year

ended March 31 2012: the 106th Business term)’, viewed 9 August 2012,

http://panasonic.co.jp/ir/reference/edinet/pdf/Report2011.pdf.

Panasonic 2013a, Annual Report 2013, Panasonic Corporation, Osaka.

Panasonic 2013b, Fact Book: Fiscal 2004-2013, Panasonic Corporation, Osaka.

Panasonic 2013c, Sustainability Report 2013, Panasonic Corporation, Osaka.

Panasonic 2013d, ‘Corporate Profile’, viewed 3 August 2013,

http://panasonic.net/corporate/info/

Panasonic 2013e, ‘Our Unchanging Management Philosophy and Sustainability’, viewed 5

August 2013, http://www.panasonic.net/sustainability/en/management/philosophy/.

Panasonic 2013f, ‘Fiscal year 2013 financial results and Fiscal year 2014 financial forecast’,

viewed 6 August 2013,

http://www.panasonic.net/ir/release/2012/2012_full/financial_results_e.pdf

Panasonic 2013g, The Founder Konosuke Matsushita received the Grand Cordon of the

Order of the Rising Sun with Paulownia Flowers in 1987, viewed 15 August 2013,

Panasonic 2013h, ‘Vision’, viewed 12 July 2013,

H:\Panasonic_JAP\Technical_reports\Vision About Panasonic Global.mht.

Panasonic 2013i, ‘corporate profile – about Panasonic’, viewed 25 November 2013,

http://panasonic.net/gateway/

Panasonic 2013j, ‘Directors and corporate auditors’, viewed 25 November 2013,

http://panasonic.net/corporate/management/

Panasonic 2013k, ‘Brand History’, viewed 19 May 2013, http://panasonic.net/brand/history/

Panasonic 2013l, ‘Corporate History -Birth of Panasonic’, viewed 11 June 2013,

http://panasonic.net/history/corporate/chronicle/index.html#section01

Panasonic 2013m, ‘The founder Konosuke Matsushita’, viewed 9 August 2013,

http://panasonic.net/history/founder/chapter4/story4-05.html.

Panasonic 2013n, ‘5-4. PHP’, viewed 9 August 2013, http://panasonic.co.jp/founder/story/5-

4.html

Panasonic 2013o, ‘Green Procurement Standards (Version 6.1)’, viewed 16 November 2013,

http://panasonic.net/procurement/data/green_e.pdf.

Panasonic 2013p, ‘Annual Securities Report for the fiscal year ended March 31 2013 (the

106th Business term), viewed 6 November 2013,

http://www.panasonic.net/ir/library/edinet/pdf/AnnualSecuritiesReport2013.pdf

Panasonic 2013q, ‘FY2014-16 New Midterm Management Plan: FY2014 Business Policy’,

viewed 24 February 2014,

http://panasonic.net/ir/vision/pdf/20130328_vision_note_e.pdf.

Panasonic 2013r, ‘Panasonic President Tsuga Delivers Opening Keynote at consumer

electronics shows’ (at 9 January 2013), viewed 24 February 2014,

http://panasonic.net/vision/ces2013/.

Panasonic* 2013s, ‘IR library’, http://panasonic.net/ir/library,

Panasonic 2013t, ‘IR Summary’, viewed 19 November 2013,

http://www.panasonic.net/ir/contents/panasonic_summary_en.pdf

Peterson, DP 2013, ‘What Is Free Cash Flow and How Do I Calculate It?’, Florida Atlantic

University, viewed 11 October 2013, http://educ.jmu.edu/~drakepp/general/FCF.pdf.

Quattrone, P & Hopper, T 2001, ‘What Does Organizational Change Mean? Speculations on

a Taken for Granted Category’, Management Accounting Research, vol. 12, no. 4, pp.

403-435.

Rahman, MZ 1998, ‘The Role of Accounting in the East Asian Financial Crisis: Lessons

Learned?’, Transnational Corporations, vol. 7, no. 3, pp.1-52.

Restriction of Hazardous Substances Guide 2012, ‘Directive 2002/95/EC’, viewed 12

November 2012, http://www.rohsguide.com/.

RobecoSAM 2013, ‘The Sustainability Yearbook - Sustainability Rating’, viewed 3

September 2013, http://www.robecosam.com/en/sustainability-insights/library/the-

sustainability-yearbook.jsp

RoHS Guide – see Restriction of Hazardous Substances Guide

Royal Philips Electronics 2003, Sustainability Report 2002, Netherlands viewed 5 February

2014, http://www.chinaeol.net/bell-green/ppt/sustainability-2153.pdf.

SANYO 2009, ‘Sanyo - Fact Book for the year ended March 31 2009’, viewed 7 November

2012, http://panasonic.co.jp/sanyo/corporate/ir_library/pdf/factbook/fb-2009-j.pdf

SANYOo 2013, ‘Life and Times of Toshio Iue – founder of Sanyo’, viewed 17 May 2013,

http://panasonic.net/sanyo/corporate/story/01_1.html/

Scapens, RW & Bromwich, M 2010, 'Management Accounting Research: 20 Years On',

Seal, W 2001, ‘Management Accounting and the Challenge of Strategic Focus’, Management

Accounting Research, vol. 12, no. 4, pp. 487-506.

Sharp 2013, ‘Sustainability Report – Back number’, viewed 2 September 2013,

http://www.sharp.co.jp/corporate/eco/report/history/index.html

Soonawalla, K 2006, ‘17. Environmental Management Accounting’, in A Bhimani (Ed)

Contemporary Issues in Management Accounting, Oxford University Press, Oxford.

Sony 1997, ‘Environmental Report 1997’, viewed 9 September 2013,

http://www.sony.net/SonyInfo/csr_report/issues/report/

Spekman, RE 1988, ‘Strategic Supplier Selection: Understanding Long-Term Buyer

Relationships’, Business Horizons, vol. 31, no. 4, pp. 75-81.

Sturgeon, TJ 2007, ‘How Globalization Drives Institutional Diversity: The Japanese

Electronics Industry’s Response to Value Chain Modularity’, Journal of East Asian

Studies, vol. 7, no. 1, pp. 1-34.

Sustainable Asset Management 2012, Sustainable Asset Management Award, viewed 14 June

2012, http://news.panasonic.net/archives/2012/0214_8954.html.

Takeuchi, K & Takeda, K 2008, Saraba Matsushita – Tanjyou Panasonic ~Matsushita

Kounosuke no Yume [Good by Matsushita, Be Born Panasonic; Konosuke's Dream],

Pal Publication, Tokyo.

The Japan Institution of CPA 2008, ‘Dokuritusei ni kansuru Houkaisei taiou kaishaku shishin

dai 6 gou, Daigaisha nado Kansa ni okeru Rotation ni tuite [no. 6: Reform guideline

for auditing regulation in relation to auditor independence – Rotation rule for the large

institution’s auditors]’revised as at 13 February 2008,

http://www.hp.jicpa.or.jp/ippan/about/reliability/ethics/files/%E7%AC%AC6%E5%8

F%B7%E6%9C%AC%E6%96%87.pdf

The Japan Institution of CPA 2013, ‘Independence Requirements for CPAs - Independence

requirements for external auditors exist in laws and the JICPA Code of Ethics (JICPA

Code), viewed 2 September 2013,

http://www.hp.jicpa.or.jp/english/accounting/independence/index.html.

The Open Group Architecture Framework 2013, ‘Part IV: Resource Base – Business process

domain views’, viewed 25 November 2013,

http://pubs.opengroup.org/architecture/togaf8-doc/arch/chap33.html#tag_34_01

The World Bank 2012, ‘GDP Ranking in 2012’, viewed at 10 October 2013,

http://data.worldbank.org/data-catalog/GDP-ranking-table.

Thrane, S 2007, ‘The Complexity of Management Accounting Change: Bifurcation and

Oscillation in Schizophrenic Inter-Organisational Systems’, Management Accounting

Tokutani, M & Kawano, M 1978, ‘A Note on the Japanese Social Accounting Literature’,

Accounting, Organizations and Society, vol. 3, no. 2, pp. 183-188.

Tokyo City Council Environmental Division 2013, ‘Souryou Sakugen Gimu to

Haisyutsuryou Torihiki sedo ni kansuru Dai2 Keikakukikan no sakugenn Gimuritsu ni

tsuite [Tokyo Obligatory Emission Reduction Scheme]’, viewed 11 October 2013,

http://www.kankyo.metro.tokyo.jp/climate/large_scale/cap_and_trade/2nd_overview.

Tomimasu, K 1996, ‘LCC to LCA no Genjyou [the Current State of LCC and LCA]’, Kigyou

Kaikei [Corporate Accounting], vol. 48, no. 9, pp. 58-63.

Toshiba 2013, viewed 2 September 2013,

http://www.toshiba.co.jp/csr/en/report/pdf/report04e.pdf

Toyota 2013a, ‘Guiding Principles at Toyota’, viewed 14 August 2013, http://www.toyota-

global.com/company/vision_philosophy/guiding_principles.html.

Toyota 2013b, ‘Past Issues: Sustainability Report / Environmental Report’, viewed 1

September 2013, http://www.toyota-global.com/sustainability/report/archive/.

Ueda, K, Iwata, H, Kokubu, K & Onishi, Y 2010, Kankyou Keiei Innovation no Riron to

Jittsen [Theory and Practice in Environmental Management Accounting Innovation],

Cyuo-Keizai Co., Tokyo.

United Nations Environmental Programme 2011, ‘II. Relevant Provisions of the Basel

Convention and International Linkages: A. Basel Convention - (E) Extended Producer

Responsibility (p.29)’, viewed 28 June 2011,

http://archive.basel.int/meetings/cop/cop10/documents/06a2e.pdf.

UNFCCC – see United Nations Framework Convention on Climate Change

United Nations Framework Convention on Climate Change 2011, ‘Kyoto Protocol’, viewed

12 June 2011, http://unfccc.int/kyoto_protocol/items/2830.php.

Vaivio, J 1999, ‘Exploring a `Non-Financial' Management Accounting Change’,

Management Accounting Research, vol. 10, no. 4, pp.409-437.

Waste from Electrical and Electronic Equipment forum 2012, ‘Directive 2002/96/EC’,

viewed 12 November 2012, http://www.weee-forum.org/general-overview-of-the-

weee-directive.

Weblio 2013, English-Japanese, Japanese-English Online Dictionary, Weblio Inc., Tokyo,

http://translate.weblio.jp/.

WEEE forum – see Waste from Electrical and Electronic Equipment forum

White, F 2008, ‘Board of Collaboration: The ITAKONA Board Method’, viewed 31 January

http://news.thomasnet.com/IMT/archives/2008/01/the_board_of_collaboration_panas

onic_itakona_board_method.html.

Wijewardena, H & De Zoysa, A 1999, ‘A Comparative Analysis of Management Accounting

Practices in Australia and Japan: An Empirical Investigation’, The International

Journal of Accounting, vol. 34, no. 1, p. 49.

Yamakawa, T 2012, ‘Daremo sannyuu dekinai Toride o tsukuru - Panasonic shachou

Kazuhiro Tuga [To Establish an Invincible Fortress – Panasonic CEO Tuga]’, Nikkei

Business, Nikkei Business Publication, Inc., Tokyo 98-101.

Yamamoto, K 2012, ‘Kachi Itenteki Genkakeisan karano dattukyaku – Kachi Sozouteki

Genkakeisan Shiron [The Breakaway from Value Transport-Oriented Costing : A

Proposal of Value Creative Costing]’, The Journal of cost accounting research, The

Japan Cost Accounting Association, vol. 36, no. 1, pp. 1-9.

Yanagita, H 2006, Kokusai Keiei Kaike Ron – Doitsu narabi ni America, Nihon no Hikaku

Kenkyuu [International Managerial Accounting - the Comparative Study of Germany,

the United States and Japan], Chuo-Keizai Co., Tokyo.

Yanagita, H 2011, ‘Gendai Kigyou ni okeru CSR to Jizoku Kanou na Seichou – CSR Keiei

Kaikei no Hitsuyousei to sono Kadai [CSR and Sustainable Growth in Modern

Corporation - the Issues and Necessity of CSR Management Accounting]’, University

of Kanagawa International Management/Accounting -Departmental Bulletin Paper,

no. 41, pp. 37-44.

Yanagita, H & Yamada, H 2005, ‘CSR Keiei Kaikei no Tenkai ni Kansuru Ichikousatsu

[Development of the CSR Management Accounting]’, University of Kanagawa

International Management/Accounting Forum, 16: 111-125 (Departmental Bulletin

Paper), no. 16, pp. 111-125.

Yergin, D 2011, The Quest: Energy, Security and the Remaking of the Modern World,

Penguin Press, New York.

Yoshikawa, T 1994, ‘Some Aspects of the Japanese Approach to Management Accounting’,

Zhang, Y & Wildemuth, BM 2009, ‘Qualitative analysis of content’, in B. Wildemuth (Ed.)

Applications of Social Research Methods to Questions in Information and Library

Science, Westport, CT.

Zimmerman, JL 2001, ‘Conjectures Regarding Empirical Managerial Accounting Research’,

Journal of Accounting and Economics, vol. 32, no. 1, pp. 411-427.

* ‘Panasonic IR Library’ provides the link of archives of the Panasonic’s various official

reports. This site I have accessed frequently in order to search and analyse data for this

study. The date viewed, thus, is not specified in the reference list.

＜参考文献＞

旭鉄郎 1998, 革新松下電器, 日刊工業新聞社, 日刊工業出版プロダクション。

安城泰雄 2003, 「環境経営とマテリアルフローコスト会計 (特集マテリアルフローコスト会

計)」, 産業環境管理協会’, 第 39巻第, 第 7号 676-680頁。

安城泰雄 2006, 「職場拠点型環境保証活動のツールとしてのマテリアルフローコスト会計」,

環境管理,第 42巻, 第 2号, 46-50頁。.

安城泰雄 2007, 「キヤノンにおけるマテリアルフローコスト会計の導入: 特集マテリアルフロ

ーコスト会計の実践: 環境管理会計による原価低減と環境配慮」, 企業会計, 第 59

巻, 第 11号, 1568-1575頁。

植田和宏・國分克彦・岩田裕樹・大西靖 2010, 環境経営イノベーションの理論と実践, 中央

経済社。

大河原克行 2013, 「襟元から消えた「eco ideas」ロゴ…パナソニックが環境戦略を軌道修正」,

日経トレンド・フォーカス, 2014年 2月 24日閲覧、http://trendy.nikkeibp.co.jp/article/pickup/20131212/1054059/?P=3.

大倉雄次郎 2008, 経営改革のための会計戦略: パナソニック・キャノンに学ぶ, 中央経済社。

岡野憲冶 1999, 「ライフサイクル・コスティングの拡張--新たな課題への挑戦を中心として」,

松山大学論集, 第 11巻, 第 4号, 97-118頁。

岡野憲冶 2010, 「ライフサイクル・コステイングの研究ーアメリカ国防省ライフサイクル・コスト

取得モデルの研究」, 松山大学論集, vol. 第 21巻, 第 5号。

奥長滋嘉 2004, 「資本コストとフリーキャッシュフロー重視の部門業績評価」, 同志社大学ワ

ールドワイドビジネスレビュー, 第 5巻、第 2号 , 27-40頁。

河野正男 1993, 「社会責任会計、社会監査および環境監査」, 横浜国立大学経営学部, 第

8巻第 4号。

経団連 2013, 「経団連とは」, 2013年 3月 2日閲覧, http://www.keidanren.or.jp/profile/.

キャノン 2013b, 「企業理念 - 共生」, 2013年 8月 14日閲覧,

http://web.canon.jp/corporate/vision/philosophy.html.

経済産業省 2002, 「環境管理会計手法ワークブック」, 経済産業省。

経済産業省 2007a, 「環境管理会計(マテリアルフローコスト会計) について」, 経済産業省,

2011年 8月 22日閲覧,

http://www.meti.go.jp/policy/eco_business/pdf/EMA(MFCA)-japanease.pdf.

経済産業省 2007b, 「環境会計・マテリアルフローコスト会計手法導入ガイド (ver.1)」, 経済

産業省。

経済産業省 2008,「環境会計・マテリアルフローコスト会計手法導入ガイド (ver.2)」, 経済産

業省。

経済産業省 2011b , 「マテリアルフローコスト会計 – 導入事例集」, 経済産業省。

経済産業省 2013, 「平成２５年度税制改正について:１. 研究開発税制の拡充」, 経済産業

省。

環境庁 2000, 「環境会計システムの確立に向けて (2000 年報告)’, 環境会計システムの確

立に関する検討会」, 2012年 9月 11日閲覧,

http://www.env.go.jp/policy/kaikei/report00.pdf.

環境省 2011, 「平成 23年版環境白書: 第 4章持続可能な社会の実現に向けた日本の貢

献 , 第 1節持続可能な社会への道」, 2012年 9月 15日閲覧,

http://www.enecho.meti.go.jp/topics/hakusho/2011energyhtml/2-0.html.

金融庁 2006, 「公認会計士・監査法人制度の充実・強化について’ 金融審議会公認会計士

制度部会報告」, 2013年 9月 2日閲覧,

http://www.fsa.go.jp/singi/singi_kinyu/tosin/20061222.pdf.

小板橋太郎 2013,「時事深層 - パナ、事業部復活の真意’ 日経ビジネス, 3月 7日号」,

2013年 11月 25日閲覧,

http://business.nikkeibp.co.jp/article/topics/20130301/244420/.

小菅正伸 2009, 「日本企業におけるビジネス・プロセス・マネジメント-パナソニック㈱の事例

を中心として’, 関西学院大学リポジトリ」, 商学論究, 第 57巻,第 3号。

國部克彦 2004, 「環境管理会計実務の普及と展開：日本企業の動向」, 国民経済雑誌, 第 6

巻第 190号, 53-65頁。

國部克彦 2007, 「CSR会計の体系」, 廃棄物学会誌, 第 18巻第 4号, 231-236頁。

國部克彦 2009, 「日本型環境管理会計の特徴と課題-マテリアルフローコスト会計を中心

に」, 原価計算研究, 第 33巻, 第 1号, 1-9頁。

國部克彦 2010, 「マテリアルフローコスト会計による生産と環境のマネジメント」, 日本情報会

計学会誌, 第 31巻, 第 2号。

國部克彦 2011, 「サプライチェーンへのマテリアルフローコスト会計導入の意義と課題」, 日

本情報会計学会誌, 第 31巻, 第 4号。

國部克彦, 中嶌道靖, 大西靖, 小倉昇, 梶原武久, 中嶌道靖, 東田明, 堀口真司, 水口剛,

宮崎修行, 向山敦夫, 村井秀樹, 八木裕之, 伊藤嘉博, 阪智香, 朴鏡杓, 東健太郎,

トモ・スズキ 2009, 「環境経営意思決定と会計システムに関する研究―中間報告書」,

日本会計研究学会特別委員会。

國部克彦, 中嶌道靖, 大西靖, 小倉昇, 梶原武久, 中嶌道靖, 東田明, 堀口真司, 水口剛,

宮崎修行, 向山敦夫, 村井秀樹, 八木裕之, 伊藤嘉博, 阪智香, 朴鏡杓, 東健太郎,

トモ・スズキ 2010, 「環境経営意思決定と会計システムに関する研究―最終報告書」,

日本会計研究学会特別委員会。

國部克彦・下垣彰 2007, 「実践マテリアルフローコスト会計 (24); MFCA と LCAの統合の手

順と実践--キヤノンを事例として」, 産業環境管理協会, 第 43巻, 第 9号, 943-950頁。

斉藤浩一朗・國部克彦・梨岡英理子・今井伸一 2002, 「環境会計実務の現状と課題: 環境

会計導入企業へのアンケート調査を通して」, ＩＧＥＳデイスカッションぺーパー,

no.2002-11, 1-24頁。

サンヨー 2009, 「サンヨー・ファクトブック 2009年 3月期データ ─」, パナソニック株式会社,

大阪。

サンヨー 2013, 「創業者・井植歳男物語」, 2013年 5月 17日閲覧,

http://panasonic.net/sanyo/corporate/story/01_1.html/.

竹内一正・ケニータケダ 2008, さらば松下！誕生パナソニック～松下幸之助の夢, ぱる出版。

東京都環境局 2013, 「総量削減義務と排出量取引制度」に関する第２計画期間の削減義

務率等について」, 2013年 10月 13日閲覧,

http://www.kankyo.metro.tokyo.jp/climate/large_scale/cap_and_trade/2nd_overview.

トヨタ 2013a, 「企業理念」, 2013年 8月 14日閲覧,

http://www.toyota.co.jp/jpn/company/vision/philosophy/.

トヨタ 2013b, 「過去のレポート-サステイナビリティレポート/ レポートライブラリ」, 2013年 9月

1日閲覧, http://www.toyota.co.jp/jpn/sustainability/report/.

富増和彦 1996, 「特集 II 環境会計の役割と企業の社会的責任 LCCと LCAの現状」, 企

業会計, 第 48巻, 第 9号, 58-63頁。

日経環境経営調査 2013、「環境ブランド調査 2013」, 日経 BP社, 2013年 8月 30日閲覧,

http://corporate.nikkeibp.co.jp/information/newsrelease/newsrelease20130704_2.shtm

日本公認会計士協会 2008, 「独立性に関する法改正対応解釈指針第６号, 大会社等監査

におけるローテーションについて」, 2013年 9月 2日閲覧,

http://www.hp.jicpa.or.jp/ippan/about/reliability/ethics/files/%E7%AC%AC6%E5%8

F%B7%E6%9C%AC%E6%96%87.pdf.

西居豪・窪田祐一・山本浩二 2010, 「原価企画活動の展開と課題」, 大阪府立大学学術情

報リポジトリ, 第 56巻, 第 3号, 67-89頁。

橋本征二 2007, 「廃棄物会計といわゆる環境会計の統合に向けて」, 廃棄物学会誌, 第 18

巻, 第 4号, 222-230頁。

パナソニック 1997, 「1997年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 1998,「1998年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 1999, 「1999年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 2000,「2000年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 2001a, 「アニュアルレポート 2001」, 松下電器産業株式会社, 大阪。

パナソニック 2001b, 「ファクトブック 2001年 3月期データ─」,松下電器産業株式会社,大阪。

パナソニック 2001c,「2001年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 2002b,「2002年度・環境報告書」, 松下電器産業株式会社, 大阪。

パナソニック 2003b, 「環境経営報告書 2003」, 松下電器産業株式会社, 大阪。

パナソニック 2004b,「松下電器グループ・環境経営報告書 2004」, 松下電器産業株式会社,

大阪。

パナソニック 2005b, 「松下グループ・環境環境データーブック 2005」, 松下電器産業株式

会社, 大阪。

パナソニック 2005c,「松下グループ・社会環境報告 2005」, 松下電器産業株式会社, 大阪。

会社, 大阪。

パナソニック 2006c, 「ファクトブック 2006年 3月期データ ─」,松下電器産業株式会社,大阪。

パナソニック 2006d,「松下グループ・社会環境報告 2006」, 松下電器産業株式会社, 大阪。

会社、大阪。

パナソニック 2007c, 「ファクトブック 2007年 3月期データ ─」,松下電器産業株式会社,大阪。

パナソニック 2007d,「松下グループ・社会環境報告 2007」, 松下電器産業株式会社、大阪。

パナソニック 2008b, 「パナソニック・環境環境データーブック 2008」, 松下電器産業株式会

社, 大阪。

パナソニック 2008c, 「ファクトブック 2008年 3月期データ ─」, パナソニック株式会社, 大阪。

パナソニック 2008d,「社会環境報告- e報告書詳細版 2008」, 松下電器産業株式会社, 大

阪。

パナソニック 2009a, 「アニュアルレポート 2009」, パナソニック株式会社, 大阪。

パナソニック 2009b, 「エコアイディアレポート 2009」, パナソニック株式会社, 大阪。

パナソニック 2009d,「社会環境報告- e報告書詳細版 2009」, パナソニック株式会社, 大阪。

パナソニック 2010d, 「サスティナビリティリポート 2010 」, パナソニック株式会社, 大阪。

パナソニック 2011e, 「私たちのＣＳＲの取り組み資源循環」, 2012 年 6月 12日閲覧,

http://panasonic.co.jp/eco/env_data/back_number/pdf/resources2011j.pdf.

パナソニック 2011f, 「パナソニックグループの新事業体制」, 2012 年 11月 30日閲覧,

http://panasonic.co.jp/ir/relevant/2011/jn111031-2.pdf.

パナソニック 2012e, 「環境配慮工場」，2012 年 6月 14日閲覧,

http://panasonic.net/eco/factory/cf/.

パナソニック 2012f, 「創業者松下幸之助の生涯： 158 “世界を考える京都座会“が発足

1983年（昭和 58年）」, 2012 年 8月 6日閲覧，

パナソニック 2012g, 「工場の省エネルギー・温暖化防止：CO2 イタコナ活動の推進」, 2012

年 8月 10日閲覧, http://panasonic.net/eco/factory/energy_conservation/index.html.

パナソニック 2012h, 「あかり安心サービスとは？」, 2012 年 6月 28日閲覧,

http://www2.panasonic.biz/es/lighting/akarianshin/akari_01.html.

パナソニック 2012i 「有価証券報告書第 105期」, 2012 年 8月 9日閲覧,

http://panasonic.co.jp/ir/reference/edinet/pdf/Report2011.pdf.

パナソニック 2013b, 「ファクトブック 2013年 3月期データ ─」, パナソニック株式会社, 大阪。

パナソニック 2013c, 「サスティナビリティリポート 2013 」, パナソニック株式会社, 大阪。

パナソニック 2013d, 「会社概要」, 2013年 8月 3日閲覧,

パナソニック 2013e, 「経営理念とサスティナビリティ」, 2013年 8月 5日閲覧,

http://panasonic.net/sustainability/jp/management/philosophy/.

パナソニック 2013g, 「創業者松下幸之助の生涯：163. 勲一等旭日桐花大綬章を拝受

1987年」, 2013年 8月日閲覧, http://panasonic.co.jp/history/person/163.html.

パナソニック 2013h, 「ビジョン」, 2013年 7月 2日閲覧,

H:\Panasonic_JAP\Technical_reports\Vision About Panasonic Global.mht.

パナソニック 2013i, 「会社概要」, 2013年 11月 17日閲覧, http://panasonic.net/gateway/.

パナソニック 2013j 「役員一覧」, 2013年 11月 17日閲覧,

http://panasonic.net/corporate/management/.

パナソニック 2013k, 「ブランド」, 2013年 5月 19日閲覧, http://panasonic.net/brand/history/.

パナソニック 2013l, 「創業者松下幸之助の生涯：創業から終戦まで」, 2013年 6月 11日

閲覧, http://panasonic.net/history/corporate/chronicle/index.html#section01.

パナソニック 2013m, 「創業者松下幸之助の生涯：会長就任から逝去まで」, 2013年 6月

11日閲覧, http://panasonic.net/history/founder/chapter4/story4-05.html.

パナソニック 2013n,「松下幸之助物語：5-4. PHP」, 2013年 6月 28日閲覧,

http://panasonic.co.jp/founder/story/5-4.html.

パナソニック 2013o, 「パナソニックグループ・グリーン調達基準書第 6.1版」, 2013年 6月

28日閲覧, http://panasonic.co.jp/procurement/data/green_J_v6_1.pdf.

パナソニック 2013q, 「新中期計画 2013年度事業方針」、2014年 2月 24日閲覧,

http://panasonic.co.jp/ir/vision/pdf/20130328_vision_note_j.pdf.

パナソニック 2013r, 「2013 International CES（全米家電協会）津賀社長オープニングキー

ノートスピーチ要旨」、2014年 2月 24日閲覧,

http://panasonic.co.jp/company/philosophy/vision/ces2013/.

パナソニック 2013s*, 「IR資料室」, http://panasonic.net/ir/library.

丸田起大 2009, 「トヨタ・パブリカ開発における原価企画」, 原価計算研究,第 33巻, 第 1号，

28-40頁.

馬場未希 2013, 「世界 350社が発行「統合報告書」って何？’, 日経ビジネス, 6月 14日号,

http://business.nikkeibp.co.jp/article/report/20130614/249684/?rt=nocnt.

淵田康之 2012, 「金融・証券規制動向諸~欧米で再び高まる監査法人改革論’, 野村資本

研究所, 2013年 9月 2日閲覧,

http://www.nicmr.com/nicmr/report/repo/2012/2012win11.pdf.

牧戸孝郎 2003, 「環境会計の新たな展開に向けて」, 企業会計, 第 55巻, 第 1号, 4-11頁.

松下幸之助 1962, , 私の行き方, 考え方－我が半生の記録, PHP 研究所。

村井令二浜田健太郎 2011, 「パナソニック、三洋の白物家電事業をハイアールに売却へ」,

ロイター,7月 28日付, 2013,年 10月 7日閲覧,

http://jp.reuters.com/article/topNews/idJPJAPAN-22399720110728.

もったいない（Mottainai） 2012, 「もったいないとは・・・」, 2012年 10月 10日閲覧 viewed 10

December 2012, http://mottainai.info/about/.

柳田仁 2006, 国際経営会計論ードイツならびにアメリカ・日本の比較研究, 中央経済社。.

柳田仁 2011, 「現代企業における CSRと持続可能な成長－CSR経営会計の必要性とその

課題」, 神奈川大学－国際経営論集 no.41, 37-44頁。

柳田仁・山田英俊 2005, 「CSR 経営会計の展開に関する一考察」, 神奈川大学, 国際経営

フォーラム no.16, 111-125頁。

山川龍雄 2012, 「誰も参入できない砦を作る：津賀一宏氏・パナソニック社長」, 日経ビジネ

ス, 7 月 16日号, 98-101頁。

注：

日本語の参考文献表には主に日本語でのみ出版された書籍・文献を表記していますが、

パナソニックおよび政府官庁出版物は参考・引用の際に日本語と英語の文脈を考察の上

考慮して参照した出版物を日本語で記載しています。

Japanese management accounting practices for facilitating ...

Documents

Transcript of Japanese management accounting practices for facilitating ...

Facilitating Client Centred Learning Bibliography

improving adolescent health: - facilitating change for ...

Japanese Medium Tanks

Accounting Principle

FACILITATING CHANGE FOR EXCELLENCE IN SBIRT

PCED103 Facilitating Learner Centered Teaching

Accounting - CSN

COMPUTERIZED ACCOUNTING

Facilitating Faster Broadband Deployment - International ...

Islamic accounting

Accounting Cycle

The Role of Perceptions Toward the Accounting Profession by Japanese Tertiary Business Students in the Process of Career Choice

Improvements in Plant Morphology Facilitating Progressive ...

Rethinking Labor Law Preemption: State Laws Facilitating ...

ACCOUNTING SOFTWARE

Japanese Feminism

Japanese Encephalitis

Beyond intractability - facilitating inter-communal cohesion ...

Japanese conversation-grammar

Low Carbon Technology Assessment Facilitating ... - JICA