THE IMPACT OF ESG REPORTING ON MANAGEMENT ACCOUNTING INFORMATION SYSTEMS

Abstract

The ESG reporting has a widespread influence on management accounting. The strategic necessity for organizations is the seamless incorporation of ESG approaches into their management accounting systems to improve business performance and sustain competitive edge. This research aims to enhance the use of ESG standards within organizations to improve corporate performance, including planning, controlling, and decision-making, through the use of management accounting tools. Findings indicate a significantly positive link between ESG reporting and MAIS in producing more comprehensive analyses, thereby providing corporate profitability enhanced assessments. Furthermore, organizations can effectively use ESG-related elements to enhance the application of management accounting in above areas. A quantitative research paradigm using an online survey with Likert-scale was employed to collect data from a sample of 98 individuals and statistical analyses were performed using SPSS software. The measurement instrument's reliability and internal consistency were thoroughly evaluated utilizing Cronbach's Alpha, EFA, and One-Sample t-tests. This study aims to enhance the effective management of accounting by strategic use of ESG reporting, hence optimizing business performance in the evolving modern market.