ASSESSMENT OF THE INTEGRATION OF SUSTAINABILITY AND ENVIRONMENTAL ACCOUNTING IN THE ACCOUNTING CURRICULUM IN NIGERIA (A CASE STUDY OF UNIVERSITY OF UYO)

CHAPTER ONE

INTRODUCTION

1.1 Background to The Study

Sustainability has become more important in many companies in recent years. It has changed the way companies operate and make decisions (Purvis et al., 2019). Nowadays, sustainability is seen as a central element of corporate transparency and responsibility (de Oliveira et al., 2023). In response to this evolving landscape, accounting education must incorporate sustainability principles as an integral part of business education.

The importance of sustainability in accounting education is underscored by its ability to meet the changing needs of stakeholders who now expect transparency, ethical behavior and accountability from companies (Sharma & Stewart, 2022).

Accounting education must adequately address this change to provide aspiring accountants with the information and skills they need to meet the challenges of a sustainable future (Chong et al., 2022). In addition to simply meeting legal requirements, accounting training is also about sustainability. Future accountants will have better skills and be able to understand and advocate for sustainable practices (Sharma & Stewart, 2022). This combination encourages students to approach sustainability concerns with morality and responsibility, which promotes innovation and helps develop unique solutions that balance profit and social and environmental responsibility (Gray, 2019).

To achieve these goals, accounting education must adopt a new strategy. A deep understanding of sustainability can be developed through incorporating sustainability principles into the curriculum, emphasizing case studies and real-world experiences, encouraging collaboration with other academic disciplines, regularly updating teaching materials to the latest sustainability standards, and emphasizing soft skills like moral decision making and effective communication.

Additionally, collaboration with industry practitioners and sustainability experts bridges the gap between academia and the corporate world, preparing students to navigate the complex landscape of sustainability and contribute to a more sustainable and responsible business environment. Sustainability has become a defining concern in the 21st century and encompasses environmental responsibility, social responsibility and economic viability.

Accounting education plays a critical role in equipping future accountants with the skills to address these diverse challenges. Integrating sustainability and environmental accounting into the accounting curriculum is increasingly recognized as critical to preparing future accountants to address current environmental challenges. Changes in national policies towards sustainable development and global environmental trends impact Nigeria's requirement to include these topics in the curriculum. Moreso, accounting professionals are becoming increasingly important in promoting sustainability as the country grapples with major environmental problems such as pollution, deforestation and climate change.

This combination makes accounting education more applicable and provides students with the knowledge and skills necessary to promote environmentally responsible business practices. According to recent research, environmental accounting and sustainability are increasingly recognized as critical aspects of the accounting field (Kumar & Purohit, 2022).

These studies emphasize how accounting education needs to adapt to sustainability principles and the global movement to consider environmental factors in financial reporting and decision making (Haque & Uddin, 2021). By incorporating these subjects into the curriculum, future accountants will be better equipped to manage and document environmental impacts, which will promote broader sustainability goals (Ghosh et al., 2023).

However, the extent to which Nigerian accounting programs have implemented this integration is still under investigation. In Nigeria, rigorous curricula and lack of funding make it difficult to integrate sustainability and environmental accounting into the curriculum (Osei & Agyei, 2020).

Despite the challenges, attempts have been made to align accounting education with international sustainability standards (Akinbode & Adeyemi, 2021). This is due to the need for accountants to provide more detailed environmental information as well as increasing regulatory requirements (Uche, 2022). Aligning educational practices with these needs is critical to fostering a generation of accountants capable of contributing to Nigeria's sustainable development goals.

Reviews of accounting curricula in Nigerian universities have revealed a growing but insufficient incorporation of sustainability and environmental accounting topics (Onuoha et al., 2023). While some institutions have begun to incorporate these topics into their curricula, a gap remains between current practice and the evolving needs of the accounting profession (Ibrahim & Yusuf, 2024). Closing this gap requires concentrated efforts to update educational frameworks, provide relevant course material and prepare teachers to teach these new areas.Top of Form

1.2 Statement of The Problem

The integration of sustainability and environmental accounting into the accounting curriculum in Nigeria poses a significant challenge, reflecting broader issues within the educational framework. Despite growing global emphasis on sustainability, many Nigerian accounting programs have been slow to incorporate these crucial topics into their curricula. This lag creates a disconnect between the skills and knowledge that accounting graduates possess and the requirements of modern accounting practices that increasingly prioritize environmental considerations (Akinbode & Adeyemi, 2021). As environmental issues become more pressing and regulatory demands for sustainability reporting increase, there is an urgent need for accounting education to evolve in alignment with these developments.

Another critical issue is the resistance to curriculum change within Nigerian higher education institutions. Many programs continue to adhere to traditional accounting content, often due to rigidity in curriculum design and a lack of resources for curriculum development (Osei & Agyei, 2020). This stagnation impedes the integration of sustainability and environmental accounting, leaving graduates inadequately prepared to address the complex environmental challenges faced by organizations today. Consequently, there is a growing disparity between the competencies of new accountants and the needs of employers and regulatory bodies that emphasize sustainable practices.Top of Form

1.3 Objectives of The Study

The main objective of the study is to examine the integration of sustainability and environmental accounting in the accounting curriculum in Nigeria. Specific objectives of the study are:

1. To assess the Current State of Sustainability and Environmental Accounting Integration in Nigerian Accounting Curricula
2. To examine the Challenges and Barriers to Integration
3. To explore the Educational Needs of Accounting Professionals and Stakeholders

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

1. To what extent are sustainability and environmental accounting concepts incorporated into the core accounting courses in Nigerian universities?
2. What are the primary challenges faced by Nigerian universities in integrating sustainability and environmental accounting into their accounting curricula?
3. What are the specific sustainability and environmental accounting skills and knowledge required by accounting professionals in Nigeria to meet the demands of the evolving business landscape?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no significant difference in the level of integration of sustainability and environmental accounting in the accounting curriculum between Nigerian universities and international standards.

1.6 Significance of The Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Accounting Education sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analyzed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organizations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of The Study

The study is delimited to University of Uyo. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of The Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of The Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis are discussed in this chapter.

Chapter Four highlights’ data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.

1.10 Definition of Terms

1. Sustainability Accounting

 A framework for measuring, analyzing, and reporting an organization’s environmental, social, and economic performance. It focuses on how an organization manages its impact on the environment and society and how this is reflected in its financial statements and reporting practices.

2.  Environmental Accounting

A branch of accounting that deals with the identification, measurement, and reporting of environmental costs and liabilities. It includes both the direct costs of environmental protection and the indirect costs associated with environmental impact, aiming to incorporate these into the financial statements to reflect an organization’s true economic performance.

3.  Accounting Curriculum

 A structured educational program designed to teach students the principles, practices, and applications of accounting. In the context of integrating sustainability and environmental accounting, it includes coursework and learning outcomes related to the environmental and social responsibilities of businesses.

4.  Integration of Sustainability

 The process of incorporating sustainability principles into existing systems and practices. In the context of accounting education, this involves embedding sustainability concepts and practices into the accounting curriculum to prepare students for the growing emphasis on sustainable business practices.

5. Assessment of Integration

The evaluation of how effectively sustainability and environmental accounting principles have been incorporated into the accounting curriculum. This involves reviewing the curriculum content, teaching methods, and learning outcomes to ensure that they adequately cover sustainability issues and prepare students for related challenges in their professional careers.

6.  Curriculum Development

 The process of designing and organizing course content, learning activities, and educational materials. For the integration of sustainability and environmental accounting, this involves updating or creating courses that address environmental and social impacts in accounting practices.

7.  Sustainability Reporting

 The practice of disclosing information about an organization’s environmental, social, and economic performance. It typically includes reports on resource usage, emissions, social responsibility initiatives, and other sustainability-related factors that are becoming increasingly important to stakeholders.