Study On Environmental Accounting Information Disclosure In Chinese Pharmaceutical Industry

With the rapid development of Chinese economy, the problems of environmental pollution havebecome more and more serious. It costs approximately10%China’s GDP every year according to theWorld Bank, Chinese Academy of Sciences and the Environmental Protection Administration. Companiesshould not simply seek to maximize the economic benefits while ignoring the destruction of the socialenvironment, but balance the relationship between environmental protection and profit growth, to achievesustainable development of enterprises and the whole society. In order to develop a green economy,construct an environment-friendly society, environmental accounting has become an important researchfield in accounting academia, which combines the economic benefits and environmental benefits togetherand reflects the production and operation of enterprises comprehensively. One of the important researchbranches in environmental accounting is environmental accounting information disclosure.In recent years, the pharmaceutical industry has become an important component of the nationaleconomy. Whereas, events like illegal sewage which cause environmental pollution occurred frequently.Thus, the pharmaceutical industry has been closely supervised. Accordingly, the demands of stakeholderson environmental accounting information become more urgent. Therefore, it is particularly necessary tomake a research on environmental accounting information disclosure of the pharmaceutical industry.In this paper, the normative research and case study method are combined. Firstly, this paperelaborates the background and significance, reviews the study of the environment accounting informationdisclosure at home and abroad, introduces the research framework, and points out the innovation of thispaper. Secondly, the paper describes the characteristics of the pharmaceutical industry, explains the relevantconcepts, and analyses the rationales of environmental accounting information disclosure. Then an analysisis made on related laws and regulations, the whole pharmaceutical industry and typical cases. This paperpoints out three major problems existed in the environmental accounting information disclosure in China’spharmaceutical industry and finds the deep reasons. Finally, in order to offer some references for the furtherdevelopment of pharmaceutical industry and other industries, the paper puts forward measures to improveenvironmental accounting information disclosure from both external and internal aspects of the pharmaceutical industry.