Eco-Efficiency and Sustainable Development as Efforts to Produce Environmentally Friendly Product: An Exploratory Case Study

Abstract

The issue of climate change, global warming and environmental damage caused by the       
production process lead to many changes in manufacturing technology, in the understanding of 
environmental concern or environmental awareness. Eco-efficiency is a concept that requires 
companies to concern the environment, and is then forwarded to the concept of sustainable 
development which requires current generations think and act for not passing the                 
environmental damage to future generations. This study was aimed to answer whether a         
go-international company has environmental awareness, how they understand, interpreted, and 
applied these eco efficiency and sustainable development concepts. The research methodology 
used is Yin’s non positivist exploratory case study research in PT. Semen Indonesia. The     
results showed that although the company has already understood and implemented              
eco-efficiency, and other environmental friendly program, such as Japanese 5’ S (Seiri, Seiton, 
Seiso, Seiketsu, and Shitsuke mean Tidiness, Orderliness, Cleanliness, Standardization, and 
Discipline); Triple Bottom Line (Profit, People and Planet), and other programs. The            
implementation of such programs leads to the application of sustainable development concept. 
The research’s implications is academically it will enrich management accounting literature by 
introducing environmental-based management accounting, and push academicians to           
restructure the content of management accounting subject as well as it will inform companies 
to aware to possible environmental problem in their production process.