Integrating ecological costs into financial accounting: Asian context

¹ De La Salle University, 2401 Taft Avenue, Manila, Metro Manila, Philippines
² Turan University, Almaty, Kazakhstan
³ Rostov State Transport University, 344038 Rostov-on-Don, Russia

^* Corresponding author: wilson.cordova@dlsu.edu.ph

Abstract

This study investigates the role of corporate reputation as a mediator between environmental investments, sustainable supply chain practices, corporate environmental policies, and financial performance. It analyzes data from companies operating in Asian markets, where sustainability concerns are increasingly significant. The research employs a regression analysis to demonstrate that corporate environmental policies, investments, and supply chain practices enhance a firm’s reputation, which then positively impacts financial outcomes. The results reveal that while corporate reputation plays a critical role in financial performance, its direct impact is relatively modest, explaining around 5.9% of financial variability. The study emphasizes that environmental initiatives indirectly boost financial results through reputation building, particularly in markets where consumers value sustainability.