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

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, S eiton, Seiso, Seiketsu, and Shitsuke mean Tidiness, Order liness, Cleanliness, Standardiza tion, 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.