Unveiling the Tension between Profit Orientation and Sustainability Commitments in Management Accounting Practices
DOI:
https://doi.org/10.59890/ijmbi.v4i5.62Keywords:
Management Accounting, Profit Orientation, Sustainability Commitment, Organizational Tension, Sustainability AccountingAbstract
Management accounting increasingly faces the challenge of reconciling short-term profitability with long-term sustainability commitments. This study examines how profit orientation and sustainability commitments create tensions within management accounting practices and how organizations manage these competing priorities. A qualitative exploratory case study was conducted involving 18 managers, management accountants, and sustainability-related personnel selected purposively. Data were collected through semi-structured interviews and organizational document analysis and analyzed using thematic analysis. The findings reveal that profit targets often dominate budgeting, performance evaluation, and investment decisions, while sustainability initiatives gain support when linked to measurable economic benefits. Organizations address these tensions through integrated performance indicators, cross-functional coordination, and long-term evaluation frameworks. The study contributes to management accounting by demonstrating how accounting practices can mediate competing financial and sustainability objectives.
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