Environmental Cost Accounting in MBA Programs: A Curriculum Reform Framework for Sustainable Business Education

Abstract

Environmental Cost Accounting (ECA) has emerged as a strategic approach to measuring, allocating, and reporting environmental expenses within corporate financial systems. With sustainability becoming integral to global business practices, MBA programs must incorporate ECA to prepare future managers for environmentally responsible decision-making. Despite increasing policy emphasis, ECA remains marginal in most business schools, often limited to modules in corporate social responsibility (CSR) or sustainability electives. This paper examines the integration of ECA into MBA curricula through interdisciplinary learning models, technology-driven cost assessment, and competency-aligned pedagogies. A conceptual structure, titled the "Sustainability-Integrated Cost Competency Framework (SICCF)," is proposed to align environmental cost measures with managerial, financial, and strategic learning outcomes. The paper concludes with policy recommendations for accreditation bodies and business institutions.