Abstract

This study aims to evaluate the efficiency and effectiveness of the environmental management implementation in the organization. The assessment of efficiency and effectiveness is conducted by comparing the eco-costs as the external costs to the cost that has been allocated from the organization to manage the environment related to ecology. This study took the case in a company that produces sugar. The eco-cost is obtained by the Life Cycle Assessment (LCA) approach which is based on the tables in www.ecocostsvalue.com. Using the approach of Environment Management Accounting (EMA) and the environmental costs from Hansen and Mowen (2000), which are the company's internal costs, is classified into prevention costs and compensation costs. The results of this study indicate that the eco-costs arising from the activity of sugar production is greater than a prevention costs and compensation costs. This condition shows the hidden costs that have not realized by a company.