Environmental Accounting Disclosure and Corporate Reputation Among Oil and Gas Companies Operating in Southeast Nigeria

Environmental degradation attributable to oil and gas operations in Southeast Nigeria has amplified societal demands for transparent environmental accounting disclosures, yet the relationship between such disclosures and corporate reputation in this regional context has not been adequately examined. This study investigated the effect of environmental accounting disclosures on the corporate reputation of oil and gas companies operating in Southeast Nigeria, with emphasis on firms with community relations activities in Anambra and neighboring states. The study was grounded in legitimacy theory, which argues that corporations disclose environmental information to align their operations with societal norms and preserve their social license to operate. A survey research design was adopted, with a population comprising 260 community leaders, regulatory officers, and shareholders of the selected firms. A sample of 157 was drawn using purposive and snowball sampling techniques. Data were collected through structured questionnaires and analyzed using multiple regression analysis. Findings revealed that environmental cost disclosures and remediation expenditure reporting positively and significantly influenced perceived corporate reputation among community stakeholders. The study concluded that transparent environmental accounting strengthens the social legitimacy of oil and gas firms, particularly in communities directly affected by their operations. It was recommended that the Department of Petroleum Resources should mandate environmental cost accounting and annual community impact reports as conditions for operating licenses.

Keywords: Environmental accounting, corporate reputation, oil and gas, legitimacy theory, environmental disclosure