Environmental Cost Accounting Practices of Restaurants

Restaurants in Urdaneta City, Pangasinan, face challenges in adopting sustainable business practices due to limited awareness and inconsistent application of Environmental Cost Accounting (ECA) methods, which affects waste disposal, utilities, and emissions management. This research examines the ECA practices of small and medium-sized restaurants in selected barangays, specifically San Vicente, Nancayasan, Anonas, Cayambanan, Camantiles, and Santo Domingo. A descriptive quantitative research design was employed, involving 30 registered restaurant establishments. The respondents consisted of restaurant owners or supervisors who could provide accurate insights regarding the restaurant’s operations and environmental cost accounting practices. Data were collected and analyzed to determine the level of ECA implementation across three indicators: waste disposal, utilities management, and emissions control. Statistical analysis was used to assess the relationship between the business profile of respondents and their ECA practices. Findings revealed that most restaurants have been operating for less than six years, employ fewer than ten workers, and moderately implement environmental cost accounting procedures. Among the three indicators, waste disposal had the highest level of practice, followed by emissions control and utilities management. Results indicate no significant relationship between the business profile and ECA practices, suggesting that managerial commitment plays a more critical role in sustainability adoption. Based on these findings, a promotional material in the form of a brochure was developed as a community extension output to raise awareness and promote ECA among restaurant owners and employees. The study concludes that ECA contributes to environmental protection and enhances long-term operational efficiency and business competitiveness.