JIMMA UNIVERSITY

COLLEGE OF BUSINESS & ECONOMICS

DEPARTMENT OF MANAGEMENT
Master of Business Administration (MBA)

Program: Master of Business Administration (MBA)

Year 1: Semester: 1
Course Title: Accounting for Managers (AM)

Journal of Environmental Accounting and Management Blue Management Accounting:

Water Footprint, Cost, Efficiency, and Internal Control at WKP Corporation
Headquarters

Student Name ID. No

1. Aaaaaa ………….……………..…....……….…….

Submitted to: xxxxxx (PhD)

April 2, 2024
Jimma, Ethiopia

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1. Summary of the article
i. The main objective of the article;
The article aims to provide Journal of Environmental Accounting and Management Blue
Management Accounting: Water Footprint, Cost, Efficiency, and Internal Control at WKP
Corporation Headquarters

ii. Specific objectives of the article;

Specific objectives of the article are;

 The article aims to analyze the application of Blue Management Accounting (BMA) at
WKP Corporation Headquarters in Indonesia.

 The study assesses the water footprint, cost, efficiency, savings, and internal controls at
WKP Corporation Headquarters.

 The article also aims to identify and assess significant changes to the water internal
control system and select and develop water control activities for the achievement of
objectives.

 The study aims to contribute to the understanding of the significance of existing water
management systems and their implementation in multiple organizations for protecting
water resources.

iii. Data Type and Sources Used

The study utilizes both qualitative and quantitative research approaches to assess the water
footprint, cost, efficiency, savings, and internal controls at WKP Corporation Headquarters in
Indonesia. Primary data for water footprint, water savings, and internal water control were
obtained through interviews with involved parties and direct observations in the office.
Secondary data for water cost and water efficiency were obtained through data recapitulation of
water bill payments. The study also references previous research and studies on water
management, water crisis, and the impact of the COVID-19 pandemic on water usage and
aquatic life in Riau Province, Indonesia.

The study uses statistical tests, such as the Mann-Whitney test, to analyze differences in water
usage and costs before and during the COVID-19 pandemic.

iv. Method of data analysis

The study utilizes a qualitative and quantitative research approach to analyze the application of
Blue Management Accounting (BMA) at WKP Corporation Headquarters in Indonesia.

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Qualitative data is obtained through interviews with involved parties and direct observations in
the office, while secondary data is used for calculations and analysis.
Statistical tests, such as the Mann-Whitney test, are used to analyze differences in water usage
and costs before and during the COVID-19 pandemic. The study also applies a binomial test to
assess the effectiveness of water-saving activities in the company.
Data analysis includes measuring water footprint, cost, efficiency, savings, and internal water
control.
v. Findings ,Conclusions and Recommendations:

Findings:

The water footprint at WKP Corporation Headquarters is in accordance with the standard of
healthy living. The water cost is reasonable, and water efficiency is almost achievable and
maintained by the company. However, water savings have not been running well, and internal
water control has not worked effectively. There has been an increase in water use since the
COVID-19 pandemic entered Riau Province.

Conclusions:

The overall implementation of Blue Management Accounting (BMA) at WKP Corporation

Headquarters has not been completely fulfilled, but efforts have been made to improve water
efficiency. Tighter internal controls, especially on the monitoring element, are recommended to
mitigate risks.

Recommendations:

Maintain efficient use of water as it is directly related to costs. Implement tighter internal
controls, especially on the monitoring element, to address any potential risks. Explore alternative
options and measures to preserve water resources and minimize usage. Future research can focus
on analyzing water use and scarcity issues on an industrial scale to provide more tangible
benefits to the industry.

2. What are the theories/concepts discussed in the paper and how do they compare?
Blue Management Accounting (BMA): The paper focuses on the application of BMA at WKP
Corporation Headquarters to analyze water footprint, cost, efficiency, savings, and internal
controls. Water Footprint: The study measures the volume of freshwater consumed directly and
indirectly in the production process, including blue, green, and gray components.

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Water Efficiency: The paper assesses the efficiency of water use at WKP Corporation
Headquarters, aiming to achieve more benefits with fewer resources. Internal Controls: The
study highlights the importance of tighter internal controls, especially in the monitoring element,
to mitigate risks and improve water management. Water Scarcity: The paper acknowledges the
significance of proper water management to avoid water scarcity, which is a global issue
affecting human and ecological demands for freshwater

3. If the author argues supporting/rejecting a theory, what are her/his reasons and how
valid are the reasons?
The researcher supports the following theories:

These theories are supported based on the analysis and findings of the study conducted at WKP
Corporation Headquarters, providing insights into the application of BMA and the importance of
efficient water management. The research also acknowledges the global significance of water
scarcity and the need for sustainable water practices in line with international goals.

4. How well are conclusions of the article aligned with the findings of the study?
The conclusions of the article are largely aligned with the findings of the study at WKP
Corporation Headquarters in Indonesia.

The study found that the water footprint at WKP Corporation is in accordance with the standard
of healthy living, the water cost is reasonable, and water efficiency is almost achievable and
maintained by the company. However, the study also identified that water savings have not been
running well and internal water control has not been effective.

The conclusions of the article reflect these findings by recommending that the company should
maintain water use efficiency, implement tighter internal controls, and explore measures to
preserve water resources. The article also suggests that future research should analyze water use
and scarcity on an industrial scale to provide more tangible benefits to the industry.

5. What exactly does the work contribute and relate to the overall topic of your course?
Relevance to the overall topic of the course:

The study aligns with the overall topic of the course by focusing on water management,
sustainability, and the application of accounting principles in addressing water-related
challenges. It provides practical insights into the implementation of Blue Management
Accounting (BMA) as a framework for water management, which can be relevant to courses on
environmental accounting, sustainability, and resource management. The study also highlights

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the importance of considering water efficiency, cost, and internal controls in organizations,
which can be applicable to courses on corporate sustainability, risk management, and operations
management.

6. In your opinion, what were the strengths and weaknesses of the paper?

Strengths of the paper:

 The paper utilizes both qualitative and quantitative research approaches to assess water
footprint, cost, efficiency, savings, and internal controls at WKP Corporation
Headquarters.

 It provides insights into the application of Blue Management Accounting (BMA) in water
management, highlighting the importance of water efficiency and cost control.

 The study identifies the impact of the COVID-19 pandemic on water use and emphasizes
the need for tighter internal controls and efficient water use.

 It contributes to the understanding of water scarcity and the significance of sustainable

water management in achieving the Sustainable Development Goals.

 The research addresses a literature gap by analyzing the significance of existing water
management systems and their implementation in organizations.

Weaknesses of the paper:

 The study acknowledges that the implementation of BMA at WKP Corporation

Headquarters has not been completely fulfilled, indicating that there are areas for
improvement.

 The paper does not provide a detailed analysis of the specific challenges faced by WKP
Corporation in water management, such as the reasons behind the lack of water savings
and ineffective internal water control.

 The research does not explore the potential solutions or strategies that can be
implemented to improve water efficiency and internal controls at WKP Corporation.

 The study focuses on a single case study at WKP Corporation Headquarters, limiting the
generalizability of the findings to other organizations or contexts.