Environment is not a permanent asset. Rapid industrialization, in spite of its positive effect on economic development has very seriously threatened the world‘s natural environmental balance. It has been viewed that gross domestic product (GDP) does not involve the environment and therefore policymakers are looking for a new and revised model that involves green accounting. Green accounting can be used as a tool to reduce environmental costs by proper decision making and also by implementing greener technologies. It is also important for company/industries to implement green accounting and to keep a track on what they are receiving from the environment and what they are giving back in return. This would help in the efficient use of resources and it would also help in conservation of environment to some extent. Green accounting plays a major role in the corporate social responsibility (CSR) of a firm. The organizations must take initiative to implement green accounting and the government must take strict action if the environmental norms are not followed and also penalties must be imposed for it. The present study is based on analysis of secondary data.

Keywords: Green Accounting, Corporate Social Responsibility (CSR), Gross Domestic Product (GDP).