Abstract: One of Corporate social responsibilities to the environment is by disclosure environmental information as a result of industrial activities or their business. It covers a clear figure of a company to combine cost and environmental benefits in economic decision making reflected in the implementation of green accounting. The purpose of this study is to establish indicators and constructs of green accounting by identifying environmental activities grouped into the green support, appraisal, internal and external failure activities. The population is manufacturing companies in the Central Java province which is administered by purposive sampling technique. It is obtained a sample of 40 companies. Then, the data are analyzed by using factor analysis in order to establish and construct appropriate indicators for green accounting. The findings show that green accounting has four constructs or variables with the respective indicator as follows: First, Green Internal Failure Activity (GIFA) construct with indicators of product design activities (product change orders), product improvement activities (saturated consumer products), product improvement activities (customers switch to a competitor's product), selection activity and supplier evaluation. Second, Green External Failure Activity (GEFA) construct with indicators of the activity of the defective product packaging orders, decrease in sales control activities because of out of reach area, the the decline in sales activity due to the in-optimal promotion product. Third, the Green Appraisal Activity (GAA) construct with indicators of product repair activity as product demand has decreased and product control activity of customers’ dissatisfaction due to product orders rising prices. Fourth, Green Support Activity (GSA) construct with indicators of product packaging activity to control damage orders, control activities in sales decline due to higher product prices to market prices.

Key words: green accounting, activity, environment, indicators, constructs