Action stations

Amid the unprecedented challenges of recent years – a time not just of sudden crisis but of multiple concurrent crises – a reset is needed if sustainable economic growth is to be achieved. As well as rising geopolitical tensions, there are growing concerns around issues such as access to natural resources and the impact of climate change.

That was the view of a panel of accounting professionals from across Europe who came together virtually for a ‘Big Conversation’ that addressed the theme of accounting for a better world.

The Big Conversation is an ACCA initiative designed to stimulate discussion and the exchange of ideas and solutions, and to inspire action. In the March event, participants – from practices and industry sectors across Europe – were united in the belief that accountants are uniquely placed to make the positive impact needed to successfully tackle the major issues the world is facing.

There was also a consensus that the accounting sector has the skills and knowledge not only to support businesses and economies on the journey to sustainability and resilience but also to be a positive influence more broadly. Accountants are, it was concluded, value creators and ‘data officers’ who ‘understand the mega trends, the policymakers and the end consumer’.

Anti-misinformation

Participants pointed out that how businesses and individuals think about sustainability and resilience has changed over the past decade or so. We have moved from the pre-financial crisis concept of certain institutions being ‘too big to fail’ to recognising that all organisations and indeed countries are vulnerable to seismic shocks. There is growing recognition, too, of how business and investment decisions are being taken with a focus on wider outcomes than simply financial returns.

In this new environment, the threat posed by misinformation is as serious at the economic level as it is for politics and society generally, participants warned. An effective response will require investment in technology, cybersecurity and training, and professional bodies such as ACCA have an important role in ensuring tools such as AI are used with critical and professional judgment.

Stewards of enterprise

A recurring theme of this Big Conversation was the privileged position held by accountants as ‘strategic and enterprise stewards’. One current example is the role of practitioners in steering SMEs beyond their current post-Covid difficulties to meet the impending challenge of net-zero carbon emissions. With governments committing in law to net zero, and big business buying into the vision, SMEs will soon need to show they too are taking decisive action on meeting environmental targets. It is a move that accountants are well placed to support, with participants highlighting the ‘accountant’s superpower’ of being able to read the numbers and translate them into actions.

Beyond the comfort zone

The coming years will see greater requirements for transparency in reporting and for clearer information on business behaviour. Accountants will play a critical role in delivering this, allowing people to make more informed decisions on who they are buying from, working with and investing in.

By combining leadership by example with their strong ethical training, accountants can give organisations ‘permission’ to do things differently and move on from the ‘profit at any cost’ model to a ‘business as a force for good’ approach. Achieving this will require the profession to move out of its comfort zone and take a leap into uncharted waters.

Wrapping up this Big Conversation, ACCA Ireland chair Stephen Doyle concluded that accountants must ‘continue to be ethical champions, to always ensure they are transparent and to position our organisations to take risks and do the right thing. If we do this, we will continue to be key business partners who add value to our organisations.’