Accountants can help advance social equity, says report

Accounting and finance professionals have a role to play in building a more sustainable future and addressing social injustice, according to a new report.

The report, released Tuesday by the Association of Chartered Certified Accountants, is based on feedback from more than 75 finance professionals from around the world. The main messages of the report are that the future of the accounting and finance profession should embrace sustainability, including a social agenda that balances social equity with environmental action.

"The social agenda is broad and complex and its constituents are often difficult to measure, but this does not excuse a lack of action," said the report. "It is important not to stand by on these issues; there is a strong business imperative for action now and this agenda needs to be embedded into the view of strategy and performance."

Organizations should transition to a sustainable future that embraces a combination of economic, environmental and social aspects, according to the report. Society faces long-term challenges from social injustice, according to the ACCA, with stakeholders and regulators focusing more on the social implications of organizations' actions, so defining and measuring the return to society from an organization's activities is becoming as important as the financial objectives themselves.

"The social agenda is a broad one and requires organizations to act now," said ACCA chief executive Helen Brand in a statement. "Without the valued and proactive input of the accountancy and finance profession, the goal of reaching sustainability for all organizations will be unattainable. The profession has an opportunity to play its full part in enabling the just transition, not least the social aspect — one that it cannot afford to shirk."

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Having a social agenda at the core of the accounting profession could make it more attractive to young accountants while driving the profession toward a more sustainable future.

"Whilst the emphasis for many organizations may have become focused on the environmental aspects of a just transition, it is important to ensure that nobody is left behind," stated ACCA senior insights manager Clive Webb, who wrote the report. "The social agenda is a vital element of the transition and whilst it may present challenges in readily measuring progress this cannot be an excuse for a lack of action.  Accountancy and finance professionals need to be at the forefront on ensuring that their organizations measure and report performance in this area if we are to be a just society."