Accounting body canvasses laws for sustainable economy
The Association of Chartered Certified Accountants (ACCA) has called for clear and effective business laws to build a sustainable economy.
The body said the laws would depend heavily on being able to measure the trustworthiness and integrity of businesses and individuals.
In a report published to mark Global Ethics Day celebrated every October 21, ACCA said the laws that govern businesses need to enable and highlight trustworthy activity in order to support sustainable economic recovery.
The report explained that new ways of doing business would rely more heavily on winning the trust of partners and customers.
Increasingly, it said, it would be possible to track the ethics of companies and individuals as part of the decision-making process of whether to trust them, adding that the character of the company could be revealed through attitudes towards human rights, the environment, and tax planning.
Head of tax and business law for ACCA, and author of the report “Tenets of Business Law: A Framework for the Future”, Jason Piper, said economies are experiencing the threat of economic depression with existential threats to critical sectors.
He said the challenges and opportunities facing policymakers and entrepreneurs alike are almost entirely novel, maintaining that the success of responses to them would depend on timeless concepts and most importantly, integrity.
According to him, “Shared values of integrity are all well and good, but in the online world of digital transactions, how can we measure trustworthiness? We need common frameworks and standards against which trustworthiness can be assessed.”
He said assessing companies needed to be viewed through a wider lens and broader criteria encompassing more than just reporting financial data.
“ACCA believes that lawmakers should formulate a framework in which business success makes a net positive contribution to society’s prosperity. To be a sustainable organisation means being committed to minimising environmental impact whilst putting social justice and social responsibility at the heart of the strategy,” the report said.
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