財智重塑社會價值

ACCOUNTINGFORSOCIETY'SVALUES

AboutACCA

ACCA(theAssociationofCharteredCertifiedAccountants)istheglobal

professionalbodyforprofessionalaccountants.

We’reathrivingglobalcommunityof241,000membersand542,000future

membersbasedin178countriesandregions,whoworkacrossawiderangeof

sectorsandindustries.Weupholdthehighestprofessionalandethicalvalues.

Weoffereveryoneeverywheretheopportunitytoexperiencearewarding

careerinaccountancy,financeandmanagement.Ourqualificationsandlearning

opportunitiesdevelopstrategicbusinessleaders,forward-thinkingprofessionals

withthefinancial,businessanddigitalexpertiseessentialforthecreationof

sustainableorganisationsandflourishingsocieties.

Since1904,beingaforceforpublicgoodhasbeenembeddedin

ourpurpose

.

InDecember2020,wemadecommitmentstothe

UNSustainableDevelopment

Goals

whichwearemeasuringandwillreportoninourannualintegratedreport.

Webelievethataccountancyisacornerstoneprofessionofsocietyandisvital

helpingeconomies,organisationsandindividualstogrowandprosper.Itdoes

thisbycreatingrobusttrustedfinancialandbusinessmanagement,combating

corruption,ensuringorganisationsaremanagedethically,drivingsustainability,

andprovidingrewardingcareeropportunities.

Andthroughourcutting-edgeresearch,weleadtheprofessionbyanswering

today’squestionsandpreparingforthefuture.We’reanot-for-profitorganisation.

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Copyright?June2023bytheAssociationofCharteredCertifiedAccountants(ACCA).

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Aboutthisreport

Theroleoftheaccountancyandfinanceprofessionischanging,

asregulatorsandotherstakeholdersseekincreasingamounts

ofinformationfromorganisationsonhowtheyareaddressing

oneofthekeyrisksthatallentitiesface:thattheirfuturewillbe

unsustainable.Thisreportconsidersthesocialcomponentof

thesustainabilityagenda.Itisacomponentthatisverybroad,

andatpresentnotverywelldefined.Yetforallorganisationsitis

crucialtotheirfutureasasustainablefutureisacombinationof

theenvironmentalandsocialissues.

Thereportgivesvoicetotheviewsandperspectivesofthe

approximately75membersandstakeholdersintheACCA

communitywhohavegiventheirtimetoexploretheirideas

andpassionsinthisarea.Itisboththeirstoryandoneaspectof

thecollectivefutureoftheprofession.Insodoingitconsiders

thenatureofthesocialagendaandhowthisimpactsboththe

accountantinbusinessandinpractice.

4

Foreword

HelenBrandOBE

chiefexecutive,ACCA

Intheconversationaboutcreatingsustainableorganisations,thefocusisoftendrawntowardstheenvironmentalaspects.Theworldfacesseveralsignificantchallenges.Globalwarmingwillonlybeaddressedthroughactionandthatactionmustcomefromorganisationsaswellasindividuals.

Thatisonlyaportionofthestory.Thesocialaspectofajustsociety,whichrespectstheindividual,ensuringaccesstoalivingwage,healthcareasneeded,andfreedomtoact,isanecessityifwearetoattainajusttransition.Thesocialagenda,asissetoutinthisreport,isabroadoneandrequiresorganisationstoactnow.Withtheproblemsoftheglobaleconomyintheearly2020sthispresentschallenges.

Fromitsfoundationin1904,ACCAhasfocusedontheneedforajustandequitablesociety.Thequalificationwasestablishedtogiveaccesstoall.Thisisakeyelementoftheaccountancyandfinanceprofession:onethatiscontinuedtodayinACCA’scorevalueofinclusion.Theaccountancyandfinanceprofessionhasanopportunitytoplayitsfullpartinenablingthejusttransition,notleastthesocialaspect–onethatitcannotaffordtoshirk.

ThroughthecontinuingeducationprogrammesthatACCAoffers,wecontinuetoencourageourmembersandfuturememberstomaintaintheirrelevance.Withoutthevaluedandproactiveinputoftheaccountancyandfinanceprofession,thegoalofreachingsustainabilityforallorganisationswillbeunattainable.Itisfortheprofessiontomaketherightdecisions.

5

Contents

Executivesummary6

Amodelofthesocialagenda9

Benefitsandperceivedrisks12

Actionsforfinanceteamsandthoseworkingwiththem15

1.Thesocialagenda

16

1.1Asustainableworld

16

1.2SustainabilityandESG–thedifference

17

1.3Definingthesocialagenda

18

1.4‘Goodjobs’

21

1.5Linktoorganisationalpurposeandvalues

22

1.6Thedevelopmentofthesocialagenda

23

1.7Sociallicencetooperate

26

1.8Anewwayofthinking

27

2.Theimpactoftheagenda

29

2.1Societychanges

29

2.2Along-termstory,notjustashort-termgain

31

2.3Inside-outoroutside-in?

31

2.4Creatinglong-termsustainablevalue

31

2.5Theroleoftheinvestmentcommunity

33

2.5.1ESGratings

33

2.5.2Agenerationalissue?

33

3Theroleoftheaccountancyandfinanceprofession36

3.1Purposeandvalue–creatingsustainableprosperity36

3.2Developingthestrategy

38

3.2.1Roleofstrategy

38

3.2.2Appraisinginvestments

39

3.2.3Organisationalcultureiskey

39

3.2.4Absenceof‘social’instrategy

39

3.3Performancemanagement

40

3.3.1Thebalancedscorecard–internalreporting40

3.3.2Financingtheorganisation

40

3.3.3Riskmanagementandgovernance

40

3.4Externalreporting

41

3.4.1Overview

41

3.4.2Facingthechallenges

42

3.4.3MandatoryHRduediligence

43

4.Opportunitiesexist

44

4.1Ourroleforthetaking

46

4.2Movingtheagendaforwards

47

4.3Aquestionofattractiveness?

47

4.4Ethicsandthesocialagenda

47

Conclusion

48

Glossary

49

Appendix1–theprotocolsanddeclarations

51

Appendix2–thestandardsandguidance

54

Bibliography

56

Acknowledgements

57

References

58

ACCOUNTINGFORSOCIETY’SVALUES|EXECUTIVESUMMARY

6

Executivesummary

Threekeymessagesfromthisreport

.Thefutureoftheaccountancyandfinanceprofessionisonethatembracessustainability,includingthe

socialagenda,inajusttransitionwhichbalancessocialequitywithenvironmentalaction.

.Thesocialagendaisbroadandcomplexandits

constituentsareoftendifficulttomeasure,butthisdoesnotexcusealackofaction.

.Itisimportantnottostandbyontheseissues;thereisastrongbusinessimperativeforactionnowandthisagendaneedstobeembeddedintotheviewofstrategyandperformance.

FIGUREES1:Thethreedomainsofsustainability–thetriplebottomline

equity

Economic

viability

Sustainability

Environmentalprotection

Social

‘Humanity’swelfare–andindeed,humanity’sveryfuture

–dependonsolidarityandworkingtogetherasaglobal

familytoachievecommongoals.Forpeople,fortheplanet,

forprosperityandforpeace’,sowrotetheUNSecretary

GeneralinhisreportOurCommonAgenda(Guterres2020).

Theearly2020sareoftenreferredtoasa‘polycrisis’as

organisationshavestruggledwithmultiplechallengesfrom

aglobalpandemictogeopoliticaltensionsandinflationary

pressures.Eachofthesehashighlightedasocialimpact

fromdeclininglivingstandardsinboththedevelopedand

developingworlds.Yettheshort-termcrisesareonlypartof

thestory.Therearelongertermchallengesforsocietyfrom

climatechangeandsocialinjustice.Organisationsneedto

transitiontoasustainablefuture,onethatembracesthe

economic,environmentalandsocialaspectsincombination

(see

Chapter1

and

section2.4

).

A‘justtransition’whichdefinesthejourneytoasustainable

futurecomprisesthreeinterlinkedcomponents(FigureES1).

Asorganisationsandfinanceandaccountancyprofessionals,

wearecomfortablediscussingeconomicviability;weare

becomingmorecomfortablewithenvironmentalprotection

(althoughthereisstillprogresstobemadeinmanyareas

iftheworldistomeetthetargetssetintheParisClimate

Agreement).Arewe,eitherasindividualsorcollectively,

comfortablewiththethirddimension:thatofsocialequity?

Thepandemichas,formany,highlightedtheimportance

ofthesocialelementsofthisdiscussion.Buthavewetruly

embeddedthisinthecultureofourorganisations,ofour

supplychains,andofsocietyasawhole?

Accountancyandfinanceprofessionalsareattheforefront

ofthetransitiontoasustainablefuture.Notonlyfrom

leadingactivitiesintheirorganisations,butalsothrough

reportingontheseactivitiestothirdpartiesthereby

‘Humantouchpointsarehumancapital,

whichforme[meansthat]anythinginthat

realmthataffectspeoplereallyshouldbe

consideredunderthesocialagenda’.

IntervieweefromtheMiddleEast

ACCOUNTINGFORSOCIETY’SVALUES|EXECUTIVESUMMARY

7

Socialprotectionandlegalrights

Lifelonglearning

Lifestylechoices

FIGUREES2:Elementsinmanagingthesocialagenda

Healthandwell-being

Workforce

Livingwage

Circulareconomy

Customers

Sustainableorganisations

Consumerprotection

Dataprotection

Foodandwater

Disclosure

Performancemanagement

Respectforrights

Communities

Reporting

Corruption

Digitaldivide

Trustinsociety

Equitabletax

instillingaconfidenceintheprogressionthatissoughtbyregulatorsandotherstakeholders.Thisisabalance

betweenthreeactivitiesoffinanceteamsandprovidesacontextforthosewhoattesttheirassertions(FigureES2).

Thisincreasedfocusincludesnotonlytheenvironment

aspects,butalsothejourneytowardssocialequality.For

manyorganisationsthisconversationhasdevelopedaroundtheenvironmental,socialandgovernance(ESG)definition(see

section1.2

).Whilstthisplacesafocusontheefficiencyofthecapitalmarkets,throughratingsanddisclosure,itisonlypartofthejourneytosocialjustice.Thebroaderstoryisoneofsustainabilityandajusttransitionthatincludes

afairandequitabletreatmentofthoseindividualsacross

thevaluechain.Asaccountancyandfinanceprofessionalswecannotaffordtothinknarrowly–thefutureofour

organisationsandindeedofoursocietydependsuponthebroaderview.Afailuretograspthispremisewillmarginalisethecontributionthattheprofessionshouldmaketoajusttransitiontoasustainablefuture.

Thekeypremiseinthedevelopmentofanequitablesocietyistheprovisionof‘goodjobs’.Asexplainedin

section1.4

agoodjobisonethatprovidesbothfinancialandemotionalrewardstotheindividualandtherebytotheorganisationsaswell.Accountancyandfinanceprofessionalsareatthe

forefrontofbudgetingandcostingdecisionsthatimpactthewagesandbenefitsofemployeesandthoseinthe

valuechain.Understandingtheseimpactsandhowsocietyisimpactedareimportant.Fororganisationsexistnotonlyforthebenefitoftheirimmediateemployees,buttheyarealsopartofacommunity.Howthatsocialagendaisdrivenacrossthecommunityisimportant.

Thecommunityisoneaspectinthemodeloffactorsinthesocialagendathatunderpinsthediscussioninthisreport.Thesocialagendaisbroaderthansimplytheimplicationsforthedirectemployees(see

section1.3

),italsoembracesthoseinthevaluechainandtheimpactuponcustomersaswell.

Thepreciserelevanceofeachcomponentinthismodel

(FigureES3andanoverviewisprovidedin

TableES1

)willdependupontheorganisationanditsvaluechain.Indeed,thesocialagendaishighlycontextualisedbythelocationoftheorganisationanditsculture.Differentcircumstancesareatdifferentstartingpointsandcontextisallimportant.Eachofthesecomponentshasitsownplaceintheagenda.Eachrequiresafocusandastrategy.

Thisdifferingcontextisoneofthekeychallengeswhen

organisationsaddressreportingrequirements.TheUN

GuidingPrinciplesonBusinessandHumanRightswere

publishedin2011(see

section1.3

).Theseprovidea

basisforinteractionatthegovernment,organisationand

individuallevel.InturnthisprovidesthebasisforactivitiessuchasmandatoryHumanRightsDueDiligencewhichhasbeenimplementedunderGermanlawfrom2023forcertainentities.Manyoftheprinciplesarealsocarriedthrough

FIGUREES3:Amodelofthesocialagenda

Diversityandnon-discrimination

Strategy

Safeworkingenvironment

Valuechain

Well-being

Livingwage

Animalwelfare

Humanand

legalrights

Qualityproductsandservices

Equalityofwealth

ACCOUNTINGFORSOCIETY’SVALUES|EXECUTIVESUMMARY

8

Ourroleforthetaking

Attractiveness

Ethics

Threekeyreasonswhythismatterstoaccountancyandfinanceprofessionals

.Sustainableorganisationsarethosewitha

combinationofeconomic,socialandenvironmentalobjectivesinbalance,andareessentialforourfuture.

.Stakeholdersandregulatorsarefocusingonthesocialimplicationsoftheactionsoforganisationsandsomustwe.

.Performance-managementprocessesneedto

reflectthestrategicgoalsoforganisations,and

financeteamsneedtoembracethis;withoutthis

rigour,togetherwithexternalassuranceobligationsinreviewingcontrolsoverperformance,trustwill

dissipateifwefailtoensureajusttransition.

intothesocialelementsofthedraftEuropeanSustainabilityReportingStandards(ESRS).Thedevelopmentofaglobalstandardmaybeworkinprogress,butachievingastandardthatreflectsthediversitywithinsocietyacrosstheplanetisachallengethatregulatorsneedtofaceupto.

Whetheryouconsiderthatreportingdrivesaction,or

strategyencouragesreporting,asfinanceprofessionalsthereisanurgentneedtoembracethesetwoaspects,togetherwiththeintegrationintoperformancemanagement,oftheaspectsofthesocialagendaintoourwork(see

Chapter3

).Itmaynolongerbeappropriatetomeasureperformance

solelyinfinancialterms.Theconceptofvalueandvalue-basedaccountingresonatesstronglyacrossthisagenda.Embracingthesoftermeasureanddefiningperformanceinamannerthatreflectsajusttransitionwhichincludessocialequityareimportantforthefutureoffinance.

Formanyofthosewhocontributedtothisreport,havingthesocialagendaatthecoreoftheprofessionisasmuchaboutitsownfutureandattractiveness,asitisabout

drivingtowardsasustainablefuture(asdiscussedin

Chapter4

).Whenthemusicstopsthechieffinancial

officercannotjustbetheperson‘leftholdingtheissue’

andleadingthenecessaryactionsbydefaultasnoother

C-suiteexecutiveconsidersitaspartoftheirrole;rather

theyneedtoberesponsibleforitand,inmanyinstances,

accountabletoo.

Theopportunity(FigureES4)fortheprofessionistotake

aleadingroleindrivingthenecessarychangeandensure

thattheagendamovesforward.Itisnotsayingthat

theexpectationisthatfinanceprofessionalsarehuman

resourceexperts,ratherthanastrategicviewistakenand

thatsocialinjusticeisaddressedaspartofthestrategic

directionoforganisations.Inthissensetheagendaisbeing

movedforwards,issuesarebeingaddressedandamore

equitableandsustainablesocietyisbeingbuilt.Theethical

lensoftheprofessionisanimportantelementastrustand

transparencyindisclosuresandactionsareessential.

Theaccountancyandfinanceprofessionstandsforajust

transition.Onethatnotonlyaddressestheenvironmental

aspectsbutalsoworkstoajustandequitablesociety.

The‘S’standsprincipallyforsociety–thesocietythatwe

wishtolivein,notjustthesocialaspects.Sometimesthe

choicesthatunderpinthisarehard,butitisimportantnot

toshyawayfromthem.

FIGUREES4:Anopportunityforthe

Movingthe

agendaforward

profession

THEOPPORTUNITYFOR

THEPROFESSIONISTO

TAKEALEADINGROLEIN

DRIVINGTHENECESSARY

CHANGEANDENSURE

THATTHEAGENDA

MOVESFORWARD.

ACCOUNTINGFORSOCIETY’SVALUES|AMODELOFTHESOCIALAGENDA

9

Amodelofthesocialagenda

TableES1providesanoverviewofthetermsdefinedinthemodelin

FigureES3

.Itshouldbenotedthatthecomponentsareofteninterconnectedbothwithinandacrosscategories.Suggestionsofmechanismsformeasurementwillneedtobeadaptedtotheindividualcircumstancesofanyorganisation.Notallthecategorieswillapplyinequalmeasuretoallorganisations,buttheymaybeusedasaninitialassessmenttooltoestablishriskandlikelihoodofimpact.

Severalspecifictermsusedinthistablearedefinedinthe

Glossary

.

TABLEES1:Amodelofthesocialagenda

COMPONENTDESCRIPTION

WORKFORCE

Thiscomponentconsidersthosesocialissuesrelatedtotheworkforceitself,includingcontractedemployees.

Diversity

andnon-

discrimination

Ensuringthattheorganisationembracesdiversity,equality,equityandinclusionaspartofitscultureandpolicies.Embeddingtherelevantprinciplesinpoliciesandprocedures.Elementsofthiscanbemeasuredthroughmetricssuchasgenderandethnicpayratiosandthroughemployeesatisfactionprogrammes.

Elementsoftherightsofindigenouspeoplecanbeincludedinthiscategory.

Livingwage

Ensuringthatallemployeesarepaidalivingwageascalculatedbyreferencetothelocationinwhichtheywork.Thiscanbemeasuredbyfirstunderstandingthevalidityofthecalculationofthelivingwageandthenitcanbemeasuredthroughthepercentageofemployeesthatarepaidalivingwage.

Lifestylechoices

Ensuringthatemployeeshaveaccesstoflexibleworkingpatternsandemployeebenefitsthatsupporttheeconomicgrowthandprotectionofthefamily.Measurementofthismaybeindirectthroughemployeesatisfactionprogrammes.

Lifelonglearning

Ensuringthatallemployees,irrespectiveofposition,haveaccesstorelevant,appropriateandtimelydevelopmentopportunities.Ensuringthattheorganisationsupportsalearningculture.Measurementofthismaybeindirect,throughemployeesatisfactionprogrammes.

Incertaininstances,theprovisionofeducationtothefamiliesofemployeesfrominfancy,wherethisisnotprovidedbytherelevantstate,mayalsobeincludedhere.

Socialprotectionandlegalrights

Ensuringthattheorganisationprotectsemployeerights,hasproperdisciplinaryproceduresandcomplieswithallrelevantlegislation.Ensuringthattheseareincludedinrelevantpoliciesandprocedures.Italsoincludestherightstorepresentationandstatutorybenefits.Slavery,childandforcedlabourlegislation

isalsoincludedinthiscategory.

Measurementofthismaybethroughestablishingeffectivecompliancemonitoring.

Healthand

well-being

Ensuringthatemployees’health,safetyandwell-beingaremaintained.Thisincludesmentalhealthaswellasphysicalhealth.Ensuringthatthepoliciesandproceduresoforganisationsfollowleadingpracticesandlegalrequirements.Measurementcanbethroughmetricsrelatedtoemployeeabsenceratesaswellasthroughemployeesatisfactionprogrammes.

Accesstotimelyhealthcareisakeyaspect.

ACCOUNTINGFORSOCIETY’SVALUES|AMODELOFTHESOCIALAGENDA

10

COMPONENTDESCRIPTION

VALUECHAIN

Thiscomponentconsiderstheresponsibilityoftheorganisationtowardsitssuppliersthroughoutitsvaluechain.Severalofthesecategoriescanalsobeappliedasaresponsibilityinrelationtothoseorganisationsinthevaluechainwherethecustomerisnottheendconsumer.SupplierCodesofConductcanbeusedtodefinerequiredstandards.Attestationofthemetricsmaybeconsideredacrossthevaluechain.

Humanand

legalrights

Ensuringthatthoseinthevaluechainarecompliantwithrelevanthumanandlegalrightsrequirementsasapplicableintheirlocation.Thiscategoryincludesslavery,childandforcedlabour.Measurementwillbebytheorganisationsinthechain,butsimilarmetricstothoseusedintheWorkforcecomponentcanbeconsidered.

Elementsofthesociallicencetooperate(SLO)areincludedinthiscategory,althoughpredominantlyafactorintheCommunitiescomponent.Considerationsoftheeconomicrightsofsuppliers,suchaspaymentterms,arerelevanttothiscategory.

Livingwage

Ensuringthatallworkersinthevaluechainreceivealivingwage,asdefinedbytheirlocation,asaminimum.Inacontractorrelationshipthiscanincludepromptpayment.Measurementwillbebythoseinorganisationsinthevaluechain,butsimilarmetricstothoseusedintheWorkforcecomponentcanbeconsidered.

Safeworking

environment

Ensuringthatallworkingenvironmentscomplywithrequiredstandards,includinghealthandsafetyandphysicalsiterequirements.Ensuringthatrelevant

improvementprogrammesareinplaceaswellasthemonitoringofemployeehoursandleavetaken.Measurementwillbebythoseorganisationsinthe

valuechainthroughcompliancewithfactoryandotherrelevantlegislation,aswellasthenumberofinstancesofissuesandworkforceperformancestatistics.Employeesatisfactionprogrammescanalsoproduceevidence.

Circular

economy

Ensuringthatorganisationsoptimisereuseofmaterialsthroughreuseandregenerationofmaterialsorproducts,especiallyasameansofcontinuingproductioninasustainableorenvironmentallyfriendlyway.Thiscanbemeasuredwithreferencetothepercentageofreuseofmaterialsorproductsintheproductioncycle.

Well-being

Ensuringthehealthandwell-beingoftheworkforce.Inthiscomponentitmaybeappropriatetoincludelifelonglearningaspartofthedefinition.Measurementwillbebyorganisationsinthevaluechainthroughwell-beingdataandemployeesatisfactionprogrammes.

Animalwelfare

Welfareofanimalsintheproductionaspectsofthesupplychaincanbeaconsiderationforsomeorganisations.Thesecanbeakeyaspectofthesocialwell-beingastheyrelatetotheoverallsociallicencetooperate.Measurementofthiscategorypresentschallenges.

ACCOUNTINGFORSOCIETY’SVALUES|AMODELOFTHESOCIALAGENDA

11

COMPONENTDESCRIPTION

CUSTOMERS

Thiscomponentconsiderstherelationshipwiththeendcustomerorconsumeroftheproductorservicethatisprovidedbytheorganisation.Ininstancesofmoreindirectrelationships,themeasurementofthiscomponentmaypresentsignificantchallenges.Manyofthesecategorisesrelatetointeractionsfromtheperspectiveoftheorganisation.

Foodandwater

Ensuringthattheproductsandservicesuseanequitableproportionofthefundamentalsoflife,suchasfoodandwater.Dotheproductsandservicesthattheorganisationprovidessustaintheserights?Thiscanbemeasuredbytheinvestmentmadeinresourcesthatsustainthesefundamentals.

Consumer

protection

Ensuringthatconsumerrightsareprotected,andthatproductsandservicesareprovidedonanequitablebasiswithinspecificmarkets.Thiscanbemeasuredthroughthenumberofinstancesofcomplaints.

Dataprotection

Ensuringthatthedataofcustomersissecuredandnotusedforpurposestowhichthecustomerhasnotagreed.Conceptssuchasprivacybydesignshouldbeconsideredwhendevelopingorenhancingsoftwareapplications.Thiscanbemeasured,inpart,byreferencetocyberattackmonitoringdata.

Sustainable

organisations

Ensuringthattheorganisationremainssustainablethroughthedevelopmentof