Visit cpajournal.com to read the very latest from The CPA Journal
From Financial Capitalism to Sustainable...
Full articles of The CPA Journal are available to NYSSCPA members and CPAJ subscribers ONLY. Please login to access this content.
Nonmembers and nonsubscribers, you can apply for NYSSCPA Membership here and get unlimited access to The CPA Journal, or you can create a non-member online account here and purchase individual articles.
Mervyn E. King, PhD, LLD
Since the 1930s, we have looked at things through a financial lens, and I'm afraid that cannot pertain in the changed world of the 21st century. In 1994, I spoke about an inclusive approach to governance—that a board should understand the major stakeholder groupings relevant to the company and try in its strategic decisions to meet the reasonable expectations of stakeholders. The first stakeholder report was, in fact, issued by Ben & Jerry in Vermont in 1995. And in Boston, Bob Massie and Allen White brought up the fact that 80% of value is found in intangible assets not on the balance sheet (see Exhibit 1), and in 1997 they started the Global Reporting Initiative (GRI). I recommended sustainability reporting as a listing requirement, and the Johannesburg Stock Exchange adopted the requirement in 2002. The world's top body on accounting, IFAC [the International Federation of Accountants], said that financial reporting is critical, but it's not sufficient. When I was chairman of the GRI, I said that those factors that are critical and relevant and material to the business of the company should be embedded in its short-, medium-, and long-term strategic thinking. If you look at sustainability, it involves three aspects: economic growth, social responsibility, and environmental protection. Any board of directors that develops a strategy and ignores how the company makes its money—and how it impacts on society and the environment—is actually failing in its duty of care to the company.
Post a resume or job listing in our Career Center to connect with hundreds of employers or job seekers.
Join 26,000 of your peers. Apply for membership today!
Find CPE Conferences, Seminars, and Online Courses Here.
Save up to 40% on CPE
with the FAE Value Pass.
Get insight and analysis into
all areas of the profession.
Content provided by and exclusively for NYSSCPA members.
Stay up to date with important
A daily roundup of the latest from around the accounting and financial industry.
strong PAC means a strong profession. Donate Today.
Help develop a strong
network of connections.
A resource for NYSSCPA Members.
expert answers to technical questions.
career off right with an experienced mentor.
It's never too early
to start thinking about your career.