Sustainability A Global Key To Business Success

Sustainability a Global Key to Business Success

The current economic climate offers a significant opportunity for the corporate world to commit to sustainable business practices and position themselves as business leaders to their competitive advantage.

This was the message as CPA Australia today announced its membership of the United Nations Global Compact, the world's largest voluntary corporate citizenship initiative.

The announcement was made by CPA Australia President Richard Petty, speaking at the Malaysian Institute of Accountants Regional Conference in Sarawak, Malaysia.

Professor Petty addressed the conference on the topic of sustainability and the role of accountants in driving evolving socially responsible business practices and demonstrating the critical need for sound non-financial reporting guidelines.

"While sustainability reporting remains a valid aspect of corporate reputation and brand management, there will be an increased focus on the sustainability of business strategy and operations.

"The clear and undeniable message to come out of the Global Financial Crisis and subsequent economic downturn is that organisations embedding sustainable business practices into their organisational framework are better placed to recover and emerge stronger," he said.

"There is growing evidence that companies most engaged in social and environmental sustainability - in both developed and developing economies are also the most profitable. In the context of the current economic conditions this further illustrates the importance of the corporate sector embracing such practices and factoring them into their organisational systems and performance.

"The accountant will ultimately need to be as well versed in non-financial reporting standards as in numbers, and as we see sustainable practices become a standard consideration, the impact of accountants will extend to ensuring that non financial standards are reliable and credible."

The ten sustainable universally accepted principles set out in the UN Global Compact policy platform are critical global considerations that are necessary to achieve the goals of ethical, responsible and environmentally sound practices.

"CPA Australia's membership of the UN Global Compact is a further tangible commitment to the highest levels of sustainable business practice in the global markets in which we and our members operate."

CPA Australia has long advocated the integral role of accountants in developing non-financial reporting systems as a vital complement to financial reporting. It is also the first accounting body to produce a Global Reporting Initiative (GRI) independently assured Sustainability Report. The GRI's sustainability reporting framework has become the globally recognised standard for non-financial reporting.

Launched in 2000, the United Nations Global Compact is a both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. It seeks to align business operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. It is the world's largest voluntary corporate citizenship initiative, with over 6,500 signatories based in more than 130 countries.

For more information on the UN Global Compact, please visit www.unglobalcompact.org

Media Enquiries contact:
Dina Jaballah, External Affairs Adviser
(03) 9606 9893
0434 329 974


SOURCE: CPA Australia