IFAC in the News
by Vincent Tophoff, Senior Technical Manager, IFAC
Feb 26, 2013
Article for Member Bodies
Integrating Governance throughout an Organization Helps Achieve Sustainable Success
How Professional Accountants in Business Can Integrate Governance into Their Organizations’ Drivers of Sustainable Success
The ultimate objective of governance is to ensure the creation of sustainable organizational success and stakeholder value; these are the core elements of every organization that strives to be competitive and sustainable over the long term. Governance in an organization should, therefore, be about more than a compliance exercise designed with the sole purpose of satisfying regulatory requirements. Instead, good governance affects the entire organizational cycle of strategic planning, resource utilization, value creation, accountability, and assurance. Such a holistic approach ensures that governance is not “bolt on” but “built in”—integrated into all aspects of an organization.
Integrating Governance for Sustainable Success, a new report from the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC), analyzes, through illustrative case studies, how professional accountants in commerce, industry, financial services, education, and the public and not-for-profit sectors support their organizations in integrating governance into the key drivers of sustainable organizational success.
The report uses the key drivers of sustainable organizational success, previously identified in Competent and Versatile: How Professional Accountants in Business Drive Sustainable Organizational Success, as the building blocks for integrating governance in all aspects of an organization. The report also includes illustrative case studies from around the world to provide an analysis of how professional accountants in business support their organizations in integrating governance into these drivers.
Since professional accountants in business are typically involved in the planning, implementation, execution, evaluation, and improvement of governance in their organizations, they are critical to integrating governance throughout an organization. In addition, many professional accountants in business have a responsibility to provide objective and accurate information and analyses to support all of these activities, and may have overall responsibility in governance areas, such as external business reporting. This puts professional accountants in an excellent position to ensure integration of governance throughout an organization—into its very DNA.