A Holistic Review of Governance–The Editor’s Review Series No. 1
Eli R. Khazzam | October 15, 2015 |
[The Editor’s Review series provides readers with a recap of previous articles, resources, and/or news featured on the IFAC Global Knowledge Gateway. The series is designed to focus on a particular subject area that has been covered by our team and contributors.]
Since its inception, the IFAC Global Knowledge Gateway has featured a number of articles covering various dimensions of governance in organizations. This article provides a recap of what has been published thus far to draw relevance between the role of the accountancy profession and good governance. Topics include audit quality, small- and medium-sized entities (SMEs), the role of the CFO on modern boards, value creation, and many aspects of the emerging field of integrated reporting and governance.
- The Necessary Variables for Audit Quality, Including Joint Responsibility
Alan Johnson, Non-Executive Director of Jerónimo Martins, and a member of the IFAC Professional Accountants in Business Committee, stresses that audit quality is the responsibility of more than “only” the auditor and there are key factors at play throughout the financial reporting chain.
- Governance for All—Including SMEs
Rosana Mirkovic, Head of SME Policy, Association of Chartered Certified Accountants, asserts that good corporate governance is important for organizations of all sizes and some of the most significant gains are to be had by SMEs. By setting the framework for monitoring the actions and performance of management, it protects both the future of the business and the interests of its owners and investors.
- The Role of the CFO on the Modern Board
Gillian Lees, Head of Research and Development, Chartered Institute of Management Accountants, discusses four key areas that CFOs should address when conducting meetings with boards and explores the question: how can the CFO contribute to the effectiveness of these all-important conversations and board-level decision making?
- Attracting Long-term Investors through Integrated Thinking and Reporting
Andrew Knauer, Senior Analyst, Just Capital, George Serafeim, Associate Professor of Business Administration, Harvard University School of Business, and Stathis Gould, Head of Professional Accountants in Business, IFAC, argue that research shows that integrated thinking and reporting can have a positive impact on the type of investors your company attracts—those who are in it for the long term and looking for sustainable value creation.
- Webinar Wrap-Up: Good Governance from a Multi-Stakeholder Perspective
Vincent Tophoff, Senior Technical Manager, IFAC, describes how staff from IFAC, the Global Reporting Initiative, the Mosaic Company, and Bloomberg recently explored the link between good corporate governance and sustainability performance management in a webinar.
- How Good Governance Can Resolve Bad Behavior
Vincent Tophoff, Senior Technical Manager, IFAC, asserts that everyone in an organization, and management in particular, needs to identify and address bad behavior in a timely manner. Good governance arrangements can help. However, he stresses that a good place to start is usually individual communication—getting people to communicate with the person concerned, as he or she might not be aware how his or her behavior comes across or affects the working relationship.
- Blinded by the Short Term: How to Frustrate Sustainable Value Creation
Vincent Tophoff, Senior Technical Manager, IFAC, questions the trend of short-termism that stands in opposition to the lip service that many are paying to adopting a longer-term perspective for companies and investing.
- Creating Value through Governance
Paul Moxey, Head of Corporate Governance and Risk Management, Association of Chartered Certified Accountants, discusses the complex challenge of achieving good corporate governance. He stresses that it involves economics, politics, and fundamental aspects of human nature, as well as business and markets. Ultimately, governance is about good decision making. As providers of financial information to support better decision making, accountants play a key role.
- Integrating Governance throughout an Organization Helps Achieve Sustainable Success
Vincent Tophoff, Senior Technical Manager, IFAC, discusses Integrating Governance for Sustainable Success, a new report that argues that effective governance should not just be about protecting stakeholders' interests, or a compliance exercise to satisfy the requirements of regulators. Instead, effective governance should support building sustainable value in organizations and society. Integrated governance helps an organization achieve this lasting success.