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The role of leadership within business is indisputable. There is no doubt that great leaders make great businesses. Many of Australia’s successful companies are created and operated by talented and energetic leaders – among them many Chartered Accountants. Investors look very carefully at the calibre of business leadership before deciding to invest. Chartered Accountants act as leaders and advisers within business, influencing decisions made by organisations and investors and ensuring the provision of relevant, transparent and truthful financial information to stakeholders and consumers.
Government relies on the right advice from industry bodies such as the Institute, and its member Chartered Accountants, to make the most appropriate decisions when it comes to regulation. Without industry regulation, economies can suffer.
The recent collapse of the sub-prime mortgage market in the United States, which resulted in a global economic downturn, is a perfect example. Many investors suffered financially from poor investment decisions based on limited information. Some of this information may have been due to the lack of adequate financial material which should have been made available to them. While there was no one scapegoat in the collapse, better regulation and reporting practices may have assisted to reduce the impact of the events.
Businesses worldwide were also affected by the collapse and are continuing to be affected. Since the economic downturn, there have been calls for changes to accounting practices globally to allow investors to be better informed. Many of these requests for change have come from accountants themselves calling on the need for standardisation of global practices.
Now, more than ever, the accounting profession and the general public realise that we need to look for ways to ensure that other downturns don’t happen in the future. Chartered Accountants are able to make an important contribution to the level of public confidence in financial matters. Chartered Accountants are able to influence both government and regulatory bodies as well as the organisations they work for, positively influencing both businesses and investors and producing a more effective profession. Chartered Accountants, through the Institute, make recommendations to government and standard regulators, initiating thought provoking debates through various reports and papers submitted to the government.
Leadership is an essential part of the role of a Chartered Accountant, with a dedicated leadership website – www.business-leader.tv – which explores key issues in accounting and business and their impact on the global economic climate. In addition, the Institute offers leadership activities to its members across a wide variety of areas including ethics, legal issues and reporting. Participating in these activities allows Chartered Accountants to be the best in their field and at the forefront of the industry, allowing them to utilise this knowledge in their jobs and influencing general business practice.
Recently there have been major changes to the regulation of the finance industry. Chartered Accountants are at the forefront in lobbying government for these changes, with the Institute ensuring that important changes are communicated quickly and effectively to members. This provides a strong contribution to Australian business and to the national economy. In turn, it plays an integral part in the larger picture – the global economy.
On a local level, the Institute has helped business strive for excellence by running its annual Chartered Accountants Business Leader Awards. Over the past ten years, the Chartered Accountants Business Leader Awards have recognised the achievements of the best in the profession. Award programs like these encourage healthy competition among member organisations and individuals to strive to be their best.
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Institute Case Studies