How can accountants achieve world peace?

The IPA commented on a range of issues contained in the strategic plan, which is anchored around the United Nations (UN) Sustainable Development Goals (SDGs). The IPA has been undertaking its own work around the SDGs over the last few years, so we welcomed this approach. The full submission can be found at, https://www.publicaccountants.org.au/news-advocacy/submissions/submission-to-ifac-on-strategic-plan-2021-and-beyond.

By way of background, according to the UN, The 2030 Agenda for Sustainable Development, adopted by all United Nations member states in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. The 17 SDGs are an urgent call for action by all countries - developed and developing - in a global partnership.

Aligning strategic objectives with SDGs

The IPA agreed with the comments that the work of IFAC, member bodies and the accountancy profession impacts, at least indirectly, on all of the SDGs. However, we also contend that the work directly impacts some of the SDGs, particularly numbers 4 (quality education), 8 (decent work and economic growth), 10 (reduced inequalities), 16 (peace, justice and strong institutions) and 17 (partnerships for the goals). In particular, SDG 8 is critical to lifting living standards, which, in turn, would assist in achieving other SDGs such as SDG 1 (no poverty), SDG 2 (zero hunger), and SDG 3 (good health and wellbeing) and, arguably, underpins most if not all of the SDGs. Also, SDG 16 supports the other SDGs in that strong institutions including a legal system, stable financial system and well-functioning markets are all integral to economic growth. Further, as noted by IFAC, without partnerships, nothing can be achieved. IFAC is essentially a ‘partnership’ of accounting bodies, which could take centre stage in achieving SDGs 8, 16 and 17. 

It may be a matter of definition or degree whether there is an indirect or direct impact. The main objective is to advance achievement of the goals through a collective impact. 

The IPA believes that developing specific projects and initiatives based on, and directly linked to, certain SDGs, targets and indicators may be a more fruitful approach. This would certainly make the linkages direct and more obvious.  

For instance, an alliance between IFAC, the profession and other stakeholders, would be well placed to consider initiatives focused on: 

Indicator 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalisation and growth of micro-, small and medium-sized enterprises (MSMEs), including through access to financial services. Formalisation and growth of MSMEs, including through access to finance, should be ‘bread and butter work’ for many in the profession. Developing policies to support this should be an integral part of the advocacy effort of IFAC and its member bodies, so that we are all largely consistent, linked and vocal in our efforts. 

Indicator 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. IFAC and member bodies are well placed to be directly involved in initiatives to achieve this SDG, at a global and domestic level. 

Indicator 10.5: Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations. This can be supported by 10.5.1: Financial Soundness Indicators. 

Indicator 10.6: Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions. IFAC can and does implement this within its own model and can become a role model for other organisations. 

Indicator 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species. Activities such as illegal logging, illegal fishing, trafficking in wildlife and endangered species (and progressively non-endangered species) are facilitated by money laundering across many jurisdictions. By strengthening and promoting the implementation of anti-money laundering laws and actions, IFAC and the profession can do more to prevent ‘green crime’ and indirectly achieve SDG 15 (life on land). 

Indicator 16.5: Substantially reduce corruption and bribery in all their forms. NOCLAR is an example of the accountancy profession taking a lead in achieving SDG 16. 

Indicator 16.6: Develop effective, accountable and transparent institutions at all levels. We note that IFAC contributes to the agenda and discussion on issues before the G20 and B20. IFAC could also contribute to the reform of global bodies such as the UN, World Trade Organisation, International Labour Organisation and so on. It could also become involved in issues of financial accountability and transparency. 

Indicator 17.1: Strengthen domestic resource mobilisation, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection. 

Areas of cooperation and collaboration for IFAC and the profession include those listed in the Goals and Targets — finance, technology, capacity-building, trade, and systemic issues (policy and institutional coherence; multi-stakeholder partnerships; data, monitoring and accountability). All of these are a natural fit for the accountancy profession.

In summary, IPA is pleased that IFAC has decided to anchor its strategy to the SDGs. We believe there are numerous opportunities to make a significant contribution toward the 2030 achievement of the SDGs. 

The IPA has promoted the SDGs for a number of years, through collaboration with other organisations including the International Council for Small Business (ICSB), UN (especially UN Conference on Trade and Development (UNCTAD) and UN Department of Economic and Social Affairs (DESA)); has undertaken thought leadership and research with the IPA Deakin SME Research Centre; and has released ongoing media and communications. More recently, SDG 13 (climate action) and SDG 15 (life on land) have weighed heavily in our work due to the catastrophic bushfires experienced in Australia during late 2019 to early 2020. 

Our work will continue through the newly established IPA-ICSB Knowledge Hub, which provides a structured platform for collaboration between researchers, educators, policy-makers and practitioners. ICSB has a significant focus on, and involvement with, the achievement of the SDGs and has worked closely with UNCTAD, DESA, OECD and other global organisations to bring about positive change for small businesses and SMEs around the world. For more information on Knowledge Hubs, refer to, https://icsb.org/khubs/.

We hope that our IPA members will join us on the journey to achieving the SDGs. 

Vicki Stylianou, executive general manager, advocacy and technical, IPA