ACCA Reveals the New Shape of Sustainability and Performance for Governance
According to the recent research conducted by ACCA (Association of Chartered Certified Accounts) demystifies the new shape of corporate governance and risk management framework. The main focus of this research paper is to check whether those factors (i.e. The risk management and corporate governance) “fit for purpose” or not. The paper primarily focused on sustainable value creation. According to the paper, the researchers suggest, the main purpose of corporate governance must focus on performance and value creation – especially for the companies and investors.
The research paper “Creating value through governance –towards a new accountability” categorically mentioned that sound corporate governance definitely add values to the society. The paper logically explores the possibilities by analyzing the history of corporate governance and best practices to create the value for the society. Additionally, the paper includes the academic research to check the success and failure of the corporate governance, the global financial meltdown and its effect, lack of consciousness on the corporate governance. The paper shows how the malpracticed corporate governance and risk management are responsible for unhealthy corporate culture. It also depicts how it affects the employee turnover and increases the possibilities of company failure.
The research paper shows – how corporate governance supports the businesses and create sustainable values. In this paper the researchers pointed three distinct points to achieve the goal through a new accountability framework for corporate governance. The concept - based on three basic key factors. They are (a) “Performing” (b) “informing” and (c) “Holding to account” and all three components are connected with three different “interfaces”. Previously mentioned “interfaces” between executive management and boards as well as the stakeholders (the capital providers).
The “informing” aspect of this paper holds a basic yet simple concept about corporate governance. The main point of this aspect is – informing the employees about “good performance”. The paper suggests that the organization must be open and come up with the clear definition of “good performance”. The above mentioned three key factors also mentioned by International Integrated Reporting Council (IIRC) in their International Framework and they recommend to create an informed approach of values, its creation and related costs.