Leading global accountancy body questions whether the traditional limited liability company is right for the future
\n Lahore
\nACCA (The Association of Chartered Certified Accountants) argues that it\u2019s time for an alternative to the traditional limited liability company.
\nAn ACCA report argues that the legal form of the limited company leads to a damaging single focus on financial results at the cost of the environment and communities and societies who expect businesses to serve them.
\nBuilding future business investigates switching from current business models \u2013 which prioritise shareholders \u2013 to models that measure financial results as part of an interconnected web of factors.
\nJason Piper, head of tax and business law, ACCA, said: \u2018The conflict between the financial imperative and the concrete impacts of business on society and the environment are too great to ignore. Economic activity is supposed to benefit society, but in many ways we\u2019ve ended up with an economic model that seems to do the opposite.
\n\u2018The company form we know so well did a great job in protecting providers of capital when that was most needed. But now those financial safeguards are distorting business and economic behaviour. We do have potential answers in the form of things like B Corps and integrated reporting frameworks.\u2019
\nTo build better business models the report says enterprises need to answer key considerations that should shape their future. These are:
\n\tWho are the key stakeholders?
\n\tWhat is \u2018value\u2019 to them?
\n\tWhat are the expected flows of \u2018value\u2019 from economic activity to each group of stakeholders?
\n\tHow do value flows align with the legal form of the business?
\n\tWhat guidance and support exists in the regulatory and legislative ecosystem? Are there gaps?
\n\tWhat are the ethical considerations in filling those gaps?
\n\tWhat non-regulatory voices exist to guide potential legal form?
\n\tHow will record keeping, communication and reporting need to operate to fit in with the legal form?
\n\tWhat are the qualitative characteristics needed to ensure trust in the reporting, form etc?
\n\tWhat other safeguards are needed to protect the interests of the stakeholders?
\nBusiness models in many areas are changing from reliance on labour and goods to a digital economy, with activities focused on energy use and a relatively small number of highly specialised and capital-intensive machines.
\nPiper said: \u2018We have ended up in a place where businesses doing well can undermine the communities they are in. Building future business looks at what\u2019s driven this distortion of the decision-making process, and how we can try to redress the balance between business and society.\u2019<\/p>\n","protected":false},"excerpt":{"rendered":"
Leading global accountancy body questions whether the traditional limited liability company is right for the future Lahore ACCA (The Association of Chartered Certified Accountants) argues that it\u2019s time for an alternative to the traditional limited liability company. An ACCA report argues that the legal form of the limited company leads to a damaging single focus […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-541005","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-national"},"yoast_head":"\n