The Accountant’s Economic Revolution # 02

“We need a Revolution of Capitalism to balance return on financial, natural and social capital.” So said Peter Bakker at the Prince's Accounting for Sustainability Forum at St. James’s Palace on December 19, 2012.

 

 

Peter is the president of the World Business Council for Sustainable Development (WBCSD) and a widely experienced business man from the Netherlands – find out more about Peter.

 

In his speech, Peter told us that if we are to have a future then business and accounting needs to change. In spite of all the business and accounting initiatives so far implemented, there has been nothing like enough progress. 

 

The Global Accounting Revolutionary Group

Peter made these points in contribution to the Accountant’s Economic Revolution:

 

#1 - Business as usual is not an option for a future-proofed economy. Too many business models and strategies are dependent on the notion that current economic principles and capitalism are static.  This is naïve. 

 

#2 - The conventional model for capitalism is found wanting in terms of the benefits to the majority of society, the impact on the planet, and even in terms of continued economic prosperity. 

 

#3 - Capitalism requires a new operating system, and needs to be re-booted if we are to avoid the ultimate recession or worse total collapse.

 

#4 - Business [and accounting] needs to listen to what the scientists are telling us. We must incorporate the knowledge around the Planetary Boundaries in the setting of priorities for solutions.

 

#5 - We need to consider whether current company reporting provides the right information for this radical transformation.

 

#6 - Sustainability performance needs to be integrated into strategy.

 

#7 - We must change the (accounting) rules of the game.

 

#8  - It is a revolution, a revolution of capitalism, not with the aim to overthrow it, but to improve it in a way that balances the economic, the natural and the social dimensions.

Follow this link for a summary of Peter's speech.