Big four-is CSR a waste of money?
As indicated in a study conducted by PWS, 88% of generation Y choose employers based on strong CARS values, and 86% would consider leaving if the companies’ CARS values no longer met their expectations. Especially in case of big fours, which are globally developed and conducted, it is important to show inclusiveness to the global hiring market, which can be achieved by actively engaging in various CARS activities. Secondly, it is important to signal the market that companies are commit to serve public good rather than Just profits and self-interests.
One way to achieve this goal Is to demonstrate an engagement of CARS. With lots of scandals happened In the past, commitment in CARS helps develop an Image of an accounting firm of being professionalism and ethical, enhancing the trust In the market and differentiating itself from other accounting firms. Thus, clients may have confidence in a firm that will offer high quality services to them. Not only this would attract more consumers ND clients, but also with the enhanced reputation of being highly professional, accounting firms would charge more fees In return.
In addition, another benefit of CARS Is to reduce costs. For example, a paper from Harvard Business
However, In big fours, where partners own and run the firm, this dilemma will be eliminate. Last but not the least, Integrating CARS Into company business strategies provides new opportunities to accounting and auditing service lines. Some studies show a link between the accounting firms’ Internal sustainability policies and the sustainability services they provide for clients. For example, a study Indicates that clients are more Interested In forming a business relationship with accounting firms that established Its own robust sustainability polices and performance.
It Is no doubt that there are additional costs of CARS. However, there are also benefits derived from CARS. As Indicated In some evidences, CARS premium Is growing. The benefits earned by employee productivity, product quality, reduction of Improved reputation could cancel out the cost of CARS. With the Increasing acceptance of consumers to pay additional premium, It Is time to create CARS committee, undertaking CARS actively. Rather than Just profits and self-interests. One way to achieve this goal is to demonstrate an engagement of CARS.
With lots of scandals happened in the past, commitment in CARS helps develop an image of an accounting firm of being professionalism and ethical, enhancing the trust in the market and differentiating accounting firms would charge more fees in return. In addition, another benefit of CARS is to reduce costs. For example, a paper from Harvard Business School indicates Or, increasing investment in environment friendly facilities could reduce carbon outputs, reducing cost.
Compared to companies that management is usually not the owners, big fours have an advantage in engaging in CARS activities. CARS could mean “at the expenses of shareholders” when management aggressively engages in CARS activities, causing the cost of such investing exceeds the benefits. However, in big not the least, integrating CARS into company business strategies provides new between the accounting firms’ internal sustainability policies and the sustainability arrives they provide for clients.