The auditor's role in sustainable development
by Patrick de Cambourg, CEO of Mazars

There are several definitions of sustainable development and no doubt more will come to light given our current interest in it.

I see sustainable development as the awareness, on a human level, of the compatibility of different tempos.

This process aims to harmonise the many concurring tempos that exist rather than causing contradiction between them. The rapid, or even frenetic, tempo of markets, the slightly calmer pace of technological advances, that of man and also that of the environment. Man can very quickly destroy the world around him, whereas the environment can only repair itself very gradually. Certain types of damage are irreversible.

Businesses have a role to play in this future. They operate in an unpredictable context involving various players.

Until now, businesses were individual and solitary. From now on, businesses should increasingly demonstrate solidarity.

Ethics, responsibility and principles of prevention are key in the processes that are being initiated today. Although they are not new values, they now cover a broader reality and are more pertinent.

Is the law capable of measuring these values? As an auditor I will concentrate particularly on accounting law.

Our profession is promoting clarity. We carry out evaluations, based on an increasing number of indicators and raise alarm bells where necessary. Already, many business managers choose to call on professionals to enable them to harmonise economic growth, social well being and respect for the environment. This is one of the auditor's missions.

Indeed, the auditor has two missions. The classic service is to certify the veracity of the information and to ensure transparency. Today we can no longer satisfy ourselves with feasible accounting information, we must also provide high-standard social and environmental information. It is crucial that we take the apparition of new standards into account.

The other mission of the auditor is to uphold the governance principal. The business manager is not only accountable to shareholders for his actions, but also to an increasing number of players from diverse professional backgrounds.

Looking at the range of accounting standards, we notice a trend towards 'marketisation', which favours measurable, acquired and merchandisable wealth to the detriment of created wealth.

Now, this statement seems to totally contradict the notion of sustainable development. Nevertheless, the auditor needs a reference from which to evaluate the accounts and the corporate governance. Do these two systems presently incorporate the notion of sustainable development? Unfortunately, I do not have a clear-cut answer. And this is exactly what we are supposed to be establishing for the future.

There are still too many 'good intentions' and, above all, too many businesses that only react after an accident. These businesses are then weakened in their development because they have misjudged the implication of their products, and they are suddenly obliged to rethink their strategy overnight.

The role of Mazars is to mobilise its expertise and advisory capacity in order to enable the decision-makers to better analyse their financial management and to support them in understanding and applying the regulations and standards.

Mazars' involvement in sustainable development is due both to conviction and to necessity.

Due to conviction to start with, as our culture is that of continuity and looking to the long term. Our founder passed on his business and gave us the responsibility of passing it on in turn to following generations, using a long-term policy. In order to make this process effective, we have, on a group level, decided to work on our values and communes and to share them with all of our partners throughout the world. We also see it as our responsibility to support businesses and local authorities that need to integrate these new constraints. It is obvious that no one could manage it single-handedly and that our profession, as our history, naturally leads us to serve in this sector.

Sustainable development is also a necessity, as the market will sanction businesses that don't take this message on board.

The business is not only accountable for its financial capital but also, and this point is very positive, for its intangible capital.

The main constituent of discussion on the topic is the intangible capital of the business, that is to say, its know-how, its people, and the confidence that it should inspire. We won't get anywhere without explaining, training, promoting loyalty, and giving people confidence. For several years, Mazars has been developing ideas on the combination of measures and responsibility that constitutes the intangible.

Patrick de Cambourg, CEO of MAZARS