INTHEBLACK September 2024 special edition - Flipbook - Page 42
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F I N A N C I A L R E P O RT I NG
THE NEED FOR BALANCE
Clare Payne is the EY fellow for trust and ethics at EY
Australia, honorary fellow in business and economics
at The University of Melbourne and the author of
A Matter of Trust: The Practice of Ethics in Finance.
According to Payne, organisations must strike
the right balance between their social obligations
and drive for profit.
“There is inevitably tension when they have to
make decisions. I think one of the biggest inhibitors of
progress towards a more ethical, fairer corporate world
is the prioritisation of the short term over the long.
“This is a real dilemma for businesses. We also see
it with governments – how do they invest and make
policy decisions over a longer period than the election
cycle?” Payne says.
“There is a tension, and it is something leaders,
and particularly boards, have to grapple with. It is
why we need brave leaders who will talk about the
ethical dimensions of their decisions.”
Despite ongoing tension, Payne believes there
has been a shift towards more transparency and
disclosures that go over and above the legal and
regulatory requirements.
Payne also highlights the positive progress that
has occurred since the Hayne Royal Commission.
42 INTHEBLACK September 2024 SPECIAL EDITION
“During the commission, there was a
focus on the question, ‘Even if something
is legal, is it right?’,” she says.
“It really went to the question of ‘Should we?’,
which you could say is the ethical domain.
“I have heard this question asked when
discussing business within the finance sector
and across other sectors. This demonstrates
an acknowledgement that meeting the legal
minimum might not be enough,” she says.
“We need brave leaders who will
talk about the ethical dimensions
of their decisions.”
CLARE PAYNE, EY AUSTRALIA
“I think this has become more commonplace
since the Hayne Royal Commission, because that
was the standard that organisations were held to.”
Payne has also noticed a greater accessibility
to leaders of organisations in recent times.
“During the Hayne Royal Commission, we saw
CEOs fronting up to answer questions, and I do
