Editorial Notes: Sustainable Business and Governance

It is generally accepted nowadays thataccounting is the language of businessand that corporate reporting providesinformation about the activities of abusiness – not just to investors but alsoto all other interested stakeholders. It isequally generally accepted that the firmis accountable to all of these stakeholdersand that such reporting must beextended beyond the financial and intothe social and environmental also. Thusthe role of this journal is undisputed, asis the relationship between financial andsocial and environmental accounting,accountability, disclosure and reporting.The three are entwined into triple bottomline reporting. The role of accountingand reporting is however much widerthan this and extends into all aspects ofthe behaviour of firms, and of marketsand of governments. In this arena bothgovernance and risk management1 havearisen as topics which need investigation.Thus we are experiencing a severe currentfinancial crisis which has turnedinto an economic crisis which is globalin nature. This crisis has exposed a numberof problems with the governance ofcorporations and of markets and manypeople have suffered as a result of thoseproblems. It is apparent however thatdifferent firms and different countries indifferent parts of the world have beenaffected to different extents. It is importanttherefore to undertake and examinationof the effects of the crisis and thecauses which have led to different effectsso that we can learn from this crisisand hopefully take steps to prevent itsrecurrence. Although governments andbusiness leaders are conducting theirinvestigations it is important that we inthe academic accounting communityalso undertake some investigations – notjust of causes of the crisis but also offactors which might mitigate against itsoccurrence.As academic accountants we areuniquely placed to undertake this kind ofinvestigation. As academics we undertakerigorous research based investigationswhich are more likely to uncovertrends. As accountants we recognise theintegral role of accounting and financialreporting in facilitating business activityand causing or preventing financial crises.And as a worldwide community wehave a variety of perspectives which wecan integrate to facilitate a global understanding.Thus we have an importantrole to play in developing an understandingof the global – and local – factorswhich affect both the likelihood of anoccurrence of such a crisis and its prevention. We must engage in research and debateabout these issues and this journal has animportant role to play in this. It is globalin its reach and in the range of topicsconsidered, and this issue is a typicalexample of this. So in this issue we cansee research relating to governance issues,because disclosure is inextricablerelated to governance2; more importantlyin this issue the investigation is concernedwith disclosure in developingcountries. At the same time there is researchabout the relationship betweenfinancial reporting and ethical behaviourand corporate social responsibility.These are all factors which are crucial tothe understanding of business behaviourand market behaviour and the sustainabilityof the economic environment –and of course to the development of durablecorporations3. These are all issueswhich are central to the satisfactory operationsof the global economy and demonstratethat we, as academics, and thisjournal have an important role to play indeveloping a sustainable economy whichis global in nature and more equitablethan at present. The papers are insightfuland thought provoking- and they make acontribution to these important debates. Itherefore leave you to read these papersand consider their significance – but Ialso charge you to enter the debate withyour own contribution. I also encourageyou to make a contribution to the debatethrough publishing in a future issue ofthis journal. Copyright © www.iiste.or