How to Get Public Trust in the Economy
According to Daniel Choi who is the CFO and executive director of external affairs at the International Federation of Accountants (IFAC) there exists many powerful actions to restore public trust and confidence in the economy. In this article, we are going to break down his statement and tell you what these powerful actions are!
Steps to Get Public Trust in the Economy
The following steps need to be taken in getting the public trust in the economy.
By Tackling Corruption On A Global Scale
Let’s face it. It is highly unlikely that global corruption will simply disappear overnight. Therefore, to fight it, we require all the G20 countries to come together and collaborate across all major public and private sectors. Now more than ever, economies need a big boost in engagement between global regulatory and policy bodies. Improved and efficient government and public sector financial management via accrual-based reporting, and stronger guidelines on whistleblower protection.
By Creating An Environment Secure And Digital-Ready
The massive digitization and globalization in the field of accountancy have opened up the doors to advancing the profession. However, it has also created new challenges in cyberspace. Government and business entities, now more than ever, need to start investing in secure technological infrastructure. They also need to start establishing education models that can solve the problem of efficiency. When it comes to how we operate in a digital environment.
By Global Adoption of Integrated Reporting
It can well be said that integrated reporting is one initiative wherein the profession itself can go a long way to ultimately drive the agenda of sustainability. This will present an opportunity unlike any other to produce a more clear corporate reporting system that’s can further the financial stability of the world.
By Strengthening the Governance Both Sectors
One can only ensure public trust in the global economy. The governing principles that strictly oversee various governments and businesses are strong and high-quality along with being accepted globally. Governing bodies must be able to adopt principles that are consistent and comprehensive, when it comes to monitoring governance practices and implementation.
By Enhancing the Financial Management of Public Sector
The true backbone of most governing body decision making is the public sector financial management. This is due to government transparency and accountability being a major component involved in the restoring of public trust. Therefore, government entities must constantly try to cross-examine the financial reporting of the public sector and then switch from cash-based to accrual-based financial reporting which will then further provide a more accurate estimation of a nation’s income, costs, and assets.
By Establishing Environment Inclusive for All Small and Mid-Sized Businesses
Small and medium-sized entities (SMEs) are also a major backbone of the global economy. They are needed to be operated by an inclusive environment that offers them the right growth opportunities. G20 countries can very easily do this by trying to invest in the right digital infrastructure which will then further grant SMEs access to the power of the digital economy.
Conclusion on Public Trust in the Economy
This brings us to the end of our discussion on the powerful actions to restore public trust and confidence in the economy. Now, let us know some of your thoughts on the same.
