Can accountants save the planet?

The heroes in pinstripe.

One striking thing that happened at the 2012 UN Earth Summit in Rio was hearing that it was the accountants that will save the planet. It also resonated in one of the most important themes I heard at Rio: valuation, measurement and disclosure. This speaks to the huge role accountants have to play in the creation of a more sustainable world - and it was great to see the profession at Rio in the form of IIRC, the Prince of Wales’ Accounting for Sustainability Project and ICAEW.

This theme was one of a number of that buzzed at the summit and side events including: natural capital; the discussions around articulating a set of sustainable development goals (SDGs); and the much more prominent role business had this time (so different from 1992). There also seemed to be a tacit question floating around about what the role of governments is; for this was not the world uniting in common cause for a higher purpose, this was c.190 separate nations gathering with very different agendas and interests.

These governments are struggling to address global issues that require them to aspire to an international public interest and yield a certain amount of sovereignty. It requires not compromise, a descent to the lowest common denominator, which is what we got, but consensus. This involves giving up some national interest for a greater good. Are the institutions of government and international governance capable of delivering that? The public doesn’t think so. We are witnessing a collapse in public trust in such institutions.  Just look at the latest Edelman Trust report where the most trusted of our institutions commands only 50 per cent of public trust. Respected commentators such as Naill Fergusson and Diane Coyle have written and spoken convincingly on the need for institutions that are fit for purpose.

But the success of any sustainable programme is predicated on successful measurement, valuation and disclosure. If we cannot measure the impact organisations are having on the natural environment then we certainly won’t be able to do anything about it. We need to value that impact not to put a price on nature in order to put it up for sale, but to show its value to stop it being economically invisible. This is the language of business and to engage business we need to speak its language. Reporting is important not just as disclosure to stakeholders and shareholders but, more importantly, in as management information to enable managers to make informed decisions. These are the functions that I would argue are the domain of accountants.

The management and public accounts create an image of the business that shapes perception and decision-making. Like any representation, these are not an unimpeded view; they include certain information and leave other things out, presenting a certain reality. So including other information, about environmental impact for example, will drive different understanding and a new reality and other decisions. That’s why accountants are important.

Richard Spencer is the Head of Sustainability for ICAEW

Accountants are important. Photograph: Getty Images

Richard Spencer, Head of Sustainability ICAEW

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I am special and I am worthless: inside the mind of a narcissist

There's been a lot of discussion about narcissists this week. But what does the term actually mean?

Since the rise of Donald Trump, the term “narcissistic” has been cropping up with great regularity in certain sections of the media, including the pages of this journal. I wouldn’t want to comment about an individual I’ve never met, but I thought it would be interesting to look at the troubling psychological health problem of narcissistic personality disorder (NPD).

People with NPD (which is estimated to affect about 1 per cent of the population) have a characteristic set of personality traits. First, they have a deeply held sense of specialness and entitlement. Male NPD sufferers frequently present as highly egotistical, with an unshakeable sense of their superiority and importance; female sufferers commonly present as eternal victims on whom the world repeatedly inflicts terrible injustices. In both cases, the affected person believes he or she is deserving of privileged treatment, and expects it as a right from those around them.

Second, NPD sufferers have little or no capacity for empathy, and usually relate to other people as objects (as opposed to thinking, feeling beings) whose sole function is to meet the narcissist’s need for special treatment and admiration – known as “supply”. In order to recruit supply, NPD sufferers become highly skilled at manipulating people’s perceptions of them, acting out what is called a “false self” – the glittering high achiever, the indefatigable do-gooder, the pitiable victim.

The third characteristic is termed “splitting”, where the world is experienced in terms of two rigid categories – either Good or Bad – with no areas of grey. As long as others are meeting the narcissist’s need for supply, they are Good, and they find themselves idealised and showered with reciprocal positive affirmation – a process called “love-bombing”. However, if someone criticises or questions the narcissist’s false self, that person becomes Bad, and is subjected to implacable hostility.

It is not known for certain what triggers the disorder. There is likely to be a genetic component, but in many cases early life experiences are the primary cause. Narcissism is a natural phase of child development (as the parents of many teenagers will testify) and its persistence as adult NPD frequently reflects chronic trauma during childhood. Paradoxically for a condition that often manifests as apparent egotism, all NPD sufferers have virtually non-existent self-esteem. This may arise from ongoing emotional neglect on the part of parents or caregivers, or from sustained psychological or sexual abuse.

The common factor is a failure in the development of a healthy sense of self-worth. It is likely that narcissism becomes entrenched as a defence against the deep-seated shame associated with these experiences of being unworthy and valueless.

When surrounded by supply, the NPD sufferer can anaesthetise this horrible sense of shame with the waves of positive regard washing over them. Equally, when another person destabilises that supply (by criticising or questioning the narcissist’s false self) this is highly threatening, and the NPD sufferer will go to practically any lengths to prevent a destabiliser adversely influencing other people’s perceptions of the narcissist.

One of the many tragic aspects of NPD is the invariable lack of insight. A narcissist’s experience of the world is essentially: “I am special; some people love me for this, and are Good; some people hate me for it, and are Bad.” If people with NPD do present to health services, it is usually because of the negative impacts Bad people are having on their life, rather than because they are able to recognise that they have a psychological health problem.

Far more commonly, health professionals end up helping those who have had the misfortune to enter into a supply relationship with an NPD sufferer. Narcissism is one of the most frequent factors in intimate partner and child abuse, as well as workplace bullying. The narcissist depends on the positive affirmation of others to neutralise their own sense of unworthiness. They use others to shore themselves up, and lash out at those who threaten this precarious balance. And they leave a trail of damaged people in their wake. 

This article first appeared in the 16 February 2017 issue of the New Statesman, The New Times