4 ways to champion sustainability and ethics in accounting curricula

The accounting profession holds a pivotal responsibility in championing sustainability and ethical practices within the business realm. Integrating these principles into the accounting curriculum empowers students to gain a comprehensive understanding of the effects of climate change, environmental regulations, supply chain dynamics, and escalating energy expenses on financial management and strategic business planning. Moreover, it equips them to seamlessly incorporate sustainability and ethics into the core fabric of business strategy and decision-making processes.

A recent Global Academic Champion Forum hosted by AICPA & CIMA’s Academic and Student Engagement (ASE) team featured four eminent academics discussing the integration of sustainability and ethics into the accounting curriculum in their respective countries and higher education institutions. The event grappled with key practical steps for educators as they revisit their courses and programs.

Highlights from the forum

Professor Susan Smith of University College London opened the forum with a keynote presentation on various approaches to embedding sustainability into the accounting curriculum. She focused on what she called “push and pull factors” driving the increased presence of sustainability and ethics in accounting curriculums globally. Some of these key drivers of change include:  

• Higher awareness of sustainability and environmental, social, and governance (ESG) issues;
• Increased reporting requirements;
• Student demand for sustainability and ethics in accounting programs; and
• Shifting dynamics in the workplace with regard to professional development.

Approaches to sustainability and ethics integration

Smith outlined four ways to embed sustainability and ethics into the accounting curriculum:

• Piggybacking (adapting existing modules): This may be achieved through the addition of a lecture or session on sustainability and ethics. It may require integrating the aforementioned topics throughout. The effectiveness of piggybacking depends on context. Each accounting module possesses its unique contours, and the necessary adjustments will differ. For instance, this might entail incorporating case studies on ethics into management accounting courses or seamlessly integrating sustainability discussions into financial reporting modules. These subtle adjustments resonate throughout the program, molding the accountants of tomorrow.
• Specializing (creating dedicated courses): This entails the development of new courses or programs specifically focused on sustainability and ethics — such as a master of science in accounting and sustainable finance or a course in accounting for sustainability. This is another more contained approach to embedding sustainability and ethics. Alignment with recommendations from major professional bodies in the field of accounting and finance will be essential.
• Mainstreaming (integrating throughout the curriculum): This can be achieved only by working with the full program team to ensure there are no overlaps or inconsistencies. The impact extends beyond the classroom, potentially necessitating a cultural shift, which is why collective effort and cross-department collaboration is expected for the success of this specific approach. 
• Connecting (collaborating with other disciplines): Also referred to as “the cross-disciplinary way,” connecting entails actively collaborating with departments beyond accounting, finance, and business schools. By doing so, the accounting educational ecosystem is enriched with new perspectives.

Various levels of influence, from department heads setting the vision to seminar instructors incorporating examples in their teaching, need to be considered in all four aforementioned approaches to embedding sustainability and ethics into the accounting curriculum, Smith said. Changes should be incremental, considering individual spheres of influence and recognizing the ongoing learning journey.

The department head may proceed initially with ensuring buy-in from colleagues and having a better understanding of any existing skills gap that might need to be addressed.

Smith encouraged program directors to conduct a sustainability and ethics audit to assess its inclusion in the existing program and identify any gaps in the curriculum. In cases where this aspect is already adequately addressed, it might not be immediately apparent at the program’s highest level or from an external perspective; instead, it could be seamlessly integrated or embedded within existing modules (piggybacking).

Course leaders can evaluate their courses and consider ethical dilemmas, as well as reflect on sustainability-related examples, Smith said.

Smith offered some practical examples that included the use of flood maps to discuss property valuation and analyzing news stories such as the strategic impairment of British American Tobacco on the value of some of its U.S. cigarette brands.

By using a simple flood map of London showing that a large proportion of the city is at medium to high risk of flooding, instructors can engage students in critical thinking about risk assessment, property valuation, and business strategies related to environmental challenges. Students can explore questions such as:

• How will the flood risk affect property valuation?
• How will companies account for additional costs to protect buildings in flood-prone areas?

Drawing on news stories and making sure examples used in the classroom are up to date and relevant is another example of good practice. This helps students stay well connected and apply their learnings to real-world scenarios.

Other topics of note

Smith later joined a panel discussion about the need to define clear ethics policies within the classroom — for example, to guide students on the use of emerging technologies like artificial intelligence (AI). Panelist Kelly Ann Ulto of Fordham University discussed the ethical considerations in AI development, emphasizing the importance of integrity in data and the need for students to understand and apply ethical principles in their work.

The discussion underscored the importance of students engaging with data and the private sector consistently. Kirsty Paoli, ACMA, CGMA, of SKEMA Business School, mentioned the integration of technology tools such as Power BI and robotic process automation (RPA) into assignments.

Bruce Gahir, DBA, of Prague City University highlighted the relevance of soft skills, including effective communication, critical thinking, and problem-solving, alongside technology proficiency.

Smith drew attention to disputed terminology, such as the terms “stakeholders” and “net zero.” The ambiguity in sustainability language poses challenges for students, and he suggested using real-world examples and keeping up to date on news flow to illustrate these concepts.  

Panelists also broached the challenge of achieving alignment in terminology related to sustainability and ethics. The introduction of a zero-credit module, as mentioned by Paoli, offers a practical approach to help students understand sustainability concepts and align them with professional bodies’ content. This approach allows students to bridge the gap between academic theory and real-world applications.

The panelists highlighted the success of strategies including integrating real-world applications, defining clear ethics policies, and introducing supplementary modules. The speakers acknowledged the evolving nature of sustainability reporting and the importance of staying current with industry developments.

— Raluca Stroe is manager–Research & Development with AICPA & CIMA.

AICPA & CIMA RESOURCES

Framework

Integrated Performance Management Framework

Publication

Global Management Accounting Principles, 2nd edition

Reports

Calculating Sustainability: Can Accounting Save the World?

Future of Finance 2.0 Emerging Themes: Organisational Sustainability and ESG

Integrating the SDGs Into Capital Investment Decisions