A new report titled ‘A Living Wage – Crucial for Sustainability’ has called on finance and accountancy professionals to take immediate action in addressing wage inequality, citing the critical role they play in fostering social stability and driving sustainable business practices. The report warns that without intervention, the growing wage disparity threatens to erode global economic and social systems.
Drawing on insights from over 1,000 survey respondents across 93 countries, along with discussions involving more than 50 finance and business professionals, the report outlines the socio-economic benefits of paying a living wage. It argues that living wages not only benefit workers but also contribute positively to employers, national economies, and governments by reducing inequality and promoting long-term sustainability.
Jamil Ampomah, Director for Africa at ACCA, emphasized the report’s findings, stating that 89% of survey respondents from Africa recognized the strong connection between living wages and sustainability, compared to 82% globally. “Living wages reduce inequality, boost economic stability, enhance business resilience, support human rights, strengthen supply chains, and meet growing regulatory and investor demands for socially responsible practices,” Ampomah said.
Despite the clear benefits, the report revealed that only 34% of respondents—both in Africa and globally—believed that the responsibility of paying a living wage extended to their first-tier suppliers, with even fewer recognizing this obligation for second-tier suppliers and beyond. This gap highlights the need for finance professionals to extend the conversation around living wages beyond their own organizations and across supply chains.
Helen Brand OBE, Chief Executive of ACCA, underscored the ethical dimension of the issue. She pointed out that accountancy and finance professionals are held to high ethical standards, making them uniquely positioned to advocate for living wages. “The right of all employees and contractors to a living wage is an ethical responsibility,” Brand noted. “Finance professionals have a unique opportunity to drive this as a core part of their sustainability activities.”
Caroline Rees, President and Co-founder of Shift, further stressed the human rights implications, saying that paying a living wage is fundamental. “Organisations have a responsibility to respect human rights, which includes ensuring workers are paid adequately. This responsibility extends beyond their immediate workforce to their broader value chains,” Rees said. She encouraged Chief Financial Officers to lead efforts in promoting living wages across entire business networks.
Richard Karmel, Managing Partner at Forvis Mazars, warned that failure to pay living wages could undermine the sustainability of business models. “The inability to ensure living wages throughout a value chain can call into question the sustainability of a business model. Now is the time to critically appraise these models and make tough choices with a human capital focus,” he said.
The report urges finance professionals to integrate living wages into sustainability strategies, bring the issue to board-level discussions, and encourage first-tier suppliers to adopt the same standards. It also highlights the increasing importance of regulatory frameworks like the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Due Diligence Directive (CSDDD), which emphasize the need for businesses to report on living wages across their value chains.
As the call for socially responsible practices grows, the finance and accountancy sectors are uniquely positioned to lead the charge, ensuring that businesses not only meet their ethical obligations but also strengthen long-term sustainability by addressing wage inequality.
