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Businesses should pay a decent wage suggest ACCA and Living Wage Foundation joint reports

Beyond the public expectations for businesses to pay tax and be mindful of the environment, businesses are expected to respect their employees’ rights and needs which includes paying a decent wage, according to the ACCA.

The Association of Chartered Certified Accountants (ACCA) in collaboration with Living Wage Foundation have jointly published two reports exploring the concept of a living wage to provide an overview of historical developments of the living wage globally, including identifying the legal frameworks that have evolved to support it. Secondly, the report aims to establish a set of broad principles, which can be used at both global and local levels when entering into multi-party discussions on this subject.

Commenting on the reports, Helen Brand OBE, ACCA’s chief executive said: “In today’s world, businesses are expected to pay their fair share of taxes, treat the environment with care and respect the rights and needs of their employees. The last includes paying a decent wage.”

“The concept of a ‘Living Wage’ – that people should earn enough to maintain a dignified standard of living – has gained increasing prominence around the world as a way to tackle the growing problem of in-work poverty,” Katherine Chapman, director, Living Wage Foundation stated.

The reports include a series of thought pieces on the issue, one of them from Jane Wills, a professor at Queen Mary University of London who wrote: “Fifteen years since the Living Wage campaign started in east London, there is much greater recognition that increased wages have wider benefits for the whole of society by increasing the incentives to work, reducing in-work benefits, improving the welfare of families and increasing aggregate demand.”

Another thought piece included in the report is from Vincent Nichols, cardinal archbishop of Westminster, who wrote that the Catholic Church in England and Wales is committed to supporting the living wage.

“It is good to see more businesses of all sizes adopting the Living Wage. There is strong evidence of the business case for doing so. Momentum is clearly growing, but it is not just the wage that is important. The dignity of work itself and the quality of the human relationships fostered through work are crucial. Labour is never just a cost, and everyone is a someone, not a something,” he wrote.

The reports can be accessed here.

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