Association of Chartered Certified Accountants (ACCA) Certification Practice Test

How does accountability benefit a business?

1. It allows the business to deflect blame

2. It fosters trust and transparency with stakeholders

3. It avoids discussions about performance

4. It emphasizes profit-sharing with executives

The correct answer is: It fosters trust and transparency with stakeholders

The benefit of accountability in a business primarily lies in its ability to foster trust and transparency with stakeholders. When a business practices accountability, it means that it takes responsibility for its actions, decisions, and outcomes. This transparent environment encourages open communication, and stakeholders—including employees, customers, investors, and the community—are more likely to feel confident in the organization’s integrity. Trust is a critical factor in building strong relationships with stakeholders. When they see that a business holds itself accountable, they are more likely to engage positively, support initiatives, and remain loyal. This is essential for long-term success, as gaining and maintaining stakeholder trust can lead to increased collaboration, loyalty, and ultimately profitability. The other options suggest negative or misleading perspectives on accountability. For instance, deflecting blame does not align with the principle of accountability, as it involves avoiding responsibility rather than embracing it. Avoiding discussions about performance contradicts the very nature of accountability, which necessitates thorough evaluation and dialogue regarding organizational effectiveness. Finally, emphasizing profit-sharing with executives shifts the focus away from collective responsibility, suggesting an incomplete understanding of accountability as it pertains to the entire organization and its stakeholders.