The business conditions of the past year were the toughest that most of us have seen in our lives. Yet times of crisis provide us with the potential to excel.
Events of the past year have demonstrated beyond doubt that the world is an ever-more-connected place, and undermined any ideas that emerging markets may have decoupled from the industrialized West. Just as the economic crisis spread around the globe, however, so the leaders of the world came together to halt the slide. That the G-20 nations recognized how dependent we have become on each other, and that global problems require global solutions, was as important as the action that they took.
Although complete economic recovery may still be some time off, I feel optimistic for the future. The worst of the global recession is ending. Government stimulus packages have stemmed the tide and business and consumer confidence are showing signs of return. How we rebuild the economy will be a test of how well we have learned from the past and, in particular, from this crisis.
We must be sure to avoid protectionism. We must modernize and harmonize financial regulation, but without stifling the entrepreneurship and innovation that drive economic growth. And we must continue to converge standards around financial reporting, auditing and internal controls to increase transparency and boost investor confidence.
As the world becomes more connected, it also becomes more complex, and it is vital to be able to see clearly through that complexity. As the crisis unfolded, our profession helped to shed light on the volatility that had built up within companies’ balance sheets and across the financial system as a whole. This transparency has been crucial to bringing the financial system back to health and bolstering investor confidence. Auditors, clients and regulators were called on to make tough judgements on a daily basis, and they worked together to determine the right answers and ensure audit quality.
As for us, I believe that Ernst & Young has made the right decisions to build for our future success. Looking forward, we are focused on the most important trends shaping our world – changing demographics and the shift of capital from developed to emerging markets. With a view to these trends we are building the most globally integrated and the most diverse and inclusive organization in our profession and beyond.
Throughout the last year the 144,000 people of Ernst & Young excelled. They worked harder than ever to help our clients succeed; they played a crucial role in the global economy; and they supported each other tirelessly through a difficult period. I have never felt more proud of my colleagues, or to work at Ernst & Young, than I do today. While 2009 will not break any financial records for us, in many ways I believe we achieved one of our finest performances in recent times.
James S. Turley
Chairman and Chief Executive Officer
Ernst & Young
