Revisiting 'Chartered': From Imperial Roots to a Modern Pan-African Designation

Introduction

The term "chartered" often evokes images of imperial expansion and elitism rooted in a bygone era. However, its application today stretches far beyond these Victorian connotations. The term has demonstrated remarkable longevity and adaptability, much like the month of August—named after a Roman Caesar Augustus known for his brutality—has shifted in meaning over the centuries. This illustrates the compelling ways in which humans can transform historically oppressive terms into symbols with new meanings and applications, reflecting progress and change.

Let's unravel the origins and contemporary significance of 'chartered' in a way that resonates with today's accounting professionals.

The Roots of 'Charter'

The word "charter" originates from the Latin word charta, meaning "paper" or "leaflet," and evolved through Old French as chartre, referring to formal documents granting rights or privileges. Traditionally, these charters were tools used by monarchs to grant lands or rights, shaping the legal and governmental frameworks we know today. In medieval Europe, charters became synonymous with the establishment of cities, universities, and even corporations. This was in an era before modern company law or constitutional democracies. Companies was formed by royal edict with the aim to advance the colonial powers economy.

As British colonialism expanded, so too did the scope of 'chartered' professions. Accountants, among others, were often sent to the colonies to ensure that economic activities aligned with the interests of the British Empire, rather than the colonized nations.

In the book "Accountancy and Empire," the authors discuss how the British Empire used the 'chartered' status as a mechanism to control markets and ensure that economic benefits flowed back to Britain. This was evident in countries like South Africa, where 'chartered' status was initially a mark of British authority and later became a means of maintaining economic control even as local governance structures evolved. (Accountancy and empire: The British legacy of professional organization, C. Poullaos, S. Sian (Eds.). Routledge, New York, https://shorturl.at/YryPk )

The Global and Subjective Nature of 'Chartered'

Today, the concept of a "charter" has changed significantly. It now encompasses any foundational document that defines the governance of an entity, like a company’s Memorandum of Incorporation. This evolution shows the term’s adaptability and enduring relevance across various sectors.

The transition from a traditional view of 'chartered' towards a more inclusive and flexible interpretation is evident in the professional world. While the UK may still associate 'chartered' with royal charters, regions like the USA and South Africa use the term to denote professional statuses established by private organizations or through national legislation. This shift highlights the term's subjectivity and its adaptation to local needs and global standards. https://en.wikipedia.org/wiki/Chartered_(professional)

Today the term "chartered" lacks a universally accepted definition and is not regulated globally, making any specific attributes associated with it somewhat arbitrary without a shared understanding across various professional and geographical contexts.

The use of "Chartered" designations by organizations and educational institutions outside of the UK, and without royal charters, illustrates the term's adaptability and subjective application.

This indicates that while "chartered" suggests a level of professional prestige, the actual meanings and standards are set by the individual issuing bodies based on their criteria and community expectations. The UK Privy Council acknowledges that "Chartered" can be used independently of a UK Royal Charter, highlighting that its relevance and meaning can vary significantly internationally. https://privycouncil.independent.gov.uk/royal-charters/

A Pan African Approach to Chartered

When the South African Institute for Business Accountants (SAIBA) decided to adopt the term 'Chartered' and change its name to Chartered Institute for Business Accountants (CIBA) it did so to reflect a historical evolution from a traditional colonial framework to a African nationalist approach, representing a substantial and meaningful shift towards aligning professional standards with modern African values and perspectives. https://shorturl.at/oUUgw

CIBA has embraced 'chartered' not just as a professional designation but as a commitment to integrating African values and governance models into the global accounting profession. By doing so, CIBA not only challenges the traditional Western-centric view of professional standards but also promotes a more inclusive global professional landscape.

CIBA is pioneering a transformative approach to 'chartered' within African governance frameworks. This initiative aligns with the Africa Continental Free Trade Agreement and BRICS initiatives, promoting economic independence and leveraging local governance structures to redefine professional standards.

Historical development of the term Chartered:

Phase 1: The Imperial Foundations

The term 'chartered' originated during a time when charters were imperial tools granted by European monarchs to regulate and legitimize corporate and colonial ventures. This phase was characterized by a top-down approach where 'chartered' status was a means to control economic activities and ensure benefits flowed back to the imperial core, leaving local economies often exploited and sidelined.

Phase 2: Local Adaptation and Exclusionary Practices

As detailed in the research paper "The state and the profession: Initiatives and responses to the organisation of the accounting profession in South Africa, 1904–1951" by Verhoef, the second phase of 'chartered' in South Africa shows a transition period where professional bodies, originally established under colonial rule, adapted to newfound autonomy yet continued to use 'chartered' status to maintain market dominance. This form of regulatory capture ensured continued control by a select few, predominantly British-trained accountants, over the market, sidelining local professionals. The profession sought statutory recognition under British common law, which offered greater protection and prestige compared to Roman-Dutch civil law prevalent in South Africa. https://www.researchgate.net/publication/262656044_The_state_and_the_profession_initiatives_and_responses_to_the_organisation_of_the_accounting_profession_in_South_Africa_1904-1951

This phase was marked by strategies of professional closure, where local accountancy bodies developed rules that limited access to the profession to those within their circles, effectively excluding many capable local accountants who were seen as outsiders. Verhoef highlights that these bodies leveraged the state’s mechanisms to achieve a quasi-monopolistic control over the accounting profession, underlining the legacy of British influence in setting the standards and rules.

Phase 3: CIBA's African Nationalistic Approach

Contrasting sharply with the exclusionary practices of the past, CIBA's approach in the third phase marks a significant departure. This phase embraces an African nationalist perspective that aligns with broader economic initiatives of placing African first. CIBA’s use of 'chartered' is no longer about maintaining colonial legacies but about fostering economic independence and supporting professional standards that are locally relevant and respectful of African governance structures.

In Phase 3 of CIBA's evolution of the term "Chartered," CIBA actively engages with traditional leaders in South Africa, seeking their ceremonial approval and permission to use the term in CIBA's designations. This effort is part of a broader strategy to align CIBA with African nationalist and Africanist values. By incorporating traditional leaders in this process, CIBA emphasizes respect and acknowledgment of local cultural and political structures, aiming to embed the term "Chartered" within a context that is nationally recognized and culturally resonant in Africa.

The Practical Implications for Today’s Accountants

For modern accountants, understanding the diverse implications of 'chartered' can enhance professional identity and market positioning. It's not just about holding a title, but understanding what it signifies in various contexts—be it authority, expertise, or adherence to localized professional standards.

The term 'chartered' is more than a historical relic; it's a dynamic designation that continues to evolve and adapt to the professional landscapes of today. For accountants and other professionals, embracing this broader and more inclusive understanding can open new avenues for recognition and professional development in an interconnected global economy.

Chartered Designations Independent of Royal Charters and Legislative Acts

The independence of 'chartered' designations from royal or governmental approval is evident in their widespread adoption and adaptation by professional bodies globally. These designations underscore the notion that 'chartered' implies a certain level of professional standing, whose exact meanings and requirements are defined by the issuing bodies themselves under the auspices of qualifications authorities such as SAQA, for example:

United States:

Chartered Financial Analyst (CFA)

Chartered Life Underwriter (CLU)

Chartered Financial Consultant

Chartered Market Technician (CMT)

Chartered Alternative Investment Analyst (CAIA)

Chartered Financial Manager

Chartered Asset Manager

Chartered Portfolio Manager

Chartered Economist

Chartered Trust and Estate Planner

Chartered Wealth Manager

South Africa:

Chartered Principal Executive Officer

Chartered Government Finance Officer

Chartered Government Internal Auditor

Chartered Procurement and Supply Professional

Chartered Banking Professional (SA)

Chartered Statistician

Chartered Chief Information Officer (SA)

Chartered Director SA

Chartered Marketer (SA)

Chartered Municipal Accounting Officer

Conclusion

The transformation of 'chartered' from an imperial tool to a modern professional designation reflects broader shifts in governance, cultural recognition, and economic practices. As CIBA pioneers this change, the term 'chartered' is set to embody a new era of professional recognition that respects diverse traditions and supports local economic empowerment. For today’s accountants, engaging with this evolving definition offers an opportunity to be at the forefront of a dynamic, globally respected profession.