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Ethics man

12 May 08

Ethical behaviour should run through a company like the lettering in a stick of rock. All the more reason to pay attention to Dr David Molyneaux's new publication, What do you do now?

There’s been a lot of press coverage recently on the subject of business ethics. First, an internal audit by BAE Systems, the British military contractor, found that the company had left itself open to corruption charges by failing to pay enough attention to ethics – particularly in the well-publicised deal involving arms sales to Saudi Arabia.

Second, one of the granddaddies of high finance, Evelyn de Rothschild, wrote in Friday’s FT that stricter adherence to ethical standards in the world of finance was necessary.

An increasingly competitive global commercial environment brings ethical questions to the fore. Ethics can be dismissed as humdrum but we need only look at the damage to corporate reputation caused by ignoring the issue to realise that ethical behaviour should run through a company like the lettering in a stick of rock.

The proper tone must be set at the top and this must be cascaded through the organisation. Leaders must lead by example. Pressure to deliver makes people behave differently – to take decisions which may not always be “right”. Professional accountants, of course, have strict ethical codes to guide them, but doing the right thing should be part of professional instinct.

Examples of ethical dilemmas and how to address them are good ways of promoting ethical behaviour. Our very own “Ethics Man”, Dr David Molyneaux CA, a business ethics expert, ordained minister and a former partner with a leading firm launches What do you do now? today. David’s publication consists of a number of realistic scenarios that professional accountants may face throughout their careers. They’ll also be featuring on a monthly basis here on CA Mag online.

Take the time to put yourself in these scenarios. How would you do the right thing?

 

Have your say





Your comments:


Ian Gordon

Tuesday May 13, 2008, 00:09

Are you implying, Anton, that the professional accountant should be the first to blow the whistle? And at what stage does he start blowing? The issues are seldom black and white.

A real-life experience found me in a financial position in a start-up company trying to create "software solutions" for potential service industry customers.

The engineers were recording "surprisingly" good results, the marketers were estatic, venture capitalists were milling around...do I say, "Wait, these tests look too good to me!"


Anton Colella

Tuesday May 13, 2008, 14:28

Thanks for your comments. I fully appreciate that ethical issues are sometimes not black or white - a point well made at our event last night. The ability of a CA to exercise professional judgment based on the core principles within the ICAS Code of Ethics is an essential ingredient of what makes you and other members globally recognised.

Objective examination of the evidence should be paramount. I realise that this is not always straightforward, but CAs should act as shepherds within an organisation, not sheep. This, at times, may place the CA in a position of isolation, but does not remove the CA from professional and other responsibilities. At times this may need the accountant to bring a sense of realism or prudence to a project, even if only to highlight the risks attached to the project e.g. what happens if sales targets are not met, costs are higher than expected etc. With respect to whistle-blowing, the accountant must consider the ethical and legal requirements with which he is faced before making a decision on such matters.


Anton Colella

Thursday August 7, 2008, 15:29

Thanks for your comments Ken. We’re currently in discussion with the ICAEW to determine whether further guidance is necessary for professional accountants acting as non-executive directors. The Business Policy committee will consider the issues surrounding unitary boards at its next meeting in September.


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Colella | ICAS | blog | ethics
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