Tag Archives: ethics

Accountancy & Accounts, Research

Accountants face new era of ethical challenges

New research reveals that top three areas for ethical challenges are leadership, culture and sustainability – and that ethical dilemmas are becoming more complex

Professional accountants, long trusted as custodians of financial integrity, are facing a new era of ethical challenges amid a rise in business scandals and evolving expectations. 64% of respondents said that ethical dilemmas have become more difficult to resolve in the past three years.

 

A report from the world’s leading professional accountancy body ACCA (Association of Chartered Certified Accountants) published to mark Global Ethics Day, highlights the evolving nature of ethical challenges and the increasing complexity of ethical dilemmas in accountancy. The new era of ethical challenges for professional accountants is based on over 1,100 responses from 135 countries.

 

The findings reveal that 55% of accountants have witnessed unethical behaviour in their career
and almost one in four (24%) have been put under pressure to behave unethically in the last
three years. In addition, the results revealed that more men have experienced ethical pressure than women: 27% of males have been put under pressure to act in an unethical way, compared with 19% of females.

People were asked to name their top three areas for ethical challenges over the past three years. The top results were:

  • leadership and culture (40%)
  • AI and technology (32% and 26%)
  • sustainability (30%)

 

Globalisation, driven by technology, is facilitating businesses to expand across borders – which in turn creates new ethical challenges emerging due to regional variations including cultural,

legal and economic factors. While the drivers of complexity in ethical dilemmas are broadly

similar globally, the research underscores the importance of considering local factors in

promoting and enforcing ethical behaviour.

 

By contrast, the nature of where we work has also transformed during this time. With people often working remotely, and individually while part of a team, when ethical challenges do arise, they’re potentially resolving them in a different way.

 

The research also highlights key areas for senior leadership to address in the near future. These include: mental health and wellbeing, professional competence and continuous learning, technology and data ethics, ethical leadership and governance, diversity, equity and inclusion and sustainability reporting.

 

Report author, Sarah Lane, head of ethics and assurance at ACCA, said: “These insights
underscore the need for robust ethical leadership and culture in organisations, and ongoing
learning and development to support professional accountants in navigating these challenges in today’s evolving landscape.”

 

Read the full report.

News

Fear and tradition drive followers to favour tyrants, say researchers

People who place high value on hierarchical structures, group loyalty, and conformity to traditions brought on by the perception that the world is a threatening place – are more likely to endorse tyrannical leadership traits, new research from NEOMA Business School reveals.

Assistant Professor Agata Mirowska and her co-authors, Dr. Raymond B. Chiu of Redeemer University and Dr. Rick D. Hackett of McMaster University, found that the worry of self-preservation in the face of perceived threats in the world is manifest through traditional morals, such as deference to authority and conformity to group and religious norms. This mix of fear and tradition can condition followers to see tyrannical leader traits as acceptable, even though others may be horrified by them. However, the effects of conforming to these traditional morals are greater for men than women, meaning that men with strong traditional views are most susceptible to the allure of tyranny.

A supportive and gentle leader may be seen as ideal for many, but the rise in populism and authoritarianism in politics has proven to be a disruptive and seemingly unstoppable force in the world today.

The findings suggest that understanding how people fall for the overbearing, brash, and self-aggrandizing traits of tyrants may help to avoid the damage that has come with their increasing power. Followers must make a conscious effort to avoid being deceived by the “toughness” of the tyrannical leader, especially since such leaders are typically men and the effects are greater for male followers.

“Our understanding of the moral mind shows that people don’t necessarily follow tyrannical or tough leaders because of some sort of personal or moral deficit. In fact, it’s quite the opposite,” says Dr. Mirowska.

“Support for tyrannical leaders may reflect well-intentioned efforts to achieve the best outcome in the context of a world that they perceive as dangerous.”

These findings come from two separate samples of adults, varying in age, education level, and employment status, who completed the moral foundations questionnaire. The study was published recently in the Journal of Business Ethics.

 

 

Logistics, News

Hermes Announces Ambitious Ethics and Sustainability Programme

Hermes, the UK’s largest dedicated parcel delivery company, has announced an ambitious ESG (Environmental, Social and Governance) programme designed to reduce its impact on the planet, promote equality and fairness and increase transparency about its operations.

Nancy Hobhouse, who recently joined Hermes as Head of ESG from John Lewis where she was Senior Sustainability Manager, will steer the strategy, building on Hermes’ current position as the home delivery company with the lowest carbon footprint in the market across every part of its operations*.  Hermes has also now signed the Climate Pledge, which is a commitment to be net-zero carbon by 2040 or sooner. Over 200 companies are committed.

Hermes has completed its Scope 1, 2 and 3 carbon assessment and has just expanded its fleet of low carbon Bio-CNG trucks to 160, the largest of its kind in the UK. 30% of Hermes’ van fleet serving its Parcel Shops and Lockers is now electric (EVs), making its Out-of-home collection and drop-off offering one of the most sustainable in the market.

In addition, all its operations use 100% certified renewable electricity and will be the first dedicated parcel company to trial an electric HGV. Future targets include becoming net zero by 2035 for direct and indirect emissions.

Nancy said: “We will continue to reduce carbon emissions across our operations by focusing on our vehicles, infrastructure, and innovative products and services. We are firmly on the road to net zero and proud we are the lowest carbon per parcel of any dedicated parcel company. However, we know that there’s more to do, and we will continue to innovate and drive this agenda forward.”

Building on the company’s commitment to promoting equality and fairness will underpin the company’s Social element of its ethics and sustainability vision. This includes updating its industry leading Code of Conduct and introducing Ethnicity Pay Gap Reporting in addition to its Gender Pay Gap reporting. Hermes will also double its charitable giving investment.

Transparency is central to any ESG programme and Hermes will sign up to the Task Force on Climate-Related Financial Disclosures (TCFD) by 2022. In addition, all senior leadership will have ESG in their objectives from 2022 and all employees and contractors will receive mandatory ESG training.

Fash Sawyerr, Chief Transformation Officer at Hermes, added: “As a responsible carrier, we recognise our impact on the environment and we are pushing sustainability and ethics to the forefront of our operating model. We are committed to delivering a better future for the planet including our people, our customers and retail partners, and wider communities.”