New Research Highlights Top Ethical Challenges in Leadership, Culture, and Sustainability
Singapore, October 16, 2024 – Professional accountants, long regarded as trusted custodians of financial integrity, are entering a new era of ethical complexities as the landscape of business evolves. The rise in business scandals and changing societal expectations have amplified these challenges. According to new research, 68% of respondents from the Asia Pacific region report that resolving ethical dilemmas has become increasingly difficult over the past three years.
A recent report from the Association of Chartered Certified Accountants (ACCA), released to coincide with Global Ethics Day, sheds light on the growing complexity of ethical challenges facing accountants today. The study gathered responses from over 1,100 professionals across 135 countries, with 17% of participants from the Asia Pacific region, including 3% from Singapore. The findings indicate a global trend where 55% of accountants have witnessed unethical behaviour during their careers, and nearly one in four (24%) have experienced pressure to act unethically in the last three years.
The report also found notable gender differences in experiences of ethical pressure. More men (27%) reported being pressured to act unethically compared to women (19%).
Respondents were asked to identify the top three areas where they have encountered ethical challenges over the past three years. These were:
• Leadership and culture (40%)
• Artificial intelligence and technology (32% and 26%, respectively)
• Sustainability (30%)
Although these key themes were consistent globally, regional nuances emerged in the specific ethical challenges encountered. For example, in the Asia Pacific region, there were balanced concerns around AI, sustainability, and fraud. Cross-border operations have become easier thanks to technological advancements, which in turn have created new ethical challenges. Regional cultural, legal, and economic factors have an impact on these challenges.
While the drivers of complexity in ethical dilemmas are largely similar worldwide, the frequency and perceived acceptability of certain practices vary by region. In the Asia Pacific, specific challenges include pressure to manipulate accounts, concerns over audit quality due to time and resource constraints, and cultural factors such as reluctance to challenge authority. These differences emphasise the importance of considering local factors when promoting and enforcing ethical standards, while the similarities underscore the need for a global commitment to integrity in the accounting profession.
Furthermore, the nature of work has transformed significantly, with many professionals now working remotely. This shift has impacted how ethical challenges are addressed, as individuals may be navigating these dilemmas in more isolated settings than before.
The research highlights several key areas that senior leaders must focus on in the coming years. These include:
• Mental health and wellbeing
• Professional competence and continuous learning
• Technology and data ethics
• Ethical leadership and governance
• Diversity, equity, and inclusion
• Sustainability reporting
Sarah Lane, Head of Ethics and Assurance at ACCA and the author of the report, emphasised the need for ethical leadership: “These insights highlight the importance of robust ethical leadership and organisational culture. Continuous learning and development are essential to support professional accountants in navigating these challenges within today’s rapidly evolving landscape.”
