INTHEBLACK September 2024 special edition - Flipbook - Page 15
ETHICAL INTELLIGENCE, DEFINED
“Being able to perform the job
well is one thing, but the value of
ethics is higher than compliance
on its own – compliance is just
following the legislation.”
MAHESH BALAKRISHNAN FCPA, ANZ
Centre of Excellence, emphasises the importance
of recruiting with ethical behaviour in mind.
“You need to recruit for a culture of ethics. People
ask behavioural questions all the time in interviews,
but how many questions are actually targeted at the
culture and ask, ‘How will someone behave ethically?’.
“Being able to perform the job well is one thing,
but the value of ethics is higher than compliance on
its own – compliance is just following the legislation,”
Balakrishnan says.
Sharing stories of where ethical behaviour has
benefited the business can assist with embedding
a culture across an organisation. In some cases,
showcasing examples of honesty and integrity can
even drive financial rewards, Weinstein adds.
“In one case, the client was so impressed by a
person’s honesty and courage that they gave that
person’s company an additional contract for US$2–3
million [A$3–4.6 million],” he says.
LEGAL VERSUS ETHICAL
In June 2023, the Parliamentary Joint Committee
(PJC) on Corporations and Financial Services’ Inquiry
into Ethics and Professional Accountability: Structural
Challenges in the Audit, Assurance and Consultancy
Industry commenced.
The intent of the inquiry is to examine allegations
of and responses to misconduct in the operations
of the major accounting, audit and consultancy
firms, via “a detailed investigation and analysis of
regulatory, technical and legal settings, and broader
cultural factors”.
Ethical intelligence is a person’s capacity
to recognise and apply ethical principles. It
means grasping the difference between right
and wrong and making decisions that reflect
fairness, honesty and respect for others, as
well as consistently acting with integrity.
Workplace ethical intelligence helps
people navigate complex situations,
build trust with colleagues and maintain
a positive and ethical work environment.
It is about making choices that not only
benefit the individual but also uphold the
values and standards of the organisation.
The inquiry serves as a reminder of the importance
of prioritising ethics in business.
“Accountants do tend to stick to the law – but ethical
behaviour takes a further step, and that’s the step
people will need to be looking at,” Balakrishnan says.
Even though an action may be legal, it does not
always mean it is ethical, Weinstein adds.
“There is an implication that the first question we
should ask before we do
anything is ‘is it legal?’ Well,
that is the first question, but
it’s not the last question,
because there are plenty
of things that are legal to
LISTEN
do that are unethical or
to
a podcast
ethically questionable.”
episode on ethical
Compliance with
intelligence
legislation aside, there is
increasing pressure from
regulators for companies
to improve their culture.
“Accountants do tend
UPSKILL NOW
to stick to the law – but
Ethics at Work
ethical behaviour takes a
further step, and that’s the
step people will need to be
looking at.
UPSKILL NOW
“The question the
Ethical Dilemmas
ethically intelligent CPA
in Accounting:
should ultimately ask is, ‘Is
A Practical
this the right thing to do?’”
Perspective
Weinstein says. ●
ETHICS ESSENTIALS intheblack.cpaaustralia.com.au 15
