Business leaders need sound ethical training

Ethical challenges are still common in that society and many others, the differences across countries being degree and blatantness.

They present themselves at all levels, from the boardroom, and as the incident with Ese showed, to the cop on the street. When I was leaving high school decades ago, a fair few colleagues were beating a path to jobs as customs officers, instead of university. As getrich- quick careers went, it had no equal. I’m sure you can figure out for yourself why.

In interactions that raise ethical questions, the focus is often on the initiator of the act, but it takes two to play. People in business facing these choices, need to have the necessary skills training – being carefully walked through scenarios that enable them to make sound ethical choices. We at ACCA say “not”, unequivocally. And we’re refining the way we offer ethics training to ACCA students.

More on that in a moment.

One of the toughest things to overcome is the normalisation of corruption. In many parts of the world, these acts are seen as simply a part of getting business done. So business people have decisions to make. Do you want your $1m consignment of goods cleared tomorrow or six weeks down the line? What are you prepared to do (nudge, wink), to speed up the issuing of licences you need to operate effectively in that market? According to the World Bank and the World Economic Forum, approximately $1.25 trillion dollars are paid in bribes each year. And they are not exclusive to poor, developing countries, as many believe. Rich, industrialised countries are well represented here.

For recoded levels of corruption, the Caribbean is a mixed bag. Transparency International’s Corruption Perception Index (CPI) has its critics. One of the things they take aim at is the measure itself – with “perception” being at odds with rigorous, scientific analysis.

However, as a comparative listing, it is very illustrative. It shows an erosion in the regional position. In 2014, Barbados was the highest ranked Caribbean country at 17th. By 2016 it had slipped to 31st out of 176, second among Caribbean nations after the Bahamas in 24th.

Haiti is ranked as the most corrupt Caribbean country, joint 159th with Republic of Congo.

Notable are Jamaica at 83rd, TT at 101st, and Guyana 108th. Compared to its Caribbean basin neighbours, Venezuela is worse off, 11th from bottom at 166. Denmark is first, Somalia worst.

ACCA recognises the scale of the ethical challenge, and from October monthend will offer its ethics exam in a different way.

The Ethics and Professional Skills Module replaces the existing Ethics Module. It is now in seven parts, including the assessment, to be completed online. As someone who has delivered scenario training (in journalism and media), I can see that students will be tested by what can appear to be truly grey areas. Our aim is clear, though. While we want you to have your eyes wide open to the threats, we also want you to leave the assessment session with a very clear idea of the yeas and nays of doing business ethically, and performing your tasks to the highest ethical standards. You’ll hear more on this in the news in the coming days and weeks.

For context, close to 15,000 students (ACCA & Foundation) across the Caribbean are undergoing training in professional accountancy, delivered by ACCA (the Association of Chartered Certified Accountants). The Ethics and professional Skills Module is one of three components that make up the ACCA qualification, the others being exams and experience. All of this goes to the heart of good, sound corporate governance.

Accountants offer clear, credible and consistent financial information that can help investors, governments and regulators to make sound strategic decisions. This means operating to consistent standards – not just of financial reporting, but in areas that include corporate governance.

This strong grounding in ethical standards of an ACCA-qualified accountant is an asset to companies in situations in which the temptation could lead to short term advantage, but do irreparable damage in the longer term. For professionals such as accountants, lawyers and doctors, ethics is an important part of professional training and practice.

That’s why it’s necessary for all of us to look at how we deliver ethical training, and refine it if we can.