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.