Ethics must come from the heart

SHARED FROM:

     HOW TO BE GOOD

     BY NAZATUL IZMA

     ACCOUNTANTS TODAY, MAY/JUNE 2014

 

According to Mohd Izani Ghani, CFO Khazanah Nasional Bhd, ethics is not about ticking the right boxes and being in compliance, but something that comes from the heart.  The most important principle for accountants to remember is that they are always acting in the public interest and for public benefit.

Accountants are always exhorted to behave ethically and with integrity in the effort to improve stakeholder confidence, enhance governance and uphold the profession’s reputation.  Ethics should come naturally.  Thus, accountants should be consistent in practicing ethical behavior.

Our ethical standards are being challenged every day.  Thus, according to Ravi Navaratnam, Executive Vice-President of Minconsult Sdn Bhd, ethics is about doing the right thing when people are not looking and that the real test is to stay strong and consistent.

Nik Mohd Hasyudeen Yusoff, Executive Chairman, Audit Oversight Board of the Securities Commission reminds that ethics and law may conflict because what might be legally permissible might be morally wrong.  The tendency to unquestioningly submit to authority could also be crippling good behavior and independent mindset.

It is observed that Malaysia has one of the largest ‘power distance’ which means that Malaysians generally bow down to authority.  Navaratnam also singled out the ‘state capture’ as one of the factor where it refers to the incumbent authorities’ use of government infrastructure and institutions to shape mindsets, making it challenging for Malaysians to go against the tide of misconduct and speak out.

Linked to good governance and ethical conduct is the act of blowing the whistle on misconduct.  But the existing provisions do not adequately protect whistleblowers.

While codes of ethics are helpful guide, ultimately accountants will have to use their hearts and minds to determine good conduct.  As Tan Soo Yan, Professional Practice Director, Ernst & Young Malaysia said, ‘It’s important to define success as being more than revenue generation and wealth accumulation.’