In this series of conversations about ethical leadership, we speak with high profile ICAS members who have reflected on what it means to do the right, or ethical thing throughout their careers. It is hoped that the conversations provide practical guidance to help anyone in a challenging professional situation where they are required to seek the truth and then act.
As well as interviewing these ICAS members individually, under Chatham House rules, we also surveyed our members in a quantitative survey during 2024, conducted by Dodds & Law Research Associates. We received 710 responses from a survey of 10,000 members and we have taken some of the results and findings and used them in this report to highlight the wider views of members.
Insight one
What does it mean to be an ethical leader? Where do you start in honing these skills, which often need to be deployed when emotions are running high. Much like riding a bike, once we know the fundamental skills that allow us to balance, most of our learning is done through trial and error. But in our first lesson of the series, we look at the core elements that help us to navigate the challenges of ethical leadership, the skills and the foundations which will help us to fast track our learning.
Our survey revealed that 64% of those with less than 10 years qualified as a CA feel extremely or very well equipped to be able to tackle ethical dilemmas in a workplace context vs 61% of 10-30 years (and 60% of 30+ years).
There is a wealth of case studies and books that provide individuals with knowledge about what good ethical leadership in business looks like. But the true value of ethical leadership comes from lived experiences. Nothing else can replicate the emotions felt during those difficult conversations, particularly when the stakes are high. Another word for those lived experiences is wisdom, and there are no shortcuts to build this core foundation of ethical leadership. It’s something that must be observed and practiced – and those who demonstrate it are often sources of inspiration:
“It was the partners you learnt from. You’d be out on jobs with them. Just watch them. And it just dripped into you. And we apprentices would tell the stories of what we had seen – you know, this partner went in, and he just told this guy ‘You’re not doing this or that’ and it was inspiring. There was one partner – he would take us out for a sandwich lunch and just throw questions at us. He made us think. The partners were the ethics. And I was trained brilliantly.”
“There is an intergenerational thing here I think – older professionals who have been around the block should be encouraging the younger generation to be more challenging – to know right from wrong and to stand tall when you see it. We need to encourage this next generation – if they’ve got serious doubts, voice them.”
This stewardship role is widely acknowledged as being of fundamental importance and something the current generation needs to impart to the next: “I would say to all newly qualifieds ‘you have just joined a profession that will give you the ability to have an above average income from a very satisfying career. But that profession only exists because it has a reputation which you did not build, but which you are about to benefit from – you now need to earn this reputation. The privilege of being a professional is your duty to do the right thing.”
There is also a recognition that ethical leaders do not come fully formed and that those in leadership positions have a responsibility to model what good looks like:
“I try very hard to have an open-door policy and be approachable. Every Monday morning I gather my entire team together – not just my direct reports – we squash into the boardroom, and I’ll talk about successes as well as the short, medium and long-term horizon, what’s important to me and I explain why. People know that if there is an issue or challenge to be solved, we work it out together, constructively, calmly and with good humour.”
Part of this stewardship role is about modelling emotionally intelligent leadership that develops in others the ability to see beyond the numbers:
“I think (navigating tricky ethical conversations) comes down to empathy. I often say to people, if you’re going to have a really tough conversation, try and imagine how the person that you’re going to have the conversation with is going to feel. Try to put yourself in their shoes. Rather than just jumping in and saying, ‘you’ve obviously breached the ethics in this situation’ try to understand it from their perspective – I think that is really important.”
Another critically important theme is that learning on the job means being willing to talk to those around you to gain perspective:
“I remember auditing one of the branches of an overseas bank which seemed to be making quite a lot of money with no apparent risk. What was curious to me at the time was that all their trades seemed to be with the same seven or eight counterparties.
“I remember getting into quite a heated discussion with the management of the branch who told me I did not understand their business model. At the time I was a junior manager on the audit, and so I escalated the issue and got 100% support from my partner who said we should raise the matter with their head office, which we did – despite threats from the subsidiary to fire us. And of course, the head office backed our analysis and put a stop to this activity.
“At the time what I remember was feeling a lot of pressure – the counterparties were all big Institutions who tried to tell us that they had discovered a fantastic trading strategy that we did not understand. In my mind however, if it looked too good to be true, it probably was. My takeaway was the importance of leaning in.”
Counterintuitively however, there are also times when you need to ignore the advice of others and trust your gut:
“I remember at a certain point in my career being challenged to take on more business. I took on something where I sensed I was there to provide cover. Normally in these circumstances I would tell the client you are paying for my honest opinion – if you want cover, I am not that person. However, I had an independent advisory board who encouraged me to take on the work and needless to say it was not a happy experience. Reflecting on what had happened with a colleague he said to me ‘don’t ever compromise’.”
Developing a moral compass is not just about your own integrity, it is a duty you owe to the profession as a whole:
“All new Partners at the firm were told ‘you are committing every opinion you write to the firm and your fellow partners – as they are to you. We will always support you, even if you make a mistake or exercise a poor judgement, provided that when you find yourself in a difficult situation you consult with your fellow partners, who may have seen the same circumstance before’. In other words, don’t fly solo. If you’re ever faced with an ethical situation, the first rule should be, go and talk to someone about it. Don’t face it on your own.”
