“Ethical dilemmas are becoming more complex, with the rise of AI, sustainability issues, and global interconnectivity.”
As we marked Global Ethics Day 2024 (16 October), the importance of ethics in the business world has never been greater and ethical practices are at the forefront of conversations across industries. Maintaining ethical integrity is crucial, and this is evident nowhere more than the Middle East, where rapid development continues to reshape landscapes.
In this contribution, two distinguished industry leaders-Kush Ahuja, Head of Eurasia and Middle East, ACCA, (the Association of Chartered Certified Accountants) and Sam Achampong, Regional Director of CIPS (Chartered Institute of Procurement & Supply)-Asia, Australasia, Middle East, and Africa, shared their perspectives on the growing significance of ethics in business.
The ethical imperative in finance and leadership
Kush Ahuja highlighted that the financial sector has a pivotal role to play in promoting ethical leadership and accountability. “In an era of globalisation, businesses face new ethical challenges that cut across cultures, economies, and regulatory landscapes,” Ahuja stated. A recent ACCA report, which surveyed over 1,100 accountants across 135 countries, found that 55% of accountants have witnessed unethical behaviour in their careers, and 24% have been pressured to act unethically in the last three years.
According to Ahuja, these figures underscore the importance of promoting a strong ethical culture within organisations. “Ethical dilemmas are becoming more complex, with the rise of AI, sustainability issues, and global interconnectivity. It is no longer enough for leaders to simply follow the rules, they must actively promote ethical behaviour within their teams,” he noted. He emphasised the importance of ongoing learning and development to support professionals in navigating these challenges.
“Leadership, culture, and sustainability are the top three areas where ethical challenges arise today,” he continued, pointing to the survey findings that show how these elements are increasingly intertwined in modern business. “Businesses must ensure that ethical considerations are built into decision-making at every level, from boardrooms to day-to-day operations.”
Building resilience and trust
Sam Achampong, who leads CIPS across multiple regions, underscored the critical importance of ethical procurement. “Procurement decisions today are no longer just about cost and quality,” Achampong explained. “They are about ethics, sustainability, and political implications. Ethical procurement reflects the values a business upholds, and in the Middle East, where supply chains are often complex and global, this is especially true.”
According to Achampong, ethical sourcing is not just a box-ticking exercise; it is a key component of building resilient and sustainable businesses. “Ethical supply chains minimise business disruption from environmental, social, and economic impacts and serve as a foundation for protecting a company’s reputation,” he added.
In a recent CIPS survey, 68% of procurement professionals identified ethical sourcing as a top priority. This aligns with a growing consumer expectation for transparency in supply chains, with 81% of global consumers now expecting businesses to take responsibility for their environmental and ethical impact.
Achampong also highlighted the tangible benefits of ethical procurement. “Research shows that companies with strong Environmental, Social, and Governance (ESG) credentials save between 5% and 10% in costs and grow 10-20% more in value than their competitors,” he observed. He believes that ethical sourcing offers a clear competitive advantage, particularly in industries like oil, gas, and construction, which are integral to the Middle Eastern economy.
Competitive advantage
Both leaders agreed that ethical practices are no longer a ‘nice-to-have’ but a ‘must-have’ for businesses aiming for long-term success. As Kush Ahuja put it, “In today’s interconnected world, where news spreads fast and reputations can be destroyed in an instant, businesses cannot afford to overlook ethics. It is not just about avoiding scandals; it is about building trust, which is the foundation of any successful business.”
Sam Achampong further reinforced this view, stating, “Ethical procurement is the future. Companies that embrace it will not only reduce risks but also gain a strategic edge over their competitors. In the Middle East, where global supply chains intersect, ethical practices can set businesses apart in an increasingly competitive market.”
As we celebrate Global Ethics Day, businesses across industries must prioritise ethics to navigate today’s world. Ethical practices are essential for building trust, ensuring sustainability, and driving long-term success.
