New ICAS report examines the state of ethical leadership in business

Bruce Cartwright – CEO of ICAS
The accountancy profession has an increasingly critical role to play in setting the standard for ethical behaviour in business, according to a new ethical leadership insights series from the Institute of Chartered Accountants of Scotland (ICAS).
ICAS conducted in-depth interviews with a selection of high-profile Chartered Accountants (CAs) across a range of business sectors and surveyed a cross-section of over 700 ICAS members to inform the report.
The findings reveal the integral connection between ethics and accountancy, with 94% of respondents agreeing that it is part of their role to call out behaviour that falls below ethical standards.
Results also highlighted that 42% of CAs think there has been a recent increase in ethical issues, as new technologies and changing societal attitudes reshape the modern business landscape. Alarmingly, a skill gap remains, with 39% admitting that they are somewhat or not very well-equipped to deal with these growing challenges.
Other key findings include:
- The most common ethical issues faced by CAs are conflicts of interest (45%), workforce/employee issues (37%), and pressure to provide/accept misleading or false information (36%).
- 42% of CAs indicated that the emergence of new technologies, such as AI, have introduced new ethical considerations into their roles.
- Younger CAs are slightly more confident tackling ethical dilemmas in the workplace, with 64% of those with less than 10 years qualified feeling extremely or very well equipped, compared to 61% of those with 10-30 years’ experience and 60% with over 30 years.
- There is still work to be done to improve institutional support, with only 61% of CAs believing their organisations provide a supportive environment for raising ethical concerns.
- ICAS’ ethical resources are a source of support for CAs, with 78% saying they actively consider the principles set out in the ICAS Code of Ethics when exercising professional judgement.
Alongside these statistics, the anecdotes shared in conversation with the series’ participants offer valuable wisdom to support CAs and other professionals in navigating an increasingly complex ethical landscape – with topics covered including managing discomfort, distinguishing ethics from legality, guidance for disclosures, and ethical leadership in the boardroom.
Bruce Cartwright CA, ICAS CEO, said: “Ethical leadership is not just about knowing the rules, it’s about having the courage to do the right thing when it matters most. In line with the ICAS motto, ‘seek the truth’, we’re committed to empowering the accountancy profession to cultivate trust and act as ethical leaders.
“One of the key themes emerging from our new ethical leadership insight series is the importance of seeking the perspective of others. We hope that by bringing together leading voices from across the profession to explore these issues, we can provide real-world perspectives that equip CAs to navigate challenging professional situations with confidence and purpose.”
The first instalment in the eight-part series – Ethical Insights: Your moral compass is something that develops on the job – has launched this week, with the remaining insights published on the ICAS Ethical Leadership Hub over the coming months.
To explore this topic further, ICAS will host a live online Ethical Leadership Forum on Tuesday 3 June. Hosted by broadcaster Sally Magnusson, the event will feature a keynote address from journalist Nick Wallis on his extensive reporting of the Post Office scandal, followed by thought-provoking panels on the importance of ethical culture and the ethical implications of new technologies. Register to attend the ICAS Ethical Leadership Forum here.