Why ethical conduct is key to positive societal transformation – 4

Contrary to the ethical conduct we practised, some of our discussions revealed a different mindset. A few individuals used to argue that since our combination (of ECA subjects) was likely to lead us into careers in accounting and business management, we would eventually be in positions where we could make good money, albeit through unethical means. This created two groups: those who advocated whatever means to make money and those who were advocating a high level of integrity.

The two differing situations reflected a shared understanding of the importance of safeguarding the rights of colleagues within that environment. It showed that, at that time, we generally valued ethical conduct and mutual respect. However, a noticeable shift occurred when some among us were lucky enough to be employed, but chose to behave contrary to those ethical principles. This change represents a serious violation of the core pillars of ethics—honesty, fairness, respect, responsibility and compassion.

Training in ethics must be mainstreamed at all levels of education, from kindergarten to tertiary education. It is time every subject taught incorporated ethical consideration. When I taught introductory accounting courses at the undergraduate level and financial accounting at the postgraduate level, I did my best to embed ethics throughout.  I also pioneered the introduction of the Corporate Social Responsibility (CSR) course, with ethics as its central focus.

It is important to act as advocated by Aristotle, the Greek philosopher who stated, “Educating the mind without educating the heart is no education at all.” The key question is: why do we continue to see products of society with ethical anomalies? The answer lies in two areas. First, how we manage ourselves internally. Second, the kind of knowledge, skills and, more importantly, attitudes we instil in society. Are we personally motivated to act responsibly? Are we ethical in our daily lives? Do we integrate ethical behaviour into everything we do? And within our education system, how well do we cover ethical matters?

We should stop promoting the idea that human beings are entirely selfish, self-centred and driven by greed. This kind of thinking has contributed to growing criticism of business education. To a large extent, socially irresponsible concepts and ethically questionable theories dominate the curriculum. This discourages the development of ethical awareness.

The behaviours of individuals in organisations are often shaped by the environment and the nature of education they receive. In their 2005 Harvard Business Review article, “How Business Schools Lost Their Way,” Warren Bennis and James O’Toole observe that before the scandals of Arthur Anderson, WorldCom, and Enron, business students in the US spent 95 percent of their time learning how to calculate and maximise wealth and only 5 percent of their time on developing moral capacities. This approach contradicts Aristotle’s view that a good manager needs more than technical skills; they need education in moral reasoning.

The reading above reminds me of a troubling childhood experience. An elderly businessman once told me that to succeed in business, one must forget about God and ethics and instead the devil has to be the guardian. His views were not far from the misguided concepts I have just discussed. These beliefs are deeply flawed and often bring only short-term gains. Unsurprisingly, none of the old man’s businesses succeeded. They failed quickly and left no lasting impact.

My own experience with business-related education, from undergraduate to master’s level, was largely centred on the concept of profit maximisation. It was not until I began PhD studies that my orientation shifted. During that time, I started focusing more on issues concerning stakeholders and the importance of ethics in business decision-making.

When I became the managing director of Amana Bank in 2015, some of my former students asked whether I would be able to cope. There is a common belief that many in bank leadership positions act unethically to maximise profits and earn large bonuses. I told them that I strongly believed that that was a misconception. In my view, there are more honest individuals in leadership positions in the banking industry than those who act unethically.

In next week’s instalment, I will continue with the discussion of my experience in the banking industry in its relation to ethics. I will also provide more insights into the importance of being fair to all and compassion as the pillars of ethical conduct.

Dr Muhsin Salim Masoud is a seasoned banker and academic, who has also served as managing director of the People’s Bank of Zanzibar and Amana Bank. [email protected]