LEADERSHIP’S ROLE IN RESTORING ETHICAL ENERGY Ethical cultures don’t emerge from memos or annual training. They are reinforced through everyday leadership behavior and peers holding each other accountable. That includes: Making space for questions, especially when timelines are tight. Responding constructively to concerns, even when they’re inconvenient. Acknowledging gray areas, rather than pretending every decision is clear-cut. Modeling boundaries, so giving in to pressure doesn’t become the default excuse. Leaders set the tone not by declaring values, but by demonstrating how those values guide decisions under pressure. When professionals see leaders ignore discomfort in favor of efficiency, trust erodes—quietly, but consistently. When they see leaders prioritize integrity over short-term wins, trust deepens and ethical energy flows. ETHICS IN AN AI-ASSISTED WORLD As firms adopt more advanced technology, ethical responsibility doesn’t disappear—it shifts. AI and automation can improve consistency and reduce certain risks, but they don’t eliminate professional judgment. Someone still decides how tools are configured, when outputs are accepted, and when results are questioned. That makes an ethical culture even more important. In a firm where people feel safe challenging assumptions, technology becomes a safeguard. In a firm where people feel pressured to move fast and stay quiet, technology can amplify risk instead of reducing it. A high ethical standard determines which outcome prevails. REFRAMING ETHICS AS PROFESSIONAL SUSTAINABILITY Ethics isn’t just about avoiding failure; it’s about sustaining the profession. Firms that actively invest in trust—through transparency, accountability, and human-centered leadership—are better positioned to retain talent, serve clients effectively, and adapt responsibly to change. Ethical energy is finite. When professionals are constantly stretched, their ability to engage thoughtfully diminishes. Recognizing that reality isn’t weakness—it’s leadership. Protecting trust means protecting the people who carry it. THE QUESTION LEADERS SHOULD BE ASKING Instead of asking “Are we compliant?” leaders might ask, “Are we creating conditions where people can do the right thing consistently?” That question shifts the focus from control to culture, from fear to responsibility, and from short-term performance to long-term sustainability. In a profession built on trust, that shift isn’t optional. It’s essential. Donny C. Shimamoto, CPA, CITP, CGMA, is the founder and inspiration architect for the Center for Accounting Transformation, which enables transformation by guiding professionals through the adoption and change required to step into the future of the accounting profession. He is also the founder and managing director of IntrapriseTechKnowlogies LLC, a Hawaiiheadquartered advisory-focused CPA firm dedicated to improving the world by helping small and mid-sized entities (SMEs) accelerate their business transformations through the application of Environmental Social & Governance (ESG) and Enterprise Risk Management (ERM) frameworks right-sized for smaller organizations. 21 nescpa.org
RkJQdWJsaXNoZXIy MTg3NDExNQ==