CFOs need to keep their house and conscience in order

CFOs today face immense pressures. They need to meet aggressive financial targets in the midst of a slowing global economy. In addition, they are increasingly being scrutinised for individual culpability by regulators around the globe for corporate misconduct.

It would seem like the law is justified in turning the spotlight on CFOs: findings from the recent 14th Global Fraud Survey 2016 by EY showed that 36 per cent of the CFOs polled globally admitted they could rationalise unethical conduct to improve financial performance. Sixteen per cent of finance team members below the CFO would make cash payment to win or retain business.

It might come as a surprise that executives in Singapore are not closed to unethical business practices. The same survey has shown that the top three unethical behaviours which Singapore respondents would be willing to engage in are: allowing for more flexible product return policies; changing assumptions determining valuations or reserves; and extending the monthly r…