Strengthening Ethical Foundations: IESBA’s Initiative on Accounting Firm Culture and Governance

In a significant move toward reshaping the ethical landscape of the accounting profession, the International Ethics Standards Board for Accountants (IESBA) has launched a standard-setting project on accounting firm culture and governance. This initiative follows the release of the Working Group on Firm Culture and Governance’s fact-finding report on January 14, 2025.

At Dawgen Global, we recognize that trust is the currency of our profession. The IESBA’s focus on ethical leadership and sound governance aligns seamlessly with our core values and the commitments we make to our clients and stakeholders every day.

A Culture Rooted in Ethics

The IESBA report underscores several critical insights, chief among them the indispensable role of ethical leadership and robust governance structures in cultivating a firm culture that promotes ethical behavior. It emphasizes that a culture built on integrity does not happen by chance—it must be deliberately shaped and supported through:

• Transparent and values-based leadership

• Clear accountability mechanisms at all levels

• Independent perspectives in decision-making

• Alignment of performance incentives with ethical conduct

• Continuous ethics education and open internal discourse

These findings are not merely theoretical—they reflect what is essential for firms to thrive in today’s dynamic regulatory and reputational environment.

A Principles-Based Framework for the Future

IESBA’s proposed project seeks to develop a principles-based culture and governance framework that can be adapted across accounting firms globally, regardless of size or jurisdiction. This framework will offer a consistent structure for ethical decision-making and governance practices, reinforcing ethical behavior across all service lines.

Complementing the framework, IESBA will also release non-authoritative guidance aimed at helping firms embed ethics into their strategic planning and operational models. These materials will serve as practical tools for fostering ethical awareness and behavior—not only among professional accountants, but throughout entire organizations and their networks.

Why This Matters Now

The urgency of this initiative stems from recent high-profile ethical lapses involving accounting firms in various jurisdictions. These incidents have highlighted the vulnerabilities that arise when ethical culture and governance are weak, with repercussions that extend far beyond individual misconduct to include legal penalties, reputational damage, and loss of stakeholder trust.

As Gabriela Figueiredo Dias, Chair of the IESBA, stated:

“Ethics is foundational to the work of all accounting firms… It is their gateway to public trust.”

We couldn’t agree more. At Dawgen Global, ethics is more than compliance—it’s the bedrock of how we do business. We believe that culture is built from the inside out, and our governance model is designed to ensure accountability, transparency, and long-term sustainability.

A Global Conversation

To foster inclusivity and gather insights from diverse stakeholders, IESBA will host a series of global roundtables in March and April 2025. These sessions—in cities like New York, Melbourne, Brussels, and Kuala Lumpur—will welcome input from regulators, investors, firms, academics, and professional organizations.

Dawgen Global’s Commitment

At Dawgen Global, we welcome the IESBA’s culture and governance initiative as a timely and necessary evolution in the accounting profession. As an integrated multidisciplinary professional services firm operating across the Caribbean, we understand that ethics is not a side pillar—it is the very framework upon which our client relationships, internal structures, and long-term strategies are built.

Our commitment to ethical governance is embedded in our organizational DNA. We have developed and continue to refine comprehensive internal policies and governance structures that promote integrity, accountability, and transparency at all levels of our operations. This includes clearly defined codes of conduct, whistleblower protection systems, and independent oversight mechanisms to monitor ethical compliance.

We also place a strong emphasis on leadership development that goes beyond technical competence. Our senior professionals undergo continuous training focused on ethical decision-making, inclusive leadership, and corporate responsibility. Through internal mentoring programs, we ensure these values are cascaded throughout the organization—empowering junior professionals to adopt an ethical mindset from the outset of their careers.

Moreover, we have aligned our performance evaluation and incentive structures to reward not only results but also the manner in which those results are achieved. We actively promote open dialogue, foster a culture of constructive challenge, and encourage all team members to speak up when they identify potential ethical concerns. This commitment to ethics is also reflected in how we engage with our clients—always with transparency, fairness, and the public interest in mind.

As IESBA works toward a globally recognized culture and governance framework, Dawgen Global stands ready to contribute insights from the Caribbean perspective—ensuring the standards are not only robust, but also globally inclusive and practically applicable to firms of all sizes and regions.

Final Thoughts

The IESBA’s standard-setting project represents more than a policy shift—it’s a call to action for accounting firms to re-evaluate how they cultivate ethical cultures and govern their operations. In an era of increased regulatory scrutiny and rising public expectations, firms must be proactive, not reactive, in demonstrating their ethical resilience.

This is not merely a matter of compliance—it’s about earning and sustaining public trust, which is essential for the profession’s credibility and its broader societal role. By prioritizing ethical leadership, firms can safeguard their reputation, protect their clients, and uphold their responsibility to the capital markets and the communities they serve.

At Dawgen Global, we view this initiative not as a challenge, but as an opportunity to lead by example. As we guide our clients through complex financial, legal, and operational decisions, we do so with integrity at our core. We firmly believe that smart decisions are ethical decisions—and the future of our profession depends on our ability to live by that principle every day.

In a changing world, ethics remains the one constant we can’t afford to compromise.

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