Leadership in hard times requires a skill set that enables leaders to be open and honest with stakeholders so as to win their trust. Leaders must have a high level of emotional intelligence and a growth mindset.
They must also be supported by a team that includes the management accountants’ competencies so that they can furnish leaders and stakeholders with the relevant accounting and management information needed to develop empathy and build trust.
Management accountants are well-positioned to contribute to leadership in this regard.
The purpose of the Association is to power trust, opportunity and prosperity. The audit profession evolved in response to investors’, regulators’ and the public’s need for confidence in annual accounts. The management accounting profession evolved a few years later to meet the need in business for accounting and management information to inform decision-making and performance management. These professionally qualified accountants have the competencies and objectivity to enable them to provide the accounting and management information needed to give transparency, empathise and build trust.
The first principle of the CIMA code of ethics is Integrity. The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in all professional and business relationships. Integrity also implies fair dealing and truthfulness. So, it is contrary to their code of ethics for Management Accountants to be less than straightforward and honest.
One of the four CGMA Global Management Accounting Principles is that Stewardship Builds Trust.17 Stewardship is largely about responsibility for ensuring that the business is managed in the interests of its stakeholders. Stewardship fosters empathy as this is a responsibility shared by all senior managers and gives them a common purpose. As Goleman teaches us, empathy builds trust.
In addition, The Association encourages lifelong learning with the provision of free and paid resources for its members available on the store and other member exclusive learning tools like CGMA® Future Mindset.
17 CGMA Global Management Accounting Principles, The Association of International Certified Professional Accountants, 2014