Ethics That Pay: Why Integrity is the Smartest Business Strategy
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Most accountants think of ethics as something “soft”, something compliance forces onto them. The truth is very different. Ethics is a financial engine. It attracts quality clients, keeps SARS off your back, builds trust with funders, and gives you an edge in a crowded market. For those working in commerce, it is the fastest way to avoid personal liability and position yourself for promotion. For those in practice, it is the most reliable way to charge higher fees and keep clients loyal.
Why Ethical Firms Win More Business
The numbers do not lie. Companies recognised for ethical practices consistently outperform the market. In 2024, the world’s most ethical companies beat the global index by more than 12 percent. Investors pay more for businesses they can trust, because lower risk means lower capital costs. For accountants in practice, this translates into an opportunity: clients will pay you more if you help them prove they are ethical, compliant, and transparent. For accountants in commerce, this means your board and CFO will see you as a safeguard rather than a liability.
Trust is not a slogan. It is currency. Clients who trust you buy more, stay longer, and refer others. Research shows that a 5 percent increase in client retention can increase profits by up to 95 percent. If your practice is struggling with client churn, ethics may be your most profitable retention tool.
Proof from Real Businesses
Patagonia told customers “Don’t Buy This Jacket” to fight overconsumption. Instead of killing sales, revenue jumped 30 percent. Why? Because people trusted their honesty.
CVS Health walked away from 2 billion US dollars in tobacco sales. The market thought it was insane. Within a year, revenue grew because new health-focused customers trusted their stance.
Unilever built “Sustainable Living Brands” around real values like fighting food waste and unrealistic beauty standards. Those brands grew 69 percent faster than the rest of the portfolio.
Capitec built South Africa’s biggest retail bank by doing one simple thing: transparent fees and fair treatment. Twenty-two million clients now trust them with their money.
On the flip side:
Wells Fargo opened 3.5 million fake accounts to hit sales targets. Result: 3 billion dollars in fines, a decade-long growth freeze, and a reputation in ruins.
Steinhoff inflated profits with fake transactions. It lost 240 billion rand in value overnight, wiping out pensions and destroying livelihoods.
The lesson is simple. Integrity compounds value. Fraud and shortcuts destroy it.
Four Ways Ethics Makes You Money
Integrity lowers your costs. Fewer fines, fewer legal disputes, and cheaper capital. Wells Fargo’s “ethics debt” cost billions.
Trust increases revenue. Clients buy more and refer others. CVS proved that walking in line with values can grow, not shrink, revenue.
Transparency makes you efficient. Capitec scaled to 22 million clients by keeping fees simple and honest.
Purpose attracts loyalty. Unilever’s purpose-led brands did not just grow faster, they kept customers even when competitors cut prices.
If you are an accountant in practice, these four levers are billable services. You can package ethics, transparency, and governance as advisory products. If you are in commerce, they are your best defence against being scapegoated when things go wrong.
Beyond Compliance: Why Culture is the Real Profit Driver
Ticking boxes is not enough. Enron had policies, yet collapsed because its culture rewarded greed. In South Africa, State Capture proved that compliance structures mean nothing without a culture of integrity. Culture is what happens when the boss is not in the room. That is where profit and risk are won or lost.
For accountants, this is where you can lead. Build policies that clients can actually follow. Create reporting systems that make honesty easier than fraud. Show boards and owners how culture saves money by preventing crises. That is value they will pay for.
Spotting Ethical Blind Spots
Most scandals do not start with crooks. They start with good people under pressure. Unrealistic targets, “everyone else does it” thinking, or simply not noticing red flags. As a professional, your role is to stop blind spots from becoming billion-rand disasters. Use simple tools:
The newspaper test: would you be comfortable if this appeared on the front page tomorrow?
The long-term test: how will this look in five years?
The independence test: would this compromise my independence if SARS or CIPC reviewed it?
Teaching clients these tests is not just ethical. It is a new service line you can charge for.
The Role of Leadership
Clients and staff copy what leaders do, not what they say. If leaders fudge numbers or bend rules, staff assume that is the norm. If leaders admit mistakes, explain decisions openly, and reward integrity, that becomes culture. For accountants in commerce, this is your chance to stand out. Be the one who speaks truth to power, who frames tough conversations around risk and long-term value. Boards notice that, and promotions follow.
Why This Matters in South Africa
Our economy is scarred by corruption and distrust. Yet the demand for ethical business is stronger than ever. Clients, investors, and employees are looking for trusted partners. Ethics is not just compliance with King IV. It is about rebuilding trust in our markets, unlocking investment, and proving that South African companies can compete globally on the strength of their values.
For accountants in practice, ethics is a competitive edge that lets you charge more and retain clients longer. For accountants in commerce, it is the safest way to avoid liability and get promoted. For both, it is the smartest investment you can make.
Final Word
Cash may be king, but trust is the currency that keeps the kingdom stable. Build it, guard it, and trade on it. That is how you turn integrity into profit, and ethics into a growth strategy that works for South Africa’s future.
Access our CPD on Ethics That Pay, Lead with Integrity, Win with Trust here
🌟 Ethics That Pay: Lead with Integrity, Win with Trust 🌟
🎓 2 CPD Units
Clients and regulators are watching accountants more closely than ever. In this live session, we’ll show you how ethics is more than “doing the right thing”—it’s a real business advantage. Discover how to:
✅ Build client trust that drives profitability
✅ Safeguard your practice from ethical and compliance risks
✅ Position yourself as the go-to trusted advisor
Presenter: Leana van der Merwe – with 18+ years in accounting and corporate governance, and a recognised thought leader in compliance and technical support at CIBA.
💡 This event is part of CIBA’s Channel 2: Growth. Free to Channel 2 subscribers. Recording included. Non-subscribers: R230 VAT incl.
🔗 Register here
