For generations, a simple creed has dominated finance: the sole purpose of a business is to maximise shareholder value. This single-minded focus on the bottom line, however, has led to a string of devastating corporate scandals, from Enron to Steinhoff, which have vaporised billions in investor wealth and shattered public trust.
This has forced a global reckoning. Today, investors, regulators, and the public demand more. They understand that how a company makes money is just as important as how much it makes. The most resilient and valuable businesses are those that have learned to balance profitability with a deep sense of responsibility.
In this article, we will look at the importance of ethical finance and how it is specifically addressed in the UPSA online Accounting and Finance MBA curriculum, however, the themes discussed are also directly applicable to UPSA's Corporate Governance MBA and its Auditing MBA.
At the heart of this balance is Corporate Governance. This is the "hard infrastructure" of trust - the system of rules, practices and processes that directs and controls a company.
As the UPSA online MBA's Corporate Governance and Ethics module explains, this is about the mechanisms and practices that align the interests of managers with those of shareholders, enhancing firm value and accountability.
This is not just theory; it is the practical framework that prevents disaster:
When this framework fails, the results are catastrophic. The Steinhoff scandal, for instance, was a colossal failure of governance, where a lack of independent oversight allowed for widespread accounting fraud. The result? A 98% collapse in share price and a total loss of investor trust.
If governance provides the rules, ethics provides the compass. It is the moral framework that guides decision-making, especially in the "grey" areas where the rules are unclear.
The Corporate Governance and Ethics module also delves into ethical theories and their application in business, addressing dilemmas and stakeholder management. This reflects a crucial shift in modern finance: moving from a narrow shareholder-only focus to a broader stakeholder view.
This means asking critical questions:
Companies that embrace ethical finance and strong governance are not sacrificing profits; they are building a more durable, long-term business.
A prime example is Safaricom. For years, its "Sustainable Business Report" has been a model of transparency. The company voluntarily reports on its social and environmental impact with the same rigour as its financial results. This isn't just a PR exercise. This radical transparency builds immense trust with investors, who see a company that is well-managed, forward-thinking, and less likely to be hiding "off-balance-sheet" risks. This trust is a tangible asset that strengthens its brand and supports its long-term value.
The future of finance is not about choosing between profit and responsibility. It is about understanding that the two are inseparable. Investor trust is hard-won and easily lost, and it is built on a foundation of unwavering ethics and iron-clad governance.
An advanced degree like the UPSA online Accounting and Finance MBA is designed to create leaders who understand this new reality - professionals who are not just financial experts, but trusted guardians of an organisation's value and integrity.
The programme is designed to build students’ ethical compass from the ground up. The Business Leadership and Ethics module moves beyond a simple list of rules to provide a foundation for understanding leadership. It specifically delves into the theory by offering insights into different philosophical approaches to ethical decision-making, preparing you to navigate complex situations where the rules may be unclear.
This is the focus of the Legal Aspects of Business module. It provides a practical understanding of the frameworks that enforce ethical behaviour by discussing the legal rules, principles and concepts that regulate and affect business transactions. The course equips you with the legal skills to analyse business operations in the Ghanaian environment and advise on the appropriate legal processes to run effectively.
This is addressed through the Organisational Behaviour and Management course. It moves from individual ethics to team dynamics by providing a comprehensive analysis of individual and group behaviour in organisations. By examining the drivers of this behaviour - such as motivation, conflict, power, politics and leadership - you learn how to manage a team effectively and enhance the quality of employees’ work life, which is the foundation of an ethical corporate culture.
The Strategic Management module integrates these concepts. The course examines strategy formulation, implementation and monitoring and helps you develop skills for strategic thinking and analysis. This teaches you to view ethical and social responsibilities not as a cost but as a core part of a sustainable strategy, allowing you to identify and respond to the challenges presented by the business environment.
Ethics are woven into the programme's core research and analysis training. The Research Methods course, for example, explicitly discusses the language, ethics and approaches to quantitative and qualitative research. It ensures you are equipped with skills in gathering, organising, interpreting and presenting research information in an ethical manner. This places ethical conduct as a fundamental part of your analytical process.