Junaidy Ab-Mutalib’s approach to ethics is founded in his upbringing. It’s partly informed by the culture of Malaysia, where he grew up and resides: “I learned respect, honesty and humility early on, reinforced by ‘community first’ Asian values.”

Ab-Mutalib has worked across Malaysia, the UK and other international settings in his career, and this has reinforced in his view that ethical leadership involves adaptation; that ethics should reflect different cultural contexts, while being anchored to universal principles. He also noticed, through high-profile scandals such as Enron, how quickly public trust can be destroyed by compromised ethics. 

“Ethical leadership is not about perfection but about consistency, transparency and accountability,” he says. “Professional standards from organisations like ICAEW, IFAC/IESBA and the Malaysian Institute of Accountants give you the blueprint; they all highlight integrity, objectivity and professional scepticism. That shapes how I approach decisions.”

Ab-Mutalib believes that all leaders could learn from Malaysian working culture when it comes to embedding ethical values. Malaysia’s ‘gotong-royong’ mindset, translating as ‘culture of mutual cooperation in community’, is all about centring community and collective responsibility. It shows how shared responsibility can strengthen ethical cultures.

“Malaysia’s multi-ethnic, multi-faith workplace encourages awareness of different moral perspectives which help organisations globally manage diverse teams,” he says. “Many Malaysian companies view community contribution as a social obligation, not just regulatory requirement – something global companies can learn from.”

At the same time, Malaysian companies are adopting best practices from the UK, US and Europe, he says, such as whistleblower frameworks, ESG reporting and independent audit committees. “The cross-pollination of local values of respect and harmony, and international standards around transparency and accountability, creates a powerful ethical framework.”

Ethics is driven by leadership – there’s a reason why ‘tone from the top’ is such an overused phrase – and Ab-Mutalib believes that integrity is a critical trait for leaders to demonstrate through their decision-making, especially when it comes to handling conflicts of interest, reporting results, motivating employees and general communication. This also calls for a measure of humility, as setting their ego aside helps leaders make sound judgements and build trust.

In practice, this should be reflected in several ways: 

Embedding ethics in strategy: codes of conduct, ESG commitments and governance frameworks should be part of everyday business, not just in annual reports, Ab-Mutalib says, and reflected in policies and procedures (more on those later). 

Transparent communication: leaders should use multiple channels, such as CEO briefings, digital platforms and face-to-face sessions, to consistently reinforce values.

Cultural adaptation: in Asia there is a strong sense of hierarchy, and as a result leaders must invite dialogue. This contrasts with the more egalitarian, high-trust cultures in nations such as Finland and other Scandinavian countries. The challenge for leaders, especially those with international teams, is to avoid complacency by keeping ethics top of mind. “Even in these countries with strong reputations for ethics, leaders must still actively talk about ethics to avoid complacency creeping in,” says Ab-Mutalib.

Recognition: ethical decision-making should be celebrated as much as high performance. For example, multinational companies such as Unilever and Microsoft highlight integrity in performance reviews.

Strong policies and procedures

For policies to work effectively, they need to be fully embedded into company culture. So by extension, they need to be reflected in procedures. Clarity and accessibility is key, says Ab-Mutalib; policies must be simple, written in plain language and available to all staff.

“It’s really important that they are also consistently enforced,” he says. “From junior staff to senior management, policies must apply equally. It’s the ‘no one is above the law’ principle; if employees know everyone in the organisation is subject to it, they will trust that it is effective.”

Referencing international standards such as UN guidelines and ESG or ISO standards, alongside local law, also helps to build credibility. “Leaders must also demonstrate in daily decisions that policies are not bureaucracy, but a safeguard for trust and sustainability.”

Training and monitoring will help to maintain that high-trust, high-ethics working environment. Use case studies and interactive workshops, internal audit and external assurance, and regular policy refreshes, to keep ethical policies relevant and front of mind. 

Equally important within these procedures is a mechanism that allows staff to speak up if something goes wrong. Psychological safety is very important, says Ab-Mutalib. Again, the approach might vary depending on the general working culture of the nation the organisation operates in. “International companies normally use digital reporting platforms. In Malaysia and Asia, this must be combined with face-to-face trust-building due to cultural hesitation,” he says. “Reinforce that raising concerns is loyalty to the organisation, not an act of disobedience. This is especially critical in hierarchical Asian cultures.”

Whistleblower protections, such as anonymous hotlines and independent reporting channels, should be in place, he explains, along with a non-retaliation policy, which should be clearly communicated and enforced. “Employees must know careers won’t be jeopardised by speaking up.”

Most critical is the leader’s response to a complaint. They must really listen before responding, and should avoid anything that could seem dismissive or an overreaction. Investigations should be independent to ensure fairness and confidentiality. “Communicate outcomes and share actions taken within limits to reinforce confidence – and above all, show humility,” says Ab-Mutalib. “If wrongdoing is uncovered, even at leadership level, acknowledge it and correct it. Otherwise you risk losing the trust, community and confidence that you need for an ethical organisation to operate effectively.”