Cultural norms and ethical challenges in MENA accounting: the role of leadership and organizational climate

Purpose This paper aims to discuss the intersection of business ethics and leadership within the accounting profession in the Middle East and North Africa (MENA) region, focusing on assessing how cultural norms, organizational climates and leadership practices impact ethical decisions among accountants. Design/methodology/approach A quantitative research design was adopted, using SEM and Smart PLS to examine the relationships between ethical leadership, organizational climate and ethical behavior. The survey included 625 accountants in four MENA countries: UAE, Qatar, Jordan and Egypt. Findings Ethical leadership and culturally tailored ethics education are essential for promoting ethical behavior among accountants in the MENA region. It was found that strong ethical leadership can counteract the negative effects of weak regulatory frameworks and widespread corruption by fostering an organizational climate where ethical practices thrive. The study also showed that the infusion of ethics training with local cultural and religious values would significantly make ethics training programs more effective in accounting practice, thus yielding consistent and ethical decision-making. Practical implications This paper draws actionable lessons for policymakers, organizational leaders and accountants operating in the MENA region that there is a need to focus on ethical leadership and the cultural values of the localities have to be integrated into the ethics training of professionals so that ethical practice is developed in accounting. Originality/value The contribution to the greater debate on business ethics and leadership in emerging markets shall be further enhanced by proposing a framework fitted to implement ethical decision-making in the unique cultural and economic environment of the MENA region.