From numbers to ethics: the role of CFOs in setting the tone for good behaviours.

CFOs play a critical role in the boardroom. They provide challenge and often balance the behaviours and leadership style of the CEO. They can be perceived to be the “brakes” in the organisation – responsible for providing a calm and measured voice, highlighting risks with an objective financial focus.

However, CFOs also have perhaps the deepest insight into the mechanics of the organisation. We believe they can and should be focused on ethics and behaviours, alongside the numbers. This is a task which becomes more critical as scrutiny on governance intensifies. It requires them to balance ethical leadership with operational precision, bringing strategic insight and driving practical actions. By linking financial performance with organisational behaviour, CFOs provide a unique perspective to identify and enact the cultural changes needed for sustainable success.

At BRAVE, we define seven guiding principles that enable leaders to navigate these challenges:

1.  Find Purpose with integrity.

Finding purpose means being clear on the vision and mission for the organisation, driving performance and commitment to  ethical standards.

2.  Be Authentic in leadership.

Being authentic means leading with honesty,  maintaining professional values, and giving adequate time to the tensions created, particularly in challenging situations.

3.   Build Trust through constructive challenge.

Building trust means investing time to create relationships where stakeholders, including employees, suppliers and customers, have confidence in the technical capabilities and commitment to doing the right thing.

4.   Show Empathy in interactions.

Showing empathy means genuinely understanding and responding to others’ experiences and perspectives while maintaining professional boundaries.

5.   Gain Insight for proactive change.

Gaining insight means developing deeper understanding of complex dynamics, moving beyond surface-level issues to grasp underlying behavioural patterns and opportunities.

6.   Bring Simplicity to decision making.

Bringing simplicity means enabling stakeholders to see the wood for the trees, providing intelligence to make complex issues clear and actionable while maintaining necessary rigour.

7.   Have Courage to catalyse change.

Having courage means finding the confidence to speak up on difficult issues, drawing on expertise, credibility and relationships to drive positive change.

Practical examples of CFO interventions.

Using these principles enables CFOs to address both human and business impacts, protecting the reputation and standing of the organisation and balancing the needs of a complex web of stakeholders.

An example of this could be in making significant investment decisions. Diverse input is critical for taking into account different stakeholder perspectives and individuals believe their input has been listened to. Taking the time to engage individuals and gather more subjective responses and concerns will build  buy-in to taking the right decision and more importantly, that there is the commitment to making the decision effective in practice.

The CFO may also take on the role of highlighting disrespectful behaviour. They will be carefully observing the environment and responses of individuals and teams in the critical meetings. Intervening at the right time to calm down more aggressive challenge and to identify an alternative perspective to a situation may enable a more collaborative outcome to be reached.

Through these approaches, CFOs can fulfil their role as the conscience of the boardroom, using their unique position to foster both ethical behaviour and sound decision-making. By consistently linking behaviour to outcomes, they help create an environment where inclusive leadership and good governance naturally align.