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Ethical Issues Affecting Accountants
The need for ethical standards within the corporate accounting field is urgent, and this paper delves into ethical issues. Given the fact that rules can be bent and manipulated, this paper also points to potential ways in which ethics can become as important as rules.
While there has apparently been a "shift in the ethical behavior of management" -- which is related to the corruption and convictions of accountant-related individuals with Enron and Author Anderson -- the literature indicates that there are still ethical issues to be addressed within the industry (Bolt-Lee, et al., 2010, p. 38). Research presented in the peer-reviewed Journal of Accountancy shows that subsequent to the Enron and other scandals, there is a movement toward a "…more heightened state of ethical awareness" that is apparently due to "…the greater likelihood of punitive consequences" (Bolt-Lee, 38).
In the Bolt-Lee article, the authors allude to a pair of studies (by author Shane Premeaux) given to marketing managers -- that supervise accountants -- in order to gauge ethical attitudes. The first questionnaire was sent to 1,000 managers (with a 40% response rate) in 2003 after the Enron bankruptcy became news but prior to the prosecution of its accountants and other executives. The results showed that those 400 accountants and other business practitioners "…relied on a combination of 'act and rule utilitarian ethical philosophy'" (Bolt-Lee,...
The results revealed a "…change in philosophies," Bolt-Lee explains (39). The second questionnaire (using some of the exact same questions as the first survey) reflected a "greater respect for the law ad a belief that actions are moral when they are fair, just, and respect the rights of everyone" (Bolt-Lee, 39). It is critical to note however that the accountants and managers did not reverse field based on newly discovered ethical principles; indeed there was no shift in "moral thinking" but rather there was a sense that in order to avoid sanctions and show greater respect for the law, legal behavior must be followed.
Meanwhile in a peer-reviewed article in the Journal of Business Ethics the authors advocate for a move away from "rules-based" standards and instead a move toward "principles-based" standards. This is necessary because corporate managers and accountants have "…honed their skills at finding and using loopholes and technical exceptions to…
Works Cited
Adams, Barbara L. (2010). Using Game-Based Learning to Raise the Ethical Awareness of Accounting Students. Business Education Innovation Journal, 2(2), 86-93.
Bolt-Lee, Cynthia E., and Moody, Janette. (2010). Highlights of Finance and Accounting Ethics
Research. Journal of Accountancy, 210(4), 38-41.
Spalding, Albert D., and Oddo, Alfonso. (2012). It's Time for Principles-Based Accounting
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