Deontology and Utilitarianism in Accounting

Deontology and Utilitarianism in Accounting

According to deontological theory, people ought to obey and stick to their obligations and duties when carrying out their duties and while analyzing an ethical dilemma. This means that a person in all that he does professionally has to uphold his or her obligations to the other party since this is what is considered ethically right. Deontologists consider the actions of any individual to be holding intrinsic values as portrayed by Catherine Rainbow (2002). It is a theory in ethics that judges human actions by their adherence to the set out rules, and this applies as well in accounting. The AICPA has rules that guide the conduct of CPAs and all professionals within the field with an aim of safeguarding the customers and the organizations as well. The theory argues that the rules in any profession or sector of the society, binds human beings to their duty.

This approach applies to the professionals within the accounting fraternity as the adherence to the rules makes it easy to have a uniform way of carrying out accounting responsibilities across the board without having variations that could jeopardize the integrity of the profession and subject the firms to malpractice.

Utilitarianism

The utilitarian theory that views an action to be right in-so-far as it aims at producing pleasure and the elimination of suffering or pain. The theory posits that an action should be taken to be right if it produces the greatest amount of happiness or pleasure possible and at the same time the minimum or least pain of any available substitute action to the one chosen. Stuart Mill (1806- 1873), one of the greatest proponents of the theory expressed that actions are right to the degree that they tend to promote the highest good for the greatest number within the society. John Stuart Mill further argues that "foundations of morals Utility or the Greatest Happiness Principle holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness. By happiness it is intended pleasure, and the absence of pain; by unhappiness, pain and the privation of pleasure." (Philosophical Classics, 2010. P.946).

This approach has been experienced a lot within the accounting fraternity. The actions of the accountant can be weighed to be right or wrong depending on the amount of pleasure they bring or otherwise. This approach helps in the quest for pleasure and the well being of each member of the community.

The utilitarian theory therefore is a pointer that the qualifications that are to be met or instituted within the accounting field by the AICPA are or should aim at being for the good of the clients and the firms as well as the practitioners for the eventual good of the accounting fraternity.