Ethical decision-making dynamics: insights from professional accountants

Abstract

This study examines the relationships between the components of ethical decision-making and the factors that contribute to the ethical decision-making of professional accountants. Survey data from 309 professional accountants was analyzed using partial least squares structural equation modeling. The study found positive relationships among moral recognition, moral judgment, and moral intent. Moral judgment mediates the relationship between moral recognition and moral intent in ethical decision-making. The study also found that laws and professional codes, moral philosophies, intrinsic religious orientation, and social responsibility influenced ethical decision-making. However, peer group pressure did not predict moral judgment among professional accountants. This study provides implications for considering the mediating role of moral judgment in the ethical decision-making process. To improve ethical decision-making among professional accountants, understanding the influences and relationships of other factors is crucial in an ethical setting.

Keywords:

• Moral recognition
• moral judgment
• moral intent
• ethical decision-making factors
• professional accountants

Reviewing Editor:

• Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland

Subjects:

• Business ethics

Acknowledgments

The authors would like to thank the pilot and main survey participants and SmartPLS teams.

Authors’ contributions

Dr. Ishwara P has contributed to the conception, design, execution and interpretation of the study, has critically reviewed and revised the article before submission, has agreed to submit the article for publication in Cogent Business and Management journal, has agreed to review all article versions during all stages of the publication, has agreed to approve the final version to be published, has agreed to take responsibility and be accountable for the article’s contents. Share responsibility to resolve any questions raised about the accuracy or integrity of the published work. Naod Mekonnen has contributed to the conception, study design, data acquisition, analysis and interpretation, has drafted the article, has agreed to submit the article for publication in Cogent Business and Management journal, has agreed to revise all versions of the article during all stages of the publication, has agreed to take responsibility and be accountable for the article’s contents. Share responsibility to resolve any questions raised about the accuracy or integrity of the published work, and has agreed to be the corresponding author of the article.

Disclosure statement

This research has no potential conflicts of interest to declare.

Data availability

The study’s data are available at https://doi.org/10.17632/zwwf46dydh.1.

Additional information

Notes on contributors

Ishwara P

Ishwara P is a professor and dean in the Faculty of Commerce at Mangalore University, India. His research areas include finance, investment, accounting, banking, corporate social responsibility, and human resource management. He has extensive experience teaching at the university, supervising PhD candidates, and actively writing in several scientific journals. He has presented and attended several workshops.

Naod Mekonnen

Naod Mekonnen is an assistant professor in the Department of Accounting and Finance at Wollo University, Ethiopia. He is pursuing his PhD at Mangalore University, Department of Commerce, India. His research areas include accounting ethics, BPR, microfinance institutions, auditing, and AIS.