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Bridging Ethics and Accounting: Does It Make Accounting Better
Type
conference paper
Date Issued
2009-04-23
Author(s)
Abstract
There is an increasing interest in ethical or moral aspects in modern accounting research. Especially the prominent corporate breakdowns and spectacular balance sheet manipulations of the past, which can be seen as failures to comply with accounting directives, are labeled as unethical behaviour. In consequence to these manipulations, in the popular business press, managers who fail to follow accounting directives are portrayed as engaging in some kind of unethical behaviour. In addition accounting standards and regulatory bodies in several countries introduced the so called "balance sheet oath"; the preparers of the financial reports have to affirm that, to the best of their knowledge, the financial statements are a true reflection of the firm's economic situation within the meaning of accounting directives. The balance sheet oath reveals that accounting has become much more than a body of technical knowledge in the eyes of the public. Accounting rules, standards, and procedures are regarded as moral directives or norms.
Standard setter in accounting and regulatory bodies have to become aware of this development trend. Therefore, researcher should pay tribute to this facts and should focus their research efforts on bridging ethics and accounting. The purpose of this paper is to activate a scientific debate of moral behaviour and accounting. With this purpose three major questions are associated: How should we bridge ethics and accounting? What kind of regulations and standard setting processes can enable or ensure that accounting directives are regarded as moral directives? From our point of view moral directives cannot be justified solely on technical grounds, especially when the technical expertise comprising those grounds may not exist. And the last question we focus on is the following: to what extend is it possible to make accounting better when we match ethics and accounting?
Standard setter in accounting and regulatory bodies have to become aware of this development trend. Therefore, researcher should pay tribute to this facts and should focus their research efforts on bridging ethics and accounting. The purpose of this paper is to activate a scientific debate of moral behaviour and accounting. With this purpose three major questions are associated: How should we bridge ethics and accounting? What kind of regulations and standard setting processes can enable or ensure that accounting directives are regarded as moral directives? From our point of view moral directives cannot be justified solely on technical grounds, especially when the technical expertise comprising those grounds may not exist. And the last question we focus on is the following: to what extend is it possible to make accounting better when we match ethics and accounting?
Language
English
Keywords
modern accounting research
moral behaviour
unethical behaviour
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Corporate Governance Emerging Papers Workshop 1. University of Dundee (United Kingdom)
Event Title
British Accounting Association Annual Conference and Doctoral Colloquium (BAA)
Event Location
Dundee
Event Date
21.-23.04.2009
Subject(s)
Division(s)
Eprints ID
54549