The problem of academic dishonesty in Business Schools has risen to the level of a crisis according to some authors, with the incidence of reports on student cheating rising to more than half of all the business students. In this article we introduce the problem of academic integrity as a holistic issue that requires creating a␣cultural change involving students, faculty, and administrators in an integrated process. Integrating the extensive literature from other scholars, we offer a ten-step model which can create (...) a positive culture for academic integrity. The successful implementation of a well-crafted academic integrity program can have a positive impact on business schools and improve the reputation of tomorrow’s business leaders. (shrink)

In this paper we suggest that the ethical duties of business schools can be understood as representing stewardship in the Aristotelian tradition. In Introduction section we briefly explain the nature of ethical stewardship as a moral guideline for organizations in examining their duties to society. Ethical Stewardship section presents six ethical duties of business schools that are owed to four distinct stakeholders, and includes examples of each of those duties. Utilizing this Framework section identifies how this framework of duties can (...) be used in the process of self-examination and transformation within business schools. Why It Matters section concludes by explaining why the process of examining ethical duties at business schools is vitally important for both business schools and the larger communities that they serve. (shrink)

Compliance is often achieved ‘by design’ through a coherent system of controls consisting of information systems and procedures. This system-based control requires a new approach to auditing in which companies must demonstrate to the regulator that they are ‘in control’. They must determine the relevance of a regulation for their business, justify which set of control measures they have taken to comply with it, and demonstrate that the control measures are operationally effective. In this paper we show how value-based argumentation (...) theory can be applied to the compliance domain. Corporate values motivate the selection of control measures (actions) which aim to fulfil control objectives, i.e. adopted norms (goals). In particular, we show how to formalize the audit dialogue in which companies justify their compliance decisions to regulators using value-based argumentation. The approach is illustrated by a case study of the safety and security measures adopted in the context of EU customs regulation. (shrink)

In this research, we review the current level of ethics education prior to college and the emphasis of the Association to Advance Collegiate Schools of Business (AACSB) on business ethics education in college using an ‘across the curriculum’ approach. We suggest that business schools and accounting practitioners can forge a more meaningful partnership than what currently exists through the traditional business advisory council prevalent at most schools of business. Ethical conduct is inherent in the practice of public accounting and a (...) hallmark of the accounting profession. Accounting practitioners can play a significant and positive role in helping business schools to reexamine their obligations to society and their students by actively engaging in the exchange of views by academics on the necessity for ethics education as well as those of professional accounting bodies.1. (shrink)

This article uses bibliometric analysis to empirically examine research on business ethics published in a broad set of journals, focused over the period 1988-2007. We consider those journals with an emphasis on accounting. First, we determine the citation frequencies of documents to identify the core articles in accounting research with an ethics focus as well as the contributions of influential fields included in the research sphere of these journals. We also employ document co-citation analysis to analyze the scholarly communication patterns (...) that exist within the realm of the specified articles. Second, we utilize social network analysis tools to profile the centrality features of the co-citation network of these documents. (shrink)

Following corporate accounting scandals there has been an increasing concern with understanding the factors that undermine the occupational values of accounting professionals, which emphasize self-transcendence in the pursuit of public good and openness to change in the pursuit of autonomy and creativity. Prior studies have demonstrated that these values are undermined in economically rationalized organizational environments. Our study advances this research by examining how accounting professionals’ occupational values are influenced by the economic rationalization of countries where they are employed. While (...) economic rationalization of countries is recognized as a key macrostructural, social-level influence on individual values, the theory is divided regarding its normative effects. While economic rationalization may decrease the priority of occupational values by transforming professional action in accordance with the calculative logic of economic rationality, it can also increase the priority of these values by providing resources necessary for freeing professionals from the material constraints of survival. We test these divergent insights using the European Social Survey data for 28 countries. Our results indicate that economic rationalization decrease accountants’ occupational values beyond the effects of cultural values and work-related characteristics. (shrink)

This study examines how the American Institute of Certified Professional Accountants (AICPA) uses character and concept words to communicate normative narratives to different internal audiences. Our analysis of 552 editorials published in the AICPA’s Journal of Accountancy during the 1916–1973 period illustrates how the AICPA communicated similar yet different normative narratives to firm partners and students. During this time period, the centrality of ethically infused words such as ethics, conduct, and independence not only varied across different time periods but also (...) across different target audiences. The findings draw attention to the importance of considering the audiences for ethical narratives as well as the ways that the intra-textual positioning of concepts and characters allow organizations to speak to slightly different audiences within the same communication medium. (shrink)

The importance of spiritual capital of individuals can be traced back to the resistance of independent auditors in the face of client manager power in ethical dilemma situations. This capital which is defined as a component of intellectual capital is integrated to auditors’ livelihood. This research found some related individual factors in auditing area and classified them under SpCi. Morals, ethics, personal values, and culture are the four most related factors which are applied as dimensions of SpCi in auditing area. (...) Hence, this paper attempts to investigate into the effect of SpCi and its four dimensions on an independent auditor’s opinion. The respondents of this research were 321 Iranian audit managers and partners. The data were collected through questionnaires, and multiple regressions were applied to analyze the data. The results showed that the SpCi and its dimensions affect an independent auditor’s opinion. (shrink)

Drawing on the theoretical insights from the resource-based view of the firm, this paper explores how human resource systems may contribute to competitive advantage by facilitating the development and maintenance of five types of ethical climates, and conversely, how HR systems may hinder competitive advantage by inhibiting the development and maintenance of these climate types. In so doing, this paper contributes to the literature by highlighting the resource worthiness of a firm's ethical climates and showing how HR systems may influence (...) that value. In addition, it advances theory that underpins the concept of competitive advantage sustainability and provides a platform for future empirical research. (shrink)

This study of internal auditors and auditees, who engage in both financial and operational internal audits in Israel, extends theory and research on internal audits in organizational units. It develops and tests a model that examines the role of top management and internal auditors in facilitating learning from internal audits and driving perceived performance improvement. We argue that support from the top management for the internal audit as well as the auditor’s capacity facilitate learning from audits and help audited units (...) to improve ethicality, efficiency, and effectiveness in organizations. The results of time-lagged survey data provide general support for the hypothesized indirect relationships between auditor capacity, auditor–auditee relational exchanges, learning from audits, and three different perceived performance measures: ethical behavior, efficiency, and effectiveness. We discuss the implications for research on internal audits, proactive learning, ethics, and performance improvement of organizational units in the public sector. (shrink)

Previous accounting ethics research berates auditors for ethical lapses that contribute to the failure of Andersen (e.g., Duska, R.: 2005, Journal of Business Ethics 57, 17–29; Staubus, G.: 2005, Journal of Business Ethics 57, 5–15; however, some of the blame must also fall on regulatory and professional bodies that exist to mitigate auditors’ ethical lapses. In this paper, we consider the ethical and economic context that existed and facilitated Andersen’s failure. Our analysis is grounded in Akerlof’s (1970, Quarterly Journal of (...) Economics August, 488–500) Theory of the Market for Lemons and we characterize the market for audit reports as a market for lemons. Consistent with Akerlof’s model, we consider the appropriateness of the countervailing mechanisms that existed at the time of Andersen’s demise that appeared to have effectively failed in counteracting Andersen’s ethical shortcomings. Finally, we assess the appropriateness of the remedies proposed by the Sarbanes–Oxley Act of 2002 (SOA) to ensure that similar ethical lapses will not occur in the future. Our analysis indicates that the SOA regulatory reforms should counteract some of the necessary conditions of the Lemons Model, and thereby mitigate the likelihood of audit failures. However, we contend that the effectiveness of the SOA critically depends upon the focus and attention of the␣Public Companies Accounting Oversight Board (PCAOB) towards assessing the ethical climates of public accounting firms. Assessments by the PCAOB of public accounting firm’s ethical climate are needed to sufficiently ensure that public accounting firms effectively promote and maintain audit quality in situations where unconscious bias or economic incentives may erode the public accounting firm’s independence. (shrink)

This qualitative field study is based on interviews with 20 experienced audit partners in France and documents the dialogical dimension of ethical deliberation in auditing. We ask: do audit partners consult each other when faced with an ethical dilemma at work? Who among their peers do they prefer to consult and why? Our analysis provides evidence that audit partners do not deliberate alone, contrary to what psychological experimental research on audit ethics usually postulates. When faced with an uncertain situation in (...) terms of professional ethics, they seek reassurance by consulting colleagues. Not just any colleagues, however. Whom they consult depends on whether they wish to avoid or take measured ethical risks. Overall, we find that audit partners approach ethics as a personal and collective risk that must be managed in specific ways. This study enriches what we know about auditor ethics by helping to shed light on what is usually inaccessible to researchers: the questions that audit partners ask their peers when faced with uncomfortable ethical issues in client engagements before making a decision they find acceptable. (shrink)

In 1856, the State of Ohio began an enumeration of its population to count and identify people with disabilities. This paper examines the ethical role of the accounting profession in this project, which supported the transatlantic eugenics movement and its genocidal attempts to eliminate disabled persons from the population. We use a theoretical approach based on Levinas who argued that the self is generated through engagement with the Other, and that this engagement presupposes a responsibility to and for the Other. (...) We show that successive waves of legislation relied on State and County auditors along with Township clerks and assessors to conduct the mechanics of the enumeration of the population, which focused on the identification, categorization, and counting of the disabled people of the State. We argue that the accounting-based technologies of enumeration and reporting objectify the enumerated persons and deny the auditor’s pre-existing ethical obligation to this new Other. We show how the financial expertise and structures of the State were engaged in the execution of this mandate, which remained in place for over a century and supported a program of institutionalization. We consider the ramifications of this for our understanding of the ethical role of public sector accounting in the United States over this period, which has been under-explored. (shrink)

Under present accounting rules, lessees frequently structure contracts for leased assets, in situations where they enjoy benefits similar to outright ownership, in a way that keeps both the leased assets and related liabilities off their books. This method of accounting creates off-balance sheet financing and is called operating lease accounting. The paper debates the ethicality of intentionally structuring lease contracts to avoid disclosing leased asset and liability amounts and describes the “slippery slope” of rule-based accounting for synthetic leases and special (...) purpose entities, that, in the author’s opinion, led to the accounting debacles at Enron and other companies. The ethical intent that is implicit in the Securities and Exchange Commission and Financial Accounting Standards Board regulations is discussed and suggestions for improving the ethicality of financial reporting are provided. (shrink)