Exploring the determinants of (un)ethical decision-making among accountants using PLS-SEM: a developing country context
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 12 February 2024
Abstract
Purpose
This study aims to examine the determinants of ethical decision-making (EDM) of professional accountants in Sri Lanka, drawing on Rest’s (1986) four-component EDM model. The level of corporate collapses and fraud, coupled with the high level of corruption in Sri Lanka, has highlighted the importance and the timely nature of this research in the EDM processes of Sri Lankan accountants.
Design/methodology/approach
Data was collected from a sample of 315 accountants through a questionnaire survey that included four written ethical vignettes and was analysed using partial least square-structural equation modelling techniques.
Findings
The findings revealed a significant relationship between ethical awareness and ethical judgement, providing support for Rest’s model. However, the study does not support Rest’s model on the direct relationship between ethical judgement and ethical intention. Intrinsic religiosity and moral intensity significantly influenced the ethical awareness of accountants. Several determinants including accountants’ age, education, intrinsic religiosity, organisational ethical culture, familiarity with the professional ethical code and moral intensity influenced ethical judgement. However, the findings did not report any significant relationships between the study’s variables and ethical intention.
Originality/value
The study adds to the existing literature by providing a bigger picture of how various determinants work together in one EDM model and demonstrating that the EDM of accountants is multifaceted. The new finding on an insignificant relationship between ethical judgement and ethical intention implies that the Rest’s EDM process may be mediated and moderated by other constraints blocking accountants’ intention to act due to various pressures in a corrupt society, Sri Lanka, where accountants operate.
Keywords
Acknowledgements
The authors would like to thank the editor and two anonymous referees who kindly reviewed the earlier version of this manuscript and provided valuable suggesions and comments.
Compliance with ethical standards:
Disclosure of potential conflicts of interest: The authors declare that they have no conflict of interest.
Ethics approval: Ethical approval was obtained from the Ethics Committee of the Waikato Management School, University of Waikato, New Zealand, for the research project.
Informed consent: Informed consent was obtained from all individual participants included in the study.
Citation
Liyanapathirana, N. and Low, M. (2024), "Exploring the determinants of (un)ethical decision-making among accountants using PLS-SEM: a developing country context", Journal of Accounting & Organizational Change, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAOC-08-2022-0124
Publisher
:Emerald Publishing Limited
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