Management accountants and ethical dilemmas: How to promote ethical intention?

Multiple incidents of misconduct have strengthened the need to foster ethical behavior in organizations. Unfortunately, the reasons why some people tend to ignore ethical considerations are largely unclear. In particular, comprehensive analyses in the context of management accounting are still rare. As a distinctive characteristic, our study therefore aims at generating more knowledge about the driving factors in ethical decision-making processes of professional management accountants and thus complements findings of experimental studies in other fields. Based on survey data from 90 international management accountants, we find evidence that the ethical environment strongly affects management accountants’ tendency not to engage in ethically questionable behavior. In detail, our results support the notion that the connection between ethical awareness and the intention to engage in ethically questionable behavior is rather indirect and also mediated by the level of ethical experience, i.e., individuals’ exposure to ethical role models in organizations. In sum, our research study helps to disentangle the ethical decision-making process of professional management accountants and illustrates that ethical environments are necessary to enforce adequate ethical behavior.