Ethical decision making of financial controllers in Maltese listed companies

Abstract

Purpose: Based on the eight step ethical decision making framework developed by Trevino and Nelson (2014), the purpose of this study is to analyse and determine whether financial controllers of Maltese listed entities actually follow such a framework and, if they do so, to what extent is such a framework followed. Design: The method used to achieve the objectives of this study comprised of an online questionnaire. This was completed by 16 financial controllers, working within Maltese Listed Entities. Findings: Findings showed that ethical decision making is not a linear approach and what applies to one situation may not necessarily apply to another. This was made evident by participants who, in some instances gave different responses between one case and another. Conclusion: The study concluded that although financial controllers do not abide by the eight-step framework in its entirety, they do follow certain steps. In fact, from the eight steps devised by Trevino and Nelson, only three steps were not followed. This means that although some of the steps are not adhered to, financial controllers in Maltese listed companies do make use of an ethical decision making framework when dealing with ethical dilemmas. Value: The study was undertaken mainly to encourage those involved within the accounting community to direct their attention towards the ethical decision making of financial controllers. Devoting the necessary attention to ethics, would help in preventing further financial scandals from re-occurring. Consequently, this would restore the public’s confidence in representations made by companies, which would ultimately bring about an element of social trust between financial professionals and the general public.