Situational variables affecting ethical decision making within the Maltese accountancy profession

Abstract

Purpose: The purpose of the study is to identify what situational variables are perceived as affecting ethical decision making within the Maltese accountancy profession. Furthermore, the author seeks to determine if some variables are perceived as more influential than others, and will look at results from different demographics. Design: A case study approach as proposed by Yin (2003) was utilised for this study. Here, a model for situational variables affecting ethical decision making within organisations was developed using thematic analysis, as described by Braun and Clarke (2006), from which certain a priori propositions of variables emerged. This model was then applied to the local accountancy profession via interviews and a survey to obtain related perceptions. With the results of the survey, exploratory factor analysis was conducted whereby alternative variables emerged. Further to this, other analysis such as Friedman testing, Mann-Whitney U tests, Independent Samples t-tests, Kruskal-Wallis tests and One-Way ANOVA tests were carried out. Salient points emerging from interview responses were also analysed. Findings: The majority of emergent factors from the analysis conducted were perceived as influential on ethical decision making, with some perceived as more influential than others, primarily those pertaining to the influence of managerial and co-worker behaviour, and also relating to internal policies and culture along with external codes and laws. Furthermore, demographic variables of age and sex seemed to have an influence on perceptions, and individual characteristics also are considered to be influential on ethical decision making along with the situational variables discussed. Conclusions: The author via the study hence concludes that there seem to be various situational variables which are influential on the ethical decision making process within the local accountancy profession, with some being more influential than others. Also, the author concludes that the demographic variables of age and sex, as well as individual characteristics are also important to bear in mind. Value: This study could be useful for the profession in encouraging ethical behaviour by raising awareness of factors which can be influential here, and can even aid in the development of firm policies and training. This comes at a valuable time for the profession in light of recent accounting scandals.