Ethical reasoning levels of Maltese certified public accountants : an analysis

Abstract

Purpose: Based on the moral reasoning framework proposed by Kohlberg, called Cognitive Moral Development theory, the purpose of this study is to analyse and determine at what level Maltese Certified Public Accountants reason on ethical matters. This study also aims to establish whether gender, age and ethics education have an impact on the way of reasoning levels by Certified Public Accountants. Design: The method to achieve these objectives included an online questionnaire completed by 237 accountants working within audit firms, accountancy firms, financial institutions and in other sectors. Findings: This study shows that Certified Public Accountants tend to alternate between stage 4 (conventional level) and stage 5 (post-conventional level) of Kohlberg's Cognitive Moral Development theory when addressing ethical scenarios. The study also shows that although statistically speaking, gender, age and ethics education do not have an impact on the reasoning levels for the scenarios given, these factors do play at least a very minor role in the thinking of the participants. Conclusion: The study concludes that on average, Maltese Certified Public Accountants in general do reason in an ethical way. Although very few reach stage 6 of Kohlberg's Cognitive Moral Development theory, reasoning at stage 4 and stage 5 is still good ethical reasoning. Reasoning at such ethical levels would ensure ethical behaviour, even if reasoning at higher levels would lead to still better outcomes. Value: The study may hopefully encourage Certified Public Accountants to improve the level of their ethical reasoning and so their capability to make ethically wise judgements and decisions. By investing more in ethics education, the accountancy profession stands certainly to gain more respect, enjoy wider social trust and prevent the sort of recent financial scandals that have seriously damaged the reputation of the accountancy profession.