Pragmatism Model

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Financial scandals of the early 2000th demonstrated that the unethical behavior of the company management and auditing firms destroy the ability of both to function. The corporate scandals increased the prison sentences of the accounting fraud, and led the regulations to mandate the requirements for ethics. Accounting professionals seek the guidance on implementation of the ethical framework. Smith (2013) indicated that the ethical business practice is the only tool that will increase the company ability to survive in the long-run (pp. 48-49). Accounting managers should follow their integrity to make a right choice. The leadership team is responsible for the ethical behavior of employees and its consequences (p. 48). Therefore, it is important …show more content…

137). The analysis of ethical models is beneficial in terms of describing the behavior of accountants and managers. The researchers applied the pragmatism model to the decision-maker behavior. The model does not consider the ethical principle, but emphasizes the priority of personal interests. The religious model is the best guide and source from ethical perspectives. Meymandi, Rajabdoory, and Asoodeh (2015) recommended studying different conditions of the religious model, taking into consideration principles of capitalistic countries. The deontological model describes the expression and result of the behavior. The hermeneutic model is associated with the philosophy of ethics and can be applied in accounting as a tool for the interpretation of accounting past events (p. 139). The researchers discussed the consistency and conflicting issues among accountants regarding the values and organizational behavior, and considered the ethics plan as a tool to increase the employees’ productivity, communication, morale, and prioritization of tasks (p. …show more content…

It applies to auditors and their clients. Ionescu (2009) analyzed the ethical behavior of external auditors and companies-client. The author considered the assessment of the client’s ethical values as an integral part of the audit process (p. 121). The assessment of ethical atmosphere will allow identifying doubtful financial transactions and questionable behavior of executives. The ethical disagreements will result in detecting fraud and criminal activities. The auditors’ objectives are to critique the client’s behavior that fails the professional norms and regulatory standards. The ethical accounting means to conform to authoritative rules, be consistent, and reveal the rational rules of auditing (p.

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