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Individual Research Paper
There are many different ethical systems that exist. Some of these systems even relate to
a specific profession. There are quite a few systems that pertain particularly to the accounting
industry. The two systems that will be discussed in this paper are deontology and utilitarianism.
The first type of ethical system is deontology. The root words of deontology come from
the Greek language. These two words roughly translate to mean duty and speech, and these two
ideas truly define deontology. Carreira et al. (2008) had the following to say regarding
deontology and its beliefs in a professional sense:
Deontology would be the treaty of the duty or set of duties, principles and norms adopted
by a specific professional group. It is a normative subject that deals with the duties that
must be followed in specific social circumstances within a specific profession (p. 91).
Deontology teaches that the motivations that a person has are more important than the action
itself or the consequences of the action, as long as the motivations and intentions were morally
based and correct.
The second ethical system is utilitarianism. “Utilitarians believe they should make
decisions that result in the greatest total utility or the greatest benefit for all those affected by a
decision” (Mintz & Morris, 2020, p. 23). Finding the solution that is the best option for everyone
is the goal of utilitarians. In contrast to deontology, this belief system puts its main focus on the
consequences of an action instead of the action or its motivations.
Both of these systems are seen quite often in the profession of accounting. However, that
does not mean both systems should be used or that they are an honorable system to follow.
Deontology is a Christian compatible worldview that is more ethically sound in an organizational
setting, and it is more appropriate for the accounting industry in comparison to utilitarianism.
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Deontology and Utilitarianism in an Ethical Light
As previously stated, deontology and utilitarianism are both ethical systems, but what are
ethics? At the very basic level ethics can be defined as a system of moral beliefs, but this does
not show the full meaning of ethics or how they pertain to deontology and utilitarianism. From a
philosophical point of view, ethics can be defined as “a systematic approach to understanding,
analyzing, and distinguishing matters of right and wrong, good and band, and admiral and
deplorable as they relate to the well-being of and the relationships among sentient beings” (Rich,
n.d., p. 4). This is what makes both deontology and utilitarianism ethical systems. Both beliefs
concern themselves with an analysis of a situation and determining what is right for the situation.
Deontology looks at the right intentions and choosing the right choice. Utilitarianism looks at the
right consequences or good consequences of an action.
Ethical Dimension of Organizational Culture in the Accounting Profession
Ethics are a major part of people’s lives, even if they do not even realize it. Due to their
massive influence on a person’s worldview, they also have a massive influence on how someone
conducts their business and treats their employees. West (2016) had the following to say about
ethical beliefs and their effects on accounting:
Application of particular moral philosophies or philosophical concepts has the potential
to provide alternative perspectives on ethics in accounting, which can provide theoretical
support for the profession’s approach to ethics, while also raise issues for further
consideration by the profession and accounting practitioners (p. 33).
As a result of the strong effect that an ethical system has on how people behave and conduct their
business, this the reason why it is so important to choose the best ethical system, not the most
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convenient one. If a person does not have a morally strong belief system, then they will not act in
a morally acceptable manner.
In a study conducted on various types of business ethics, Ferrero and Sison concluded
that deontology was the type of ethic system that employees wanted to have, but utilitarianism is
the type that people typically ended up having. “Deontology, which considered behavior
exclusively in its conformity with universal rules of justice and rights, without reference to
context or results, prevailed in theory; while utilitarianism, which judged action through cost-
benefit analysis, without regard for norms or values dominated in practice” (Ferrero & Sison,
2014, p. 375-376). Most people want to act with moral motivations, but it is easy to be persuaded
by the promise of rewards. If people in an organization act with a deontological belief system,
then the organization, its employees, and even their clients will be exposed to and persuaded to
act in a dutiful manner with strong moral intentions. If people in an organization act in a
utilitarian manner, then their focus is how the company can get the most rewards. This behavior
would harm the ethical dimensions of the organizational culture that the accounting profession
holds on to.
Christian Worldview of Ethics
Before deontology and utilitarianism can be compared to a Christian worldview, it is
essential to know what a worldview even is and the impact of Christianity on one. A worldview,
as defined by Anderson et al. (2017), “is the conceptual lens through which we see, understand,
and interpret the world and our place within in” (p. 8). A worldview effects everything in a
person’s life. It effects how they think. It effects their morals, or how they view right and wrong.
It effects their actions and how they view them. It effects how they see others. A worldview is the
basis for every thought or viewpoint that a person holds.
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This is also the basis for a Christian worldview. “A truly Christian worldview is, simply
put, the way that God sees, understands, and interprets the world and our place within it.”
(Anderson et al., 2017, p. 96). In a Christian worldview, the conceptual lens is the Lord or His
Word. There are basic beliefs that are in a Christian worldview. The first belief is the entirety of
the Bible is completely true and inspired by God. The second is that God is an all-powerful and
all-knowing God. Psalm 147:5 says, “great is our Lord and mighty is power; His understanding
has no limit” (New International Bible, 2011/1978). There is nothing that the Lord cannot do. He
is not limited in power like mankind. The third is that God created the world and everything in it.
Genesis 1:1 says, “in the beginning God created the heavens and the earth” (New International
Bible, 2011/1978). God created to man to be in His image and for man to take care of His
creation. Unfortunately, man sinned and got separated form Him, so the Lord sent His only Son
Jesus to die on the cross to redeem everyone and give them a chance at eternal life in Heaven.
Colossians 1: 19-20 says, “for God was pleased to have all His fullness dwell in Him, and
through Him to reconcile to Himself all things, whether things on earth or things in heaven, by
making peace through His blood, shed on the cross.” (New International Bible, 2011/1978).
Mankind was redeemed by Jesus through His death.
There are some similarities and differences between deontology and a Christian
worldview. In comparison to a Christian worldview, deontology focuses on morals instead of
rewards or consequences. God gave man countless commands for how to act in a morally
acceptable manner: the 10 Commandments, the Golden Rule, parables, and the Beatitudes. Like
Christianity, deontology is not concerned with the consequences of an action or the action itself
as long as the intentions that the person held were good and morally correct. It is a sin to not do
the right thing if it is known. James 4:17 says, “so whoever knows the right thing and fails to do
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it, for him it is sin” (New International Version, 2011/1978). Morality is an essential teaching in
the Bible. As previously mentioned, there is not a focus on rewards or consequences in
Christianity or deontology. In fact, it goes against both belief systems if that is the true
motivation. Matthew 6:19-21 says the following:
Do not lay for yourselves treasures on earth, where moth and rust destroy and where
thieves break in and steal, but lay up for yourselves treasures in heaven, where neither
moth nor rust destroys and where thieves do not break in a steal. For where your treasure
is, there your heart will be also (New International Bible, 2011/1978).
Deontology also teaches that every single person has rights, and they deserve to be respected,
which is also a Christian teaching. 1 Peter 2:17 says, “show proper respect to everyone, love the
family of believers, fear God, honor the emperor” (New International Bible, 2011/1978). All of
the basic teachings of deontology are compatible with a Christian worldview. However, at a
closer look, there are differences as well. The biggest difference is that there is a focus on the
individual in deontology. The morals and ethics used when making a decision are subjective to
each individual, not objective. All of the rules in Christianity are objective. They are not free for
personal interpretation; they are set standards. 2 Timothy 3: 16-17 explains that, “all Scripture is
breathed out by God and profitable for teaching, for reproof, for correction, and for training in
righteousness, that the man of God may be complete, equipped for every good work” (New
International Bible, 2011/1978). God’s law is not subjective or individualized.
There are also some similarities and differences between utilitarianism and a Christian
worldview. In comparison to a Christian worldview, utilitarianism encourages a sense of
selflessness and treating others with the best intentions. The Bible commands in Matthew 22:39
that “you shall love your neighbor as yourself” (New International Bible, 2011/1978). What a
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person wants for themselves is the best of everything, but in utilitarianism the goal is the get the
best for everyone as well. This aligns with loving others like yourself and treating them the way
you would want to be treated. In contrast to a Christian worldview, utilitarianism focuses on
happiness and rewards instead of morality. This is the opposite of a Christian worldview.
Deuteronomy 12:28 says, “be careful to obey all these words that I command you, that it may go
well with you and your children after you forever, when you do what is good and right in the
sight of the Lord your God” (New International Bible, 2011/1978). The Lord blesses those who
act in a just manner and do what is pleasing in His sight. Rewards should not be the motivation;
they are a gift for doing what is right.
Deontology and the Accounting Profession
Deontology is the most appropriate for the accounting profession. Utilitarianism may
seem like the better choice because of the focus on the best benefit for everyone, but there are a
couple reasons why utilitarianism is not the best system. One is the fact that there is an emphasis
on the best for everyone. This can cause a significant imbalance and hurt the economics of the
company. Renouard’s study (as originally found by Sen, 1999) concluded the following on
utilitarianism in relation to corporate social responsibility:
As far as utilitarianism is concerned, insisting on maximizing economic value may lead
to three difficulties: first, increasing the inequalities between people and between groups;
and second, putting too much emphasis on material wealth and economic creation, and
thus neglecting other aspects of well-being (2010, p. 85).
This is one of the main reasons as to why utilitarianism should not be applied in the accounting
industry. Another issue is the fact that utilitarianism focuses on consequences instead of actions.
If the goal of the firm is to get the best possible outcome for every single person in the firm and
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every single client, then there may some questionable actions taken to do this. Leaders in the
firm may be tempted to commit illegal and immoral acts to ensure everyone’s happiness.
Deontology is definitely the best option of the two. “Deontology is therefore the science
that sets the guiding norms of professional activities under the sign of morality and honesty.
Professional deontology systematically elaborates the ideals and norms that should guide
professional activity” (Carreira et al., 2008, p. 91). Deontology promotes the use of moral
behavior such as honesty, integrity, and a sense of responsibility. It encourages employees to
always do the right thing, even if someone tries to push them to do something they shouldn’t.
This teaching is also in accordance with the AICPA, American Institute of Certified Public
Accountants, Code of Professional Conduct. “Integrity requires a member to be, among other
things, honest and candid withing the constraints of client confidentiality. Service and public
trust should not be subordinated to personal gain and advantage” (AICPA, 2016, 0.300.043).
There are countless other rules that the AICPA Code of Professional Conduct explains the kind of
behaviors that CPA’s should have and all of them are in accordance with deontology, not
utilitarianism. A deontological belief system is definitely the most appropriate for the accounting
profession.
Conclusion
In conclusion, deontology and utilitarianism are two popular ethics systems that are used
in the accounting industry. Deontology teaches the importance of morally based decision
making. Utilitarianism teaches the importance of generating group benefit. Due to these
principles, deontology is a more ethically sound and Christian based system that is more
appropriate for the accounting profession. Ethics are such a large part of the accounting
profession, and it is essential that the correct ethical systems are practiced.
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References
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