In recent years, there has been a surge in unethical behavior and practices in the
accounting profession which gives rise to grave implications for diverse stakeholders like
customers, investors, employees, management, and the general public. Some of the most
common kinds of unethical behavior that are found in the professional setting include
inaccurate reporting practices, presenting incorrect financial information to deceive the
users, incompleteness of financial information, engaging in fraudulent activities such as
tax evasion practices, and many more. Mubako et al. (2021) have argued that emphasis
must be laid on the ethical training of accounting students so that ethical and
accountable behavior can be encouraged. Ethical training and education can play a
cardinal role to enable accounting students to learn about the ethical practices that need
to be integrated into their profession, such as honesty and integrity, transparency,
objectivity, due care, and professional competence (AICPA & CIMA, n.d.).
By teaching ethics to accounting students and professionals, there is an opportunity to
equip them with moral insight so that they can make ethical decisions and judgments in
diverse situations. Ethical behavior is a vital competence area that can be strengthened in
accounting practitioners through ethical education and training programs. Instead of
adopting the buyer behavior approach, accounting professionals need to employ a
diverse range of checks and balances so that robust financial practices can be adopted in
place. Through ethical education, it is possible to empower accounting students and
professionals to take ownership and accountability for their actions so that ethics can be
integrated at a comprehensive level. According to Pinheiro and Costa (2021), accounting
ethics education is instrumental since it can foster ethical awareness in accounting
professionals that is required to prevent unethical behavior and poor professional
conduct.
An example that led to immense financial stress on the market or to the affected
employees and investors involves Elizabeth Holmes, the former CEO of Theranos. The
disgraced CEO indulged in unethical practices as she deceived the investors as well as
customers of the business with her fake new blood testing device that was claimed to be
highly advanced (Forbes, 2023). Numerous investors lost several hundreds of dollars due
to the unethical behavior of Holmes. The steps that could have been taken to prevent
the specific situation involve the adoption of transparent practices and open
communication throughout the organization, the demonstration of accountable behavior
from leaders, and the adoption of ethical leadership approach. By being honest with
diverse stakeholders of the company, the unethical situation could have been averted.
Reference
Code of ethics briefly. AICPA & CIMA. (n.d.). https://www.aicpa-
cima.com/resources/landing/code-of-ethics-at-a-
glance#:~:text=It%20is%20divided%20into%20three,%2C%20Confidentiality%2C%20and
%20Professional%20behaviour.
Elizabeth Holmes-Theranos fraudster and ex-billionaire-gets two years cut from off prison
sentence. (2023, July 14). Forbes.
https://www.forbes.com/sites/roberthart/2023/07/11/elizabeth-holmes-theranos-
fraudster-and-ex-billionaire-quietly-cuts-two-years-off-prison-sentence/
Mubako, G., Bagchi, K., Udo, G., & Marinovic, M. (2021). Personal values and ethical
behavior in accounting students. Journal of business ethics, 174, 161-176.
Pinheiro, M. M., & Costa, A. J. (Eds.). (2020). Accounting ethics education: teaching virtues
and values. Routledge.
