Effects of ethical climate by specialization in a Chinese accounting firm

Research output: Other Conference ContributionsPresentation

Abstract

This study examines the association between the perceived organizational ethical climate in a Big 4 Chinese CPA firm and ethical decisions across auditing, taxation and consulting specializations. The study employs a survey of accounting professionals located in major offices of a single CPA firm. The results indicate that the associations between ethical climates and ethical decisions differ across specializations. Specifically, both the public interest and instrumental (self/firm interests) climates were significantly associated with auditors’ ethical decisions. In contrast, only the instrumental climate was associated with the decisions of tax and consultancy professionals. Our findings suggest that Chinese consulting and tax professionals in particular may not be giving adequate consideration to their obligations to comply with professional standards and act in a way that does not harm the public interest. Further, the findings imply that all professional employees of Chinese CPA firms, including auditors, are prone to follow unethical practices observed within their firm, which may lead to the normalization of corruption within such organizations.
Original languageEnglish
Publication statusPublished - 13 Dec 2016
EventThe 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact - Hong Kong Baptist University, Kowloon Tong, Hong Kong
Duration: 11 Dec 201613 Dec 2016
http://ied-wbef.hkbu.edu.hk/

Conference

ConferenceThe 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact
CountryHong Kong
CityKowloon Tong
Period11/12/1613/12/16
Internet address

Fingerprint

Chinese accounting
Ethical climate
Accounting firms
Tax
Consulting
Auditors
Climate
Public interest
Chinese firms
Obligation
Corruption
Consultancy
Auditing
Professional standards
Normalization
Big 4
Taxation
Employees

Keywords

  • Ethical climate
  • public accounting
  • auditing
  • taxation
  • consulting
  • China

Cite this

SHAFER, W., POON, M. C. C., & TJOSVOLD, D. W. (2016). Effects of ethical climate by specialization in a Chinese accounting firm. The 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact , Kowloon Tong, Hong Kong.
SHAFER, William ; POON, Margaret C. C. ; TJOSVOLD, Dean William. / Effects of ethical climate by specialization in a Chinese accounting firm. The 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact , Kowloon Tong, Hong Kong.
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SHAFER, W, POON, MCC & TJOSVOLD, DW 2016, 'Effects of ethical climate by specialization in a Chinese accounting firm' The 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact , Kowloon Tong, Hong Kong, 11/12/16 - 13/12/16, .

Effects of ethical climate by specialization in a Chinese accounting firm. / SHAFER, William; POON, Margaret C. C.; TJOSVOLD, Dean William.

2016. The 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact , Kowloon Tong, Hong Kong.

Research output: Other Conference ContributionsPresentation

TY - CONF

T1 - Effects of ethical climate by specialization in a Chinese accounting firm

AU - SHAFER, William

AU - POON, Margaret C. C.

AU - TJOSVOLD, Dean William

PY - 2016/12/13

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N2 - This study examines the association between the perceived organizational ethical climate in a Big 4 Chinese CPA firm and ethical decisions across auditing, taxation and consulting specializations. The study employs a survey of accounting professionals located in major offices of a single CPA firm. The results indicate that the associations between ethical climates and ethical decisions differ across specializations. Specifically, both the public interest and instrumental (self/firm interests) climates were significantly associated with auditors’ ethical decisions. In contrast, only the instrumental climate was associated with the decisions of tax and consultancy professionals. Our findings suggest that Chinese consulting and tax professionals in particular may not be giving adequate consideration to their obligations to comply with professional standards and act in a way that does not harm the public interest. Further, the findings imply that all professional employees of Chinese CPA firms, including auditors, are prone to follow unethical practices observed within their firm, which may lead to the normalization of corruption within such organizations.

AB - This study examines the association between the perceived organizational ethical climate in a Big 4 Chinese CPA firm and ethical decisions across auditing, taxation and consulting specializations. The study employs a survey of accounting professionals located in major offices of a single CPA firm. The results indicate that the associations between ethical climates and ethical decisions differ across specializations. Specifically, both the public interest and instrumental (self/firm interests) climates were significantly associated with auditors’ ethical decisions. In contrast, only the instrumental climate was associated with the decisions of tax and consultancy professionals. Our findings suggest that Chinese consulting and tax professionals in particular may not be giving adequate consideration to their obligations to comply with professional standards and act in a way that does not harm the public interest. Further, the findings imply that all professional employees of Chinese CPA firms, including auditors, are prone to follow unethical practices observed within their firm, which may lead to the normalization of corruption within such organizations.

KW - Ethical climate

KW - public accounting

KW - auditing

KW - taxation

KW - consulting

KW - China

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UR - http://ied-wbef.hkbu.edu.hk/conference-proceedings/doc/A009-Abstract.pdf

M3 - Presentation

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SHAFER W, POON MCC, TJOSVOLD DW. Effects of ethical climate by specialization in a Chinese accounting firm. 2016. The 6th World Business Ethics Forum : Making a difference? Business sustainability and social impact , Kowloon Tong, Hong Kong.