Critical Perspectives on Accounting 20 (2009) 509527

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Critical Perspectives on Accounting
j our nal homepage: www. el sevi er . com/ l ocat e/ cpa
The new global accounting community: Rationale for
dialogue to establish its accountability?
Jean Raar

Swinburne University, Lilydale Campus, Melba Avenue, Lilydale, Victoria 3140, Australia
a r t i c l e i n f o
Article history:
Received 19 December 2007
Received in revised form 15 August 2008
Accepted 15 August 2008
Keywords:
Profession
Values
Accounting profession
Community
Moral
Ethics
a b s t r a c t
The reputation of the accounting community is an important
intangible asset. The community persistently builds its reputation
through disclosure of reputation signals that crystallize its sta-
tus with the commercial social system [Riahi-Belkaoui and Pavlik,
1992; Raar J. Beyond ethics: a community platform to secure
moral integrity. Australian Accounting Review 2006;16(1):4150].
Therefore, as a community in the global village, it is an insti-
tution of accountability, which in turn is dependent on honesty
and trust (Lee, 1995). The intention of this conceptual paper is
to provide discourse that induces questions for reection in the
call for values underpinning the integrity and ethical stance of
the profession. To an extent ethical codes assist, however in an
international professional community the self-governance proce-
dures and investigations of a local professional body may now
be outside its geographical jurisdiction. Walker [Walker RG. The
ASRB: policy formation, political activity and research. Paper pre-
sented at Accounting Association of Australian and New Zealand
(AANZ) annual conference in Sydney; August, 1985] suggests that
accounting rules are only symbolic behaviour unless compliance
is monitored, and sanctions are imposed [Walker RG. The ASRB:
policy formation, political activity and research. Paper presented
at Accounting Association of Australian and New Zealand (AANZ)
annual conference in Sydney; August, 1985. p. 12]. The internation-
alisation of accounting standards appears to present an opportune
period in the evolution of a self regulatory accounting profession
to consider the issues of moral values and integrity and ask the
question, what does this international profession stand for?
Crown Copyright 2008 Published by Elsevier Ltd. All rights
reserved.

Tel.: +61 3 9215 7293; fax: +61 3 9215 7231.

E-mail address: jraar@swin.edu.au.
1045-2354/$ see front matter. Crown Copyright 2008 Published by Elsevier Ltd. All rights reserved.
doi:10.1016/j.cpa.2008.08.001
510 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
1. Introduction
The intent of this conceptual paper is to promote dialogue and raise questions on the ontology
of values and integrity that should underlie and unify the global institution of the accounting pro-
fession. Topics for discussion can include (a) the language used by the accounting profession and
the associated behaviour it portrays, (b) the jurisdiction of the profession, particularly the use of
nonmonetary symbols to report corporate performance, (c) and the potential for a consensus of inter-
national values and culture for a profession using international accounting standards in a variety of
countries.
As Loft et al., (2006, p. 435) indicate there is an increasing interplay between the national
accounting professions, international accounting rms, international regulatory bodies and the Inter-
national Federation of Accountants (IFAC). Loft et al., consider that the global public has little
participation in the setting of accounting standards and the processes of governance. Given the
globalisation of the accounting and the auditing arena, Loft et al. (2006) suggest that democratic
debate is limited, and transparency could be improved. They use the term global public in their
paper on global regulation and their critique of IFAC in terms of transparency and governance
procedures.
Shearer (2002) emphasises the argument by Schweiker (1993) that economic entities become
members of a moral community by virtue of the accounts that such entities render of themselves
(Shearer, 2002, p. 544). The obligations of the entity to the broader community are communicated
through economic discourse, and Shearer suggests that accounting practices are inadequate to meet
the demands for accountability that are legitimately entailed in the act of rendering an account
(Shearer, 2002, p. 544).
Furthermore, Shearer (2002) emphasises that economics is not an ethically neutral discipline and
that a few regulations and standards will not produce morality. The author further suggests that
accountability enacts intersubjectivity and that giving an account is a means by which individu-
als are answerable which has an embedded moral responsibility. In addition Jones (1995) supports
an intrinsic relationship with stakeholders based on mutual trust and moral values.
The multinational facet of the international business community and international accounting
standards, has introduced a new geographical set of stakeholders who use corporate reports for
decision-making, and are concerned with the accountability of the accounting profession. A busi-
ness does not operate in isolation from the community, its activities fall within the social framework
determined by societys rules (Parker et al., 1989). So do the activities and outcomes of the accounting
profession.
Given the evolving societal emphasis on accountability of business institutions to a range of stake-
holders, rather than simply the shareholder, the shape of professional integrity will be molded by its
core values. The call is for:
(a) professional and academic dialogue to encourage a revisit of the nature and rationale (Burchell et
al., 1980) of the accounting profession, with a focus on the intrinsic claims of its stakeholders, and
(b) accountants to have defensible and binding moral values which are transferred into principles,
adding another dimension to the issue of professional integrity (Norton, 1998). The current values
displayed on the IFAC website are broad based, and froma users perspective may not be indicative
of what the profession stands for
1
(this aspect is expanded later in the paper).
Hence this paper draws heavily on interdisciplinary dialogue and adapts the objectives of Doost
(2003) who, following the Enron-Arthur Andersen issue raised what he termed serious questions for
reection. Premised by the changing international face of business and accounting communities, and
associated societal values this study aims to:
1
Refer further discussion in Section 2.3.
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 511

direct attention to issues that prompt serious questions for reection associated with the pragmatic
sustainability of the professions integrity, which is intertwined with its rationale, domain and its
craft,
2

add an ongoing dimension to the paper by Raar (2006) based on the accounting as a community and
its moral integrity.
The concepts expressed in this eclectic discourse are prompted by:

the argument expressed by Burchell et al. (1980, p. 9) that: Just what is accounting and what func-
tions does it serve were questions that started to be considered. And with the growing signicance
of the craft and the increasing complexity of the institutional processes through which changes
emerged, such questions might have relevance for those concerned with its practice, regulation and
development,

concernexpressedby the Accounting, Auditing andAccountability Journal Special issues onTheolog-

ical Perspectives on Accounting, to encourage interdisciplinary research in accounting that draws
specically on theological insights (McPhail et al., 2005, p. 188),

the suggestion by Potter (2005) that more studies depict accounting as a social and institutional
practice,

Tinker andGray (2003) for accounting academics to researchanddiscuss outside their comfort zone
of economic relatedness,

discourse relating to the accounting profession proceeding beyond ethics to a communitarianism

approach, supported by a set of morals and values (Dillard et al., 2004; Raar, 2006).
There are two theories underpinning this paper: normative stakeholder theory and moral legit-
imacy theory (Suchman, 1995). Predominantly, these two theories have been debated and used in
the academic literature separately. Normative or intrinsic stakeholder theory is discussed at length by
Jones (1995, 1999) fromthe perspective of the business corporation. However, it is extrapolated herein
to also include professional bodies. In addition, the nexus of the discussion in the paper assumes the
profession is a self-regulatory global community (Raar, 2006).
The structure of the paper commences with the accountability and the accounting profession and
ows into the accounting craft and opportunism. The theories underpinning this discourse are briey
explained. The next section provides a discussion on values, trust and ethics which are reasoned, and
related to the accounting profession. Then in order to support the call for professional values that
incorporate morality, the historical perspective of communities and civilisations that have fallen due
to a lack in moral stature, is reected upon. The discussion in this section is premised on a religious
perspective. A brief overview of the concepts relevant to change for the accounting profession are
highlighted, and are followed by a discussion on corporate culture incorporating trust, oughtness,
and moral obligations. The limitations of the study precede its conclusion.
1.1. Accountability and the accounting profession:
1.1.1. Accounting: institutional rationale and domain
Reiter (1995) inquoting Wallman(1995) highlightedthe role of accounting inthe following context.
Accountants are the gatekeepers of our nancial markets. Without accountants to ensure the qual-
ity and integrity of nancial information, the markets for capital would be far less efcient, the
cost of capital would be far higher, and our standard of living would be lower. . . .The account-
ing profession has undertaken a function that promises society a number of benets, including
lower investment risk and better resource allocation. In turn, accountants have been granted a
legally enforceable franchise no company cancome to the public markets without anaccountants
attestation (Wallman, 1995, p. 82).
2
Accounting craft: a term originally employed by Burchell et al. (1980).
512 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
Potter (2005) provides a comprehensive analysis of the literature depicting accounting as a social
and institutional practice. He uses Millers (1994) themes of accounting (a) as a technique, (b) the
rationales of accounting, and (c) the domainof accounting (p. 283). This paper ows primarily fromthe
latter two. Institutions undergo change, one of which is the change in values and/or structures that are
assumed to characterize the institutions and as such being an institution is a variable not a constant
(Peters, 2000, p. 7). The domain of the accounting professional community (Raar, 2006) in terms
it is of geographical jurisdiction and associated stakeholders is undergoing change.
3
Furthermore, in
relation to the rationale of the profession, it is currently grappling with reporting measures of business
performance (Schipper and Trombetta, 2007). In addition, its current position in relation to changing
global practices, for example the reporting of greenhouse gas emissions, is not rmly established (Low
et al., 2006).
In order to service accountability and social efciency, the professional institutions and regulatory
agencies consideredtheroleof accountinginterms of improvinginformationfor investor decisions and
providing efciency and control for the organisation (Burchell et al., 1980). The discussion by Burchell
et al., was directed to the changes in organisational structure, the institutional needs of the rm, and
the relationship of accounting practice with social and political aspects. These authors concluded with
how accounting is considered in organisational and social practice, and the roles information and
accounting play in the political processes. Burchell et al., wrote their paper in 1980. Over the ensuing
decades, the informationcommunicatedtostakeholders, throughthe rationale, domainandassociated
craft of accounting has expanded to include the changing internationalisation of business techniques
and transaction types.
Fundamentally, the sphere of accounting inuence now has implications for a geographically
diverse society, elements of which have different cultures and societal values. One of these is con-
cern with social and environmental stewardship (Shearer, 2002) the performance of which in general,
is unable to be expressed in monetary terms, particularly in the short term.
1.1.2. Language and communication
As accounting tools and the craft are used to communicate corporate performance, its professional
franchise is interrelated with stewardship of corporation behaviour. Firms are evaluated in the capital
markets, which in turn inuence behaviour at the corporate level. Ijiri (1967, p. 160165) in outlining
the foundations of accounting measurement suggests that accounting is a language of communication
which can affect behaviour. Managers in their decision-making will try to avoid uncertainty and create
predictability by installing standard operating procedures. Just as culture affects and is affected by
language, business affects and is affected by accounting (Ijiri, 1967, p. 165).
Whileit is thecapital markets whodetermineshareholder value, theaccountingprofessionprovides
signals in relation to rms performance, which have direct and indirect behavioural implications. In
terms of agency theory, one such behaviour is to enhance monetary outcomes in order to provide
individual benets.
If the accounting profession is perceived as social institution (Gynther, 1967) acting as a steward
for corporate behaviour, then it operates for the benet of stakeholders, not just the capital market
participants. Currently accounting communication consists of numbers, symbols of nancial perfor-
mance, based on generally accepted accounting standards. Hence, both the sender and the recipient
must be conversant with these codes, principles and symbols if sound communication is to take place.
Communication can assist in education, information sharing and community building and socializa-
tion (Twesigye, 2001, p. 428). If the communication process is not working and the language is being
misused, for example opportunities for creative accounting or fraud, then the symbols, principles and
standards may need to be adapted.
To reduce uncertainty, (refer discussion above) this language is underpinned by the conceptual
framework and associated standards, which assists all members of the profession to abide by a sys-
tematic process in order to equitably distribute short-term information (Ijiri, 1967). By doing so, the
3
Refer the critique and comprehensive discussion on IFAC, in relation governance and the global community by Loft et al.
(2006).
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 513
accounting profession asserts that rational decision-makers can rely on these global principles and
standards, and therefore regulatory intrusion need not be necessary. Accountants can also use their
language, principles, practices and education to reect and empower trustworthiness. All of these
can be sustained by a moral standing.
1.2. The accounting craft and opportunism
Professionals and indeed any decision-maker in business may nd a conict with the pursuit of
shareholder value, the legal requirements associated with business, and the obligation to pursue the
interests of other stakeholders (Aguilieraet al., 2006) includingthegeneral communityinterests, which
has now expanded to an international arena. This broadening of the geographical appropriateness of
corporate activities and outcomes also inuences corporate behaviour in its stance: (a) towards the
communication of information on their performance, and (b) to legitimize their activities. The theoret-
ical perspective of legitimization gives shareholders and creditors preference over other stakeholders,
and emphasises the capital market perspective of a rm (Aglietta, 2000).
Self-interest or opportunism in the pursuit of monetary outcomes is associated with contracting
theoryandagencytheory.
4
Interms of agencytheoryresearchsuggests, onesuchbehavioural inuence
is to enhance monetary outcomes inorder to provide individual benets. According to Lowet al. (2006)
managements self-interested use of accounting information has placed the accounting profession a
perverse role in corporate failures, such as Enron, WorldCom, Global Crossing, BristolMyers and HIH
insurance group in Australia. What business and nancial strategies were adopted to attain the prot
and maximize shareholder value (Aglietta, 2000), and at what affect to the community, to the environ-
ment, and ultimately to the stakeholders of individual rms? (Brown, 1998, p. 338). The integrity of
the profession and the credibility of the nancial information communicated in the nancial reports
have been undermined (Aglietta, 2000).
As a consequence the accounting and auditing professions were admonished in terms of public
trust (DiPiazza and Eccles, 2002). When ethical values are falling, people often turn to government
for help (Smith and Smith, 2003). Dishonesty and opportunism in contracting can only expand the
regulatory requirements and the associated costs. Franchised by the capital markets as stewards of
corporate behaviour, our language and craft may require change if sound communication is to be
facilitated (Reiter, 1997; Twesigye, 2001), and stewardship of corporate behaviour remains with the
accounting profession.
Although a proliferation of laws resulted from Enron and other corporate failures, laws and their
associated issues are not always transposable with moral requirements. The response to crises of
the public accounting profession in the US has been to form committees and commissions whose
recommendations end up changing little of substance (Reiter, 1997, p. 313).
1.2.1. Signalling vehicle
The accounting heritage supports a role of stewardship, honesty and trustworthiness. Any decline
inthe quality of accounting practice canthreatenthe economic franchise underpinning the accounting
profession (Reiter, 1997, p. 312). Shearer (2002) considers regulations and standards will not produce
moral behaviour in terms of aiding credibility into the next generation and the upholding of good val-
ues such as honesty, integrity, trust, the community and the environment. Without sound professional
values the next generation of accountants may struggle as changes that are currently occurring may
incur disrepute on future professionals (Wilson, 1998).
Cooper and Owen (2007) support regulatory institutional reformto assist accountability and trans-
parency of directors actions to concerned stakeholders via increased relevant disclosure. However,
their discussion on governance and transparency issues is more related to environmental and social
disclosure, and is a criticism of the shelving of the United Kingdom (UK) regulatory requirements
4
To elaborate on the basics of agency and efcient contracting theory and associated costs are outside the scope of this
paper. However, interested readers are referred to the paper by Jones (1995) which links agency theory, efcient contacting and
instrumental stakeholder theory.
514 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
for rms to publish an Operating and Financial Review. While not a specic international accounting
standard this former UK regulatory requirement offers expansion to the professional horizons of the
accountants sphere of inuence. The paper by Cooper and Owen (2007) also enhances dialogue from
a widening range of key stakeholder groups.
Realismand theories are often incompatible, froma moral perspective the complexity of our tools,
craft and systems should not offer opportunities for managers and professions, including auditors
to distort, misjudge or ignore malfeasance. To allow such opportunities may give rise to a viewpoint
that the profession is only concerned with the context of economic and professional rationalism and
power (Evans, 2003). From a strategic standpoint the mission statement of values underpinning the
professional accounting stance will inuence the guidelines from which the practical tools originate,
that is the way it acts and the way it goes about carrying out its activities (Gynther, 1967, p. 278).
An increasing challenge for accountants to serve the needs of stakeholders other than the investors
and creditors and signal information on the stewardship of nonmonetary resources, may involve a
change in their jurisdiction to incorporate the signalling of nonnancial information. On this point
the relativistic ethic of social responsibility and the interactional ethical approach which considers
morality as a dynamic process of ongoing social dialogue aiming at resolving moral conict arising at
any point in time (Singer, 2000, p. 189) are highlighted in terms of a harmonious interaction of the
accounting profession and community values.
1.3. Theoretical concepts evolve
1.3.1. Accounting in a ux
In the literature discourse on theoretical concepts of stakeholder and legitimacy theories, particu-
larly for research efforts has been based on the relationship between stakeholders and the corporation.
For the purposes of this paper this principal is extrapolated to the institution the community which
is the accounting profession (Raar, 2006). This approach is based on the line of reasoning that users
of accounting information have expanded to a signicantly wider community the global public in
terms of (a) the type of user, and (b) increasingly changing geographical locations. These stakeholders
who stem from different geographical locations, religious groups, and cultural backgrounds, require
relevant information formulated, and prepared by members of the accounting profession. Thee mem-
bers preparing the information may also stem from these diverse backgrounds. In addition, the type
of information has extended to include that which is both relevant to the different decisions of these
stakeholders, and is also applicable to the stewardship rationale of the profession, for example water
trading, carbon emissions trading.
Supported by previous comments in this paper the discussion is premised on two theoretical
perspectives: (a) normative or instrinsic stakeholder theory, and (b) moral legitimacy.
1.3.2. Normative or instrinsic stakeholder theory
Jones (1995) and Jones and Wicks (1999) advance the academic literature on stakeholder theory of
the rm, particularly in relation to moral obligations of corporations to their relevant stakeholders.
5
The beginning of this normative theory is that decisions (at both professional and individual mem-
bers) affect the outcomes of stakeholders. Prior to elaborating further the premises underpinning
stakeholder theory, according to (Jones and Wicks, 1999, p. 2) are:
1. a corporation has relationships with many constituent groups (stakeholders) that affect and are
affected by its decisions (Freeman, 1984);
2. concern with the nature of these relationships in terms of both processes and outcomes for the rm
and its stakeholders;
3. the interests of all (legitimate) stakeholders have instrinsic value, and no set interests is assumed
to dominate the others;
5
Barnett (2007) builds on stakeholder theory to present a conceptual argument for the nancial benets attainable from
incorporating social and environmental responsibility and associated stakeholders into their business operations.
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 515
4. the focus on managerial decision-making (Donaldson and Preston, 1995).
Jones and Wicks (1999) used the basics of stakeholder theory, including contracting and
agency theory and divided it into a two-part typology, (a) normative, and (b) instrumental and
descriptive/empirical stakeholder theory. Jones and Wicks suggest that the descriptive/empirical
perspective purports to describe actual behaviour that managers do not behave as if all stakehold-
ers had morally valid claims on the rm. Using the work of Brenner and Cochran (1991) to lead into
their discussion on instrumental stakeholder theory, Jones and Wicks (1999) support the theoret-
ical proposition of Jones (1995) that rms contracts based on mutual trust and co-operation will
support nancial benets over rms that do not. This approachhas also beendiscussed inthe social
and environmental literature, with Barnett (2007) highlighting that the responses by stakeholders
to a rms actions are path dependent, with each stakeholder having a uid relationship with a
rm and when aggregated together are a total stakeholder perception about the soul of the rm
(p. 805).
Jones and Wicks (1999, p. 209) second item in their typology is normative stakeholder theory.
That is, the inquiry which involves determining what moral obligations stakeholder theory places on
managers. Using a list of scholarly articles, Jones and Wicks support the treatment of stakeholders as
ends and of an ethical approach in terms of what ought to have intrinsic value.
Stakeholder theoryis linkedtolegitimacytheoryas business groups seektomeet the societal norms
when conducting their operations. Societal norms are shared beliefs of a set of values, and the percep-
tion of how the group meets this value is an important factor for determining its goals and objectives
and their associated measurement. Given that stakeholders form part of societal expectations, albeit
with more specic views, the link between the two theories is that expectations are matched with
performance.
Low et al. (2006) also place greater emphasis on a range of stakeholders who require informa-
tion about the rms performance and decision-making activities, particularly those that may not be
directly measured in monetary terms, but may impact of nancial performance in the longer term.
In this respect changing societal values are relevant not only in relation to corporate performance,
but in the consequences arising from accountability and transparency in relation to the process of
communication.
There is a volume of literature and studies which have employed and provided scholarly discourse
on legitimacy theory.
6
As a full discussion on the concepts of legitimacy theory is outside the scope of
this paper, the following section places accent only on the normative concept of moral legitimacy.
1.3.3. Moral legitimacy
Legitimacy is dened herein according to Suchman (1995, p. 574) as:
Legitimacy is a generalized perception or assumption that the actions of an entity are desirable,
proper, or appropriate within some socially constructed system o norms, values, beliefs, and de-
nitions.
According to Suchman this denition incorporates both the evaluative and cognitive dimensions
and acknowledges that legitimacy is socially constructed. It reects the congruence between the
behaviour of the entity, in this instance the accounting profession, and the shared beliefs of some
social group.
However, moral legitimacy is only one of the types of legitimacy detailed in the paper. Detailed
discussions of the two others, pragmatic legitimacy and cognitive legitimacy are outside the scope of
this paper. However Suchman links, pragmatic legitimacy, moral legitimacy and cognitive legitimacy.
Pragmatic legitimacy is based on audience self-interest, but moral and cognitive legitimacy are not.
Pragmatic and moral legitimacy are premised on discursive evaluation.
6
The interested reader is referred to Suchman (1995) for a full discussion on the concepts underpinning legitimacy theory.
The discussion in this paper is based on Suchmans conceptual approach.
516 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
Like most cultural process, legitimacy management rests heavily on communication in this case,
communicationbetweentheorganizationandits various audiences. . . this communicationextends
well beyond traditional discourse, to include a wide range of meaning-laden actions and nonver-
bal displays. Thus, skilful legitimacy management requires a diverse arsenal of techniques and a
discriminating awareness of which situations merit which responses (Suchman, 1995, p. 586).
Adopting the stakeholder perspective outlined above, the shared values of stakeholders concerned
with the language, craft and standards, i.e. the outcomes of the profession. It also reects a system
of institutional beliefs, allowing the institution to form its own values, (rather than its individual
members) and still retain legitimacy (Suchman, 1995, pp. 589590) considers:
Because moral legitimacy reects more generalized cultural concerns than does pragmatic legit-
imacy, organizations are somewhat more limited in their choice of moral standards than in their
choice of moral standards than in their choice of exchange partners. . .the range of moral criteria
remains quite broad, and the relative weighting of various desiderata depends largely on the goals
that the organization sets for itself and on the domain of activity that those goals imply (Scott,
1991).
Moral legitimacy is concerned about whether an activity is the right thing to do rather than does
it supply a benet to social welfare, which Suchman denes as the audiences socially constructed
value system. Moral legitimacy allows managers/professional accountants/auditors more resistance
to self interested manipulation, as it is based on one of the three forms: evaluations of outputs and
consequences, evaluations of techniques and procedures and evaluations of categories and structures
(Suchman, 1995, p. 579).
These theories offer a concentratedapproachto the global accounting community, presenting a role
for culture and community discourse, while reducing opportunities for manipulation of information.
These can only aid professional credibility in the longer term.
2. Values, trust and ethics
2.1. Utilitarianism
Building on the moral and community aspect the following discussion briey revisits the role of
utilitarianism. Economics assumes rational self interest (McCuddy and Pirie (2007) utilitarianism.
Remembering that there are two perspectives to utilitarianism, the rst is total utility where the
objective is to maximize utility for the greatest number, which is the community aspect, and the sec-
ond is the utility of the individual. An efcient capital market maximizes satisfaction by fullling the
greatest number of individual preferences a total utilitarian function. A utilitarian approach raises
ethical problems that cannot easily be answered fromwithin a utilitarian system, as the issues of alter-
natives, consequences of actions, harms and benets, and the time scale relating to the consequences
are imprecise. When making a decision about what ought to happen, these are taken fromthe option
that provides the greatest benets to the greatest number.
Low et al. (2006) discuss a body of literature which expresses concern with moral behaviour and
the economic capitalist system, including the excess of capitalism. They quote Kammler (2002) who
cites Mumford in stating the capitalist scheme of values in fact, transformed ve of the seven deadly
of Christianity pride, envy, greed, avarice, and lust into positive social virtues, treating them as
necessary incentives to all economic enterprise; while the cardinal virtues, beginning with love and
humility, are rejected as bad for business (Kammler 2002, p. 9).
2.2. Trust and values
The accounting profession is the primary source of communication on corporate performance
in a capitalist system. Therefore, Jones (1995) argues that the adoption of voluntary standards of
behaviour, including shared values of honesty and integrity can support a sound economic system
at both macro- and micro-levels. Allan et al. (2003) suggest trust demonstrates that values are under-
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 517
stood and respected, and in turn common values enhance reputation, credibility and trust (Raar,
2006).
However, economic theory studies the allocation of resources relating to the transactions between
individuals, regardless of their moral principles (Martinez-Alier, 1993). A utilitarian approach is weak
in terms of moral principles in not requiring the individual to act against their own selsh interests
(Kneese and Schulze, 1985). This point is emphasised in the issues of bribery, corruption, and climate
change and their relationship to prot and personal monetary benets (Elkington, 2006). Fragmented
values leadto diminishedtrust, whichis oftenreferredto as the morale withinanentity or professional
group. Trust is established by ethical conduct, which is as an important asset as tangible plant and
equipment items (Pearce, 2003).
Why the concern about utilitarianism or stakeholder evaluations when the profession has ethical
codes, and is an exponent of ethical education for potential members? One reason is that with the
introduction of a global accounting profession the diversity of ethics education, and ethical codes may
be insufcient as instruments to make this change (Atkinson, 2002; Loft et al., 2006).
Thompson (1999, p. 7) quoted the following:
The late philosopher/theologian, EdwardCarnell, inAnIntroductiontoChristianApologetics, made
the following observation in his chapter on ethics.
It is evident that we must act, if we are to remain alive, but we nd ourselves in such multifarious
circumstances that it is difcult to know at times whether it is better to turn to the right or better
to turn to the left, or better not to turn at all. And, before one can choose a direction in which to
turn, he must answer the question, better in relation to what or to whom? In other words, if a man
is going to act meaningfully and not haphazardly, he must rationally count the cost; he must think
before he acts. Right judgment, then, and proper actions always go together (1948, p. 316, emp in
orig.)
2.3. Ethics
At an international level, the IFAC has focused on ethics. Specically, it has been directed to (a)
ethics in education, and (b) the consistency of ethical codes for the various professional bodies oper-
ating within individual geographical locations. A code of ethics for members supports the conduct
of professional organisations and its members in practice. More specically, Valentine & Fleischman
(2002, p. 301) point out in their comprehensive literature review, ethical codes:

are used by rms and professional bodies to create moralistic paradigms,

can decrease unethical conduct and increase or inspire ethical conduct and performance,

can prompt the commitment of individuals within its jurisdiction, and increase their belief in the
ethical conduct of the rm (or profession),

demonstrate that the company, (or profession) values moral business conduct,

demonstrate social responsibility.

An interesting contrast is that ethical codes may also offer opportunities for creative accounting.
Professionals solved problems based on their individual values, not through the corporate credos,
company loyalty, or by their religious reection. Codes of conduct or hot lines to assist members
actually provided little assistance (Atkinson, 2002, p. 217).
Research
7
was conducted for IFAC to assist in the development professional values and ethics and
their incorporation into education and training of accounting professionals (IFAC, 2006). The report
recommended (a) the development of professional values, ethics and attitudes, and (b) their ongoing
maintenance.
8
IFAC statement on values for professional accountants reads as follows
9
:
7
The research was conducted by a group of Australian researchers led by Professor Philomena Leung of Deakin University,
Victoria.
8
Refer IFAC values and codes of conduct, and (Loft et al., 2006) for a comprehensive discussion on role IFAC in a global
community.
9
There role is viewed as threefold:
518 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
reect the guiding principles that IFAC as an organisation through its Council, Board, boards and
committees, other volunteers and staff should seek and be seen to exemplify:

Integrity

Expertise

Transparency
IFACalso seeks to reinforce professional accountants adherence to these values, whichare reected
in the IFAC Code of Ethics for Professional Accountants. In holding true to its mission and values, IFAC
strives to operate with efciency and effectiveness and aims to achieve clarity and simplicity in its
guidance and communications (IFAC, 2008a, 2008b, 2008c).
The IFAC statement of values provides information about what the profession wants to be, wants
to do, but does not really emphasise what the profession stands for? The information is expressed in
terms of howthe body will go about achieving its mission. This is also expressed as a doing approach,
with the use of the terms, continually strengthening the worldwide accountancy profession, and
contributing to the development of strong international economies. The IFAC (2007) Policy Posi-
tion: Regulation of the Accountancy Profession also includes their mission statement which is also
based on their intended actions rather than their stance. Perhaps one step prior to these requirements
would include a statement based on the organisations commitment to trust; their position on applied
moral commitments, and their approach to the intrinsic relationship to stakeholders (Berman et al.,
1999). Since the commencement of this paper IFAC in their Exposure Draft (July, 2008) on Ethics for
Professional Accountants, have set out practical requirements for individual accountants in terms of
integrity, objectivity, professional care and diligence, condentiality, and professional behaviour (IFAC,
2007, 2008a, 2008b, 2008c), which can add support for individual members.
Also on a practical basis Petrick and Scherer (2003) provided action steps that individual profes-
sional members can undertake to increase the moral resources One of these also focused on education
to teach sustainable process and developmental integrity in terms of a management asset, and also
accountability for judgment integrity (Petrick and Scherer, 2003, p. 42). This approach adds a systems
approach to moral integrity.
Arguably a code of ethics is directed primarily towards the relationship of the professional body
to external parties, and the educational aspect is for internal members honesty. That is, we attempt
to teach the difference between right and wrong and if a member is deemed greedy and dishonest,
then the ethical codes can provide a professional reprimand. Hence, the profession is seen by external
parties to be self-regulatory. At this point the discussion pauses to reect on these aspects.
Ethics education (McPhail, 2001; Low et al., 2006; Boyce, 2008) has been debated and researched,
with the suggestion that accounting educators can do more to support the ethical underpinnings of
graduates to act meaningfully during the course of the professional careers (Boyce, 2008; McPhail,
2001). The problem that requires confrontation is what is meaningful for members (Boyce, 2008),
and for dealing with external parties in a globalised environment, for example culture, environmental
and social issues, and monetary rewards? Criticisms of ethics education include:
The universities are responding withanincreasedemphasis onethical training for decisionmaking.
For the most part, however, they ignore the teaching of values. For moral or ethical education to
have meaning, there must be an agreement on the values that are considered right (Brackner, 1992
in Smith and Smith, 2003, p. 2).
Central to their argument these authors suggest that the basic personal values of honesty, self-
control, concern for others, and respect for authority be passed down through the generations.
Leung and Cooper (2005) consider that ethics education at the tertiary level can inuence the
to establish and promote adherence to high quality international standards, to facilitate collaboration and cooperation
with member bodies, and to serve as spokesperson for the international profession on relevant public policy issue (IFAC,
2008a, 2008b, 2008c).
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 519
moral reasoning of the individual, although Low et al. (2006) found that while students perceived
ethics education to assist in a dilemma, they were unsure of its role in a workplace environment.
Guidance in accounting education, knowledge, principles, standard and the associated culture is pro-
mulgated by the accounting profession, which Evans (2003) suggests has not been totally effective
to date.
2.4. Moral perspective
Etzioni (1998, cited in Stead and Stead, 1994, p. 24) suggests that that the economic satisfaction of
the individual can only exist within the moral dimensions of a meaningful community structure and
stresses the term unity in such a structure.
That economic entities become members of a moral community through the activity of giving an
account is of considerable signicance to the concern to hold these entities accountable to a wider
scope of good than their own. This is because it is the community of moral agents within which
the entity is situated that denes whose needs count and whose goods are sought (Shearer, 2002,
p. 546).
As the preparers of these accounts the moral relationship of the accounting profession is one
of accountability by means of its craft, systems and tools by which it forms the fundamentals of
information content and its language of communication.
Alternatively, and from a members perspective, while legal and indeed ethical codes underpin the
professional perspective, moral interpretations of these codes take one step further and are supported
by individuals background, education and correct knowledge, culture, etc. (Twesigye, 2001). Moral
concepts that underpin the judgements are integrated within ethical decision-making.
Sometimes these social and political dimensions get overlooked in discussions of ethics. It is easy
for us to think above ethics only fromthe inside, as private individuals looking out at the world and
asking about our rights and responsibilities. In doing this, we can easily overlook how much our
choices, attitudes, and values are inuenced and limited by what is outside. Human beings do not
only create and shape their social institutions, but these institutions in turn also create and shape
human attitudes, beliefs, and values. Ethics must also challenge us to look at our social institutions
and ask what are they doing to us and for us? Are our social institutions just? (Des Jardins, 2001,
p.32).
Ideally, the agenda of the individual accountant, and that of the manager adopting a strategic stance
for prot generation, is not prompted by a hidden agenda of undesirable self-interest (Haste, 1998).
Furthermore, the existence of core values is recognised in the literature as crucial to professionalism
(Smith and Smith, 2003).
Therefore, as a professional body, and adopting a functionalist, institutional rather than an
individual approach (Hewitt et al., 2007) the pragmatic issue for debate is what is the moral obli-
gation/responsibility of the profession? The importance of answering this question will be implicit in
the individual choices in terms of the interpretation of principles, and the deliberate and knowingly
choice between right and wrong. Low et al. (2006) when citing Soros (1997, 1998) considered that
individuals are increasingly relying on money as the focus of value, and
what is happening in our society today is that our sense of right and wrong is endangered by our
preoccupation with success being measured by money. It therefore appears that it is this money
culture that entwines people in to the vices of a capitalist society (Low et al., 2006, p. 11).
The above points to the justication for the emphasis on the moral obligations of the profession
rather than the individual. It has two main aspects, (a) an external focus (trustworthiness, honesty),
and (b) an internal focus. A moral agent is one who gives equal consideration to the interests of all
affected by some action (ONeill et al., 2008, p. 97). This means that the individual members will
undertake their normal accounting duties according to the professional social values and standards
which are formulated in accordance with social or community values.
520 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
For the individual member the resolving of ethical and moral dilemmas will depend for example
on whether John Stuart Mills utilitarianism or Immanuel Kants Deontology (Post, 2003, pp. 2526)
is adopted.
The two main schools of ethics can be found in modernity. The deontological position is based
on moral obligations and asserts the existence of universal morality which obeys the principles of
rights, duties, and justice (e.g. Brandt, 1959; Kant, 1964; Nozick, 1974; Rawls, 1971). The teleological
position which embraces consequentialism, egoism, act-and rule-utilitarianism, views morality as
acts that produce the best net consequences (cf. Bayles, 1968; Smart and Williams, 1973). What is
good is no longer lifes natural purpose; instead, it is dened by absolute rules of moral duties or
utility (Singer, 2000, p. 188).
Under total utilitarian ethics the community benets the outcome is considered good for the
majority, rather than for the particular individual. This good is measurable albeit usually only in
monetary terms, which is inuenced by the aptitude of the accounting profession. A self-regulated
sustainability community which exerts moral standards on its members is based on the professional
unit, rather than the self-individual member or client (Stead and Stead, 1991), whose values may be
based greed and self interest. The judgment of such individual members could bring the professional
accounting community into disrepute, and undo the credibility of other esteemed members, who
have avoided self-interest, bribery and corruption, and voluntarily donated their time and money to
stakeholder interests.
3. An historical perspective: immoral values and fallen communities
3.1. A point of commencement
Where might we commence to support a reason for change, and the basis upon which to do so?
Accountability and values are not isolated to the 21st century or to the accounting profession. Society
demands and values also continue to change, and the accounting profession continues to adapt to
them. Values (or lack of them), were also part of earlier eras. Institutions and individuals were also
encouraged themto live and work by their values, to support their long-termsurvival. For some greed
and self-interest (utilitarianism) prevailed and the community or civilisation fell as a result.
Humans are designed to co-exist in harmony, love, and justice to live together, work together
a harmonious community (Genesis 1:2627; Twesigye, 2001). A useful point of commencement for
dialogue on the morals and values of any community reverts to religion. Religion is an expression
of human existence, as is considered the basis of personal and community moral values relating to
honesty and trustworthiness. Understanding the different religious faiths represented globally can
lead to a consensus of values that are held throughout the world. It is anticipated that such a search
would also reveal a common need for a just and compassionate society (Ali and Gibbs, 1998; Raar,
2006). Moral judgment is based on norms which make others abide by them, although it cannot be
empirically veried (VanDeVeer and Pierce, 1998) and its outcomes rmly measured. Singer (2000, p.
189) uses justice in relation to morality in terms of the
. . .state of harmonious balance withineachindividual andwiththe social community. . . the notion
of justice embraces both due process and due outcome.
However, it is important to highlight that the intention herein does not imply the Judeo Christian
viewpoint is the singular source of insight, and the author acknowledges that while religion is a frame
of orientation and an object of devotion, it reects internal spiritual values for different communities
of people.
10
Lewis (2001) highlights that the Muslim religion (also an Abrahamic based religion) has
as a systemof business ethics that is, one that requires individuals to treat each other fairly, honestly
and equitably.
10
The interested reader can nd a more detailed discussion on business ethics and religious though in Ali and Gibbs (1998).
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 521
Resources, including economic resources and property are held in trust to God and the individual
is ultimately accountable to him for the stewardship of those resources.
Whether or not we trust God depends on our untestable faith; whether or not we trust human
beings and can be trusted ourselves depends on our testable beliefs. Trust takes us to the realm of
postmodern ethics, which demands from us responsibility for our choices and accountability for
all of the consequences of our actions, including the unintended but predictable ones (Strassberg,
2005, p. 321).
Although not enamoured of the Christian religion, Marx values in terms of economic self-interest,
were not dissimilar to that of Jesus who cared for the lower, poorer sector of society, believing that
the rich accumulated wealth through ill-gotten gains at the expense of the poor. As the rich sector
of society were predominantly of the Christian religion, Marx also rejected material goals and self-
interest, and the associated measurement of wealth as evidence of Gods favour (Luke 18.25) that is
prot at the expense of community values.
Jesus also challenged the teachings of the scribes and Pharisees, in terms of their authorship that
is, their interpretation of the gospels, the laws and political perspectives. These were not designed to
benet the communityandthere was nosocial contract toassist the poor andweak. The Bible (Leviticus
25:39:41 and 43) also supported a change in values, albeit in attitude on behalf of the employer, and
indeed the ethical duties on employers. This is highlighted by Cohen and Friedman, (2002, p. 960)
who state:
When both management and labor are primarily concerned with their own self-interest, it is likely
that both will be delayed in reaching the optimal solution that maximizes social welfare. However,
when both subscribe to a mutually held higher value system, they can more quickly reach a mutu-
ally maximizing payoff. The philosophy of the Bible is an example of such a system (Cohen and
Friedman, 2002, p 960).
3.2. Drastic consequences for communities/civilisations that allow immoral behaviour to continue
At this point a discussion on the consequences owing fromthe failure to support moral standards
may be apt. In the longer termthe accounting profession requires a foundation of sustainable integrity
to support its reputation.
The foundation for the following dialogue is to consider historical perspectives (including reli-
gious) that immoral behaviour is not rewarded, and to highlight the changes over time in communities
and their associated values. Accounting is not isolated from these civilisations and ongoing changes.
Firms are continuing to fail due to immoral acts of management and staff: professional bodies are not
completely immune.
The accounting profession records, reports and communicates nancial information on which con-
cerned stakeholders base their decision choices. Even in the biblical era, it was expected that accurate
records were kept in accordance with the commandment of Moses (Holy Bible: Exodus 38-21-31,
2002). Furthermore, even though Moses kept the records of the precious metals contributed to con-
struct the Tabernacle, he employed an external party to ensure these records were above suspicion
(Gellis et al., 2002) a stewardship role.
In the past not only have rms fallen through immoral behaviour of management or staff; entire
civilisations have fallen through the immoral acts of the population. Commencing with Noah, a brief
overview of historical changes is outlined below.
Noah was challenged to adopt the values and immorality of his era. He chose not to do so, and was
rewarded by God. The story of Noahs Ark stems from his faithfulness to Gods values in a world
where monetary goals and corruption prevailed (Twesigye, 2001, p. 214).
Noahs story is that of faithfulness to Gods values in a world where monetary goals and corrup-
tion prevailed. Even if Biblical stories are not meant to be taken literally as historical evidence, they
challenge the social life and thinking when they are considered (Twesigye, 2001).
522 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
. . .Noahs story is not history, but an appropriate prophetic, environmentalist, moral and religious
story about the world now. It states that the global human moral evil has corresponding destructive
global consequences on both humanity and the environment. Human moral evil and wickedness
during the days of Noah were so great that it polluted all Gods creation. . .(Twesigye, 2001, p. 214).
It is admirably pointed out by Twesigye (2001) we cannot go and look for the historical Ark and
. . . for anyone, especially an educated or thinking adult, to understand and interpret the Genesis
prophetic moral warning as most effectively communicated in a parabolic moral story of Noahs
ood, is like taking literally the fairy tale of Snow White and the Seven Dwarfs or Jesus parable of
the Good Samaritan (Twesigye, 2001, p. 210).
Revertingbacktothemoralityof thediscourse, eveninthis earlyperiodof history, power andcontrol
and indeed monetary greed were at the forefront of commercial decisions and the fall of civilisations
and empires. The commercial aspect was increased as more cities were established by the Romans, for
example, Cologne, Paris, London, which provided administration and trade basis.
Invaded by a Germanic tribe (West Goths) the Roman Empire fell. Augustine argued in The City of
God(Doost, 2003; VanVliet, 1997) that the fall of the Romanempire was causedby vile passions, power
andgreed, andit was devoidof moral behaviour. This was followedbytheMiddleAges, theReformation
period 12 and 13th Centuries which were the forerunners of the Reformist and Renaissance in 1416th
Centuries (Van Vliet, 1997).
During the Middle Ages, the 9thCentury Feudalism, where a servant was boundtohis master, began
to fade, and had the king or emperor at the top hierarchical level, supported by barons, counts dukes
etc. Power resided with to hierarchy of society. This changed with feudalism, which decreased the
power of the government and king, and increased that of the nobility. During that period commercial
cities grew, and emperors such as Otto the Great (912973 AD) appointed religious leaders, bishops,
to own the land. As these leaders did not marry, there was no generational transfer of the land, and
power remained with the emperor or king (Van Vliet, 1997 pp. 1112).
The advent of the Crusades inthe 12thCentury allowedEurope to extendtrade, andwiththe change
and new cities came a change in the political or power base. As mentioned above, the nobility and
religious clergy held the power, however as result of the Crusades the freeing of serfs and bondsmen
eroded the Feudal system and the power of the nobility. Under the Feudal system land was used as
capital to settle debts, and now the increasing number of cities and need for money introduced the
lending of money by wealth merchants, for interest (Van Vliet, 1997). The transfer of money for the
return of interest introduced the moral dilemma of determining the interest rate.
Calvin (15091564) questioned the morals of the money lenders and the interest rates they charged
to poor farmers who were without the economic means to support the necessary payments. Calvin
was concerned with economy, particularly with anything related to preventing individuals for work-
ing, and emphasised the need for an employer to adopt Christian norms and values and extend love
to employees, and the master should be in the situation of the employee and hence treat him/her
accordingly (Van Vliet, 1997).
In 1938 England legalized the charging of interest by Christians. In order to support their
lending decisions, bankers required an independent statement of the rms position, thus pro-
fessional public accountant emerged (MacNeal, 1962) to add equity and fair dealing to the
contract.
This account also includes the subject of Marx and communism, centering on the issues of capi-
talism a system which Marx perceived allowed the rich and powerful to oppress and deceive the
working class labourers. As the rich and ruling class was predominantly of the Christian faith, Marx
considered both to be hypocritical. On one hand they espoused the teachings of socioeconomic jus-
tice and love of thy neighbour while on the other hand concern was focused on greed, with material
items the objective rather thangoodness, peace andharmony (Twesigye, 2001). Hence, Marx perceived
Christianity was merely a vehicle for the richto act inanunethical andinconsiderate manner. However,
the culture, moral values, expectations, philosophy, education, world-view, and theology applicable
to these previous eras differ fromthe present-day communities, and as Twesigye (2001) suggests, are
no longer valid.
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 523
Societies are tragically vulnerable when the men and women who compose them lack character.
A nation or a culture cannot endure for long unless it is undergirded by common values such as
valor, public-spiritedness, respect for others and for the law; it cannot stand unless it is populated
by people who will act on motives superior to their own immediate interests (Colson, 1989, p. 67).
If the accounting professionis to transfer fromone generationof members to the next, the basic val-
ues of honesty, self-control, concern for others, and respect for authority, then the dilemmas outlined
above are pertinent.
4. New arrangements
Giventhemovetowards aglobal profession, theaccountingprofessionis keepingpacewiththereal-
ity of the technology and the business community. Moreover, alongside the globalisationof accounting
standards, the culture and accounting language for many countries has, or will change. What was a
local culture, including business and professional fundamentals, and community values is nowglobal.
Nevertheless, the accounting profession does not operate in isolation fromlocal communities, and the
commonalities of shared values is a criteria, insomuch as
. . .cultivating the image of a global citizen and that of a culturally sensitive person in a borderless
world are viewed as essential for establishing effective business relationships. Likewise, in todays
world people are become more aware of the shared and commonfactors of life and are more willing
than ever to minimize the importance of the sources or divisions and conicts (Ali and Gibbs, 1998,
p. 1577).
One of the issues of conict within the community albeit and a local and global level, is the focus
on monetary rewards and prot, to the detriment of the environment and society (Tinker and Gray,
2003). It is suggested that the origin of our environmental and indeed other social malfunctions is that
humans are privileged (Des Jardins, 2001) and are basically obsessed with monetary gains and with
short-term success (Mitchell and Scott, 1990, p. 26).
Humans are Gods representatives and created in Gods image (Genesis, 1.28, Holy Bible) and that
Gods purpose, intervention and activity are carried out through his/her responsible and moral agents
human beings. God also gave us the freedom to choose, voluntarily. Individuals can choose their
preference for material goods, and they can also choose not to degrade the sanctity of the human
community (Twesigye, 2001).
What individuals voluntarily choose and do with their freedom and lives has great consequences
on themselves, other people and the world. For example environmental protection, or alternatively
destruction, nancial gain or loss, is linked to our choices of actions (Twesigye, 2001, p. 190). Enron,
WorldCom and other corporate failures resulted from choices of actions in terms of their nancial
funding and associated decisions, whichappeared to be based onmaterialism, and self-interest. Unfor-
tunately, with a decrease in societal values it is difcult for the individual to maintain a high ethical
standard (Smith and Smith, 2003; Friedman, 2003).
5. Community values
5.1. Widening of professional horizons
The introduction of international accounting standards in a number of countries launches the glob-
alisation of the accounting profession across cultural and religious jurisdictions. The international
accounting standards which are being adopted by an increasing number of countries are based on
principles and supported by a conceptual framework. Notwithstanding, the profession is judged by
the language it communicates, its symbols, the meaning of reports, and also its intentions when
preparing the principles, standards and ethical codes under which it operates.
Sunder (2005) suggests the shift fromsocial norms to rules of behaviour is a wrong path. However,
it does appear that the accounting profession has decided that the whole profession is of more value
than the individual cultures, that is the sumof its parts, as social norms and culture are specic to the
524 J. Raar / Critical Perspectives on Accounting 20 (2009) 509527
society they service (Sunder, 2005, p. 384). However, as highlighted in Reiter (1997) below, the focus
on norms and culture are important to society.
There may be serious implications for the future of the profession of public accounting if customer
service replaces public service in the professional ideal. The aspect of public service interest is
important to the argument that public accounting is a profession (Chandler and Edwards, 1996;
Lee, 1995; Preston et al., 1995) in Reiter (1997).
If the moral future of the profession is to have roots in its past, i.e. stewardship, honesty and trust-
worthiness, and if future professionals are required to respect the present as forming part of their
past (Reiter, 1997) then the individuals within the accounting profession will appreciate the context of
human values. Although the following quotation was directed to environmental issues, it is extended
to the accounting profession in terms of the accounting culture and associated behaviour.
If we do not pay need to the context in which future generations formand question our values, they
will indeed live in a different world than we do; we will have contributed nothing to their culture
(Norton, 1998, p. 447).
5.2. Mutual trust
Accountability to a wide range of stakeholder groups will focus on a consensus of what the rm
ought to do (Jones and Wicks, 1999; Wicks et al., 1994). Jones (1995) argues that rms can create and
sustain their stakeholder relationships if these are based on mutual trust and co-operation.
A high ethical standard of the individual is underpinned by the culture of a profession. This com-
prises of a system of core value norms, which are based on societal values, and which in turn prompt
and reinforce the behaviour of members a community or milieu approach (Haste, 1998; Raar, 2006).
Moral behavior and evaluations are both learned and expressed in complex social interactions,
and indeed a capacity for moral judgment is meaningless outside a sociocultural context. We need
to understand how our moral sensibility is shaped through enculturation and how its application
functions in relationships between individuals and among communities (Looy, 2004, p. 221).
Furthermore, what individuals voluntarily choose and do with their freedom and lives has great
consequences on themselves, other people and the world (Twesigye, 2001, p. 190). Through a reec-
tion on honesty, trust and oughtness, there appears to be a path in which to transfer the intrinsic
value of self to those of the community good (Raar, 2006). As Viederman (1997) points out, unfortu-
nately multinational corporations have little commitment to community or place, or indeed to future
generations. The accounting professions commitment to trust and honesty can lead the way?
In determining a set of values, the question arises what is morally right or morally wrong (Kneese
and Schulze, 1985, p. 197). Kants moral and ethical imperative was that one does ones duty, and
not what will provide the most monetary reward. In Kants view the moral act should be based on
intention rather than the result, i.e. duty and justice, instead of greed and fear of punishment (Kant,
1988; Twesigye, 2001, p. 453).
6. Limitations
This paper incorporates aneclectic overviewof anumber of issues that individually, warrantedmore
detailed critical analysis. Specically, the overlap of a number of issues reduces the myopic aspects of
contracting theory in terms the role of efciency and effectiveness in promoting self-interest. This did
not enhance opportunities for expanding the aspect of trust and values.
A wider focus in terms of a community perspective may be necessary to support ethical education
if the relationship between the accounting profession and the larger business community are to be
enriched (Naess, 1998). However, further discussion on emotional responses, the relationship of cul-
ture, and individual religious beliefs in relation to the globalisation of the profession, is outside the
scope of this paper. Furthermore, the interdisciplinary eclectic concepts highlighted in this paper are
subject to imperfections, and criticisms. The paper does not provide a solution, it does however offer
J. Raar / Critical Perspectives on Accounting 20 (2009) 509527 525
insights into the struggle of the profession to maintain respect and integrity for future generations of
accounting its professionals.
11
7. Conclusion
As a result of the widening geographical use of international accounting standards, it is feasible to
raise questions as to what the institution of accounting represents. It will be on these answers that
its professional credibility and integrity is judged (a) in its new global sphere, and (b) into the next
generation. As a consequence of the transition of international standards into a diversity of business
cultures, any evolution of professional principles and accounting standards in terms of symbols, lan-
guage, can be underpinned by, and reective of, a newconsensus of core moral and ethical values. Any
change based on shared values, provides an opportunity to remove any unexamined epistemological
or ontological assumptions (Twesigye, 2001, p. 414) inherent within the global framework and stan-
dards. Using the argument by Jones and Wicks (1999) stated values can enhance the credibility of the
accounting profession.
The content of this paper has mentioned matters and reasons for the accounting profession to
consider its particular stance on issues that now legitimize global business activities. Future research
opportunities may examine in detail the moral concepts for the accounting profession associated with
its duties, rights, utilitarianism, contractarianism and individual ethics.
The intention of the paper was to raise future questions for research, such as:

Ff language is viewed as the symbolic behaviour of people, then as the professional communicator
on corporate performance what do we want our behaviour to portray?

Does the realmof the accounting professions jurisdictionremainwithinthe boundaries of monetary

symbols and nancial reporting?

Can the moral standing, i.e. trustworthiness and credibility of the profession and the moral decision-
making of members be based on a consensus of international cultures and religions values?
These questions, the discourse in this paper, and the reconciliation of its concepts are now open
to both constructive criticism and constructive initiatives to promote the development of integrity in
the accounting community. What does do we consider our new international profession should stand
for?
Acknowledgements
A minor part of this paper was presented at the Fourth Asian Pacic Interdisciplinary Research
in Accounting Conference (APIRA) 2004, and the helpful comments of the referees, participants, and
also Allan Purnell have been appreciated. The brief comments by Emeritus Professor Richard Wilson
and Professor Rob Gray are also gratefully acknowledged. In addition the detailed comments of three
anonymous reviewers are appreciated, as are the comments of participants at ECAS, Glasgow, 2007
and Professor Bob Pearce, discussant for the CPA Conference, New York, 2008.
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