THE ETHICS CHALLENGE: EXPLORING THE IMPACT OF JUSTICE, CONSEQUENCES, AND CONSENSUS ON ACCOUNTANTS IN NIGERIA

Abstract

The issue of unethical accounting practices has drawn considerable global attention owing to the rampant cases of money laundering, tax evasion, corporate fraud, and embezzlement of public funds. While the accounting profession plays a vital role in the global economy, questionable accounting practices have put the profession under severe criticism. Despite ethical codes and standards, accountants are accused of engaging in questionable practices for their personal benefits, leading to losses of about $2.6 trillion annually worldwide. While considerable research on the ethical decision-making of accountants is limited to developed countries, there is a gap in empirical evidence in developing countries with high corruption and weak governments. This study addresses this gap by investigating how two dimensions of Jones' moral intensity construct (magnitude of consequences and social consensus) influence the ethical decision-making process of professional accountants in Nigeria. Using survey data, the study advances knowledge on the influences of accountants' perceptions of the Nigerian justice system and their moral intensity of ethical issues on ethical recognition, ethical judgment, and ethical intention. The study adds value to accounting educators and professional accounting bodies in training current and prospective professional accountants, considering Nigeria's paradoxical position as Africa's largest economy and one of the world's most corrupt nations. The insights generated could guide the moral development of professional accountants in Nigeria and other developing countries with high corruption profiles and weak governments