Abstract
This article examines perceptions of tax partners and non-partner tax practitioners regarding their CPA firms’ ethical environment, as well as experiences with ethical dilemmas. Prior research emphasizes the importance of executive leadership in creating an ethical climate (e.g., Weaver et al., Acad Manage Rev 42(1):41–57, 1999; Trevino et al., Hum Relat 56(1):5–37, 2003; Schminke et al., Organ Dyn 36(2):171–186, 2007). Thus, it is important to consider whether firm partners and other employees have congruent perceptions and experiences. Based on the responses of 144 tax practitioners employed at CPA firms, the results show that tax partners rate the ethical environment of their firms as stronger than non-partner tax practitioners, particularly among those who describe a self-identified ethical dilemma. Tax partners also report having encountered more of the common examples of researcher-provided ethical dilemmas than non-partner tax practitioners, although non-partners perceive that certain ethical dilemmas occur at a higher rate than partners do. Overall, this study provides evidence of a disconnect between tax partners and non-partner tax practitioners with respect to perceptions of organizational ethics. Suggestions for potential remedies are offered.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Alexander, R. M., A. D. Blay, and B. K. Hurtt. 2006. An Examination of Convergent Validity Between In-lab and Out-of-lab Internet-Based Experimental Accounting Research. Behavioral Research in Accounting 18: 207-217.
American Institute of Certified Public Accountants (AICPA). 2000. Statements on Standards for Tax Services (1-8). New York, NY: AICPA.
Arnold, V., J. Lampe, and S. Sutton. 1999. Understanding the factors underlying ethical organizations: enabling continuous ethical improvement. The Journal of Applied Business Research. 15(3): 1-20.
Arnold, V., J. Lampe, and S. Sutton. 2000. Creating an ethically driven organization: a model for fostering an epidemic of ethical intensity. Advances in Accounting Behavioral Research. 3: 201-224.
Barnett, T. and C. Vaicys. 2000. The moderating effect of individuals’ perceptions of ethical work climate on ethical judgments and behavioral intentions. Journal of Business Ethics. 27: 351-362.
Bobek, D. and R. Radtke. 2007. An experiential investigation of tax practitioners’ ethical environments. Journal of the American Taxation Association. 29(2): 63-84.
Booth, P. and A. Schulz. 2004. The impact of an ethical environment on managers’ project evaluation judgments under agency problem conditions. Accounting, Organizations and Society. 29: 473-488.
Burns, J., and P. Kiecker. 1995. Tax practitioner ethics: An empirical investigation of organizational consequences. The Journal of the American Taxation Association 17: 20–49.
Cohen, J., G. Krishnamoorthy, and A. Wright. 2008. Form versus substance: The implications for auditing practice and research of alternative perspectives on corporate governance. Auditing: A Journal of Practice & Theory. 27(2): 181-198.
Cohen, J. and Trompeter, G. 1998. An examination of factors influencing audit practice development. Contemporary Accounting Research. 15: 481-504.
Cruz, C., W. Shafer, and J. Strawser. 2000. A multidimensional analysis of tax practitioners’ ethical judgments. Journal of Business Ethics 24: 223–244.
D’Aquila, J. M. 2001. Financial accountants’ perceptions of management’s ethical standards. Journal of Business Ethics. 31(3): 233-244.
Finn, D. W., L. B. Chonko and S. D. Hunt: 1988. Ethical problems in public accounting: The view from the top. Journal of Business Ethics. 7(8): 605-615.
Ford, R. C. and W. D. Richardson. 1994. Ethical decision making: A review of the empirical literature. Journal of Business Ethics. 13(3): 205-221.
Forte, A. 2004. Antecedents of managers’ moral reasoning. Journal of Business Ethics. 51(4): 315-347.
Gibbins, M., and S. Qu. 2005. Eliciting experts’ context knowledge with theory-based experiential questionnaires. Behavioral Research in Accounting. 17: 71-88.
Harrison, W. and C. Horngren. 2008. Financial Accounting. New Jersey: Pearson Education Inc.
KPMG. 2000. Knowledge Management Research Report 2000. New York, NY: KPMG Management Consulting.
Osiel, M.: 1984, ‹The Politics of Professional Ethics’, Social Policy Summer, 43–48
Ponemon, L. 1996. Practicing Public Accounting in an Unlicensed, Unregulated Environment. The CPA Journal. 66, 30-34
Ponemon, L. and A. Felo. 1996. Key features of an effective ethics training program. Management Accounting. 78(4): 66-67.
Posner, B. Z. and W. H. Schmidt. 1987. Ethics in American companies: A managerial perspective. Journal of Business Ethics. 6(5): 383-391.
Posner, B. Z. and W. H. Schmidt. 1992. Values and the American Manager: An update updated. California Management Review. 34(Spring): 80-94.
Preston, A., D. Cooper, D. Scarbrough and R. Chilton. 1995. Changes in the code of ethics of the U.S. accounting profession, 1917 and 1988: The continual quest for legitimation. Accounting, Organizations and Society, 20: 507-546.
Randall, D. M. and M. F. Fernandes. 1991. The social desirability response bias in ethics research. Journal of Business Ethics. 10(11): 805-817.
Rest, J. 1994. Background: Theory and research. In Moral Development in the Professions, edited by J. Rest and D. Narvaez. Hillsdale, NJ: Lawrence Erlbaum Associates.
Satava, D.: 2005, ‹Public Accounting: Should you Work for a National or Local Firm?’, New Accountant Magazine Issue 711, 6–133
Schminke, M., M. Ambrose, and R. Cropanzano. 2000. The effect of organizational structure on perceptions of procedural fairness. Journal of Applied Psychology. 85(2): 294-304.
Schminke, M., A. Arnaud, and M. Kuenzi. 2007. The power of ethical work climates. Organizational Dynamics. 36(2): 171-186.
Schneider, B. 1975. Organizational climates: An essay. Personnel Psychology. 28: 447-479.
Soutar, J., M. M. McNeil, and C. Molster. 1994. The impact of work environment on ethical decision making: Some Australian evidence. Journal of Business Ethics. 13(5): 327-339.
Trevino, L. K., M. Brown, and L. P. Hartman. 2003. A qualitative investigation of perceived executive ethical leadership: Perceptions from inside and outside the executive suite. Human Relations 56(1): 5-37.
Trevino, L. K., Butterfield, K. D., and McCabe, D. L. 1998. The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly. 8(3): 447-476.
Trevino, L. K., G. R. Weaver, and M. Brown. 2008. It’s lovely at the top: Comparing senior managers’ and employees’ perceptions of organizational ethics. Business Ethics Quarterly 18(2): 233-252.
Vera-Muñoz, S., J. Ho, and C. Chow. 2006. Enhancing knowledge sharing in public accounting firms. Accounting Horizons, 20(2): 133-155.
Victor, B. and J. B. Cullen. 1988. The organizational bases of ethical work climates. Administrative Science Quarterly. 33(1): 101-125.
Weaver, G. R., L. K. Trevino, and P. L. Cochran. 1999. Corporate ethics programs as control systems: Influences of executive commitment and environmental factors. Academy of Management Review. 42(1): 41-57.
Yetmar, S. and R. Cooper. 1998. Ethical issues facing CPA tax practitioners. CPA Journal. 68(10):28-34.
Yetmar, S. and K. Eastman. 2000. Tax practitioners’ ethical sensitivity: A model and empirical examination. Journal of Business Ethics 26: 271–288.
Zohar, D. and G. Luria. 2004. Climate as a socio-cognitive construction of supervisory safety practices: Scripts as proxy of behavior patterns. Journal of Applied Psychology, 89(2): 322-334.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Bobek, D.D., Hageman, A.M. & Radtke, R.R. The Ethical Environment of Tax Professionals: Partner and Non-Partner Perceptions and Experiences. J Bus Ethics 92, 637–654 (2010). https://doi.org/10.1007/s10551-009-0178-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-009-0178-x