Ethics education in accounting : an overview of teaching methods

Ethics Education in Accounting:

An overview of teaching methods

Bachelor Thesis

Accountancy & Control

University of Amsterdam

Faculty of Economics and Business

Final version

Name: Roxelane Victoria Homan Student number: 10440410

Supervisor: C. Clune Date: 28/06/2015 Year: 2014-2015

Statement of Originality

This document is written by student Roxelane Homan who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document are original and that no

sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of

Content

2.2 Ethical behaviour for accountants 8

3. Ethics education 9

3.1 The importance of teaching ethics 9

3.2 The objective of teaching ethics 10

4. Teaching methods 12 4.1 Methods 12 4.1.1 Acquired skills 15 4.1.2 Active or passive 18 4.1.3 Group or individual 20 4.2 Assessment of ethics 20 4.2.1 Grades as measurement 20

4.2.2 Measurement without grading performance 21

5. Empirical studies 23

6. Discussion 33

Abstract

This study examines the current role of ethics education in accounting. Accounting curricula are mainly focussed on the technical aspects of accounting, while the subject is essentially moral. Students are the foundation of the accounting future, so they need to be aware of the ethical dilemmas they may face. Through a literature review it can be concluded that the skills students acquire through ethics education, align with teaching objectives. It is found that while it is not possible to fundamentally change students’ ethical behaviour, ethics education can make it likely that such a change will occur. As such, ethics education has an important role in accounting curricula. This overview of available methods and the skills they provide to students contributes to future accounting ethics education.

Samenvatting

In dit onderzoek is gekeken naar de rol die ethiek heeft in accountancy onderwijs.

Accountantskantoren staan continu onder druk vanwege schandalen. Eén van de factoren die hieraan bijdraagt, is de beperking van het curriculum tijdens de opleiding (Amernic & Craig, 2004). Studenten vormen de basis van de toekomstige accountantswereld en moeten zich daarom bewust zijn van de ethische problemen die zich kunnen voordoen.

Door middel van een literatuur onderzoek wordt een antwoord gezocht op de hoofdvraag: wat is de rol van onderwijs in ethiek in huidige accountancy curricula? De volgende sub vragen dienen als hulpmiddel voor het beantwoorden hiervan:

1. Wat is het doel van onderwijs in ethiek?

2. Wat zijn de vaardigheden die studenten leren door onderwijsmethodes in ethiek? 3. Blijkt uit empirisch onderzoek een positief effect van lesmethodes ethiek?

Lesmethodes ethiek hebben niet één specifiek doel. Onderwijs moet het morele verantwoordelijkheidsgevoel van studenten vergroten, ze bewust maken van ethische dilemma’s en vervolgens zorgen dat studenten ook de vaardigheden bezitten om met deze dilemma’s om te gaan. Door middel van lesmethodes ethiek leren studenten de geschiedenis van accountancy ethiek en de onzekerheden die met het vakgebied samenhangen begrijpen.

Er zijn veel onderwijsmethodes om ethisch gedrag aan te leren. De vaardigheden die studenten verkrijgen door middel van deze lesmethodes sluiten aan bij de doelen van

onderwijs in ethiek. In hoorcolleges leren studenten de basis theorieën en de geschiedenis van accounting ethiek. Bijvoorbeeld het bestuderen van casussen kan de ethische perceptie

vergroten en het omgaan met ethische dilemma’s versterken. Daarnaast kunnen de methodes ervoor zorgen dat studenten een gevoel van morele verantwoordelijkheid ontwikkelen.

Empirisch onderzoek wijst uit dat studenten zich door de lesmethodes bewuster worden van ethische dilemma’s en meer ethische antwoorden geven. Hoewel dit niet betekent dat ze zich ook ethischer zullen gedragen.

Concluderend kan gezegd worden dat onderwijs in ethiek een belangrijke rol moet spelen in het curriculum van accountancy programma’s. Hoewel het niet mogelijk is om het ethische gedrag van studenten fundamenteel te veranderen, maakt onderwijs over ethiek het waarschijnlijker dat deze verandering plaats vindt.

Chapter 1

Introduction

Accounting firms are constantly under pressure due to scandals; think of Enron, WorldCom, the Lehman Brothers and Bernie Madoff. The Enron scandal had such an impact that it caused the Big Five to become the Big Four. One of the suggested contributing factors to these scandals and collapses is the inadequacy of university curricula in accounting education (Amernic & Craig, 2004). Thus, accountants must be aware of ethical dilemmas and how they can be dealt with. Therefore, an effective method of teaching ethics in accounting could reduce the chances of having accountants act unethically.

A decent amount of literature on the teaching of ethics in accounting can be found, although it reaches back only a few decades (Bok, 1976; Loeb, 1988). Not all authors share the same opinion, however for the most part it is agreed that ethics should be taught in business schools. There is not much agreement on what method should be used to teach ethics to students, but most authors advocate an active method (Nelson & Wittmer, 2001; Loeb, 2015). The interaction of learning styles and teaching methodologies is discussed by O’Leary and Stewart (2013). They wonder if either an active or passive method is better for teaching ethics. An active method rouses the student from the role of passive listener to that of active respondent (Hawtrey, 2007). Passive learning involves the subject area expert telling it as it is, without the need for discussion or debate (O’Leary & Stewart, 2013).

Research of O’Leary and Pangemanan (2007) raised the question whether ethics is better taught in groups or individually. In most cases these terms align. Active methods are always done in a group, involving discussion and debate, while passive methods require students to – individually – listen to an expert. The question can then be asked, are results of teaching ethics measured better in groups or individually? Ethics is a delicate subject, so possibly not many students are comfortable discussing this in groups.

There are still many questions on the subject of ethics education in accounting and more elaborate research on this subject is required if ethics is to have a solid base in accounting curricula, which is necessary to improve the image of accounting and reduce misconceptions. This paper will focus on the objectives of teaching ethics in accounting, examine the different teaching methods discussed in literature, and discuss results of empirical studies. Little literature research has been done to compare teaching methods of ethics in accounting. The literature reviews that have been done do not compare the many different methods available,

but tackle only one method or a few methods. This research hopes to shed light on the

importance of ethics education and on the relation between objectives of teaching accounting ethics and the many different methods available.

The paper will be based on the research question: what is the current role of ethical education in the accounting curriculum? To find the answer to this question, three sub questions will be answered. First: what is the objective of teaching ethics? To develop and use an educational method, it is imperative to know what the goal of that method is. Second: what ethical skills do students acquire from following different educational methods? This question is important because it can give an indication whether or not students become more ethical. The third sub question is:do empirical results indicate positive effect of teaching methods on ethical behaviour of accounting students? Statistical evidence is valuable to support the theories of previous chapters. All of these questions are answered by doing a review of the literature available.

This thesis will be structured as follows: Chapter 2 of this paper will define ethics and what ethics is for accountants specifically. This background information is necessary to help outline what is actually being taught. In Chapter 3 the importance of ethics education is discussed, along with the first sub question. In Chapter 4 the different teaching methods of ethics are described and the second sub question is answered. The chapter also examines ways of assessing ethics. The fifth chapter contains results of empirical studies on ethics and answers the third sub question. The paper ends with a concluding discussion and suggestions for future research.

Chapter 2

Ethics

2.1 What is ethics?

Before going into the details of teaching methods of ethics, first it is important to define ethics. Some authors wonder if something can be considered ethical if it is legal

(Langenderfer & Rockness, 1989). According to them, the law provides the minimum requirement for deciding whether or not something is ethical. O’Leary and Pangemanan (2007) define an ethical decision as a decision that is both legal and morally acceptable to the larger community. According to Mintz (1995), ethics refers to standards of conduct that indicate how one ought to behave based on specific values and moral duties and virtues arising from principles about right and wrong.

Lewis and Unerman (1999) discuss two opposite types of ethics: ethical relativism and ethical absolutism. Ethical relativism implies any behaviour can be considered morally right if the people carrying it out regard it as such. According to relativists, ethical absolutism implies that one can judge other people against one’s own moral values and impose one’s moral code on others. Trying to impose your own moral values on another society implies that those of the other society are wrong. As it cannot objectively be known which moral values are right and which are wrong, this could be considered offensive, and thus moral values have to be seen as relative. If it is not possible to objectively know whether moral values are right or wrong and as these values differ between societies, extreme relativists insist that all ethical values must be valid. Ethical absolutism suggests that many societies adopt moral values that are wrong. “Absolutists cannot seem to accept that others might experience the world in a very different, but equally real and valid, way” (Lewis & Unerman, 1999, p. 530). According to ethical absolutists, ethical relativism means that any behaviour is morally acceptable and society cannot condemn anything as immoral, thus moral values have to be absolute.

Lewis and Unerman (1999) reject ethical absolutism, but they also do not accept the extreme relativist position. They feel extreme positions are too simplistic and argue for the method of universal prescriptivism that identifies two types of behaviour. Behaviour which cannot be considered morally right in any society (an absolutist view) and behaviour which can be regarded as morally right by one society while being regarded as morally wrong by another society (a relativist view).

Opinions on what is right and wrong differ in various societies, but this does not necessarily mean that these terms have no objective meaning. Meta-ethical absolutists argue that one or both societies are mistaken in their understanding of the objective and correct meaning of right and wrong. Meta-ethical subjectivists assert that even if certain behaviour is universally accepted to be right or wrong, that agreement might result from intersubjective agreement rather than objectivity, thus moral truth is nothing other than internal cultural consensus (Lewis & Unerman, 1999). This implies there are no universally applied ethical rules and therefore each individual may live by their own moral code. Another argument against the objectivity of moral values is the argument from queerness, which entails that if ethical terms such as right and wrong had objective meanings, it would require a sensory perception to come to know these meanings different to the sensory perception required to come to know other objective phenomena. Ethical realists do believe ethical values can be objective. They believe knowledge of these objective moral facts increases through dialogue and moral reflections. Ethical intuitionists also believe in the objectivity of ethical values, but they believe we have knowledge of these moral facts through intuition.

If it is impossible to identify absolute, objective meanings of right and wrong, the ethical absolutist position is invalid and ethics must be somewhat relative. Supporters of meta-ethical relativism favour arguments such as rightness is conditional on individual or cultural beliefs and therefore the concepts of right and wrong are meaningless outside of specific contexts in which they arise.

No matter what is seen as the definition of ethics, as Micheal (2006) says “To be ethical, our intention to do the ethical thing must be followed by our really doing it” (p. 490).

2.2 Ethical behaviour for accountants.

The purpose of ethics in accounting and business is to direct business men and women to abide by a code of conduct which facilitates public confidence in their products and services (Smith, 2003). Accountants need to understand both the relevant ethical standards of

accounting as well as the mechanisms for enforcing these standards. Furthermore, accountants need to have an understanding of how to apply these standards in practical situations (Loeb, 1988). The position of accountants is naturally one instilled with ethical responsibilities (Waddock, 2005). In any situation, moral choices must be made. Students should become aware that situations will arise when one party may be harmed by the accounting choices made (Powers & Vogel, 1980 as cited in Loeb, 1988, p. 320). As professionals, they will be faced with the task of avoiding or resolving these undesirable situations.

Chapter 3

Ethics education

3.1 The importance of teaching ethics

Accounting provides information useful in decision making by shareholders and managers, but the concept of accountability has reduced to a technical principal-agent relationship. This has deprived accounting of its ethical substance, even though most accounting problems are essentially moral (Williams, 2002 as cited in Chabrak & Craig, 2013, p. 101; Waddock, 2005). According to Chabrak and Craig (2013) accounting should reconquer its ethical substance and re-engage with moral order.

Students are an organisation’s foundation for ethical structure, as they are the source of new entrants to the business world (D’Aquila, Bean, & Procario-Foley, 2004). When they join the accounting profession, individuals should understand its ethical standards and the mechanisms existing to enforce those standards. Therefore it is not unreasonable to expect graduates entering the field of accounting to be familiar with the composition and

enforcement mechanisms of the various codes of ethics to which accountants may be required to adhere (Loeb, 1988). Accounting graduates will continuously be confronted with a variety of ethical dilemmas, unless corporate values and behaviour change. Some of these dilemmas can be harmful because they fundamentally affect the organisation’s existence and impact on society with destructive consequences (Low, Davey, & Hooper, 2008).

According to Chabrak and Craig (2013) the social role of accounting should be revealed. Instead of its supposed accidental and natural appearance, it should be reinterpreted as the intended nature of the set arbitrary culture and as contributing to maintain a restricted understanding of accountability.

We have to move beyond the debate whether ethics can be taught. Ethics can be taught, although students may choose not to learn it. This is the same as for any other subject such as management accounting or finance; students can choose not to learn those either.

Furthermore, ethics is taught by not teaching it. When discussions on ethics are left out, it sends the message that ethics considerations are not relevant (Mintz, 2007, as cited in Massey & Van Hise, 2009, p. 486). In O’Leary and Mohamad (2008) two reasons for the difficulty in teaching ethics are given. Firstly, ethics becomes important only when there is another outbreak of accounting scandals. Universities have to respond to these scandals in their courses and as such, ethics teaching is poorly planned with mediocre materials and teachers who are ill-prepared (Daly, 1997, as cited in O’Leary and Mohamad, 2008, p. 6). Because

ethics is such an integral part of accounting, it should not be discussed only when ethical dilemmas arise (Waddock, 2005). Second, ethics teaching methodologies are often by case studies. These only assist students in recognising ethical dilemmas in a short-term and specified way, and react to them as instructed. However, rules are not necessarily an obstacle to acting ethical, as an individual decides whether or not to do the right thing without them, and legal is not always ethical (Michael, 2006; O’Leary & Mohamad, 2008).

3.2 The objective of teaching ethics

If teachings ethics is perceived as important, then what should be the goal of teaching ethics? Should students actually become more ethical, or is the goal just to teach them about ethical principles and ethical dilemmas they may face?

According to Sims (2002), objectives are what are measured and measurable by given exams and evaluation procedures. Ideally, objectives should be operationalisations of end-goals, and contribute to achieving the end-goal promised by a university.

In Chapter 2 of this paper (page 6) ethics was linked to moral values and moral acceptability. Ethics education should awaken moral sensibility (Melé, 2005). Not only should it awaken moral sensibility, but also develop a sense of moral obligation or

responsibility (Loeb, 1988). This is also why in his research O’Leary (2009) asks the question if teaching ethics has any positive effect on students’ moral and ethical development.

According to Earley and Kelly (2004) it is important that ethics education increases cognitive moral reasoning ability.

The difficulty in conveying the importance of ethics is that students do not seem to be interested and have no work experience to internalise ethical codes, which is why it is critical that students are aware of ethical issues (Dzuranin, Shortridge, & Smith, 2013; Haywood & Wygal, 2009). While it is useful to address ethical codes, it is also important to bring the subject to life in the classroom because students have yet to live it in the workplace. This is why Haywood and Wygal (2009) want to enhance student awareness through their game (see Chapter 4.1). Individuals will behave immorally when they are unaware of ethical dilemmas (Bok, 1976). Therefore, it is important that students learn to recognise accounting issues with ethical implications (Loeb, 1988). The primary objective of the course of Massey and Van Hise (2009) is to increase students’ ethical perception. If students are only taught to recognize them, a lot of ethical problems are not that difficult (Bok, 1976). Providing students an

opportunity to discuss ethical situations encountered by professionals will increase their ability to identify ethical dilemmas (Huss & Patterson, 1993).

Not only should students be aware of ethical dilemmas, they should also have the ability to deal with these dilemmas and make sound moral judgments (Loeb, 1988; Melé, 2005). Ethics education courses in accounting should help students develop a mental image of what action is required when faced with an ethical conflict (Mintz, 2006). Dzuranin et al. (2013)

developed their program especially to strengthen student decision making abilities regarding ethical issues. A sense of moral obligation and the skills to deal with ethical conflict can be developed within the classroom setting. By subjecting their ideas to the careful scrutiny of fellow classmates, students will develop more objective ideas as to morally appropriate behaviour. The moral obligation and ethical dilemma-solving skills honed in a classroom setting can then be applied to situations encountered in personal and professional worlds (Huss & Patterson, 1993).

However, not all ethical dilemmas have a single solution; sometimes a dilemma can be solved in multiple ways. Students should be able to understand and deal with the

uncertainties of the accounting profession (Loeb, 1988). If an ethical dilemma does have multiple solutions (because of the individuals involved or the context of the situation), students should recognise this and incorporate the uncertainties into the possible solutions to the ethical dilemma.

Knowing the history of accounting ethics is also important (Loeb, 1988), because knowing the past will help students understand the present, as well as assist in speculations about the future (Chabrak & Craig, 2013).

Previous mentioned objectives aim at increasing students’ knowledge, whether it is regarding morals, ethical conflicts or ethical decision making. McPhail (2001) feels that the goal of ethics education should be to humanise accounting students; so to not only increase their knowledge, but to actually change their behaviour. According to Loeb (1988) the

objective of ethics education is just to set the stage for a change in behaviour. Students can be taught ethical and moral principles, but society should not hold professors responsible for actual ethical behaviour after students have graduated (Amernic & Craig, 2004).

Summarising this chapter, students are the source of new entrants to the business world. It is important to teach them about ethics because most accounting problems seem to be essentially moral. Ethics education has more than one objective. It should increase moral responsibility. It should also make students become aware of ethical dilemmas and once they are, have the skills required to deal with these dilemmas. Through ethics education, students should learn the history of accounting ethics and understand that the profession comes with uncertainties. These objectives combined can make a change in ethical behaviour more likely.

Chapter 4

Teaching methods

4.1 Methods

This paragraph discusses the various educational methods discussed in literature. An

overview of the methods is given in table 4.1. A classic teaching method is the use of lectures (Loeb & Ostas, 2000; Earley & Kelly, 2004; O’Leary & Mohamad, 2008; O’Leary 2009; O’Leary & Stewart, 2013). During a lecture students can be introduced to business ethics and its impact on the practice of accounting. There is an introduction to the code of ethics and ethical theories. Examples of unethical accounting practice are given and students are usually introduced to the six-step model for solving ethical dilemmas:

1. “Obtain the relevant facts.

2. Identify the ethical issues from the facts.

3. Determine all stakeholders and how they are affected. 4. Identify the alternatives available.

5. Identify the consequences of each alternative.

6. Decide the appropriate action” (O’Leary & Mohamad, 2008, p. 511).

Lectures can also be given by someone other than the regular teacher. These guest lectures can be given by ethicists or by accounting practitioners (Loeb, 1988; Loeb & Ostas, 2000).

Often, lectures are followed by tutorials for which students are set textbook reading and homework questions on ethics (O’Leary & Mohamad 2008; O’Leary 2009; O’Leary & Stewart, 2013).

A common method is the use of cases and a follow-up discussion in class. The details of the method vary slightly. Earley and Kelly (2004) assigned four cases (specifically dealing with moral/ethical dilemmas) as homework. The cases were then analysed and discussed during class. Haywood and Wygal (2009) created their own mini-cases from articles that highlight key ethical issues and use them as the basis for classroom discussion.

Massey and Van Hise (2009) use discussion of cases in the classroom as well as case analysis through an online ethics simulation. During the simulation, students were assigned to a company as CEO, CFO, vice president of human resources, vice president of marketing, or vice president of operations and research. The students had to study five ethical dilemmas that someone in such role would likely encounter. All of the decisions faced by the students considered a common theme such as conflict of interest. Once part of the simulation was

finished (after one case), an in-class debriefing session was held. The company (group of five students) explained their dilemma to the rest of the class. If they reached a consensus they shared it with the class, if not, they shared their individual opinions. Either way a class discussion followed (Massey & Van Hise, 2009). The decisions students make in the simulation also affect the financial success of their company. To know that doing the right thing can be costly increases ethical sensitivity (Coyne, Massey & Thibodeau, 2005).

Because Massey and Van Hise (2009) felt that reflection is important, students were provided with additional reflective exercises. These exercises required students to include a brief reflection of their solutions to each of the cases they solved during the simulation. O’Leary (2009) also had students work through an interactive computer based ethics-training case study. Students used the computer to, individually, solve an ethical dilemma using the six-step model they learned during the lecture. At each stage the student was given a list of factors to take into account. Working through the program, students automatically used the entire ethical decision-making model before they were directed towards a suitable action as stated in the accountants’ code of professional conduct.

Haywood and Wygal (2009) created a teaching method in game form. This game is based on a board game called ‘Connect Four’. It is won when a team obtains four cells in a row. IMA’s Statement of Ethical Professional Practice is used as the basis for discussion. With mini cases students received, they had to identify and defend an IMA principle or standard and argue how this case either upholds or violates it. “The IMA’s framework includes principles of honesty, fairness, objectivity and responsibility and standards of competence, confidentiality, integrity and credibility” (Haywood & Wygal, 2009, p. 74). Students earned a space on the game board when they presented a well-founded reason. Both teams had to present arguments to win spaces, while at the same time preventing the other team to gain four cells in a row.

Cases are not only used as the basis for classroom discussion, but can also be incorporated in role plays. Mintz (2006) used roleplaying exercises based on mini cases throughout his course. The goal is to have students reflect on the experience, re-evaluate their existing understanding, and consider whether or not to they should adjust their frame of reference. An important part of the learning process is for the observing students to make critical comments. When they finished the role play, participating students could first provide feedback on the experience so their comments were not tainted by the students who did not participate (Mintz, 2006). During role play sessions, students could be asked to develop a code of ethics for an organization (Sims, 2002).

Group presentations are also used as a teaching method. Students have to do a written assignment to answer two ethical dilemmas, using the six-step model they learned in their lecture, and then in groups of three present this to their fellow classmates (O’Leary & Mohamad, 2008; O’Leary, 2009). Loeb & Ostas (2000) require students to give a one hour presentation that introduces the subject, identifies the problem and suggests alternative solutions.

A method used by Earley and Kelly (2004) was having video presentations in class. After watching the video, students were given homework questions and a discussion took place in class.

With reflection logs, student observations form the basis to assess learning by comparing the later observations to the initial comments (Mintz, 2006). Massey and Van Hise (2009) required reflection of their students and like most skills reflection can best be acquired by repeated practice (Mintz, 2006). In their course, Massey and Van Hise (2009) required students to ponder each semi-weekly class and write about it in a short paper which they had to submit within 48 hours after class, when memories were fresh. Mintz (2006) used minute papers to have students write brief reflections expressing their view about class discussions.

Students can also be given an ethics project to take home. Earley and Kelly (2004) required students to analyse a case in terms of an ethical framework. This ethical framework is similar to the six steps for solving an ethical dilemma mentioned earlier in this chapter.

Massey and Van Hise (2009) introduced an interview assignment. They use this method because “an individual with an ethics-related experience can bring first-hand real-life

discussions about the topic to the classroom” (Loeb & Ostas, 2000, p. 231). The assignment is also useful because there is value in both good examples and horror stories (Massey & Van Hise, 2009). In the interview assignment, students were required to interview someone with at least five years of full-time work experience who gives a description of an experience that needed a substantial judgment call. After the interview, students had to write a five- to eight-page paper containing five sections. First an introduction of the person interviewed, then a detailed description of the primary ethical issue relayed by the interviewee. This is followed by a critical evaluation of the ethical issue at hand and the way the interviewee handled it, all the while referring to ethical theories. The fourth section of the paper reflects on the project. To provide an additional opportunity for reflection, student reflections in the interview paper were prepared consistently with the reflections utilized throughout the class. The fifth and final section of the paper includes an appendix describing the mechanics of the interview and

a summary. Finally, students had to briefly present their paper to other class members during the final exam period (Massey & Van Hise, 2009).

It is also possible to have students lead classes; though students have to share their plan for the class with the instructor beforehand (Massey & Van Hise, 2009).

Table 4.1 Ethics educational methods in literature.

Author Method

Loeb and Ostas (2000); Earley and Kelly (2004); O’Leary and Mohamad (2008); O’Leary (2009); O’Leary and Stewart, (2013)

Lecture

Loeb (1988); Loeb and Ostas (2000) Guest lecture O’Leary and Mohamad (2008); O’Leary (2009);

O’Leary and Stewart, (2013)

Tutorial

Earley and Kelly (2004); Haywood and Wygal (2009); Massey and Van Hise (2009)

Case discussion

Massey and Van Hise (2009); O’Leary (2009) Online ethics simulation/interactive computer study

Loeb and Ostas (2000); Haywood and Wygal (2009) Game form

Mintz (2006); Sims (2002) Role play

Loeb and Ostas (2000); O’Leary and Mohamad (2008); O’Leary (2009); O’Leary and Stewart, (2013)

Group presentations

Loeb and Ostas (2000); Earley and Kelly (2004) Video presentation Mintz (2006); Massey and Van Hise (2009) Reflection logs

Mintz (2006) Minute paper

Earley and Kelly (2004) Take home project

Massey and Van Hise (2009) Interview assignment

Massey and Van Hise (2009) Student led classes

4.1.1 Acquired skills

Inviting a guest lecturer to the classroom can add expert knowledge to a subject (Loeb & Ostas, 2000). Guest lectures by ethicists can help students relate their education to moral issues; recognise the ethical implications of accounting; develop a sense of moral obligation

and develop the abilities needed to deal with ethical conflicts or dilemmas. Guest lectures by accounting practitioners can help them learn to deal with uncertainties of the accounting profession. Both guest lectures by ethicists and accountants can aid students in understanding the history of accounting ethics (Loeb, 1988).

Business cases can be an educational tool to actively engage students in analysing ethical problems and identifying creative resolutions (Sims, 2002). This is in alignment with the objectives of increasing ethical perception and strengthening the ability to deal with ethical dilemmas. Cases require critical thinking about issues that accountants face in public practice (Earley & Kelly, 2004). Massey and Van Hise (2009) include case analysis in their course to reinforce decision-making skills and to simulate ‘practice reality’ as they call it. This

enhances student awareness of ethical dilemmas and strengthens their decision making abilities. They include the analysis because there is widespread support for using case analysis when teaching ethics in accounting classes. Because each ethical dilemma needs a particular philosophical approach to ethical decision-making, students are required to draw upon ethical principles to justify their decisions (Armstrong, 1993). This helps students increase their cognitive moral reasoning abilities. Through the textbook homework assignments about the cases, used by Earley and Kelly (2004), students are able to

demonstrate their understanding of the rules. Class discussions about cases give students the chance to demonstrate critical thinking and achieve the learning objective of dealing with uncertainties of the accounting profession (Earley & Kelly, 2004). According to Mintz

(2006), analysing cases supports exploratory discussion. Students’ analytical skills are refined by evaluating alternative courses of action in real-world situations. Discussion is used as the basic method for students to demonstrate how they combine reflective thinking and moral reasoning to solve conflict situations. The purpose is not to get it right, but to produce something meaningful (Ngeow & Kong as cited in Mintz, 2006, p. 103). Directed discussion helps determine if students can identify, verbalise and organise their thoughts, and react to other students’ comments in class. The reflective part of the discussion can evaluate what they learned from the process. Asking students to write about what they learned helps them to become more thoughtful, reflective and analytic (Mintz, 2006). This supports the objective of making sound, moral judgments. Using smaller scenarios mitigates the need to spend large amounts of time on a single issue and allows a teacher to use new examples each term (Haywood & Wygal, 2009).

For the game invented by Haywood and Wygal (2009) students have to think reflectively and creatively to arrive at reasonable arguments to win spaces on the game board, which

increases cognitive moral reasoning.

Case discussion and roleplaying are valuable according to Loeb (1988). They can help reach nearly all of the objectives mentioned in paragraph 3.2. A common purpose of cases is stimulating discussion, especially if students are asked to participate in roleplaying exercises based on specific cases (Baum, 1980, as cited in Loeb, 1988, p. 324). Baum (1980, as cited in Loeb, 1988, p. 324) indicates that due to the lack of familiarity students have with actual practice, they might have difficulty with the situations described in the case studies on ethics, especially at the beginning of the course. Mai-Dalton (1987) advocates the use of cases, noting that students will have had practice in thinking along ethical lines when they face actual ethical dilemmas, a statement in line with the objective of increasing ethical

perception. Class discussions based on role plays and case analysis enable students to visibly demonstrate learning by reflecting on the facts and interacting with other students in the discussions; as well as in student debates on the issues (Mintz, 2006). Roleplaying enables students to experience another’s feelings, thoughts and behaviour and assists their

understanding of how their actions affect the behaviour of others (Mintz, 2006), which may help them develop a sense of moral responsibility. Roleplaying adds a dimension to case analysis and discussion that promotes empathy, something that awakens students’ moral sensibility. They reach a certain understanding and through role play discussions they are able to show their competency in reflective thinking, ethical reasoning, and subject knowledge. Students have to apply both ethical reasoning and reflective thought to understand various points of view in a conflict situation (Mintz, 2006). Roleplaying also provides students with the opportunity to participate with a high level of personal involvement (Sims, 2002).

With the one minute paper method, students receive detailed feedback on what and how well they are learning and they are encouraged to be actively engaged in the class process. They can easily indicate the points that were unclear to them and receive instructional feedback. They benefit from this frequent feedback and as such the learning process is supported (Mintz, 2006). Mintz (2006) concluded that all the methods he used (case

discussion, role plays, reflection logs, minute papers) have value as vehicles for students to demonstrate reflective thinking. Discussion and roleplaying techniques provide a basis to determine whether students can integrate reflective thinking and virtue-based reasoning. Minute papers and reflection logs aid noticing and making sense and meaning of thoughts

and ideas, helpful for recognizing and dealing with ethical dilemmas. His preference goes out to roleplaying because it enables the use of a scripted role play. With it, facts can be provided beforehand while others can be revealed during the role play. It offers the possibility to observe the beginning stages of transformation of the learning process. During discussions it is possible to change facts at that moment and observe how students think on their feet. The essence of reflective learning is to make sense of unclear situations by drawing on a

framework to better comprehend it, and then coming to a new understanding (Mintz, 2006). A section of the interview assignment by Massey and Van Hise (2009) required the students to use ethical principles to justify their decisions and strengthen their critical thinking/reasoning skills. The assignment had students use all the elements they learned in their course.

Allowing students to lead classes emphasises their active role and appeals to them (Massey & Van Hise, 2009).

4.1.2 Active or passive

“Active learners are described as participatory learners, who like to research topics first, either alone or in a group, come up with answers from their own experience and then reflect on the instructor’s viewpoint and reaction thereto. Passive learners like to be instructed, given the answers by their instructor, the accepted ‘expert’ on the topic area, and then reflect upon this” (O’Leary & Stewart, 2013, p. 228).

At the end of their degree, students have often evolved from passive recipients to active learners. Because this is common knowledge, university programmes possess more active teaching methods towards the end of a degree. Loeb (2015) says students may enjoy teaching methods more if they are active. It is usually in the final year of their accounting degree that students are introduced to ethics. Research of O’Leary and Stewart (2013) indicates that students have a preference for passive learning. Because the topic is usually new to them in their final year, they revert to a preference for passive learning such as they had when they started their degree (O’Leary & Stewart, 2013). Traditional teaching methods are generally instructor focused. Students are passive receivers of the information given by their professor. The instructor has a high degree of control over the method, timing and delivery of the course content (Nelson & Wittmer, 2001). Lectures are a traditional passive teaching method.

Students are only required to listen to their professor (O’Leary & Stewart, 2013). According to Nelson and Wittmer (2001) the lecture method lacks an essential attribute: active

realism and durability to the learning experience of students (Loeb, 2015). Tutorials can be both active and passive. During their research, O’Leary and Stewart (2013) split their sample group in half to give both active and passive tutorials. For the tutorials they used the

interactive computer-based ethics training case study explained in chapter 4.1. During the active tutorials, students were given no support. They had one week to go through the programme and finish it themselves. They were allowed to work together during the week, but had to hand in individual assignments with their recommendation to the ethical dilemma. Students assigned to the passive tutorials were supported throughout the entire computer programme. They completed the assignment individually, with their tutor taking them through each step. As they were guided through each step it seems valid to refer to this as a passive learning technique (O’Leary & Stewart, 2013).

O’Leary and Stewart (2013) also used an entirely active method. Students had to form groups, debate about the issue at hand, and then come up with an answer. Discussion contrasts with lecture. According to Dean and Beggs (2006) passive methods, such as a lecture, have no reflection aspect and thus there is no connection between students and the material. Their learning experience is enhanced through the use of an active method (Loeb, 2015). Asking students to discuss their opinions of ethical dilemmas is an active learning style which requires them to connect to themselves and is therefore more likely to be an effective means of ethics instruction (Cagle, Glasgo, & Holmes, 2008). Active learning is appropriate for enhancing student’s ethical perception (Coyne et al., 2005).

An overview of the active and passive methods from chapter 4.1 can be found in table 4.2. For more details about the opinions of active and passive learners, I refer to chapter 5.

Table 4.2 Passive and active teaching methods.

Passive Active

Lecture Tutorial

Guest lecture Case discussion

Tutorial Online ethics simulation/interactive computer study

Video presentation Game form

Reflection logs Role play

Minute paper Group presentations

Take home project Student led classes Interview assignment

4.1.3 Group or individual

O’Leary and Pangemanan (2007) have analysed the effect of group, as opposed to individual, decision-making on ethical decisions. Their research shows that individuals are more likely to take extreme actions, while groups have the tendency to reach a consensus and take more neutral action. During the simulation of Massey and Van Hise (2009), students had to work in groups and if they reached a consensus, share it with the class. While many of the methods described in paragraph 4.1 involve working in groups, group work may not be effective in teaching ethics. During their research, O’Leary and Pangemanan (2007) did not test the students before and after the use of teaching methods. Rather they just looked at the difference between group and individual ethical decisions.

4.2 Assessment of ethics

It was noted in Chapter 2 that right and wrong have no objective meaning. If this is the case, how does one assess students’ ethical values?

4.2.1 Grades as measurement

Assessment of outcomes is often achieved by measuring performance on examinations. This is a fine choice for assessment of learning objectives if the course was a highly structured unit on statistics or accounting. However, in the case of ethics, when learning objectives are such as awakening moral sensibility, recognizing ethical dilemmas and make sound moral

judgments, assessment is more complex than simply measuring the ability to master factual knowledge (Sims, 2002). It is important to consider whether the method of evaluation fits the objectives of the supposed outcome (Sims, 2002). Even though evaluating student work on ethics is subjective, developing a set of criteria that can be steadily and uniformly applied to all students provides a fair basis for assessment (Mintz, 2006).

Methods described in paragraph 4.1 are often assessed by using grades to assess ethics. Tutorial work can be collected for marking. Because this can happen in any given week, tutorial attendance was mandatory (O’Leary & Stewart, 2013). In the method used by Massey and Van Hise (2009) part of the students’ grade for their presentation in class was based upon how well they involved the class. This resulted in students using various active approaches to involve their classmates: small groups, games, opinion polls or debates. Earley and Kelly (2004) tested students on both cases and textbook content. Minute papers were graded and detailed comments were attached for the students to receive at the next class meeting (Mintz, 2006). Loeb and Ostas (2000) graded the group presentation and class participation, and a

final exam was given. During role plays, students were evaluated based on their ability to express themselves clearly and concisely, their skill of critical thinking and ethical reasoning, as well as demonstrated learning of course material (Mintz, 2006). The key element in

assessment of case analysis is whether students demonstrate sufficient knowledge of ethics and whether they can relate current and past discussions (Mintz, 2006).

4.2.2 Measurement without grading performance

Cagle et al. (2008) used a survey of ethical attitudes to measure the level of ethics. The survey was not anonymous, as names were used to match beginning and ending attitudes. It was mentioned that their teacher would not learn of their individual responses.

O’Leary used five ethical vignettes for measuring ethics. “Ethical vignettes provide significant advantages over other research instruments when investigating ethical principles and ethical behaviour” (Cavanaugh & Fritzche, 1985 as cited in O’Leary & Pangemanan, 2007, p. 218). Unlike for example the Defining Issues Test (DIT), a survey with vignettes is not a certified method for measuring ethical attitudes. However, it allows accounting ethical problems to be placed in a realistic context for these particular participants (students), and directs the focus to their particular area of interest (O’Leary & Stewart, 2013). Students had to answer based on what they would do, not on what a person should do. Involving the student’s own actions created a more personal level of involvement. Doing this made the participants think more clearly about the personal impact of ethical issues, which aligns with the objective of enhancing student awareness.

The following vignettes were used:

“Vignette 1 – describes a situation where an assistant accountant working in a chemical company is offered a once-off payment by the Chief Accountant to keep silent regarding improper accounting practices.

Vignette 2 – depicts a scenario where an accounting clerk working in a confectionary company witnesses a respected senior colleague stealing a box of chocolates.

Vignette 3 – describes a situation in which the assistant accountant is being presented with the opportunity to falsify his/her resume application for a job.

Vignette 4 – illustrates a scenario in which a trainee accountant is being pressured to inflate travel expenses for reimbursement.

Vignette 5 – depicts a situation whereby a trainee accountant is being pressured to make necessary adjustments to a client’s accounts, in order for a bank loan to be approved”

(O’Leary & Pangemanan, 2007, p.219; O’Leary & Mohamad, 2008, p. 11; O’Leary, 2009, p. 510; O’Leary & Stewart, 2013, p. 230).

For each vignette, students had a choice from three alternatives. The first response in all scenarios always represented an unethical one, the second answer represented a neutral response and the third option was an ethical response (O’Leary & Pangemanan, 2007). In later research, O’Leary used the same ethical vignettes, but with different outcomes. Students now had a choice from five alternatives, representing responses that were highly unethical, unethical, neutral, ethical and highly ethical. The highly ethical answer meant to become a whistle-blower (O’Leary & Mohamad, 2008; O’Leary, 2009; O’Leary & Stewart, 2013).

In research of O’Leary and Pangemanan (2007), the focus was on the difference in ethical decision making between groups and individuals. They had some students fill in the survey with the vignettes in groups of three or four, while other students had to fill in the survey individually. Groups were assigned at random. The students were told that there were no right or wrong answers and their responses were anonymous. No rewards were given for participation. In later research of O’Leary, all students had to fill in the surveys individually. Because students were told that the survey played no part in assessment of the course and answers were neither right nor wrong, it was hoped to increase the authenticity of responses (O’Leary & Mohamad, 2008; O’Leary, 2009).

This chapter gave an overview of the accounting ethics teaching methods discussed in literature. An overview of the methods can be found in table 4.1. Paragraph 4.1.1 looked at the skills students acquired through these teaching methods. These skills align with the teaching objectives of chapter three. Through lectures, students learn basic theories and learn to understand the history of accounting ethics. Case studies can increase ethical perception and strengthen students’ abilities to deal with ethical dilemmas. Role plays can enhance student awareness of ethical dilemmas and develop a feeling of moral responsibility.

Most authors say that the use of an active teaching method such as case discussion or role play is more effective, while the study of O’Leary and Stewart (2013) indicates that students often prefer passive learning when it comes to ethics. Finally this chapter looked at the assessment of ethics. If ethics is subjective, is it possible to grade students for their answers or should a different way of measuring ethics be applied?

Chapter 5

Empirical studies

Some authors have undertaken empirical research to test ethics.

Earley and Kelly (2004) used a pre-test – treatment – post-test design. First ethics was tested, then multiple methods as described in the previous chapter were used, finally ethics was tested again. For the pre-test, they used an Accounting Ethical Dilemma Instrument (AEDI) consisting of four cases. Students were given four cases along with a dozen factors to consider; they then had to rank the four most important factors. Students did the pre-test during their first auditing class. Ethical issues were incorporated into the 14 week course in four ways as described in paragraph 4.1. The methods were: lecture, case discussion, video presentation and take home project. On the final day of their auditing class, students were given the post-test. The same method was used as in measuring the pre-test, AEDI.

Anonymous identifying information was provided. Earley and Kelly (2004) also specified groups in pre-Enron and post-Enron. Methods were quite similar, but the post-Enron group completed a three question short form DIT instrument in addition to the AEDI. There was more emphasis on the Enron scandal during their course.

Five hypotheses were researched. DIT scores indicate general moral reasoning ability, while AEDI measures context specific moral reasoning.

“H1: Undergraduate students enrolled in an auditing course where ethics educational

interventions are applied will exhibit increases in accounting context specific moral reason from the beginning to the end of the course” (Earley & Kelly, 2004, p. 55). This hypothesis had significant support as AEDI mean increased by 5.78.

“H2: Undergraduate students enrolled in an auditing course where ethics educational

interventions are applied will not exhibit an increase in general (context-free) moral

reasoning from the beginning to the end of the course” (Earley & Kelly, 2004, p. 55). H2 also

gained support, as the DIT score mean increase of 3.3 was insignificant.

“H3: There will be a greater difference between accounting context-specific moral reasoning

scored and general moral reasoning scores at the beginning of an undergraduate auditing course than at the end of the course” (Earley & Kelly, 2004, p. 56). This hypothesis compares DIT and AEDI scores. There was no support for H3.

“H4: Accounting context-specific moral reasoning (both at the beginning and at the end of an

“pre-Enron” semester” (Earley & Kelly, 2004, p. 56). This hypothesis says that context specific moral reasoning will always be higher for post-Enron students. There is no support for H4.

“H5: The increase in accounting context-specific moral reasoning from the beginning to the

end of an undergraduate auditing course will be greater in a post-Enron semester than in a pre-Enron semester” (Earley & Kelly, 2004, p. 56). This hypothesis more specifically looks at the increase in context-specific moral reasoning, but also gains no support.

From this research it can be concluded that context specific moral reasoning abilities increase when using ethics education, but an event such as the Enron scandal does not increase this effect. It cannot be concluded that general moral reasoning abilities increase after students have been subjected to ethics educational methods.

Haywood and Wygal (2009) used statistics to provide evidence that their game helps increase student understanding of what is expected regarding ethics and professionalism, as well as increase understanding of IMA’s Statement of Ethical Professional Practice. They used a questionnaire containing five questions. Question one asked students to give their general opinion, while questions two till five asked students to indicate their agreement from -5 to +5. Question two considered whether ethical awareness had increased. Questions three and five were focused on understanding theory. Questions two, three and five had a statistically significant mean of 3.25 or higher, which indicates that students’ awareness and understanding of theory and rules increased through the game. Question four assessed effectiveness of the game as a teaching method compared to other methods. This question had a significant mean of 3.61, indicating students found the game more effective than other educational methods.

Source: Haywood and Wygal, 2009, p. 81.

Massey and Van Hise (2009) used an Ethics Position Questionnaire (EPQ) to measure ethics. An EPQ measures relativism and idealism. Increased ethical perception is associated with a decrease in the relativism measure of the EPQ and an increase in the idealism measure of the EPQ. Massey and Van Hise found that during their course, relativism scores decreased (going from an average of 5.05 to 4.70), while idealism scores increased (from an average of 6.29 to 6.94). However, the sample was very small and as such the changes were not statistically significant; thus from their research it cannot be concluded that ethical perception increased.

Source: Massey & Van Hise, 2009, p. 497.

Cagle et al. (2008) researched the effect of studying ethical vignettes. They had two hypotheses:

“H1: Discussion of ethics vignettes will positively affect students’ ethical perceptions, making

the students less willing to tolerate unethical or questionable behaviour.

H2: Discussion of ethics vignettes will positively affect students’ perceptions of business

ethics” (Cagle et al., 2008, p. 78).

A mean value of 1.0 indicates high agreement with the statement while a mean value of 6.0 indicates high disagreement. Students were given ten statements, and had to indicate what they thought the ethical response would be. Nine statements received higher mean responses after ethical vignettes had been discussed. The average mean of the ten statements also increased. None of these results were statistically significant however, indicating no support for H1; thus it cannot be said that student’s ethical perceptions were positively affected by

discussion of ethical vignettes. This is the same result as Massey and Van Hise’s, though they used a different way of measuring ethical perception. For the second hypothesis, students had to indicate how they thought the typical business person would act. The averages from nine out of ten statements were significantly different at .01 level, which means H2 can be

accepted and student’s did change their opinion of what a business person would do after discussion of ethics vignettes.

Source: Cagle et al., 2008, p. 81.

O’Leary and Mohamad look at the impact of teaching ethics on the ethical decision making of students, as well as the effectiveness of specific methods: lecture and group assignment. “RQ1: Does teaching ethics to Malaysian final year accounting students have any impact on their ethical decision-making?

RQ2: Is the traditional lecture and tutorial approach an effective tool in increasing Malaysian accounting students’ focus on accounting ethical issues?

RQ3: Is the group assignment an effective tool in increasing Malaysian accounting students’ focus on accounting ethical issues?

RQ4: Does the combined use of two ethical teaching methods impact positively on Malaysian accounting students’ attitudes to accounting ethical issues?” (O’Leary & Mohamad, 2008, p. 9-10)

Mean scores were higher after instruction in all five scenarios. These scores were statistically significant. This suggests that students considered a more ethical response after having been taught in ethics, as opposed to not being educated in ethics. Research question one can thus be answered positively and it can be said that teaching ethics has an impact on

ethical decision-making (O’Leary & Mohamad, 2008). Both instruction methods (lecture and group assignment) had a positive impact on student’s ethical attitudes. There was a slightly higher mean difference for method two (group assignment), but this does not necessarily mean it was a better method. This is hard to judge because of the basic nature of the

measuring procedure. The combined effect of the methods was also rated and resulted in an even bigger impact. “This would tend to suggest a slow continuum of relevant instruction may be a more effective method of getting the ethics message across than any intensive instruction technique(s)” (O’Leary & Mohamad, 2008, p. 17).

Source: O’Leary and Mohamad, 2008, p. 22.

O’Leary (2009) performed two-tailed tests. He did this because previous research did not always indicate that teaching ethics had a positive impact, and the possibility of participants intentionally scoring lower the second time filling in the survey had to be taken into

consideration. Students had to answer what they would do, not what they thought should be done. For all five vignettes, the mean score increased after the students were taught in ethics. Only four of these changes were statistically significant. This means that after the educational methods, student gave more ethical responses to the vignettes. For each scenario, percentages of the unethical responses dropped. As mentioned in paragraph 4.2 there were five options to choose from, and option one and two were unethical. Percentages of the neutral response remained the same for the first three vignettes, and dropped for the final two vignettes. The

ethical responses, options four and five, increased for all five scenarios. This leads to the same conclusion as the analysis of the mean score: after following a course on accounting ethics education, students chose a more ethical response. Students rated the combined effect of the three teaching methods (lecture, interactive computer study, group assignment) as effective. On a scale from one to nine, the result was 6.7119. Even if some students intentionally gave a negative response, this was not a significant percentage. The research question “Does teaching ethics to final year accounting students have any impact on their hypothetical ethical decision-making?” (O’Leary, 2009, p. 509) can be answered positively.

Source: O’Leary, 2009, p. 5101.

As mentioned in paragraph 4.1.2, O’Leary and Stewart (2013) looked at differences between active and passive learners.

“H1: Final year accountancy students studying ethical issues will display a preference for

active learning.

H2: Active learners will respond more positively than passive learners to active teaching

methods in studying ethical issues in accounting.

H3: Passive learners will respond more positively than active learners to passive teaching

methods in studying ethical issues in accounting” (O’Leary & Stewart, 2013, p. 229).

1 _{This table is not entirely correct, as the headings (n, Mean, S, T, Sig.) should all be placed one column to} the right.

Because genuine responses are required, students were stressed that the surveys were

anonymous. O’Leary and Stewart (2013) considered the chance of genuine answers higher if they guaranteed anonymity. The prediction that students will prefer active learning is based on previous research. As mentioned in paragraph 4.1.2 students learning preferences are expected to change as they progress in their degree. After being taught in ethics, students changed their minds about their preferred learning style. This change possibly comes from the nature of the subject area, ethics. As such, H1 must be rejected; final year accounting

students do not display a preference for active learning when studying ethical issues, instead they prefer passive learning.

Hawtrey (2007) also did research on active (experiential) learning. In his sample group, 52 percent of the daytime-students rated active learning as important, while only 14 percent rated it as unimportant. 32 percent of the students were neutral. This is different from the results of O’Leary and Stewart (2013). This difference could partially be explained by the fact that Hawtrey (2007) did not implement the educational methods; he only asked if

students thought active learning was important. On the contrary, O’Leary and Stewart (2013) did implement the methods, and afterwards a far bigger part of the students found themselves to be passive learners (63.4% as opposed to 30.6% active learners). Another explanation can be found in how the questions are formulated. Students who describe themselves as passive learners could still think active learning is important, or take a neutral position. Possible because they experienced the different forms of teaching, only 6 percent of the students had a neutral position in research of O’Leary and Stewart (2013).

Source: Hawtrey, 2007, p. 149.

Passive learners thought the lecture method a lot more useful than active learners did. The mean difference between the groups (6.55 for passive learners and 5.68 for active learners) was statistically significant. Active learners thought the lecture was useful, with a mean higher than 5.0, but they did not think it as effective as the passive learners did. Passive learners found the tutorial a lot less effective than the lecture. Mean dropped from 6.55 to 5.14. This seems to fit with the idea that passive learners gain most from an entirely passive teaching method. Passive learners had a mean of 6.31 for the assignment. The combination of all methods had a mean of 6.73, which is not significantly different when compared with the mean for lecture. This leads to the conclusion that the traditional, passive lecture method overshadowed the overall combination of methods for passive learners.

Active learners (mean 5.56) thought the tutorial much more effective than passive learners (mean 5.14) did, although the result was not significantly different. Active students assigned to the active tutorial gave it a mean of 5.5, while passive learnings assigned to the active tutorial had a mean of 5.34. When assigned to a passive tutorial, active learners (mean 5.64) still rated effectiveness higher than passive learners (mean 5.0). These differences are not statistically significant, but a pattern can be detected. Passive students thought the tutorial was less effective than the lecture, while active students thought both methods to have similar effects (lecture mean 5.68 and tutorial mean 5.56). This could indicate that assigning students to a teaching method they do not prefer can be counterproductive.

For the group assignment, there was no significant difference between active (mean 6.10) and passive learners (mean 6.31). As it is an active educational method, one would expect active learners to find it more effective than passive learners. An explanation for this could be found in the difference between group and individual decisions. If a dominant member leads the group, the other members of the group become passive learners. Also, groups tend to compromise.

Looking at just active learners, this group thought the assignment (mean 6.1) more effective than the lecture (mean 5.68) or the tutorial (mean 5.56). These differences were statistically significant. The combined effect of the three methods showed no significant difference between active (mean 6.78) and passive learners (mean 6.73). Both groups indicated the overall effect of the methods greater than that of an individual method.

Research concludes passive students rated the lecture more effective than active learners. As the method became more active, passive students rated effectiveness lower. Active

learners rated the lecture method less effective than the active assignment. They thought both active and passive tutorials more effective than the passive learners. For passive students the

lecture method contributed most to the overall effectiveness of the methods, while for active students the assignment contributed most to overall effectiveness. For the five ethical

vignettes, all scores improved after students were exposed to the different education methods. Three of these changes were statistically significant. These results indicate that the

effectiveness of teaching methods is influenced by student learning preferences. Overall perceived ethical decision making changed more for active learners than it did for passive learners. This supports H2 and H3.

Source: O’Leary & Stewart, 2013, p. 232.

Concluding this chapter, the results of empirical studies indicate ethics education positively affects certain factors. By teaching ethics, context specific moral reasoning abilities increased as well as students’ ethical awareness and understanding of theory. It cannot be concluded that general moral reasoning abilities increase. Teaching ethics also had a positive effect on hypothetical ethical decision-making, as students considered more ethical responses to vignettes. On the contrary, other studies indicate it is not possible to say ethical perception of students changed after ethics education. This difference could result from the fact that these latter studies did indicate a change in ethical perception, but these changes were not

statistically significant. Finally it can be said that the effectiveness of teaching methods is influenced by student learning preferences.

Chapter 6

Discussion

The aim of this paper was to examine the current role of ethical education in the accounting curriculum. This was achieved by writing a literature review. In doing so, the paper

contributes to future accounting ethics education, by providing a detailed overview of available methods and the skills they provide to students. To do this, several parts of ethical education were studied. First I looked at the definition of ethics. Two types of ethics were discussed: ethical relativism and ethical absolutism. Ethical relativism holds that any behaviour can be morally right, if the person carrying it out regards it as such. Ethical absolutism means that right and wrong have set definitions and any other moral values are wrong. In my opinion it is impossible to say that right and wrong have objective meanings. Moral values are different for societies as a whole and for each individual within them, but that does not mean something is ethical just because one person feels that it is.

In Chapter 3 I looked at the importance of ethics education and sought an answer to the first sub question: what is the objective of teaching ethics? For the most part, accounting education is focussed on technical values, yet it seems to be forgotten that the essence of accounting is moral. Ethics certainly has value in accounting education. Students are the foundation of the accounting future, so they need to be aware which ethical dilemmas they may face and how to deal with them. It is too one-dimensional to simply put forward that the objective of ethics education is to make students more ethical. A starting point is teaching students that they will undoubtedly face ethical dilemmas once they have graduated and teach them how to recognise these dilemmas. This is followed by teaching them how one could potentially solve such dilemmas and strengthening their ability to make difficult decisions. The combination of these objectives can set the stage for a change in ethical behaviour.

In Chapter 4 various teachings methods were examined, as well as the skills students acquired through use of these methods to answer the second sub question: what ethical skills do students acquire from following different educational methods? I found that the acquired skills –develop moral responsibility; increase ethical perception; reinforcement of decision making– align with the teaching objectives of Chapter 3. Students learn to understand the history of accounting ethics and develop a feeling of moral responsibility. Their ethical perception is increased, as well as their ability to deal with ethical dilemmas.