Ethical Practices in Accounting

• 1). Emphasize the "who" as well as the "what" in morality. Most students can tell you what is against the rules, but many of them believe those rules don't apply to them. The benefits of breaking a rule are usually higher than the costs of being caught. This dichotomy will be more extreme in a business setting. Bring the discussion back to the individual circumstances (e.g., cheating on a test in this class), rather than hypothetical business situations.
  
  
• 2). Beware of teaching loopholes. Some students claim they learned more about cheating the system in their ethics classes than anywhere else. Accountants are masters of detail, so appreciate the ingenuity of your audience and anticipate it. For instance, in a classroom simulation, include an "everyman" or "everywoman" investor who will be harmed by dirty accounting.
  
  
• 3). Inspire courage. Many students say they would come forward about an ethical violation after the violation was brought to light by someone else. This is a common human response, but it means misdeeds go unnoticed. Focus on the courageous aspects of living an ethical life. Unfortunately, courage does not translate to financial success in many cases, and this is the primary hurdle for ethics instructors to leap.
  
  
• 4). Give practical suggestions. Accountants should consider saving six months' salary in case they need to quit on the basis of an ethical issue. Use such advice to lead students toward the career stability that will free them to "whistle blow" or fight unethical decisions.