Ethics, gen Y style.

• Author: Stout, Gary R.
• Position: Student Ethics; accounting

Enron, WorldCom, Tyco Adelphia Communications, Global Crossing--the list of corporate scandals has grown. Whether these incidents have been the unfortunate outcome of Wall Street driving earnings to maximize stock value or signs of an ethical meltdown is difficult to gauge.

But one of the many outcomes of these events has been a growing interest within the accounting profession to learn more about the ethical beliefs of today's accounting students--and what these students are being taught about ethical behavior.

THEORIES OF ETHICAL BEHAVIOR

Ethics and morality are often used interchangeably, but they don't have the same meaning. Morality can be described as a value system consisting of standards that define good versus bad, right versus wrong. Ethics is the application of these moral principles through decisions and actions.

Denis Collins and Thomas O'Rourke described the following five theories of ethical behavior in their book Ethical Dilemmas in Accounting:

* Egoism: How does the action relate to me? If the action furthers my interests, then it is right. If it conflicts with my interests, then it is wrong.

* Social Group Relativism: How does the action relate to my social group? If the action conforms to the social group's norms, then it is right. If it is contrary, then it is wrong.

* Cultural Relativism: How does the action relate to the national culture, particularly its laws? If the action conforms to the national culture's norms, then it is right. If it is contrary to the national culture's norms, then it is wrong.

* Utilitarianism: How does the action relate to everyone who is affected? If the action is beneficial to the greatest number of people, then it is right. If it is detrimental to the greatest number, then it is wrong.

* Deontology: How does the action relate to my duty to treat others the way that I would want to be treated? If it treats every stakeholder truthfully and with respect and integrity, then it is right. If it does not, then it is wrong.

WHAT STUDENTS SAY

In April 2002, Zogby International polled college seniors nationwide; 97 percent of the 401 respondents said that their college studies were preparing them to behave ethically. However, 73 percent said their professors were "more likely to teach them that what is right and wrong depends on individual values and cultural diversity, and that there aren't clear and uniform standards of right and wrong by which everyone should be judged."

In the poll, commissioned...