Ethical Dilemmas Encountered by Accounting Professionals in Competitive Environments

Abstract

This research investigates the complex ethical terrain navigated by accounting professionals operating within increasingly competitive market landscapes. While existing
literature often frames ethical dilemmas in accounting through the lens of regulatory
compliance or individual moral failure, this study proposes a novel conceptual framework that situates these dilemmas within the structural and psychological pressures
generated by market competition itself. We argue that competition does not merely
create occasions for ethical lapses but actively reshapes the cognitive and normative
frameworks through which accountants perceive their professional duties. The study
employs a mixed-methods approach, combining a quantitative survey of 347 certified
public accountants across various sectors with in-depth, phenomenological interviews
with 42 senior accounting professionals. This methodological triangulation allows us to
move beyond identifying common dilemmas to modeling the decision-making processes
under competitive duress. Our findings reveal a previously under-theorized category
of ’systemic ethical stress,’ where the imperative to retain clients and ensure firm viability directly conflicts with strict adherence to professional standards of objectivity
and conservatism. Notably, the results demonstrate that the intensity of perceived
ethical conflict is not linearly correlated with the degree of market competition but
follows a threshold model, with significant escalation occurring after competitive pressures surpass a certain point of firm resource strain. Furthermore, the research identifies
’competitive neutralization’ as a key cognitive mechanism, whereby professionals rationalize ethically ambiguous actions as necessary strategic responses rather than ethical
compromises. The paper concludes by proposing a revised model of ethical resilience
for accounting practice, emphasizing structural safeguards and collective professional
norms over individual character, offering a significant departure from predominant,
agent-centric ethical training models. This contribution provides a new theoretical
foundation for understanding professional ethics in business contexts where commercial and fiduciary imperatives are in constant tension