Accounting Ethics Training and Professional Conduct Outcomes

Abstract

This research investigates the longitudinal efficacy of a novel, narrative-based pedagogical framework for accounting ethics training, contrasting it with traditional rule-based and case-study methods. While existing literature extensively documents the necessity of ethics education, it predominantly focuses on short-term knowledge acquisition and declarative understanding of professional
codes. This study introduces and evaluates the ’Ethical Scenario Immersion and Reflection’ (ESIR)
model, a methodology grounded in cognitive narrative theory and immersive simulation, designed
to foster deeper ethical reasoning schemata and prosocial behavioral intentions. We posit that by
engaging accounting students and early-career professionals in extended, morally ambiguous narrative scenarios requiring iterative decision-making with simulated consequences, the ESIR model
can more effectively bridge the gap between abstract ethical principles and concrete professional
conduct than conventional approaches. A mixed-methods, quasi-experimental design was employed
over a 24-month period with a cohort of 312 participants from undergraduate accounting programs
and public accounting firms. Quantitative measures assessed changes in ethical sensitivity, reasoning complexity (using a modified Defining Issues Test), and behavioral intent across three training modalities: ESIR, traditional case-based, and a control rule-review module. Qualitative data,
gathered through post-intervention reflective journals and follow-up interviews, provided nuanced
insights into the cognitive and affective processes engendered by the training. Results indicate that
participants in the ESIR cohort demonstrated a statistically significant and sustained increase in
ethical reasoning complexity and a greater propensity to identify nuanced ethical issues in complex,
multi-stakeholder scenarios, compared to other groups. Notably, the ESIR group’s reflective journals
exhibited a marked shift from deontological, rule-centric reasoning toward more consequentialist
and virtue-based frameworks, suggesting a diversification of ethical schemata. Furthermore, sixmonth follow-up data from early-career professionals suggested a correlation between ESIR training and self-reported confidence in navigating real-world ethical dilemmas, though causal claims
are tempered by contextual variables. This research contributes originality by applying narrative
cognition frameworks to accounting ethics pedagogy, proposing a measurable shift from teaching
ethics as a static body of knowledge to cultivating it as a dynamic, situated practice. The findings
challenge the sufficiency of code-centric training and advocate for pedagogical models that simulate
the phenomenological complexity of ethical decision-making in accounting practice.