Ethical Blind Spots and Accounting
Accounting scandals are often blamed on accounting professionals’ ethical lapses caused by self-interest and deficiencies in ethical judgments. In some cases, these scandals have resulted in significant loss of confidence in the accounting profession and also in the demise of one of the top five international accounting firms, Arthur Andersen. Failures to act ethically can result from individuals who consciously ignore ethical considerations in favor of self-interest but may also result from their inability to recognize the ethical implications of their decisions, known as ethical blindness.
Ethical blindness (Palazzo et al. 2012) occurs when decision-makers are blind to the ethical dimension of their decision. This may occur due to contextual or decision factors that obscure ethical issues from decision-makers, allowing them to act unethically without being aware of it. This article applies the concept of ethical...
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