The ethical behaviour (EB) of professional management accountants in business (PMAIBs) is critical due to their increasingly powerful roles in organizations amidst rising ethical challenges, yet it remains underexplored. This article contributes to accounting ethics literature by examining this understudied ‘real-action’ stage of Rest’s ethical decision-making (EDM) of an under-represented section of accountants, Indian PMAIBs, through narratives of their own experiences of workplace ethical dilemmas, using qualitative content analysis. The coding schemes, initially grounded in IESBA-code and ethics literature, were refined with insights from narratives. Based on 173 survey responses, the study found that 64% of respondents faced ethical dilemmas, most commonly in ‘preparation and presentation of information’. The successful resolution was ‘enabled’ by organizational-level policies and support and individual ‘virtues’ such as courage, justice, honesty and integrity. ‘Challenges’ stemmed from pressures (from superiors and peers) and cultural attitudes such as loyalty, obedience and conformity. The professional ethics code emerged as a critical ‘safeguard’. Moreover, the resolution steps of PMAIBs were aligned with IESBA-code guidance, though few escalated ethical issues externally. The findings support the virtue ethics and institutional theory, highlighting the need for a virtue-focused, culturally attuned ethics code and education, as well as stronger organizational safeguards.
AlbudaiwiD. (2017). Survey: open-ended questions. In The sage encyclopedia of communication research methods (4th ed., pp. 1716–1717). Sage Publications.
2.
ArmstrongM. B., KetzJ. E., & OwsenD. (2003). Ethics education in accounting: Moving toward ethical motivation and ethical behavior. Journal of Accounting Education, 21(1), 1–16.
3.
BamptonR., & CowtonC. J. (2013). Taking stock of accounting ethics scholarship: A review of the journal literature. Journal of Business Ethics, 114(3), 549–563.
4.
BanksG. C., FischerT., GootyJ., & StockG. (2021). Ethical leadership: Mapping the terrain for concept cleanup and a future research agenda. Leadership Quarterly, 32(2), 101471.
5.
BarrainkuaI., & Espinosa-PikeM. (2015). Cultural and socio-economic restrictions for the adoption of the IESBA code of ethics for professional accountants in the European Countries. European Research Studies Journal, 18(1), 3–24.
6.
BiswasP., MadaanD. K., & BiswasS. (2024). India. In RobinsonB. & EnderleG. (Eds.), Global Survey of Business Ethics 2022–2024 (GSBE): Teaching, Research and Training. Vol. 2, Asia, Australia, Russia and America (Vol. 2, pp. 151)–202). Globethics.
7.
BrownM. E., & TreviñoL. K. (2014). Do role models matter? An investigation of role modeling as an antecedent of perceived ethical leadership. Journal of Business Ethics, 122(4), 587–598.
8.
BrunnerM., & OstermaierA. (2019). Peer influence on managerial honesty: The role of transparency and expectations. Journal of Business Ethics, 154(1), 127–145.
9.
ButtrossT. E., SchmelzleG., & RaoH. (2011). Ethical decision making by management accountants: An empirical examination of obedience theory. Journal of Accounting, Ethics & Public Policy, 12(1), 1–31.
10.
CameronR. A., & O’LearyC. (2015). Improving ethical attitudes or simply teaching ethical codes? The reality of accounting ethics education. Accounting Education, 24(4), 275–290.
11.
CasaliG. L., & PeranoM. (2021). Forty years of research on factors influencing ethical decision making: Establishing a future research agenda. Journal of Business Research, 132(February2020), 614–630.
12.
ChanC., AnanthramS., ThakerK., & LiuY. (2022). Do religiosity and ethical principles influence ethical decision-making in a multi-faith context? Evidence from India. Journal of Business Research, 149(December2020), 772–785.
13.
ChotiyanonP., & LautourV. J. de. (2018). The changing role of the management accountants: Becoming a business partner. In Palgrave Macmillan. Palgrave Macmillan, Springer Nature.
14.
CieslewiczJ. K. (2014). Relationships between national economic culture, institutions, and accounting: Implications for IFRS. Critical Perspectives on Accounting, 25(6), 511–528.
15.
ClaytonB. M., & StadenC. J. van. (2015). The impact of social influence pressure on the ethical decision making of professional accountants: Australian and New Zealand Evidence. Australian Accounting Review, 25(4), 372–388.
16.
ClementsC. E., NeillJ. D., & StovallO. S. (2010). The impact of cultural differences on the convergence of international accounting codes of ethics. Journal of Business Ethics, 90(S3), 383–391.
17.
CoppageR. E. (1988). Dimensions of ethics for management accountants. The Journal of Applied Business Research, 4(1), 23–30.
18.
Delgado-AlemanyR., Blanco-GonzálezA., & Díez-MartínF. (2022). Exploring the intellectual structure of research in codes of ethics: A bibliometric analysis. Business Ethics, Environment and Responsibility, 31(2), 508–523.
19.
DuhM., BelakJ., & MilfelnerB. (2010). Core values, culture and ethical climate as constitutional elements of ethical behaviour: exploring differences between family and non-family enterprises. Journal of Business Ethics, 97(3), 473–489.
20.
EndenichC., & TrappR. (2020). Ethical implications of management accounting and control: A systematic review of the contributions from the Journal of Business Ethics. Journal of Business Ethics, 163(2), 309–328.
21.
GhoshA., & BhuyanN. (2024). Do professional management accountants in business understand their professional code of ethics? Evidence from the Indian context. Journal of Accounting in Emerging Economies, 14(1), 125–156.
22.
GreenS., & WeberJ. (1997). Influencing ethical development: Exposing students to the AICPA code of conduct. Journal of Business Ethics, 16(8), 777–790.
23.
Hirth-GoebelT. F., & WeißenbergerB. E. (2019). Management accountants and ethical dilemmas: How to promote ethical intention?Journal of Management Control, 30(3), 287–322.
24.
IESBAI. (2018). Handbook of the International Code of Ethics for Professional Accountants. In IESBA Code of Ethics. International Federation of Accountants.
25.
IESBA. (2013). Handbook of the Code of Ethics for Professional Accountants. International Federation of Accountants.
26.
IFAC. (2015). NEXUS 2: The Accountancy Profession: A Global Value-Add (Issue November). https://www.ifac.org/system/files/publications/files/Nexus-2-The-Accountancy-Profession-A-Global-Value-Add-IFAC.pdf
27.
JhaJ. K., & SinghM. (2023). Who cares about ethical practices at workplace? A taxonomy of employees’ unethical conduct from top management perspective. International Journal of Organizational Analysis, 31(2), 317–339.
28.
KaufmannD. (2024, November). The Worldwide Governance Indicators Methodology and 2024 Update [Policy Research working paper]. World Bank Group. http://documents.worldbank.org/curated/en/099005210162424110.
29.
LaneS. (2024). The New era of ethical challenges for professional accountants. https://www.accaglobal.com/gb/en/professional-insights/global-profession/ethical-challenges.html
30.
LangM., KarmańskaA., & JarvisR. (2016). Accounting and ethics–pressure experienced by the professional accountants. European Federation of Accountant and Auditors for SMES, December, 1–48.
31.
LautourV. J. de. (2019). The ethics of management accounting: Innate or learnt? InStrategic management accounting: Aligning Ethics, Social Performance and Governance: Vol. III (pp. 135–184). Palgrave Macmillan.
32.
MarshallB., & DeweP. (1997). An investigation of the components of moral intensity. Journal of Business Ethics, 16(5), 521–529.
33.
MaunzagonaL. (2025). Unethical behaviour by professional accountants: A structured literature review. International Journal of Law and Management. ahead-of-print. https://doi.org/10.1108/IJLMA-06-2024-0214
34.
MayerD. M., KuenziM., GreenbaumR., BardesM., & SalvadorR. (Bombie). (2009). How low does ethical leadership flow? Test of a trickle-down model. Organizational Behavior and Human Decision Processes, 108(1), 1–13.
35.
McCoyT. L. (2015). An investigation of management accountant’s experience with ethical dilemmas involving financial reporting and employee supervision. Journal of Legal, Ethical and Regulatory Issues, 18(2), 125–133.
36.
MihalekP. H., RichA. J., & SmithC. S. (1987). Ethics and management accountants. Management Accounting, 69(6), 34.
37.
MintzS. M., & MorrisR. E. (2017). Ethical Obligations and Decision Making in Accounting (Fourth). McGraw Hill Education.
38.
MusbahA., CowtonC. J., & TyfaD. (2016). The role of individual variables, organizational variables and moral intensity dimensions in Libyan Management Accountants’ ethical decision making. Journal of Business Ethics, 134(3), 335–358.
39.
NguyenL. A., & DellaportasS. (2021). Accounting ethics education research: A historical review of the literature. In PinheiroM. M. & CostaA. J. (Eds.), Accounting ethics education: Teaching virtues and values (pp. 44–80). Routledge Studies in Accounting.
40.
NguyenL. A., DellaportasS., & PhanD. H. T. (2025). Unpacking elitism: A comprehensive review of accounting ethics education research (1970–2023). Journal of Accounting Literature. ahead-of-print. https://doi.org/10.1108/JAL-11-2024-0326
41.
NguyenL. A., DellaportasS., VestyG. M., PhamV. A. T., JandugL., & TsahuriduE. (2022). The influence of organisational culture on corporate accountants’ ethical judgement and ethical intention in Vietnam. Accounting, Auditing and Accountability Journal, 35(2), 325–354.
42.
OwusuG. M. Y., & KorankyeG. (2023). The state of ethical decision-making research in accounting: A retrospective assessment from 1987 to 2022. Business Ethics, the Environment and Responsibility, 32(2), 419–434.
43.
PatelC., HarrisonG. L., & McKinnonJ. L. (2002). Cultural Influences on Judgments of Professional Accountants in Auditor–Client Conflict Resolution. Journal of International Financial Management and Accounting, 13(1), 1–31.
44.
PaterA., & Van GilsA. (2003). Stimulating ethical decision-making in a business context: Effects of ethical and professional codes. European Management Journal, 21(6), 762–772.
45.
PojeT., & GroffM. Z. (2022). Mapping ethics education in accounting research: A bibliometric analysis. Journal of Business Ethics, 179(2), 451–472.
46.
RandallD. M., & FernandesM. F. (1991). The social desirability response bias in ethics research. Journal of Business Ethics, 10, 805–817.
47.
SarkarJ. (2010). Business Groups in India. In The Oxford Handbook of Business Groups (Issue July).
48.
ShaferW. E. (2009). Ethical climate, organizational-professional conflict and organizational commitment: A study of Chinese auditors. Accounting, Auditing and Accountability Journal, 22(7), 1087–1110.
49.
SmithA., & HumeE. C. (2005). Linking culture and ethics: A comparison of accountants’ ethical belief systems in the individualism/collectivism and power distance contexts. Journal of Business Ethics, 62(3), 209–220.
50.
ThorneL. (1998). The role of virtue in auditors’ ethical decision making: An integration of cognitive developmental and virtue-ethics perspectives. Research on Accounting Ethics, 4, 291–308.
51.
TrevinoL., ButterfieldK., & McCabeD. (1998). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 447–476.
52.
VictorB., & CullenJ. B. (1988). The Organizational Bases of Ethical Work Climates. Administrative Science Quarterly, 33, 101–12.
53.
WestA. (2017). The ethics of professional accountants: An Aristotelian perspective. Accounting, Auditing and Accountability Journal, 30(2), 328–351.
54.
WestA. (2018). After virtue and accounting ethics. Journal of Business Ethics, 148(1), 21–36.
55.
WestA., & BuckbyS. (2020). Ethics education in the qualification of professional accountants: Insights from Australia and New Zealand. Journal of Business Ethics, 164(1), 61–80.
56.
ZiegenfussD. E., & MartinsonO. B. (2002). The IMA code of ethics and IMA members’ ethical perception and judgment. Managerial Auditing Journal, 17(4), 165–173.
