Deontology and Utilitarianism - Essay Example

Deontology and Utilitarianism of the of the In the field of accounting it is never observed or experienced thelack of conflict which exists between the ethical responsibilities and individual moral of an employee towards its company. This study will explain the ethical conflict in the area of accounting. The theory of the moral judgment advices or recommends the application of both the ethical system. It also explains the how the leaders or the managers of the company adopt the ethical system and the relationship that exist between the moral and ethical values of the employee. The topic mainly deals with the role of both Deontology and Utilitarianism in the field of accounting. Introduction Deontology and Utilitarianism both are considered as an important and well known ethical system. The concept or the term Utilitarianism mainly deals with the concept that explains the ends which mainly defines and justifies the means and the deontology mainly deals with the perspective and the concept which explains that the end does not necessarily justifies or explains the means. The concept or the ethical system of Utilitarianism is mainly deals with the result or the consequences that is based on the theory of philosophy. The philosophers of Utilitarianism mainly deals with the concept that a definite outcome or result is generated out of the definite or proper plan of action that generally possess a greater or higher value and these system believes in taking the benefit and gaining happiness by doing good for the society. The main problem associated with this ethical system is selecting how much liberty a person is required to sacrifice by doing well for the society. Deontology is also considered or regarded as another important concept in the ethical system. This ethical system is mainly based on the scriptures that deal with the moral laws, rules and intuition of the people. Deontology mainly distinguishes between right and wrong course of action as this system is mainly based on the approach that is accepted universally. The thesis statement is mainly based on the ethical systems that deal with the organizational culture, the code of professional conduct and the logical arguments of both the systems. Discussion Utilitarianism is mainly based and influenced by the views and belief of the philosophers. The basis of this ethical system is very simple and easy to understand. It believes and follows the concept that the action which is based on doing good for others or extending help to others and the happiness which is considered as an outcome that is derived from the action that is undergone is considered as good and favorable whereas the action that causes pain or brings sadness to others is considered as an bad outcome. It can be explained as the means that explains and justifies the means. If the conduct of an action brings happiness and provides pleasure to others then the conduct of such action is considered as an ethical action. The theory of Utilitarianism is based on the principle that is required to take into consideration the outcome or the consequences of a particular course of action but it does not explain and distinguishes that whether the course of action is regarded as a bad or good. The philosophy of Utilitarianism directly results in hedonism which is based on the principle or the belief that pleasure or the happiness is considered or regarded as the important concept or pursuit of the mankind. The theory deals with providing cultural, intellectual and spiritual pleasures to others which is considered as the higher value as compared to the physical pleasures (Mill, 2010). The obstacle or the problem in adopting the ethical principle of Utilitarianism is it does not specifies the amount or the extent of liberty that a person is required to sacrifice in order to provide happiness or do good to others. The word or the term deontology is a Greek word which explains the meaning of the word which explains duty that is derived from the word Deon and logos implies the study of science. Deontology is considered or regarded as a normative theory. Deontology is the ethical system that deals with moral theories that clearly and precisely distinguishes and specifies what a person is expected to do and what a person is not expected to do. It deals with the duty based ethics that imparts that some course of action is regarded as good whereas some course of action is treated as bad or wrong. The people generally have the responsibility to perform or conduct the course of action regardless of the result that might be good or bad. It is surrounded by the moral rules or codes that are morally accepted which indicates or forbids that it is wrong to tell lies, steal and kill people. Deontologist is just the opposite of Utilitarianism although both are considered as an important ethical system as in case of deontology deals with considering the actions first and determining whether the course of action is good and then carrying out its course of action. Therefore it considers that a person is able to perform well if the person is engaged in conducting right action morally (McNair and Milan, 1993). Organizational culture of the accounting profession The organizational culture of the accounting profession in case of Utilitarianism can be explained by the logic that has been adopted by Enron and Arthur Andersen to explain and justify the short term and the rule that is based on the ethical model or concept of Utilitarianism which explains and assist that the moral code is mainly based on the duties that is mainly owed to the society and also dealing with the conflicts that may arise when the duty is bestowed on several parties. Considering from the view point of the accountants and the auditors Enron and Arthur Andersen the belief or the perception of providing financial benefit and the self interest that is being provided to the internal stakeholders of the company for the purpose of self deception and rationalization. That has allowed or facilitated to those who are responsible for reconciliation and misrepresentation of the true and fair disclosure of the financial statement of the company and the person who are involved and responsible for neglecting, avoiding or overlooking the financial and moral duties of the investing public. The misrepresentation and the hiding of the facts and figures and not following or adopting the accounting principle as per the GAAP accounting principle that the auditors and accountants have participated and are involved in conducting or adopting such unethical practice and fraudulent code of conduct by not adopting or fulfilling the requirement as per the moral ethics and code of conduct. Therefore the concept of the ethical model is to be adopted and followed by the auditors and the accountants for conducting its operation ethically fulfilling its rights and obligations that explains that the course of action or the organization and the related person including the auditors and the accountants are expected to perform their activities ethically and also providing welfare and benefit to the society. The theory explains that the business ethics is to be formulated in such a way that it provides happiness and welfare to the society and also increases and enhances the productivity and performance and increasing the profitability and quality of the business . The ethical concept of Utilitarianism will increase the trust, belief and faith in the system of auditing and accounting. It also emphasizes on the fact that the professionals including the accountants and the auditors are expected to perform ethically in preparing the financial report and the audit report of the company (Premeaux, 2004). The organizational culture of accounting profession by adopting the ethical concept or the theory of deontology is that the accounting profession is mainly based or comprises of preparation of the financial statements and providing adequate tax returns together with providing various consulting services and the ethical issue that is associated with the concept of deontology is that the ethical issue is to be taken into consideration when it is related to the matter that deals with money. Deontology is considered as an ethical concept that specifies the duties that the individuals are expected to perform. The accounting framework that is prepared is to be based on the principle of deontology because the framework is to be based on the objectives and the fundamentals that are interrelated and inter connected to each other. Deontology guides and assists in selecting the events and the transactions that the organization is accounted and responsible for and helps the accountants in preparing measuring and recognizing the method in which the report is to be summarized and prepared. Deontology assists the accounting professional in selecting the right and appropriate option that is complying with the moral norm. The accountant who carries out its activity based on this moral principle will generally abide by the rules and regulation regardless of the outcome or the consequences in conducting the course of action. This theory or approach of performing the ethical behavior by the accountant is considered or regarded as the positive feature while following and complying with all rules and regulations. For example in case of practicing the pool method of accounting where the accountant has to deal with various tax related measure where it is compelled to deal with various rules and regulations that are unfair or unethical in nature. Therefore the adoption of the ethical concept or theory of deontology will help the accounting in practicing fair and ethical concept or practice of accounting (Treviño, Weaver, Gibson and Toffler, 1999). But when the two ethical concepts or the theory is taken into consideration it is observed that deontology is considered or regarded as the better or more suitable for the accounting profession. Deontology provides better result as compared to that of Utilitarianism. But the adoption of the ethical system is very important and significant concept without which the profession of accounting is meaningless and guideless (Caldwell, Hayes and Long, 2010). AICPA Code of Professional Conduct In order to reinforce the professional code of con duct that has been established and formulated by American Institute of Certified Public Accountant is by expressing the recognition of the duties and responsibilities by the professionals towards its public colleagues and clients. These principles mainly assist in the performance of responsibility by the professionals and expressing and explaining the basic rules and the codes of the professional and ethical code of conduct. The principles deals and emphasizes on the behavior regardless of sacrificing the benefit and the happiness. The code of the professional conduct is being adopted by the members who include the members involved in the public practice, in government, in industry and in education in order to provide assistance and guidance for abiding all the rules and regulations that has been formulated in performing the professional duties and responsibilities. It is required by the members to comply with the professional code of conduct and abiding by the rules and regulations and the code is mainly based on the voluntary actions and understanding of the members and reinforcement based on the public opinion and the opinion of the peers when required as against the members who have failed to follow and comply with the rules and regulations. The ethical norms that is contained in the provision of code of conduct includes practicing and undertaking the features of decision making that is incorporated in the profession of accounting that is related to the organizational culture. The features of the ethical decision making are related to the ethic system of the individuals and the ethics that is based on the perspective of moral and also reasoning (Audi, 2007). Deontology system or the theory of ethics is mainly based on the approach that is holistic in nature and it follows the perspective of orthodox and stringent moral reasoning and the moral reasoning that is of conventional level for making ethical decision in the profession of accounting. The ethical decision making facilitates or assist the professional in making judgment and considering the professional judgment rather than taking into consideration the personal judgment which is considered as a resolution in the ethics of accounting. The professional who adopts Utilitarianism on the basis of the concept as it guides and assists in conducting calculation on the basis of the moral decision making that is related to assigning of values for providing benefit and harming that is resulted from a course of action. It mainly deals with evaluating the intended course of action which will result in providing greater benefit to the people and also this theory assist in evaluating the course of action that generally benefits or harms the stakeholders of the company (Robertson and Fadil, 1999). Logical arguments for defending the ethics The utilitarianism theory of ethical system is followed and complied by many individuals and professionals while providing benefit to the organization and the shareholders and also enhancing the value of the organization. But in spite of the benefit that is provided, this moral system encounters many failure and defeat when the account and the principles that are related to the concept of ethics and accounting are taken into consideration. The main principle is that this moral ethics is mainly subjective in nature therefore it is not sufficient to form or establish the basis of one and common moral and ethical value that is to be adopted. In case of calculating and ascertaining the values in accounting it is very difficult and even impossible to evaluate, measure and compare the values of the benefit that is provided and the cost that is incurred and with this concept it is very difficult to write off its bad debt. The deontology mainly deals with the ethical system that focuses and highlights the duties and responsibilities that the individual is expected to perform. Deontology is regarded as an appropriate and the most preferable application of the moral norm that is to be adopted. When Deontology is being compared with Utilitarianism it is found that deontology is most favorable, suitable and appropriate moral and ethical system as compared to that of the Utilitarianism and it is being regarded as the most suitable and preferable choice for the professional of accounting . As no ethical theory can be regarded as the best and the absolute system therefore deontology is being regarded and considered for providing appropriate result or outcome. Without the application of this rules the guidelines that is followed in accounting is useless and meaningless. Deontology assists in recognizing and measuring the activities that is required in the preparation of report. Therefore considering all the related aspect it is found and observed that in the process of decision making and in the formulation of rules and regulations and providing a standard guideline for conducting the behavior in a ethical way, deontology is being considered as an important suitable and the best choice for adoption and implementation by the professionals of the organization. Conclusion It is observed by referring the fundamentals of principles that is adopted by both the moral system that is deontology and utilitarianism and it is found by comparing both the system that Utilitarianism concept of the moral theories mainly deals or is based on the philosophy that provides no particular and definite solution for solving every possible problems or difficulties and the Utilitarianism is being considered as an temporary theory in the world or perspective of accounting and it emphasizes and focuses on maximizing the benefits and happiness that is provided to the stakeholders and the shareholders through the financial profit or gain The concept of Utilitarianism establishes that it has no correlation with the concept of accounting . Utilitarianism is considered and it deals with subjective reasoning and it is also based on moral reasoning therefore the lack of accounting problem is being considered as an important and vital problem in the adoption of this ethical theory. The ethics that is based on the deontological ethics is mainly determined and ascertained by the fact that adopting the right action is being determined by its outcome and consequences. References Audi, R., (2007). Can utilitarianism be distributive? Maximization and distribution as criteria in managerial decisions. Business Ethics Quarterly, 17(4), pp: 593-611. Caldwell, C., Hayes, L.A., & Long, D.T., (2010). Leadership, trustworthiness, and ethical stewardship. Journal of Business Ethics, 96(4), pp: 497-512. McNair, F. & Milan, E.,(1993). Ethics in accounting education: What is really being done? Journal of Business Ethics, 12(10), pp: 797-809. Mill, J.S., (2010). Utilitarianism: Past, present and future. Retrieved from http://www.utilitarianism.com/mill1.htm Premeaux, S., (2004). The current link between management behavior and ethical philosophy. Journal of Business Ethics, 52 (1), pp: 269-78. Robertson, C., and Fadil, P.A., (1999). Ethical decision making in multinational organizations: A culture – based model. Journal of Business Ethics, 19(1), pp: 385-392. Treviño, L.K., Weaver, G.R., Gibson, D.G. & Toffler, B.L., (1999). Managing ethics and Legal compliance: What works and what hurts. California Management Review, 41(2), pp: 131-51. Read More