Accy305

Boyce (2008, p255, p263) argues that it is important for accounting education to “transcend the individualised conception of ethics” and to examine ethics in the broader context of globalisation.

Identify and comment on the arguments presented by Boyce to support his view.

The overriding theme of Boyce’s paper is that the failure of business, accounting and accounting education is to some extent due to the fact that we focus too much on the behaviour of individuals, rather than on the system in which we are operating (ie. capitalism).

In section 2 of the paper, Boyce reflects on corporate collapses, the responses to these collapses, and the ethical implications of them. Fundamentally, capitalism and the inherent belief in the market, is the source of unethical conduct. The desire to maximise profits is often manifested in reduced costs (eg. using offshore labour and thus exploiting workers in developing countries, retrenching staff with resultant social costs), or externalising costs (eg. not accounting for environmental costs associated with running a particular business). Corporations which operate within the capitalist system will do almost anything to maximise shareholder wealth (an individualistic notion), often at the expense of other groups within the community. Boyce states (p259) that “the market demands and rewards social and environmental irresponsibility and punishes those who do not bend to its will”.

This imperative to maximise shareholder value has seen corporate officers focus on short term goals and encouraged dubious accounting and financial reporting, sometimes resulting in corporate collapses – there was a wave of collapses early in the 2000s. Blame for these collapses was placed squarely with individuals – directors, accountants, auditors. Similarly, the responses to these collapses, such as Sarbanes Oxley Act in the US and CLERP (Corporate Law Economic Reform Program) in Australia, were very much focused on correcting the behaviour of...