Cognitive moral development theory and moral maturity of accounting and finance professionals
Walden University COLLEGE OF MANAGEMENT AND TECHNOLOGY This is to certify that the doctoral dissertation by Phyllis Rhodes has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Robert Aubey, Committee Chairperson, Applied Management and Decision Sciences Faculty Dr. William Brent, Committee Member, Applied Management and Decision Sciences Faculty Dr. Rodney Ford, Committee Member, Applied Management and Decision Sciences Faculty Chief Academic Officer Denise DeZolt, Ph.D. Walden University 2010 ABSTRACT Cognitive Moral Development Theory and Moral Maturity of Accounting and Finance Professionals by Phyllis N. Rhodes M.B.A., Belhaven College, 1999 B.S.B.A. Alcorn State University, 1983 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Applied Management and Decision Sciences Walden University February 2010 ABSTRACT Fraud has infiltrated several corporate financial statements, thus bringing attention to the accounting and finance profession. The purpose of this study was to determine if age, gender, and former ethics education had an impact on the moral decision-making process of finance and accounting professionals below the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) levels. Due to the increased number of women in the workforce, it is important to understand the differences in ethical judgment between women and men. It is also important to understand if ethical maturity increases with age and it is equally important to make a determination as to whether business ethics courses are adequate in meeting the demand for integrity in financial reporting. Kohlberg’s theory of cognitive moral development was used as the theoretical foundation, and the Defining Issues Test (DIT) survey was used to collect data via the Internet. ANOVA and independent samples t test results revealed no statistical difference in ethical maturity by any of the 3 independent variables; age, gender, and formal ethics training. One recommendation coming from this study is that companies and educational institutions should develop more ethics courses that are targeted at finance and accounting professionals. The implications for positive social change result from the study’s contribution toward providing an avenue by which corporations and educational institutions can began to develop ethics courses that will prepare students to be ethical finance professionals and will restore consumer confidence and strengthen satisfaction in the nation’s financial institutions and markets. [...]... relationship between age and the stages of cognitive moral development Significance and Social Change In this study I explored the impact of age, gender, and formal ethics training on the various stages of cognitive moral development and ethical decision-making skills among finance and accounting professionals The first goal of this research project was to determine the difference in ethical maturity levels... there a difference in ethical maturity level between different gender groups of finance professionals? In other words, is there a difference in ethical maturity, as measured by the Defining Issues Test, between male finance professionals and female finance professionals? 5 Null Hypothesis 2 H02: There is no difference in ethical maturity level between male and female finance professionals Alternative Hypothesis... Purpose of the Study The aims of this study are to reveal the role of cognitive moral development on ethical decision-making practices, and to determine the relationship between age, gender, and formal ethics training in decision-making skills This research illustrates how the stages of cognitive moral development theory might lead to the development of higher ethical practices among financial professionals. .. subjects inflated their scores It is clear that moral judgment is only one of several determinants of behavior Kohlberg’s theory was tested in this study in order to understand the ethical decision-making process of finance professionals Finance professionals have been identified as a relevant body of professionals as well as a relevant professional field The lack of ethical decision making in this industry... conceptions of morality as well as to codes of practice and codes of ethics in the professions (Soskoline, 1996) Morals: The principles of right and wrong Moral judgment: Piaget’s concept of the moral judgment of the child used philosophical parameters to identify morality, which he described as being universally applicable, generalizable, and obligatory (Darley & Shultz, 1990) The impact is that morality and. .. value or worth of their business (Economic Solutions, 1997) Stages of Cognitive Moral Development Theory (SCMDT): A theory of the ways in which moral and ethical perspectives are developed within the individual (Lind, 1985) SCMDT’s first proponent was Kohlberg who identified six developmental stages to 15 moral development in the typical individual and determined that the process of handling moral dilemmas... relationship between ethical maturity and gender, age, and formal ethics training The participants in this study were contributory level employees with various financial and accounting backgrounds The study provided a greater understanding of how gender, age, and ethical maturity may affect decision making and moral maturity levels of finance professionals In order to facilitate a culture of ethical behavior... finance and accounting professionals Scope The scope of this study includes finance professionals who may also be Accounting professionals The list of potential participants includes individuals who are finance practitioners, project managers, academicians, and students who have an interest in areas, such as behavioral finance, fraud prevention, forensic accounting, and corporate finance Several studies... the stages of cognitive moral development theory, which was first proposed by Lawrence Kohlberg (1984) In 1984, Kohlberg first theorized that a relationship exists between moral development and ethical decision-making in a study on the moral decision-making behaviors of adolescents and young adults Kohlberg’s theory was an expansion to Piaget’s theory on the moral judgment of a child He expanded Piaget’s... decision-making among finance professionals in regard to age, gender, and formal ethics training The theory being tested in this study includes Lawrence Kohlberg’s stages of cognitive development theory, which suggests a positive relationship between cognitive 21 maturity and moral behavior Chapter 1 has provided an introduction to the study, background of the problem, purpose of the study, nature of the study, . Sciences Faculty Chief Academic Officer Denise DeZolt, Ph.D. Walden University 2010 ABSTRACT Cognitive Moral Development Theory and Moral Maturity of Accounting and Finance Professionals by Phyllis N nation’s financial institutions and markets.