Cultural Determinants of Ethical Decision-Making in Accounting

Abstract

Ethical decision-making in accounting is influenced not only by professional standards but also by cultural values, social norms, and institutional governance systems. While global standards such as IFRS, PCAOB, and IFAC Codes of Ethics promote uniform ethical expectations, cultural contexts affect how accountants interpret moral dilemmas, respond to fraud risks, and prioritize ethical obligations. This study examines cross-cultural determinants of ethical decision-making using Hofstede’s cultural dimensions, institutional theory, and comparative curriculum analysis. Surveys across 10 countries (n = 356 accounting students and 42 professionals) reveal significant differences in ethical priorities shaped by collectivism, power distance, religion, legal systems, and socio-economic pressures. Results show that Western respondents demonstrate rule-based ethical reasoning, while Asian respondents emphasize relational harmony and authority-driven compliance. A multi-layered ethical education model integrating cultural sensitivity with global standards is proposed.