Question

In: Accounting

Assume you are facing an interview at an audit firm. A member of the interview panel...

Assume you are facing an interview at an audit firm. A member of the interview panel asked you to justify the link between, moral intensity, ethical leadership, and organizational culture and how it will impact on the accounting firm?
Craft a response that you feel comfortable by describing the characteristics of ethical leaders, the role of moral intensity in developing ethical organisations and evaluating the importance of ethical leadership in accounting firms with suitable examples.

Solutions

Expert Solution

Moral intensity is a construct that relates to issues in terms of their perceived moral significance. Individuals' perceptions of moral intensity should impact their recognition of issues as posing moral dilemmas and should also affect ethical judgments and behavioral intentions regarding issues.

The nurturing aspect of leadership can also raise an organization's culture and employee's values to higher levels of ethical behavior. By demonstrating ethical leadership we promote a high level of integrity that stimulates a sense of trustworthiness and encourages subordinates to accept and follow our vision.

Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs.

Ethical leadership characteristics:

  • Justice. An ethical leader is always fair and just.
  • Respect others. One of the most important traits of ethical leadership is the respect that is given to followers.
  • Honesty.
  • Humane.
  • Focus on teambuilding.
  • Value-driven decision-making.
  • Encourages initiative.
  • Leadership by example.

Role of Moral Intensity:-

Moral intensity is a construct that relates to issues in terms of their perceived moral significance. Individuals' perceptions of moral intensity should impact their recognition of issues as posing moral dilemmas and should also affect ethical judgments and behavioral intentions regarding issues.

In example, an accounting professional may act with moral intensity when they discover some manipulation in the financial statements and decide to bring this report to management. ... The Moral intensity influences this decision because the auditor has a moral responsibility towards the company and its stakeholders.


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