Exploring Ethical Dilemmas Faced by Accountants and Business Managers in Nigeria

Abstract

This study explores the ethical dilemmas faced by accountants and business managers in Nigeria, with a focus on financial reporting manipulation, corruption and bribery, and asset misappropriation. Ethical conduct is crucial in maintaining trust, transparency, and integrity within financial and business management sectors. However, persistent challenges in Nigeria affect professionals’ ethical perceptions and behaviours. Using a survey-based methodology, data were collected from a sample of 144 Nigerian accountants and business managers to examine the relationships between these unethical practices and perceptions of ethical conduct. The results indicate significant negative relationships between financial reporting manipulation, corruption and bribery, asset misappropriation, and ethical perceptions. Specifically, financial reporting manipulation is associated with eroded trust and diminished perceptions of ethical standards, as it misleads stakeholders and compromises professional integrity. Similarly, corruption and bribery were found to normalize unethical practices within the business culture, blurring moral boundaries and reducing ethical standards. Asset misappropriation also showed a negative impact on ethical perceptions, as misuse of resources fosters a culture of distrust and deteriorates the accounting profession's ethical standards. The study recommends strengthening regulatory oversight by bodies such as the Financial Reporting Council of Nigeria (FRCN) and the Institute of Chartered Accountants of Nigeria (ICAN) to discourage financial reporting manipulation. It also advocates for organizational policies promoting zero tolerance for corruption and bribery, along with robust internal controls to prevent asset misappropriation.