Ethical Conflicts of The Accounting Profession in Practicing Islamic Work Ethics
Abstract
The prior study explains that Islamic work ethics have many positive impacts, such as career satisfaction and organizational commitment. By contrast, based on cognitive dissonance theory, we assume that these effects cannot work properly in an environment that does not support workers to implement it, and this will lead to ethical conflicts and dilemmas. In this study, we wanted to find ethical conflict in accounting professionals who felt that their Islamic values at work conflicted with their duties. We examined 50 Muslim accountants in various regions in Indonesia by distributing an online questionnaire to them. Using the data obtained from the questionnaire, we tested the effect by regression. Nevertheless, before that, the testing process will be carried out by passing preliminary test series such as validity, reliability, classical assumption and correlation tests. The research findings state that the practice of Islamic work ethics significantly positively affects the ethical conflict perceived by accountants. It is identified that accountants who practice Islamic work ethics will inevitably feel ethical conflicts themselves due to the circumstances they feel in the workplace. This research can be a reference for Muslim accountants just starting their careers in mitigating and overcoming ethical conflicts in the new world of work. Companies can integrate work patterns with Islamic values and create reporting mechanisms to accommodate Islamic values. The director needs to be a moral compass for their employees.
References
Aflah, K. N., Suharnomo, S., Mas’ud, F., & Mursid, A. (2021). Islamic Work Ethics and Employee Performance: The Role of Islamic Motivation, Affective Commitment, and Job Satisfaction. Journal of Asian Finance, Economics and Business, 8, 997–1007. https://doi.org/10.13106/JAFEB.2021.VOL8.NO1.997
Amilin. (2016). Measuring the Correlation of Job Satisfaction With Accountants Performance: The Role of Islamic Work Ethics as a Moderator. European Research Studies Journal, XIX(4), 188–201. https://doi.org/10.35808/ersj/590
Anggiria, K. S., & Trisnaningsih, S. (2023). Analysis of Violations of the Code of Ethics for Professional Accountants in the Business Sector: Case Study of AP and KAP Involvement at PT Asuransi Adisarana Wanaartha (WAL). Gema Wiralodra, 14(3), 1621–1629. https://doi.org/10.31943/gw.v14i3.605
Ariail, D. L., Smith, K. T., Smith, L. M., & Khayati, A. (2024). An Examination of Ethical Values of Management Accountants. Journal of Business Ethics, 195, 407–423. https://doi.org/10.1007/s10551-024-05640-z
Babalola, M. T., Stouten, J., Euwema, M. C., & Ovadje, F. (2016). The Relation Between Ethical Leadership and Workplace Conflicts: The Mediating Role of Employee Resolution Efficacy. Journal of Management, 44(5), 2037–2063. https://doi.org/10.1177/0149206316638163
Bahador, K. M. K., & Haider, A. (2015). Skillset to Assimilate Information Technologies in Accounting SMEs. In Business Technologies in Contemporary Organizations: Adoption, Assimilation, and Institutionalization (pp. 122–154). IGI Global Scientific Publishing. https://doi.org/10.4018/978-1-4666-6623-8.ch006
Bakar, H. A., & Connaughton, S. L. (2023). Ethical Leadership Communications Scale: Development and Validation Of A Measure and Multi-Level Test. Journal of General Management. https://doi.org/10.1177/03063070231170702
Baskaran, S., Nedunselian, N., Ng, C. H., Mahadi, N., & Rasid, S. Z. A. (2020). Earnings Management: A Strategic Adaptation Or Deliberate Manipulation? Journal of Financial Crime, 27(2), 369–386. https://doi.org/10.1108/JFC-07-2019-0098
Bobek, D. D., Dalton, D. W., Daugherty, B. E., Hageman, A. M., & Radtke, R. R. (2017). An Investigation of Ethical Environments of CPAs: Public Accounting Versus Industry. Behavioral Research in Accounting, 29(1), 43–56. https://doi.org/10.2308/bria-51561
Caniago, I., Yuliansyah, Y., Dewi, F. G., & Komalasari, A. (2023). Islamic Work Ethic in Behavioral Accounting. Journal of Islamic Accounting and Business Research, 14(8), 1281–1299. https://doi.org/10.1108/JIABR-05-2021-0152
Clercq, D. De, Rahman, Z., & Haq, I. U. (2019). ). Explaining Helping Behavior in the Workplace: The Interactive Effect of Family-to-Work Conflict and Islamic Work Ethic. Journal of Business Ethics, 155, 1167–1177. https://doi.org/10.1007/s10551-017-3541-3
Copeland, M. K. (2015). Importance of Ethics and Ethical Leadership in the Accounting Profession. Research on Professional Responsibility and Ethics in Accounting, 19, 61–98. https://doi.org/10.1108/S1574-076520150000019012
Darnell, M. R., & Benton Parish, N. (2023). Respect, Dialogue, and Innovation: Creating New Ideas and Solutions by Committing to an Ethical Culture. In New Leadership Communication—Inspire Your Horizon (pp. 127–136). Springer International Publishing. https://doi.org/10.1007/978-3-031-34314-8_9
Fang, E. S., & Foucart, R. (2014). Western Financial Agents and Islamic Ethics. Journal of Business Ethics, 123, 475–491. https://doi.org/10.1007/s10551-013-1850-8
Festinger, L. (1957). A Theory of Cognitive Dissonance. Stanford University Press.
Fichter, R. (2018). Do the Right Thing! Developing Ethical Behavior in Financial Institutions. Journal of Business Ethics, 151(1), 69–84. https://doi.org/10.1007/s10551-016-3275-7
Hermawan, M. S., & Kokthunarina, K. (2019). Factors Influencing Accounting Students’ Perception of Accounting Ethics; An Empirical Study in Indonesia. Jurnal Akuntansi Dan Bisnis, 18(2), 88. https://doi.org/10.20961/jab.v18i2.225
Hinojosa, A. S., Gardner, W. L., Walker, H. J., Cogliser, C., & Gullifor, D. (2016). A Review of Cognitive Dissonance Theory in Management Research: Opportunities for Further Development. Journal of Management, 43(1), 170–199. https://doi.org/10.1177/0149206316668236
Jabid, A. W., Soleman, M. M., & Jannang, A. R. (2023). The Mediating Role of Islamic Job Satisfaction on Relationship of Islamic Work Ethics on Intention to Leave. International Journal of Professional Business Review, 8(6). https://doi.org/10.26668/businessreview/2023.v8i5.2066
Joannidès de Lautour, V. (2019). Ethical and Accountable Management Accounting: Mission Impossible? In Strategic Management Accounting, Volume III (pp. 185–225). Springer International Publishing. https://doi.org/10.1007/978-3-030-20157-9_5
Joseph, C., Rahmat, M., Syed Yusuf, S. N., Janang, J. T., & Madi, N. (2023). The ethical value disclosure index from the lens of SDG 16 and institutional theory. International Journal of Ethics and Systems, 39(3), 612–628. https://doi.org/10.1108/IJOES-05-2021-0109
Kammeyer-Mueller, J. D., Simon, L. S., & Rich, B. L. (2012). The psychic cost of doing wrong: Ethical conflict, divestiture socialization, and emotional exhaustion. Journal of Management, 38(3), 784–808. https://doi.org/10.1177/0149206310381133
Kang, H. J. (Annette), Gatling, A., & Kim, J. (Sunny). (2015). The Impact of Supervisory Support on Organizational Commitment, Career Satisfaction, and Turnover Intention for Hospitality Frontline Employees. Journal of Human Resources in Hospitality and Tourism, 14(1), 68–89. https://doi.org/10.1080/15332845.2014.904176
Kang, J. A. (2010). Ethical Conflict and Job Satisfaction of Public Relations Practitioners. Public Relations Review, 36(2), 152–156. https://doi.org/10.1016/j.pubrev.2009.11.001
Kashif, M., Run, E. C. De, Rehman, M. A., & Ting, H. (2015). Bringing Islamic Tradition Back to Management Development. Journal of Islamic Marketing, 6(3), 429–446. https://doi.org/10.1108/JIMA-12-2013-0086
Khan, K., Abbas, M., Gul, A., & Raja, U. (2015). Organizational Justice and Job Outcomes: Moderating Role of Islamic Work Ethic. Journal of Business Ethics, 126(2), 235–246. https://doi.org/10.1007/s10551-013-1937-2
Killian, S., O’Regan, V., & O’Regan, P. (2023). “Uncomfortable territory”: personal and organisational values in the tax profession. Accounting Forum, 47(1), 1–23. https://doi.org/10.1080/01559982.2021.2004633
Koleva, P., Meadows, M., & Elmasry, A. (2023). The influence of Islam in shaping organisational socially responsible behaviour. Business Ethics, the Environment & Responsibility, 32(3), 1001–1019. https://doi.org/10.1111/beer.12529
Limajatini, L., Murwaningsari, E., & Khomsiyah, K. (2019). Analysis of Effect of Power Distance, Power Avoidance, Individualism, Masculinity and Time Orientation Toward Auditing Behavior With Mediation of Locus of Control. Eco-Fin, 1(1), 12–21. https://doi.org/10.32877/ef.v1i1.53
Martínez, C., Skeet, A. G., & Sasia, P. M. (2021). Managing organizational ethics: How ethics becomes pervasive within organizations. Business Horizons, 64(1), 83–92. https://doi.org/10.1016/j.bushor.2020.09.008
Martins, G. G., & Casais, B. (2024). Audit Independence and Customer Relationship Marketing: An Ethical Conflict or An Ethical Mutual Effect? Journal of Business Economics and Management, 25(6), 1220–1237. https://doi.org/10.3846/jbem.2024.22830
Murtaza, G., Abbas, M., Raja, U., Roques, O., Khalid, A., & Mushtaq, R. (2016). Impact of Islamic Work Ethics on Organizational Citizenship Behaviors and Knowledge-Sharing Behaviors. Journal of Business Ethics, 133(2), 325–333. https://doi.org/10.1007/s10551-014-2396-0
Purnomo, H. (2022). Organizational Commitment in Islamic Boarding School: The Implementation of Organizational Behavior Integrative Model. Perspectives of Science And Education, 57(3), 354–371. https://doi.org/10.32744/pse.2022.3.20
Roiston, T. A., & Harymawan, I. (2022). CEO Duality, Ownership, and Readability of Financial Statement Footnotes: Some Evidence From Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 9(2), 149–168. https://doi.org/10.24815/jdab.v9i2.25569
Salahudin, S. N. bin, Baharuddin, S. S. binti, Abdullah, M. S., & Osman, A. (2016). The Effect of Islamic Work Ethics on Organizational Commitment. Procedia Economics and Finance, 35, 582–590. https://doi.org/10.1016/S2212-5671(16)00071-X
Santos, S., & Larasati, M. (2025). Whistleblowing Intentions of Accountants and Auditors: Evidence from the Philippines and Indonesia. Salud, Ciencia y Tecnología - Serie de Conferencias, 1–13. https://doi.org/10.56294/sctconf20251325
Schubert, P., & Boenigk, S. (2021). Pressure, Cost Accounting, and Resource Allocations: Experimental Evidence on Nonprofit Financial Decision-Making. Nonprofit and Voluntary Sector Quarterly, 50(6), 1216–1238. https://doi.org/10.1177/08997640211003218
Shah, J. A., & Lacaze, D. (2025). Surviving a Cognitive Crisis at Work: Understanding The Causes and Consequences of Cognitive Dissonance. International Journal of Organizational Analysis. https://doi.org/10.1108/IJOA-07-2024-4694
Shamsudheen, S. V., & Rosly, S. A. (2021). Portraying Ethical Reasoning in Islamic Banking: Addressing The Role Of Work Experience. Business Ethics, The Environment & Responsibility, 31(2), 438–452. https://doi.org/10.1111/beer.12384
Shamsudheen, S. V., Rosly, S. A., & Muneeza, A. (2023). Assessing Ethical Praxis of Ethical (Islamic) Financial Institutions: A Survey of Empirical Discoveries. International Journal of Law and Management, 65(5), 440–460. https://doi.org/10.1108/IJLMA-11-2022-0256
Supriyanto, A. S., & Ekowati, V. M. (2020). Spiritual Leadership and Islamic Organisational Citizenship Behaviour: Examining Mediation-Moderated Process. International Journal of Innovation, Creativity and Change, 13(3), 166–185.
Tarab, S. (2024). How Islamic Work Ethics Predict Work Engagement: A Double Mediation Model. Society and Business Review, 19(4), 743–761. https://doi.org/10.1108/SBR-09-2023-0277
Trihatmoko, H., Sari, T. A. M., & Mubaraq, M. R. (2024). Professional Ethics of Accountants Based on The Qur’an: Is It Still Relevant? The Indonesian Accounting Review, 14(2), 141–151. https://doi.org/10.14414/tiar.v14i2.4214
Tukey, J. W. (1992). The Future of Data Analysis. In In: Kotz, S., Johnson, N.L. (eds) Breakthroughs in Statistics: Methodology and Distribution (pp. 408–452). Springer. https://doi.org/10.1007/978-1-4612-4380-9_31
Vaughan, G. M., & Hogg, M. A. (2005). Social Psychology. Prentice Hall.
Wang, Z., Ye, Y., & Liu, X. (2024). How CEO Responsible Leadership Shapes Corporate Social Responsibility and Organization Performance: The Roles of Organizational Climates and CEO Founder Status. International Journal of Contemporary Hospitality Management, 36(6), 1944–1962. https://doi.org/10.1108/IJCHM-11-2022-1498
Wong, A., Wang, X., Wang, X., & Tjosvold, D. (2019). Ethical leaders manage conflict to develop trust. Leadership & Organization Development Journal, 41(1), 133–146. https://doi.org/10.1108/LODJ-10-2018-0363
Zhang, B., Liu, X., & Zhang, Z. (2024). Warding Off Cognitive Dissonance: How Supervisor Perspective Taking Shapes the Responses of Employees Who Engage in Unethical Behavior. Journal of Business Ethics. https://doi.org/10.1007/s10551-024-05802-z
Zhang, T., Fletcher, P. O., Gino, F., & Bazerman, M. H. (2015). Reducing Bounded Ethicality: How to Help Individuals Notice and Avoid Enethical behavior. Organizational Dynamics, 44(4), 310–317. https://doi.org/10.1016/j.orgdyn.2015.09.009
Zia, M. Q., Naveed, M., Fasih, S. T., Aleem, M. U., & Ramish, M. S. (2022). The interactive effect of Islamic work ethics and leader-member exchange on workplace deviance behaviour and adaptive performance. International Journal of Ethics and Systems, 38(3), 530–548. https://doi.org/10.1108/IJOES-06-2021-0123
Copyright (c) 2024 Abdullah Hanif Muthohhari, Rima Angelia Haq, Erina Sudaryati
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
