An examination of the ethical discourse of the US public accounting profession from a Foucaultian perspective

Purpose – The purpose of this paper is to examine the evolution of the ethical discourse of the US public accounting profession over the last century in relation to Foucault's concept of “codified discourse”. The ethical discourse of the US public accounting profession has evolved from its first code of ethics promulgated in 1917, which focused primarily on protecting the economic interests of the profession, to a position in the most recent promulgation of the code of professional conduct, which contains aspirational elements regarding ethical behavior, but which incorporates few enforceable provisions. It is therefore necessary to look elsewhere for the ethical discourse of the profession, which appears to be located more in the behaviors of accountants practicing in large international public accounting firms, in which the professional accountant becomes molded into an “ethical being” in the Foucaultian sense, as one who is self-regulated and self-formed into an ideal member of the profession. Design/methodology/approach – Using Foucault's concept of “codified discourse”, the author examines changes to the code of ethics of the US public accounting profession of over a period of 100 years. The code of ethics of the US public accounting profession has been one of the primary means through which the ethical discourse of the profession has been communicated to its members. The author addresses the question whether the code of ethics has been principally directed towards protecting the public interest or serving the private interests of the profession. Extending Preston et al. and Beets, the author argues that the changes to the code of ethics have been prompted primarily by market forces and the accounting profession's desire to expand its scope of its services, thus protecting its private economic interests. Findings – The author demonstrates that the ethical discourse of the profession can be found more in the self-forming practices of the profession rather than its code of ethics. These self-forming practices commence early in the career of a prospective accountant and shape the accountant into an idealized “ethical being” in the Foucaultian sense; not an ethical being who complies with a code of ethics, but rather an ethical being who is self-regulated and self-formed into an ideal member of the profession, one who seeks to serve clients while at the same time giving the appearance of acting with integrity and conforming to professional ideals. Research limitations/implications – The limitations of this paper are similar to those of all qualitative studies in that there is a lack of generalizability. Practical implications – Most academics are unaware of the informal ethical discourse that is effectively communicated to entry level and junior accountants. Making accounting students cognizant of the actual ethical discourse that they will face in their careers may help them to better deal with the ethical challenges that they will face. Originality/value – No previous research has dealt with codes of ethics in the public accounting profession as a self-forming practice, using Foucaultian terminology.