Moral Accountability Principles for Moral Accounting Engagements

Abstract

I define moral accounting as the crafting of accountability systems that improve moral performance in a moral way. I also propose that accountants are well-positioned to offer Moral Accounting Engagements (MAEs), which evaluate how a client’s systems fall short of moral accounting’s aspirations and advise them on how they can address any shortcomings. I offer a conceptual framework that leaves controversial moral standards in the hands of those with the philosophical, civic or theological expertise to earn moral authority, but requires accountants to structure those standards to make MAEs a feasible endeavor that ties closely to traditional accounting engagements both conceptually and procedurally. Conceptually, moral accounting views people as stewards acting on behalf of society, just as traditional accounting views managers as stewards acting on behalf of owners. Procedurally, an MAE involves gathering objective data on accountability systems, capturing the performance of entities using double-entry bookkeeping, and evaluating systems and performance in light of existing standards. I also offer a set of Moral Accounting Principles (the MAP) that are moral analogs of longstanding principles in traditional accounting, and that guide the accountant’s evaluation of the client. I close by sketching directions for future research.