Individual intellectual capital and the accountant’s ethical decision-making: the role of ethical ideology

Purpose – The crucial role of accountants in the growth and development of the business landscape and economies highlights the need for seamless ethical conduct by accounting professionals. Although knowledge is paramount in the current business environment and essential for accountants, research on ethical decision-making (EDM) has failed to explore the role of individual intellectual capital (IIC) in accountants’ EDM process. Thus, this study aims to investigate the relationship between IIC and EDM. Further, the study integrates ethical ideology into Rest’s four-stage EDM model as a mediator to explain the variations in individual moral judgement irrespective of their IIC. Design/methodology/approach – Using a cross-sectional survey, data from 654 accountants in Ghana was analysed using the partial least square structural equation modelling technique. Findings – The results indicate that individual human, structural and relational capital are significant predictors of EDM. In addition, ethical relativism significantly mediates the relationship between IIC and EDM. Originality/value – The findings of this study highlight the critical role of IIC in accountants’ ethical judgement. Extant studies on predictors of EDM have predominantly focused on psychological, demographic and situational factors mostly ignoring the role of cognitive factors, such as IIC, in spite of their theoretical appeal. The current study extends the knowledge base by highlighting the impact of the distinct dimensions of IIC on EDM.