Part four in a series of faculty-written pieces that underscore how Mays educators are bringing ethics education to our students.

What would grandma do?

During the past few years the accounting profession has been involved in a number of ethical lapses. As a consequence, the Texas State Board of Public Accountancy now requires that CPA candidates complete a three-hour course in accounting ethics.

I was asked to teach the accounting ethics course that we hosted this fall. I divided the class of 300 into 50 groups, which gave them an opportunity to discuss assigned cases and take group exams. We discussed cases that students face currently and might face during their early years as a professional. 

Bill Atkinson ’72, former chair of the State Board of Accountancy, explained the role of the board and described cases involving ethical violations that were considered by the board when he chaired the group. Atkinson also talked about ethical dilemmas he has faced as a PricewaterhouseCoopers partner. 

Students followed that discussion with a multiple-choice exam on short cases relating to the code of conduct. Students were required to submit a single exam as a group. In the process, a number of students told me their groups had difficulty agreeing on a single answer. This demonstrated that many people can read the code and initially come up with different answers, but through discussion will arrive at an answer that is consistent with the code. 

It is important for accounting graduates to be conversant with the major business failures that have involved members of the accounting profession.  During the semester, presentations relating to Enron and WorldCom gave an overview of these major business failures. Each student group submitted a paper discussing various aspects of the Sunbeam, Waste Management and WorldCom cases.

The Josephson Institute for Business Ethics provides a series of seminars for executives and professionals to discuss ethical issues affecting business. The class watched tapes of a seminar presented by Michael Josephson, in which he discusses a variety of ethical issues confronting businesses and describes a model for ethical decision making. 

One of the most powerful ways to demonstrate the importance of developing ethical values seems to be presentations by individuals who have an interesting “story.”  Harvin Moore III began his presentation by describing his first day at the federal prison in El Paso.  He was convicted of bank fraud and spent 601 days in prison. 

Moore told about the major events in his life prior to his conviction — he graduated from Rice and UT Law School, became a partner in a large Houston law firm, and was ultimately the owner of the third largest home building company in Texas as well as a partner in a savings and loan. He described the activities that resulted in his conviction, and told students how he was unable to regain his law license following his release from prison. 

The most valuable part of Moore’s talk was his key point, that a person must be careful not to rationalize unethical behavior. He described in detail the effects of his illegal activity on his life and the lives of his family and friends. Many students told me this was the most powerful presentation they had ever heard.

Mark Carden ’81 is currently executive pastor of the Clear Creek Community Church.  After a very successful career as a Coopers & Lybrand partner, Carden resigned from the partnership to enter the ministry.  He discussed the ethical dilemmas he faced in dealing with a variety of clients as he rose to the partnership.  He also incorporated in his presentation the importance of the Aggie Honor Code in his life.

The last speaker of the semester was James Trimbach of the Federal Bureau of Investigation, who talked about what can happen to an unethical accountant. Trimbach is the Houston area supervisory agent in charge of investigating white-collar crime — from fraud and embezzlement to insider trading and computer crimes. His talked about the role of the FBI in investigating white-collar crime  and the tools at their disposal, and hit on the federal statues that can be used against accountants who commit crimes. 

I believe the course was successful in making students aware of the cost — in personal terms — of making an unethical decision. A common theme of the presentations is best expressed by one speaker, who asked “Would you want your grandmother to read about your decision in your hometown paper?”