Ethics is rarely front of mind when students commence their accounting degrees. Despite accounting firms hitting the headlines with flagrant examples of breaches of trust and conflicts of interest, the accounting profession is founded upon trust, integrity, and core ethical principles.

Instead, most students enter accounting courses with preconceived ideas about what accounting is. Perceptions of accounting as objective rather than comprising ethical judgement. A purely numbers-driven, technical practice. Where accounting questions are black and white, and answers are clearly right or wrong.

In reality, accounting is far more complex. Accounting is a social construct with judgement at its core, where the impacts of decisions reverberate far and wide (Gray, 2010: Hines, 1988). Extending beyond solely financial aspects, accounting encompasses far broader social and environmental considerations. Complexity in accounting is being further heightened by sustainability challenges and rapidly advancing AI, where the business environment is becoming increasingly uncertain.

We need to develop pedagogies fit for these changing times. Reimagining not just what we teach through course content for knowledge and skill development, but also how we can teach it from a more values-based approach. Stepping outside traditional disciplinary borders where alternative pedagogies, creative curricula design, and innovative teaching approaches are key. So what could this look like in Financial Accounting, widely considered one of the most technically challenging units in accounting degree programs?

Extending beyond solely financial aspects, accounting encompasses far broader social and environmental considerations. Complexity in accounting is being further heightened by sustainability challenges and rapidly advancing AI.

We can begin by upending student expectations of what an accounting class looks and feels like. Students expect accounting to be black and white, technically, and quite literally. So, imagine if the first thing students see when they enter the classroom is tables lined with coloured paper in all shapes and sizes, stickers, markers, play doh and other art supplies. Generating feelings of surprise, delight, and in some cases, confusion. Indeed, some students wonder if they have walked into the wrong classroom!

Building on this backdrop, we can intentionally design class activities to encourage students to reflect on previous perceptions of accounting and how accounting makes them feel. Then, reimagining broader conceptions of accounting through the creation of physical representations that engage students in the learning process and help to forge deeper social connections amongst students.

With students reoriented towards new ways of learning, we can dig deeper into the broader role of accounting. Reflecting critically on the moral and ethical aspects of accounting and organisational accountability. This requires empathy, the ability to step into the shoes of another. It also requires creativity in formulating potential solutions to complex challenges. Compassion, with its elements of recognising suffering, empathic response, and desire to alleviate this suffering (Ling, 2021), is key.

Guided by the work of Monash colleague Dr Debbie Ling and the Monash Compassion Training for Healthcare Workers course, compassion is embedded as a theme throughout the unit. Admittedly, Financial Accounting is not a place where one would expect to find discussions around compassion. Yet, this is exactly what makes it so important, by demonstrating the relevance of compassion in the most unexpected of places.

Students begin by exploring the role of compassion within the context of accounting. Reflecting on the importance of compassionate responses in accountants’ interactions with clients who may be going through difficult times, with workplace colleagues who may be suffering, and with people and communities impacted by accounting decisions. This theme is reinforced through class discussions, interactive activities, and formal assessments. Each week, students explore the social aspects of accounting through a compassionate, ethical lens.

“On the surface I thought I knew what compassion meant, but I soon learnt that the role of compassion held a greater meaning in relation to accounting; in that a genuine drive to protect society’s economy and environment can be reflected from accounting” (Student feedback).

Exploring the ecological aspects of accounting, we then broaden compassion beyond human interactions. The impact of accounting decisions extends beyond human societies where there is increasing recognition that organisational stakeholders now encompass nonhuman species and the natural environment.

Through a compassionate, multi-stakeholder perspective, students consider how nonhuman species are impacted by organisational activities, and recognise the suffering that can be caused by these activities. Sustainable class resources such as plant materials, wool, paper, and wooden animals provide a connection to the natural world and encourage creativity in formulating potential solutions to alleviate the suffering of nonhuman species.

Use of a real world example further facilitates in-depth exploration of compassion for other species and the surrounding environment. In a written task, students critically reflect on the role of ethics and compassion in organisational accountability using the example of Patagonia, focusing on the company’s recent change in ownership structure and announcement that Earth is now our only Shareholder.

With the impending climate crisis facing the world it is becoming increasingly important for large corporations to commit to enabling the flourishing of nature. Accounting practices should be utilised to manage not just the financial impacts but the real-world effects of business’ operations to ensure that they are contributing positively to the world at large. If companies do not commit to seeing earth as their biggest stakeholder there will be detrimental repercussions. We teach children to have compassion for others, it is time for companies to show that same compassion for the people and natural environments they are affecting. (Student assignment)

In fostering compassion in students, educators play a critical role. We need to cultivate in ourselves enhanced levels of compassion, thereby modelling compassionate behaviour for our students. We need to remain open to different ways of seeing and practising accounting in order to pioneer alternative forms of accounting education. Recognising that, as educators, we are also on a continued journey of learning.

I hope that students complete this unit with a desire to connect more with others. To position the accounting profession not at the centre of the story, but rather as part of the story – beyond self-interest and embedded in the world around them. That they are inspired, through small acts of kindness and compassionate responses, to play a part in alleviating suffering across all species. Laying the foundation for a more compassionate, ethical accounting profession and creating a path towards more sustainable futures for all.

Can you imagine the possibilities if we, as educators, situated compassion at the heart of what we do?

References

Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability. . . and how would we know? An exploration of narratives of organisations and the planet. Accounting, Organizations and Society, 35(1), 47-62. doi:10.1016/j.aos.2009.04.006

Hines, R. D. (1988). Financial accounting: In communicating reality, we construct reality. Accounting, Organizations and Society, 13(3), 251-261. doi:10.1016/0361-3682(88)90003-7

Ling, D., Petrakis, M., & Olver, J. H. (2021). The Use of Common Humanity Scenarios to Promote Compassion in Healthcare Workers. Australian social work, 74(1), 110-121. doi:10.1080/0312407X.2020.1808031