Paying a premium for an accounting crime
| DOI | https://doi.org/10.1108/JFC-09-2021-0215 |
| Published date | 01 November 2021 |
| Date | 01 November 2021 |
| Pages | 1396-1405 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Lita – Dharmayuni |
Paying a premium for an
accounting crime
Lita –Dharmayuni
Department of Accounting, Institute of Economic Science, YAI, Central Jakarta,
Indonesia and Department of Accounting, University of Indonesia,
Depok, Indonesia
Abstract
Purpose –This study aims to lookat how the intentionof a person when facinga dilemma to choose a good
outcome (utilitarian) or a good and ethicalprocess regardless of the outcome (deontological) by raising the
case of PT. AsuransiJiwasraya (Jiwasraya).
Design/methodology/approach –This study was conducted using a literature study method where
researchers will analyze through previous research and news related to ethics, psychology and Jiwasraya cases.
Findings –In the Jiwasraya case, it can be said that the deontology principle has been violated, but the
utilitarian principle also cannot provide benefits to the parties who should benefit, namely, the premium
payers and the owners of third partiesfunds. In terms of intentions, at first, Jiwasraya’s management may
intend to save and provide benefitsto customers and the public who deposit funds at Jiwasraya (utilitarian
principle). However, over time,managers choose to “allow”conditions to occur and even begin to engage in
activitiesto take advantage of certain parties and groups by taking policies thatare not by the rules (violating
deontologicalprinciples) for personal gain.
Research limitations/implications –This study only discusses theJiwasraya case through financial
and accounting reports. Futurestudies can continue this research by looking at the Jiwasraya case through
the law and legislationto obtain a complete picture.
Practical implications –With this research, it is hoped that the authorscan better understand that the
dilemma the author faces is rooted in the limitations of the abilities as humans; the ethicswill influence all
intentionsfor the choices the authors make.
Originality/value –This research uses case studies that occurredin Indonesia, the discussion is carried
out using a utilitarianand deontological approach that hasnever been discussed regarding the Jiwasraya case
before.
Keywords Ethics, Intention, Utilitarian, Deontological, Accounting crime
Paper type Literature review
1. Introduction
As humans, we face various situations that require us to make decisions every day; often,
the decisions we make will be “grey”and are between “black”and “white,”how and what
decisions we will take will be significantly influenced by our self-awareness of the ethics,
environment and culture that we often encounter. According to Husserl, if we look at
consciousness in phenomenology,consciousness is always an awareness of somethingother
than itself (Prajna-Nugroho, 2012). This kind of awareness is often called intentional.
Intentional in Husserl’s phenomenology shows that subjective consciousness works in an
objective way (Prajna-Nugroho,2012).
This research was funded by the Indonesia Endowment Fund for Education (LPDP), Ministry of
Finance, Republic of Indonesia.
JFC
29,4
1396
Journalof Financial Crime
Vol.29 No. 4, 2022
pp. 1396-1405
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-09-2021-0215
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