İŞLETME ETİĞİ - Deneme Sınavı - 4

“Creative accounting” takes advantage of gray areas in the law, although not illegal, potentially misleading. This is the exploitation of loopholes in accounting figures in order to present misleading financial statements in a favorable way (similar to the distinction between tax avoidance and evasion).

Black Market: This is the illegal trade and trafficking of scarce and extremely valuable commodities; also known as shadow or underground economy.

Ethical issues in financial management fall into two broad categories: (1) the ethical obligations or duties of a financial manager of a company, and (2) the ethics of organizing a company with shareholder control and the goal of maximizing shareholder wealth. While the first category is based on decisions made by financial managers, the second is a subject of great concern to the government in establishing corporate governance laws.

Independence and Objectivity: Independence and objectivity is related to avoidance of bias, conflict of interest or undue influence of others to override professional or business judgments. A professional accountant and finance professional should not allow bias, conflict of interest or improper influence of others to override professional or business judgments.

The International Code of Ethics for Professional Accountants (“the Code”) provides a conceptual framework for professional accountants to apply in order to identify, evaluate and address threats to compliance with the fundamental principles.

The fundamental principles of ethics determine the standard of behavior expected from a professional accountant.

Positive choice approach: In this approach, investors actively invest in companies that operate in line with their social values.

Ethical investing (or socially responsible investing - SRI) is a strategy in which a person chooses investments according to a personal code of ethics. Ethical investment (or socially responsible investment) supports industries that are making a positive change, such as sustainable energy. Ethical investment is generally defined as the integration of personal values, social considerations and economic factors into the investment decision. Financial return remains an important outcome, but it is not the only criterion driving investment; including ethical concerns and social benefit. Socially responsible investment as investments will prioritize environmental factors, social factors and governance practices.

Corporate governance brings the ethical dimension of responsibility and accountability of each stakeholder within the framework of governance. This is more critical in the financial sector because of trust to managers, the board of directors and other stakeholders (Iqbal and Mirakhor, 2017, p.9).

The KGK is also responsible for issuing ethical standards in compliance with international standards for auditors.

Immersive technology

Internet of Things

Machine learning

Digital divide

Accountability holds all parties, who profit from decisions to use/share data, accountable for their acts and consequences

Cookies

Affordability of data such that all the interested parties may pay for it

Trade secret

System security

Deepfake