Linkages between theoretical concepts and improved ethics audit (compiled by the author)  

Linkages between theoretical concepts and improved ethics audit (compiled by the author)  

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Since Corporate Social Responsibility (CSR) and business ethics are principles that sustainable organizations cannot ignore in the 21st century several international organizations (ILO, OECD, and EU) have established business, social and ethical standards and guidelines, which are no longer optional but mandatory. To earn stakeholders interests and...

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... Fig. 4 the author generalizes the CSR theory and benefits of ethics audit. The figure shows main linkages how CSR could earn stakeholders interest through ethics ...
Context 2
... author stipulates that an ethics audit is a process for evaluating and diagnosing the external and internal consistency of an organization's values and their congruence with real behaviour. As can be seen in the Fig. 4, the ultimate benefit from an ethics audit is risk assessment module, by which can increase trust among stakeholders and compile more reliable CSR reports. An improved ethics audit model makes it possible to obtain an adequate picture of organizational health and sustainability, and the extent to which the business is driven by ...

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Citations

... Based on the planned behavior theory, whether it is 12 a natural or legal person, his behaviors are the result of interde- 13 pendent factors, which are the attitude, the perceived behavioral 14 control, and the subjective norms. Even with the intention of doing 15 business while maintaining a sound outlook, companies might end 16 up behaving unethically, especially in corrupt environments, which 17 is consistent also with the institutional theory. 18 In this chapter, we aim to give a clearer definition of the concept 19 of ethical culture. ...
... More precisely, we verify whether the enter-1 prise admits to paying a bribe to facilitate doing things and override 2 the legal process or not. Hence, to measure our variable "Bribe Fre-3 quency", we use the answers to the following statement: The second variable to measure the unethical behaviors is 9 "Bribe", which is a binary variate that takes 0 if the firm has never 15 In this research, we include country-level and firms-level controls. 16 For the first, we consider the "Inflation" and "GDP growth" to con-17 trol for the economic conjuncture. ...
... 14 Compliance with law illustrates the corporate risk aversion cul- 15 ture. Nevertheless, the application of norms has several boundaries. ...
Chapter
The last global crisis provided evidence that corporate unethical behaviors are the main cause of eroding trust and triggering crises. In our chapter, we define ethical business conduct, its main drivers, and its influence on economic stability. Moreover, based on the institutional and legitimacy theories, we investigate the mediating effect of corporate corrupt behaviors on the regulatory characteristics and macroeconomic stability link in the Eastern European Countries. Using the fifth wave of the BEEPs data, we select 6140 compa nies over 24 countries and confirm the partial mediation association. Furthermore, we prove that ethical behaviors are influenced by the corporate framework and regulatory environment rather than the corporate specificities. Thus, improving regulation is not an option. Nevertheless, in corrupt contexts, unethical practices are common. Therefore, ensuring higher financial returns is more important than having a corporate sound depiction, which leads to law violations and challenges regulatory compliance.
... Auditor's ethics and integrated reporting quality. Auditor-associated ethics are considered as the foundation of an effectively reliable CSR reporting, which reflects a more real-life image of the company and emphasizes the concepts of integrity, honesty and responsibility the concepts of integrity (Ojasoo, 2016). Thus, the ethics are perceived by stakeholders as a set of moral principles and codes of conduct that guide the auditing profession and serve to maintain and promote the credibility of financial and non-financial information (Alexandra, 2013). ...
... It is also worth noting that several conducted research works prove to highlight that the auditor is subject to various pressures likely to test his or her Integrated reporting quality ethical behavior, susceptible to effecting financial and non-financial information (Alexandra, 2013). In this context, Ojasoo (2016) stated that the auditor-associated ethics represent a valuable opportunity for the treatment of the stakeholders' interests and promote trust between the organization and its stakeholders as they help improve the reliability of CSR reporting while providing effective strategies for sustainable development. Similarly, Domingo (2017) discovered that auditor-related ethical behavior is considered as a major factor that can respond to the asymmetry of information between the shareholders, managers and stakeholders while maintaining the investor's confidence. ...
... Such a finding allows us to confirm the validity of the third hypothesis (H3). This result proves to be in line with results previously attained by Ojasoo (2016), Domingo (2017) andElGammal et al. (2018). Our reached empirical results confirm well that an ethical-behavior committed auditor proves to stand as a noticeable factor enabling to respond effectively to the issue of information asymmetry, often persistent between shareholders, managers and stakeholders. ...
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Purpose The purpose of this paper is to consist in examining the effect of the auditor’s behavioral and individual characteristics on the integrated reporting quality, in regard to a sample involving 130 European industrial companies, relevant to the year 2017. Design/methodology/approach The present study’s adopted methodology rests on the hypothetico-deductive approach. The relevant data applied are analyzed by means of multiple linear regression models. Findings The reached results prove to indicate well that both auditor specialization and auditor ethics factors appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the audit firm size and auditor behavior have been discovered to have a positive and insignificant effect on the integrated reporting related quality. Originality/value Faced with the scarcity of studies linking the auditor characteristics and the integrated reporting quality, the present study is elaborated to provide some kind of modest contribution, whereby, the determinants of integrated reporting are distinguishably highlighted
... DeTienne and Lewis (2005) believe that the disclosure of social and environmental information does not suffice to build a responsible image, as company action can be inconsistent with their CSR promises. Ojasoo (2016) comes to a similar conclusion, agreeing that social reporting does not guarantee responsible corporate behavior. DeTienne and Lewis (2005) use the term hypocrisy to describe a situation where the behavior of the company contradicts its statements. ...
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... Social audit, namely the process of evaluating and reporting on the company's environmental and social performance carried out by involving stakeholders through dialogue, helping to build trust, identifying commitments and promoting cooperation between stakeholders and companies [33] .Some of the objectives of the social audit conducted are to determine the extent to which the company's social goals have been achieved, analyze and compare the social consequences of the company's activities, and the latest is to measure the company's social contribution to society using cost-benefit analysis [23]. Meanwhile, ethics audit, with its practical definition, is to evaluate the suitability between the values declared through the formal system and the actual behavior that occurs [10] [34]. Ethics audit is a systematic approach in order to build evaluation, analysis and description of the ethical aspects relevant to the organization. ...
... The concept of ethical risk is emerging in the business ethics literature. For instance, Tremblay et al. (2016) or Merle (2016) use the concept to explain that if a situation is left unmanaged, it will lead to ethical criticisms or be assessed by at least some, as unethical. Ten years ago, Hermansson and Hansson pointed out that "Ethical aspects are crucial in the analysis of risk, but they have often been neglected" in part because of the "lack of operational tools for the ethical analysis of risks" (2007,129). ...
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Defining ethical violations as acts or situations excluding individuals from choices, and ethical deterioration as an increase in intensity or number of ethical violations, the ethical risk is defined as the risk of ethical deterioration. Ethical deteriorations and improvements often coexist and share the same causes, and the net ethical impact is often difficult and controversial to assess. In the energy sector, the ethical risk appears to have five key determinants: (i) personal accountability, i.e. our responsibility in decisions and actions; (ii) fairness, i.e. the consequence on the choices of others; (iii) usage, i.e. the impact on the social and natural environment; (iv) addiction, i.e. the dependence that is created as energy is used over time and (v) danger, i.e. how the force of energy sources can be unexpectedly unleashed and what effort is made to mitigate these.
Chapter
This chapter reviews the business ethics literature on ethics auditing to extract lessons for the emerging practice of ethics auditing of Artificial Intelligence (AI). It reviews the definitions, purposes and motivations of ethics audits, identifies their benefits as well as limitations, and compares various theoretical and practical approaches to ethics auditing. It distils seven lessons for the ethics auditing of AI and finds that ethics audits need to be comprehensive, involve stakeholders, entice behaviour change, be pragmatic and rigorous, be widely endorsed, fitting in context but also comparable, and lastly integrate a technical dimension with an organisational dimension. It is crucial that, while ethics auditing can also have financial benefits, their main goal must remain the improvement of the ethical performance and meaningful accountability of the audited organisation. The novel elements of AI should not blind us to the continuities of social embeddedness and organisational dynamics. Ethics auditing of AI can learn valuable lessons from failed and successful previous efforts to audit the ethics of organisations.KeywordsEthics auditingBusiness ethicsAI ethicsAI auditingStakeholder management
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