Profit Management and Islamic Business Ethics

Abstract

Financial reports are important elements in economics, so that a rule is formed in the financial reporting process called General Accepted Accounting Principles (GAAP). The aim is to unify financial reporting and financial reporting for each business entity in a country to facilitate the auditing process for fairness in reporting. This study will discuss earnings management in terms of Islamic ethics. The research method uses the literature review method concerning Islam's references and matters relating to profit management and Islamic business ethics. In this study, it can be seen that the behavior of a manager towards profit management by manipulating profit figures on paper is not following what is instructed by Islamic teachings and the basic laws of various types of muamalah are permissible until arguments are found that prohibit them.

Islamic Ethics in Business and Finance: Implication for Corporate Governance and Responsibility

“…Moreover, Islamic ethical principles advocate for the implementation of governance practices that align with Shariah principles, emphasizing proper bookkeeping, disclosure, and transparency (Bhatti & Bhatti, 2010). The principles of Islamic ethics also encompass concepts such as monotheism, balance, free will, responsibility, and benevolence, which are crucial for fostering a just and ethical business environment (Budiman, 2020). Additionally, Islamic values support frameworks that promote accountability, good governance, and transparency, which are vital for effective Zakat management (Tahliani, 2018).…”

Flexibility Strategy and Postponing Work on Community Service Employees during Activities Work for Home (WFH) during the Covid

“…Procrastination is a form of behavior that has caused a lot of congestion and delays in the work process. As is the case when it is done by a government office employee who gets the task of compilingchecklist application letter for admission before being given to superiors for disposition (Budiman, 2020). The volume of tasks received by the employee is on average 25 to 30 incoming letters per day, but because employees are accustomed to procrastinating their duties, every day that should be able to complete 20-25 letters is finally able to complete the registration of 10 incoming letters.…”