Ethics in Accounting

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General Data Protection Regulation (GDPR)

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Ethics in Accounting

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union in 2018 to enhance individuals' control over their personal data and establish stringent requirements for businesses that process such data. GDPR aims to ensure data privacy and security, requiring organizations to implement strict measures to protect personal information and uphold the rights of data subjects, which ties directly into broader concepts of data privacy and security.

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5 Must Know Facts For Your Next Test

  1. GDPR applies to all organizations operating within the EU, as well as those outside the EU that offer goods or services to EU citizens or monitor their behavior.
  2. Individuals have enhanced rights under GDPR, including the right to access their data, the right to rectify inaccuracies, and the right to erasure, commonly known as the 'right to be forgotten.'
  3. Organizations must appoint a Data Protection Officer (DPO) if they handle large amounts of personal data or special categories of sensitive data.
  4. Non-compliance with GDPR can lead to hefty fines, which can be up to โ‚ฌ20 million or 4% of annual global turnover, whichever is higher.
  5. GDPR emphasizes transparency by requiring organizations to inform individuals about how their personal data is collected, used, and shared through clear privacy notices.

Review Questions

  • How does GDPR enhance individual rights regarding personal data compared to previous regulations?
    • GDPR significantly enhances individual rights by granting individuals greater control over their personal data than previous regulations. It introduces specific rights such as the right to access, the right to rectify inaccurate data, and the right to erasure. These rights empower individuals to request transparency from organizations on how their data is used and provide them with mechanisms to protect their privacy more effectively.
  • What are the key obligations imposed on organizations under GDPR, and how do these obligations promote data security?
    • Organizations under GDPR are required to implement robust measures for data protection, including conducting Data Protection Impact Assessments (DPIAs), maintaining detailed records of processing activities, and ensuring that personal data is collected only for specific purposes. These obligations promote data security by mandating that organizations proactively assess risks, limit unnecessary data collection, and safeguard individuals' information against breaches or misuse.
  • Evaluate the impact of GDPR on global data protection practices and how it has influenced other countries' regulations.
    • The implementation of GDPR has had a significant impact on global data protection practices by setting a high standard for privacy and security that many countries aspire to meet. This regulation has prompted nations outside the EU to rethink their own data protection laws and adopt similar measures to ensure compliance for international businesses. Consequently, several countries have revised or enacted legislation influenced by GDPR principles, emphasizing the need for accountability and transparency in handling personal data across borders.

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