Asia Pacific Fraud Journal
E-ISSN: 2502-695X, ISSN: 2502-8731
Volume 4, Nomor 2 (July-December) 2019
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RESTORING THE CAPACITY OF LEADERSHIP AS ROLE
MODEL TO BUILD ANTI FRAUD CULTURE AND SYSTEM: A
STUDY OF INDONESIA
Esther Roseline
ARTICLE INFORMATION ABTRACT
Fraud poses an enormous threat to all kinds of organizations
Article History: worldwide, with its risks continue to increase in number and
Received May 30, 2018
complexity. In Indonesia itself, rampant fraud and corruption
Revised Jan 01, 2019
still inflict our business climate and impede our national
Accepted May 20, 2019
development ruthlessly. As the battle against fraud is evolving,
the role of leadership is widely recognized as the crucial element
JEL Classifications: in fraud management framework. Nonetheless, as much as
D73; M14; O21 many people’s trust towards leaders’ integrity seems to atrophy,
whether leadership is still able to make a difference remains a big
DOI:
question mark. With its capacity crippled by a vicious cycle of
10.21532/apfjournal.v4i2.112
fraud, the scope of leadership may be severely limited even if it
were possible. For this reason, it is important to realize that the
capacity of leadership needs to be restored in order to become
role model in building anti-fraud culture and system. Therefore,
the purpose of this paper is to explore accounts of leadership,
identify the impact of leadership on anti-fraud culture and
system, describe the way fraud works in undermining the
capacity of leadership, and finally to elaborate the solutions to
restore the capacity of leadership as role model to build anti-
fraud culture and system in an organization. To achieve these
goals, the author delves into various literature, journals, books,
reports, applicable laws and general principles of law, as well as
conducts an empirical research through a survey. The survey
was conducted with 358 respondents, of which the 142 are
Indonesian citizen working in public sector, and 216 in private
sector. Focusing on Indonesia, this research paper will reveal
the current public perception towards leadership, unfold the
real condition of leadership, discover an existing vicious cycle
of fraud that entraps leaders, and proffer strategy to solve this
problematic leadership issue.
INTRODUCTION increases, so is the proliferation of
The devastating global scourge of opportunities for fraud. All organizations
fraud poses a persistent challenge are subject to fraud risks which are
and an enormous threat to all kinds of impossible to be eliminated but “continue
organizations, regardless of the sizes and to grow in number and complexity.” On
types. As the globalization of finance the other hand, fraud is among the most
Corresponding author : Association of Certified Fraud Examiners (ACFE)
Address :- Indonesia Chapter
Email :
[email protected] © 2019
