Asia Pacific Fraud Journal
Vol 3, No 2 (2018): Volume 3, No.2nd Edition (July-December 2018)

THE PHENOMENON OF LEADERSHIP IN CONGLOMERATE SUBSIDIARIES IN CREATING ANTI-FRAUD CULTURE

Mustika Prabaningrum Kusumawati (Faculty of Law of Universitas Islam Indonesia (UII), Yogyakarta, Indonesia)
Ari Nur Rahman (Indonesia Eximbank - Lembaga Pembiayaan Ekspor Indonesia (LPEI))
Panzi Aulia Rahman (PT. PLN (Persero) - Alumni of Faculty of Economics of Universitas Islam Indonesia (UII))



Article Info

Publish Date
04 Feb 2019

Abstract

Leadership is a process of influencing leaders and followers to achieve organizational goals through change, where there are elements of Leader-Followers, Influence, Organizational Objectives, Change, and People. The existence of a corporate conglomerate can create an interconnected fraud link between conglomerate subsidiaries. Two main factors are the strong culture of nepotism and mental readiness of the heads of subsidiaries which are usually mostly employees placed from the holding company.Being a whistleblower is a step to get to a tiger cage, so if one of the tigers can be caught, then the other tiger is ready to pounce and make it a meal. One factor of ineffectiveness of the whistleblowing system (WBS) as part of the internal company or state institution, is the low level of employee or community participation due to fear of the consequences of being a whistleblower, so whistleblowing system (WBS) only becomes a system contained within a company to qualify for GCG sustainability.The ineffectiveness of the whistleblowing system (WBS) and the occurrence of social inequality, especially on income or salary among employees of the same rank, but having the background as the genuine employees of subsidiaries with former employees or placements of the holding company can create intentions to commit fraud or corruption within the internal conglomerate subsidiaries.

Copyrights © 2018






Journal Info

Abbrev

apf

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

ASIA PACIFIC FRAUD JOURNAL (APFJ) firstly published by Association of Certified Fraud Examiners (ACFE) Indonesia Chapter in 2016. APFJ registered on CrossRef, then every article published di APFJ has Digital Object Identifier (DOI). APFJ published research and review articles. APFJ also published ...