Analysis of Moral Reasoning in Fraud Prevention And Ethical Culture As Moderation Variables

Abstract

The purpose of this research is to find empirical evidence of the effect of moral reasoning on preventing fraud with ethical culture as a moderating variable. The research method used is descriptive verification method with the population in this study namely leaders, managers and employees of State-Owned Enterprises (BUMN) in the city of Bandung using saturated sampling. The data used in this study are primary data by distributing questionnaires to 30 respondents, by testing the hypothesis of SPSS version 20 regression analysis. The results show that moral reasoning has a significant effect on preventing fraud and organizational ethical culture is unable to moderate the effect of moral reasoning on preventing fraud. This is because moral reasoning is a behavior that lies within a person so that it is difficult to be controlled by others. Each individual has their own view of what is the right thing. While ethical culture is a culture that is created and developed by outsiders such as organizations that are in the work environment. These two things are different, thus making the ethical culture of the organization unable to be a moderator for the relationship.