Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari

The Association of Certified Fraud Examiners (ACFE) in 2019 estimates that the world loses USD6.3 billion dollars due to integrity violations, such as fraud and corruption. Governments are the highest spending organisations with an average of 41.9% of Gross Domestic Capita (GDP), as such governments...

Full description

Saved in:

Bibliographic Details
Main Author:	Zahari, Afzal Izzaz
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Employee theft Employee crimes Crimes against employees Including violence in the workplace
Online Access:	https://ir.uitm.edu.my/id/eprint/60668/1/60668.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.60668
record_format	uketd_dc
spelling	my-uitm-ir.606682024-02-09T00:23:01Z Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari 2020-08 Zahari, Afzal Izzaz Employee theft. Employee crimes. Crimes against employees. Including violence in the workplace Fraud. Swindling. Confidence games The Association of Certified Fraud Examiners (ACFE) in 2019 estimates that the world loses USD6.3 billion dollars due to integrity violations, such as fraud and corruption. Governments are the highest spending organisations with an average of 41.9% of Gross Domestic Capita (GDP), as such governments are highly vulnerable to experience the ill effects of integrity violation. Integrity violation causes economic loss and has a negative impact on the organisation through an increase in costs of service delivery, the loss of income, reduced productivity and efficiency. Past studies on integrity violation tend to concentrate on the private sector in developed countries. Currently, limited studies focused on the integrity violation in the public sector, especially in the context of developing countries that warrant more studies to be conducted. According to Organisational Fraud Triangle Theory (OFTT), three main factors are contributing to integrity violation; leadership, ethical culture, and control systems. Leaders are responsible for shaping the tone from the top of the organisation. Strong organisational ethical cultures promote a positive work environment amongst the employees. Ethical culture infuses higher levels of understanding and improved reason towards the repercussions of conducting integrity violations. Internal control is a control mechanism that monitors and mitigates potential integrity violation from taking place in the organisation. Currently, limited empirical studies examined the three factors contributing to integrity violation, as proposed by OFTT. This study aims to examine whether these three factors affect the levels of integrity violation. Past studies did not examine all the three factors simultaneously in a single study to identify which of the elements has significant impacts on integrity violation. This study subsequently investigated whether integrity climate has any direct effect on integrity violations and if it mediates the relationship between organisational fraud triangle components and integrity violations. There were 382 returned questionnaire surveys (68.34%) out of the 559 questionnaire surveys distributed to Malaysian government departments. The findings show that ethical leadership and integrity climate have a significant relationship with integrity violations. However, internal control systems were not a significant factor in integrity violations in the Malaysian government department. These findings indicate that ethical leadership, ethical culture, and integrity climate are important components that can be used to mitigate integrity violations. The organisational strategy to improve the overall integrity could be focused on aspects of leadership quality, improving ethical culture, and infusing positive working environment through integrity climate. The overalls results suggest that effective organisational management should focus on the development of ethical leadership structures, promoting ethical culture values and a healthy integrity climate in order to control or mitigate the levels of integrity violation. 2020-08 Thesis https://ir.uitm.edu.my/id/eprint/60668/ https://ir.uitm.edu.my/id/eprint/60668/1/60668.pdf text en public phd doctoral Universiti Teknologi MARA Accounting Research Institute Said, Jamaliah
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Said, Jamaliah
topic	Employee theft Employee crimes Crimes against employees Including violence in the workplace Employee theft Employee crimes Crimes against employees Including violence in the workplace
spellingShingle	Employee theft Employee crimes Crimes against employees Including violence in the workplace Employee theft Employee crimes Crimes against employees Including violence in the workplace Zahari, Afzal Izzaz Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
description	The Association of Certified Fraud Examiners (ACFE) in 2019 estimates that the world loses USD6.3 billion dollars due to integrity violations, such as fraud and corruption. Governments are the highest spending organisations with an average of 41.9% of Gross Domestic Capita (GDP), as such governments are highly vulnerable to experience the ill effects of integrity violation. Integrity violation causes economic loss and has a negative impact on the organisation through an increase in costs of service delivery, the loss of income, reduced productivity and efficiency. Past studies on integrity violation tend to concentrate on the private sector in developed countries. Currently, limited studies focused on the integrity violation in the public sector, especially in the context of developing countries that warrant more studies to be conducted. According to Organisational Fraud Triangle Theory (OFTT), three main factors are contributing to integrity violation; leadership, ethical culture, and control systems. Leaders are responsible for shaping the tone from the top of the organisation. Strong organisational ethical cultures promote a positive work environment amongst the employees. Ethical culture infuses higher levels of understanding and improved reason towards the repercussions of conducting integrity violations. Internal control is a control mechanism that monitors and mitigates potential integrity violation from taking place in the organisation. Currently, limited empirical studies examined the three factors contributing to integrity violation, as proposed by OFTT. This study aims to examine whether these three factors affect the levels of integrity violation. Past studies did not examine all the three factors simultaneously in a single study to identify which of the elements has significant impacts on integrity violation. This study subsequently investigated whether integrity climate has any direct effect on integrity violations and if it mediates the relationship between organisational fraud triangle components and integrity violations. There were 382 returned questionnaire surveys (68.34%) out of the 559 questionnaire surveys distributed to Malaysian government departments. The findings show that ethical leadership and integrity climate have a significant relationship with integrity violations. However, internal control systems were not a significant factor in integrity violations in the Malaysian government department. These findings indicate that ethical leadership, ethical culture, and integrity climate are important components that can be used to mitigate integrity violations. The organisational strategy to improve the overall integrity could be focused on aspects of leadership quality, improving ethical culture, and infusing positive working environment through integrity climate. The overalls results suggest that effective organisational management should focus on the development of ethical leadership structures, promoting ethical culture values and a healthy integrity climate in order to control or mitigate the levels of integrity violation.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Zahari, Afzal Izzaz
author_facet	Zahari, Afzal Izzaz
author_sort	Zahari, Afzal Izzaz
title	Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
title_short	Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
title_full	Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
title_fullStr	Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
title_full_unstemmed	Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari
title_sort	integrity violations in malaysian government departments: the organisational fraud triangle perspective / afzal izzaz zahari
granting_institution	Universiti Teknologi MARA
granting_department	Accounting Research Institute
publishDate	2020
url	https://ir.uitm.edu.my/id/eprint/60668/1/60668.pdf
_version_	1794191834914750464

Integrity violations in Malaysian government departments: the organisational fraud triangle perspective / Afzal Izzaz Zahari

Similar Items