Business competition compliance program as an effort to build a culture of obeying the law

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Mohammad Reza ORCID logo, Muhammad Hawin, Ningrum Natasya Sirait

https://doi.org/10.22495/clgrv7i3p3

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Abstract

This study investigates implementing a business competition compliance program as a mechanism to foster a culture of lawfulness among corporate entities. Legal development comprises three interrelated subsystems: legal structure, legal substance, and legal culture, all of which play a pivotal role in achieving the objectives of law enforcement. In contemporary legal systems, particularly in democratic states, a paradigm has shifted towards preventive and humanistic approaches rather than repressive measures. Reflecting this global trend, Indonesian legal politics now emphasize preventive strategies in law enforcement, with case handling serving as a last resort. The Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU) has introduced the Business Competition Compliance Program to encourage businesses to align their operations with the principles of fair competition. This normative juridical study highlights that successful compliance requires structured corporate commitment, fostering leadership engagement, and instilling sustainable legal culture. Findings reveal that effective compliance initiatives enhance organizational resilience, reduce regulatory conflicts, and ensure adherence to fair competition principles. This study also contributes to the growing discourse on integrating regulatory frameworks into corporate governance, providing actionable insights for policymakers and business leaders.

Keywords: Compliance, Competition, Legal Culture

Authors’ individual contribution: Conceptualization — M.R.; Methodology — M.R.; Writing — Original Draft — M.R.; Writing — Review & Editing — M.H. and N.N.S.; Supervision — M.H. and N.N.S.; Fund Acquisition — M.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K21, K42, L44

Received: 20.09.2024
Revised: 30.11.2024; 28.12.2024; 30.06.2025
Accepted: 18.07.2025
Published online: 22.07.2025

How to cite this paper: Reza, M., Hawin, M., & Sirait, N. N. (2025). Business competition compliance program as an effort to build a culture of obeying the law. Corporate Law & Governance Review, 7(3), 28–36. https://doi.org/10.22495/clgrv7i3p3