Governance and regulation of aligning ISO 37001 in mitigating corporate bribery risks

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Abstract

The purpose of this paper is to examine how corporate social responsibility (CSR) and good corporate governance (GCG) can reduce the occurrence of bribery cases in companies. The research object for this study was ISO 37001. The theoretical foundations used for this study were adopted from Veselovská, Závadský, and Závadská (2020) and Méan and Gehring (2018), focusing on the implementation of ISO 37001 to mitigate bribery risks in reinforcing CSR. A qualitative research method produces descriptive data in words and notes related to meaning, values, and understanding with a doctrinal and social approach. The socio-legal research approach is used to explore primary data in the form of values and interpret the behavior of corporations and legal institutions with an interest in preventing corruption by corporations. The results reveal that the implementation of GCG in the company will minimize the opportunistic nature of management so that it has an impact on improving company performance and supporting the prevention of bribery in company performance. Likewise, the role of a good organizational culture is very important in anticipating opportunistic behavior from a handful of parties who still commit bribery for their own interests and harm other parties.

Keywords: Corporate Social Responsibility, Good Corporate Governance, Bribery, Corporate Ethics, Indonesia

Authors’ individual contribution: Conceptualization — U.R.; Methodology — U.R.; Validation — P.; Formal Analysis — U.R.; Investigation — P.; Resources — P.; Data Curation — U.R.; Writing — Original Draft — U.R. and P.; Writing — Review & Editing — U.R.; Visualization — P.; Supervision — U.R.; Project Administration — P.

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

JEL Classification: A2, G3, G38, K2

Received: 11.03.2022
Accepted: 17.10.2022
Published online: 19.10.2022

How to cite this paper: Rozah, U., & Pujiyono. (2022). Governance and regulation of aligning ISO 37001 in mitigating corporate bribery risks. Corporate Law & Governance Review, 4(2), 17–26. https://doi.org/10.22495/clgrv4i2p2