Implementation of Anti-Corruption in Private Sector in Indonesia from GRC Perspective with Islamic Values
Ratna Januarita (a); Jejen Hendar (b)
(a) Faculty of Law
Universitas Islam Bandung
Bandung, Indonesia
(b) same as above
Abstract
Good corporate governance practice is a prerequisite in doing business in modern world, especially in industry era 4.0. Competition and rapid changing are the unavoidable challenges faced by industries. In order to cope with that critical circumstances, companies should keep developing and improving its entity to be more resilient, robust and agile. In terms of that, there are some initiatives to integrate the aspects of governance, risk management and compliance as the integrated GRC approach. This practice is becoming a common business platform in many sectors as its benefits were being taken by companies in the private sector. The practices are endorsed through mandatory-based by regulators or even voluntary-driven from the company. However, practices that against anti-corruption regime were also still occurred in some companies, such as fraud dealing with other companies or institutions in public sector. The lack and lax of law and regulation regarding anti-corruption in private sector contributes the undesired circumstances, includes unfair business practices, market inefficiency, legal uncertainty, etc. Hence, this paper aims to analyse the sufficiency of available law and regulations concerning with the anti-corruption in private sector. Moreover, internal and external approach towards effective good corporate governance through GRC perspective will be discussed including Islamic values. Recommendation on framework solution will be offered finally. This paper methodology will use normative juridical approach with descriptive and comparative analysis as the research specification.
Keywords: anti-corruption, GRC, governance, risk management, compliance, islamic values
Topic: Law