Will the integrated GRC implementation be effective against corruption?

Abstract

Purpose Business Principles for Countering Bribery, 2003, helps companies design and implement anti-bribery policies, one of anti-corruption. Since then, the business environment has changed, can carry out anti-corruption activities from within the organization through a management system. Currently, the business world recognizes the existence of an integrated governance, risk management and compliance (GRC), where one of the goals is to overcome the risk of corruption in the organization. Therefore, this study aims to clarify the concept of integrated GRC implementation within the organization through previous studies from 2007 to 2021. Design/methodology/approach This study was designed in a systematic literature review based on five journal publishers’ articles/journals from the Web of Science, Scopus and Google Scholar databases. Keywords used to search consist of Anti-Corruption (AC); Governance (G); Risk Management (RM); Compliance (C); GRC. The four keywords G, RM, C and GRC, are filtered based on articles that correlate with AC. Findings Overall, this review shows a few concepts for integrated GRC implementation in organizations that effectively support the prevention and detection of corruption. Although no empirical research has been found in the literature review, these three GRC silos – governance, risk management and compliance – support anti-corruption. In other words, it is hoped that the successful implementation of the integrated GRC in the future can improve the anti-corruption capabilities to be achieved in every organization. Research limitations/implications Research only discusses one internal function within the organization, of the many internal functions that are known to detect and prevent corruption. Practical implications Organizations can use this review to understand the importance of internal functions in combating the risk of corruption with a more consistent and committed commitment to implementing an integrated GRC. Originality/value As far as the authors’ search is concerned, there is no review of the concept of integrated GRC implementation against anti-corruption. It invites researchers to examine the actual implementation of this integrated GRC in organizations.

When internal organizational factors improve detecting corruption in state-owned companies

“…The implementation of integrated GRC is increasing among state-owned companies based on its realized value and can be used as a tool for detecting corruption ( H2 ), in line with Achmad Dairi (2021), Chuprunov (2018); and Siahaan et al (2022). However, it is necessary to increase the implementation of clarity of duties and responsibilities because of overlapping or blank spots related to duties and responsibilities.…”

“…Siahaan et al (2022), in their systematic literature review, invite empirical research on the effectiveness of the integrated GRC implementation against corruption. So this research is an answer to the invitation empirically by examining other interrelated internal functions in state-owned companies in Indonesia.…”

“…This paper uses three functions within the organization that plays a role in increasing the ability to detect corruption: namely, first, integrated governance, risk management and compliance (GRC) implementation as a new system that can serve as an early warning system in anti-corruption efforts (Siahaan et al , 2022); second, internal auditors who have adequate knowledge about fraud (Moyes, 2011); and third, management commitment that reduces the level of corruption risk through ethical values, operational style, philosophy and board of directors participation (Kassem and Higson, 2016). Although these three factors are only some that can overcome the inability to detect corruption, this study proves that these three factors can provide hope in fighting corruption in organizations.…”

Polemic on Corruption Cases in Bengkulu Province during Ridwan Mukti's Reign

“…Public services have become bad, only those who are able to give bribes will get good services. This condition can give rise to social unrest and inequality, even social anger which can result in the downfall of bureaucrats (Siahaan et al, 2023;Siddiquee & Zafarullah, 2022).…”

“…The younger generation must receive education that strengthens the values of integrity, honesty and responsibility. Anti-corruption education programs must be integrated into the education curriculum (Siahaan et al, 2023;Siddiquee & Zafarullah, 2022).…”