Corporate Governance, Kepemimpinan CEO, dan Risiko Fraud terhadap Keberlanjutan Bisnis

Abstrak

This study examined the relationship between Chief Executive Officer leadership, corporate governance, fraud risk, and business sustainability. Issues related to corporate governance and organizational fraud have attracted increasing attention because they may affect corporate integrity and long-term business sustainability. The study employed a qualitative descriptive approach using a systematic literature review to synthesize prior research on executive leadership, corporate governance, organizational fraud, and business sustainability. The analysis integrated several theoretical perspectives, including upper echelon theory, corporate governance theory, and fraud pentagon theory to explain the dynamics between leadership characteristics, governance mechanisms, and fraud risk. The findings indicated that the characteristics of Chief Executive Officer leadership influenced the effectiveness of corporate governance practices within organizations. Excessive executive power and certain psychological traits of top executives were associated with higher fraud risk when governance mechanisms and internal oversight were weak. Conversely, strong corporate governance practices improved transparency, strengthened managerial supervision, and reduced the likelihood of fraudulent activities. The study also demonstrated that organizational fraud negatively affected business sustainability by reducing investor trust, damaging corporate reputation, and disrupting operational stability. Therefore, the integration of ethical executive leadership and effective corporate governance practices played an essential role in maintaining sustainable business performance and mitigating fraud risk in organizations.