Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia

Research Article

Fraud Frevention for Sustainable Social Enterprise Using Participative Social Governance

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  • @INPROCEEDINGS{10.4108/eai.13-8-2019.2294260,
        author={Rudy  Suryanto and Nafsiah  Mohammed and Rizal  Yaya},
        title={Fraud Frevention for Sustainable Social Enterprise Using Participative Social Governance},
        proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICFF},
        year={2020},
        month={5},
        keywords={social enterprise fraud prevention participative social governance},
        doi={10.4108/eai.13-8-2019.2294260}
    }
    
  • Rudy Suryanto
    Nafsiah Mohammed
    Rizal Yaya
    Year: 2020
    Fraud Frevention for Sustainable Social Enterprise Using Participative Social Governance
    ICFF
    EAI
    DOI: 10.4108/eai.13-8-2019.2294260
Rudy Suryanto1,*, Nafsiah Mohammed2, Rizal Yaya1
  • 1: Muhammadiyah Yogyakarta University
  • 2: Universiti Teknologi Mara
*Contact email: rdsuryanto@gmail.com

Abstract

Social enterprise is not immune from fraud. As social enterprise is growing, there are some risks of fraud occurrance. Therefore, the purpose of this paper are to discuss types of frauds risks in Indonesian social enterprise and the effective ways to prevent it. This study used case study in one of social enterprise in Indonesia, that is at Panggungharjo, Indonesia. Panggungharjo has Village-owned Enterprise that manage waste management as its social business. The finding of this study indicates that there are three types of fraud occurred in Indonesian social enterprise. These types of fraud could be prevented by engaging community in decision making and monitoring process which are known as participative social governance. This study argue that participative social governence is more effective in fraud prevention rather than external audit and monitoring. The study will be useful for scholars, policy makers and regulators who are interested in Indonesian social enterprise.