The level of seriousness of fraud

Oct 13, 2025 by wbrum.org 11 views

The Influence of Professional Commitment, Ethical Environment, Personal Cost, Machiavellian Nature, and the Level of Seriousness of Fraud on the Reporting of Fraud at the Medan Polonia Tax Service Office

Introduction

Fraud is a significant problem in many organizations, including the Medan Polonia Tax Service Office. It can have serious consequences, including financial losses, damage to reputation, and erosion of trust among stakeholders. In this study, we aim to investigate the influence of various factors on the intention of reporting fraud among employees of the Medan Polonia Tax Service Office. Specifically, we examine the effects of professional commitment, ethical environment, personal costs, Machiavellian nature, and the level of seriousness of fraud on the intention of reporting fraud.

Methodology

This study uses a quantitative approach, with a research population consisting of all employees in the Pratama Tax Office Medan Polonia. The sampling method used is purposive sampling, where samples are selected based on certain criteria. A total of 65 questionnaires were distributed, and 57 were used for analysis. The statistical method applied is multiple linear regression analysis, with the use of IBM SPSS Statistics 25 software to analyze data.

Results

The results of this study show that:

Professional commitment has a significant positive effect on the intention of reporting fraud. When employees feel they have ethical and professional responsibilities, they tend to be more courageous to take action to report violations.
Ethical environment also has a significant positive influence on the intention of reporting fraud. A positive ethical environment can create a work climate that supports cheating reporting behavior.
Personal costs have a significant negative effect on the intention of reporting fraud. Personal costs associated with reporting fraud, such as the risk of losing jobs or facing conflicts with coworkers, can hamper employee intention to report.
Machiavellian nature has a significant negative effect on the intention of reporting fraud. Individuals with high Machiavellian nature tend to be more concerned with personal interests and manipulation, so it is less likely to report fraud.
The level of seriousness of fraud has a significant positive effect on the intention of reporting fraud. The more serious the fraud that occurs, the more likely employees will report it.

Analysis of the Effect of Factors on the Intentions of Reporting Cheating

1. Professional Commitment

Professional commitment plays an important role in encouraging employees to report the fraud they encounter. When employees feel they have ethical and professional responsibilities, they tend to be more courageous to take action to report violations. Therefore, strengthening professional commitment can be a strategic step to increase ethical compliance in the organization.

2. Ethics Environment

A positive ethical environment can create a work climate that supports cheating reporting behavior. If the organization provides support and creating a safe communication channel for employees to report fraud, their reporting intentions will increase. Conversely, an unethical environment can suppress individuals to remain silent even though they know of cheating.

3. Personal Costs

Personal costs associated with reporting fraud, such as the risk of losing jobs or facing conflicts with coworkers, can hamper employee intention to report. Therefore, it is important for the organization to minimize this risk by providing protection to the reporter, so that employees feel safe to report without having to worry about the negative impacts on their careers.

4. Machiavellian Nature

Individuals with high Machiavellian nature tend to be more concerned with personal interests and manipulation, so it is less likely to report fraud. Organizations need to assess and understand the personality characteristics of their employees, as well as implement strategies to improve integrity and ethics in the workplace.

5. The Level of Seriousness of Fraud

The more serious the fraud that occurs, the more likely employees will report it. This level of seriousness is often directly proportional to the impact on the organization, so that employees feel encouraged to take action for the common good.

Conclusion

In the context of the Medan Polonia Tax Service Office, efforts to encourage reporting of fraud must involve strengthening professional commitment, the creation of a conducive ethical environment, reducing personal costs, and understanding of the personality nature of employees. By paying attention to these factors, it is expected that fraud reporting measures can increase, which in turn will increase transparency and integrity in the organization. This study provides valuable insight for management to formulate more effective strategies in handling and preventing fraud in the work environment.

Recommendations

Based on the findings of this study, we recommend that the Medan Polonia Tax Service Office:

Strengthen professional commitment by providing training and development programs that emphasize the importance of ethics and integrity.
Create a conducive ethical environment by establishing a safe and supportive communication channel for employees to report fraud.
Reduce personal costs by providing protection to the reporter and minimizing the risk of negative impacts on their careers.
Understand the personality nature of employees by assessing and understanding their personality characteristics.
Increase transparency and integrity by implementing strategies to prevent and detect fraud.

By implementing these recommendations, the Medan Polonia Tax Service Office can increase the likelihood of employees reporting fraud, which in turn will increase transparency and integrity in the organization.
Frequently Asked Questions (FAQs) about the Influence of Professional Commitment, Ethical Environment, Personal Cost, Machiavellian Nature, and the Level of Seriousness of Fraud on the Reporting of Fraud at the Medan Polonia Tax Service Office

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the influence of various factors on the intention of reporting fraud among employees of the Medan Polonia Tax Service Office.

Q: What are the factors that were examined in this study?

A: The factors that were examined in this study include professional commitment, ethical environment, personal costs, Machiavellian nature, and the level of seriousness of fraud.

Q: What is the significance of professional commitment in reporting fraud?

A: Professional commitment plays an important role in encouraging employees to report the fraud they encounter. When employees feel they have ethical and professional responsibilities, they tend to be more courageous to take action to report violations.

Q: How does an ethical environment affect the intention of reporting fraud?

A: A positive ethical environment can create a work climate that supports cheating reporting behavior. If the organization provides support and creating a safe communication channel for employees to report fraud, their reporting intentions will increase.

Q: What is the impact of personal costs on the intention of reporting fraud?

A: Personal costs associated with reporting fraud, such as the risk of losing jobs or facing conflicts with coworkers, can hamper employee intention to report.

Q: How does Machiavellian nature affect the intention of reporting fraud?

A: Individuals with high Machiavellian nature tend to be more concerned with personal interests and manipulation, so it is less likely to report fraud.

Q: What is the relationship between the level of seriousness of fraud and the intention of reporting fraud?

A: The more serious the fraud that occurs, the more likely employees will report it.

Q: What are the implications of this study for the Medan Polonia Tax Service Office?

A: The findings of this study suggest that the Medan Polonia Tax Service Office should strengthen professional commitment, create a conducive ethical environment, reduce personal costs, and understand the personality nature of employees to increase the likelihood of employees reporting fraud.

Q: What are the recommendations of this study for the Medan Polonia Tax Service Office?

A: The recommendations of this study include:

Strengthening professional commitment by providing training and development programs that emphasize the importance of ethics and integrity.
Creating a conducive ethical environment by establishing a safe and supportive communication channel for employees to report fraud.
Reducing personal costs by providing protection to the reporter and minimizing the risk of negative impacts on their careers.
Understanding the personality nature of employees by assessing and understanding their personality characteristics.
Increasing transparency and integrity by implementing strategies to prevent and detect fraud.

Q: What are the limitations of this study?

A: The limitations of this study include the use of a small sample size and the reliance on self-reported data.

Q: What are the future research directions based on the findings of this study?

A: Future research directions include investigating the impact of other factors on the intention of reporting fraud, such as organizational culture and leadership style, and examining the effectiveness of different strategies for preventing and detecting fraud.