Abstract

Starting in the early 2000s, customers began to believe the market was unfair due to the abundance of corporate fraud and scandals that arose during this time. Although CSR is a form of business ethics, numerous instances of suspected fraud continue to occur, taking advantage of CSR funds. Fraud always remains an issue for organisations due to the increasing number of fraud occurrences, resulting in increasing losses. The middle and top-level management could be involved in CSR funds' fraud distribution since they can create a company's CSR funds disbursement policy. This dissertation aims to investigate the relationship between Fraud Pentagon Theory (FPT) and Machiavellianism in committing fraud in CSR. The research examines people's intentions when some conditions appear to support them in committing fraud. This research uses a research design that combines experimental and survey methods with 313 subjects divided into 14 sessions. This study identifies statistically significant evidence indicating that individuals are more likely to engage in fraudulent activities under conditions of high pressure and opportunity, alongside rationalisation. Specifically, individuals with environmental conditions that have high opportunities and pressures, will be more susceptible to fraud compared to those experiencing low levels of the pressure and opportunity. In contrast, the constructs of capability, arrogance, and Machiavellian personality do not serve as direct influences on fraudulent behavior. The analysis further reveals that Machiavellian personality can moderate the relationship between pressure, rationalisation, and capability, suggesting that individuals with high Machiavellian traits may exploit their circumstances more effectively when under significant pressure. …víceméně