The Mediating Effect Of Employee Compensation On Integrity And Corruption Risk

Abstract

Risk management is an important agenda to prevent the unethical behaviour in an organization. In facing the challenging world of business and corruption issues, integrity and employee compensation are important factors in order to develop the organization success. Thus, it is important for the organization to focus on developing and enhancing the quality of employee in terms of ethical, behaviour and moral conduct. The aim of this research is to examine the effect of integrity in corruption risk mediated by employee compensation. The study involves only 50 respondents as it is a pilot study of the actual survey.The sample are respondents from 10 different organization. This study involves three different organizations which are federal government, state government and statutory bodies. The respondents involved in this study are whom that have an authority in making a decision for the organization. The analysis of bootstrapping for this study represent that, all the hypotheses are accepted with the t-value above 1.65 respectively. Hence, it shows that, integrity and employee compensation play important roles in order to prevent the risk of corruption in the organization. Other than that, employee compensation also mediates the relationship between variables