The Effects of Whistleblowing Systems, Individual Morality, and Integrity on Zakat Institution Performance: The Mediating Role of Fraud Prevention
Abstract
This study examines the effects of whistleblowing systems, individual morality, and integrity on zakat institution performance, with fraud prevention serving as a mediating variable. Data were collected from 109 employees of licensed zakat institutions in Indonesia and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that whistleblowing systems, individual morality, and integrity significantly enhance fraud prevention. Fraud prevention, in turn, positively affects zakat institution performance. While whistleblowing systems and individual morality do not directly influence organizational performance, their effects are transmitted through fraud prevention. In contrast, integrity has both direct and indirect effects on zakat institution performance through fraud prevention. This study contributes to the zakat governance literature by demonstrating the strategic role of fraud prevention in linking governance mechanisms and ethical values to organizational performance. The findings suggest that strengthening whistleblowing systems, fostering ethical awareness, and promoting integrity among employees are essential for improving accountability, maintaining public trust, and enhancing the performance of zakat institutions.
Downloads
References
Abdullah, H., Abdullah, A. M., Shahid, M. K., Mansor, M., & Islam, T. (2025). Validating whistleblowing likelihood scale – Kohlberg and Maqasid Shariah perceptions. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-03-2025-0116
Abdullah, H., Mansor, M., Wan Abdullah, W. A., Sheikh Ahmad Tajuddin, S. A. F., Mohd Zain, F. A., Abdullah, A. M., & Sharif, M. F. M. (2026). Voices of integrity: unveiling whistleblowing culture through the lens of Maqasid Shariah. Journal of Islamic Accounting and Business Research, 1–24. https://doi.org/10.1108/JIABR-03-2025-0183
Abdullah, H., Mohd Zain, F. A., Sheikh Ahmad Tajuddin, S. A. F., A Rahim, N. A. A., Che Haron, H. I., & Abdul Ghani, M. T. (2024). Whistleblowing likelihood scale in the lights of Kohlberg and Maqasid Shariah. International Journal of Islamic and Middle Eastern Finance and Management, 17(5), 974–990. https://doi.org/10.1108/IMEFM-12-2023-0462
Al-Thani, N., & Wright, S. (2026). Whistleblowing in Emerging Financial Systems: Model Development and Mixed-Methods Evidence from Banks in Qatar. Journal of Risk and Financial Management, 19(1). https://doi.org/10.3390/jrfm19010033
Amalia, E. (2019). Good governance for Zakat institutions in Indonesia: A confirmatory factor analysis. Pertanika Journal of Social Sciences and Humanities, 27(3), 1815–1827.
Badan Amil Zakat Nasional (BAZNAS). (2024). Indonesia Zakat Outlook 2024. Pusat Kajian Strategis BAZNAS.
Bakri, M., Hanim, H., Mohamed, N., & Said, J. (2017). Mitigating asset misappropriation through integrity and fraud risk elements: Evidence emerging economies. J. Fin. Crime, 24, 242.
Bin-Nashwan, S. A. (2021). Does trust in zakat institution enhance entrepreneurs’ zakat compliance? Journal of Islamic Accounting and Business Research, 12(5), 768–790. https://doi.org/10.1108/JIABR-09-2020-0282
Cressey, D. R. (1953). Other People’s Money: A Study in the Social Psychology of Embezzlement. Free Press.
Febriandika, N. R., & Kusuma, D. G. (2023). Zakat compliance behavior in formal zakat institutions: An integration model of religiosity, trust, credibility, and accountability. International Journal of Advanced and Applied Sciences, 10(6), 187–194. https://doi.org/10.21833/ijaas.2023.06.022
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press. https://doi.org/10.1017/CBO9781139192675
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7
Hak, N., Setiawan, R. A., & Setiawan, A. (2024). Synergising Normative and Cultural Frameworks in Reforming Core Principles for Effective Zakat Supervision in Indonesia. Manchester Journal of Transnational Islamic Law and Practice, 20(3), 302–316.
Hamdani, L., Sunarsih, S., Yusfiarto, R., Rizal, A., & Khoirunnisa, A. N. (2024). Social media, trust and intention to pay zakat through institution: lessons from Indonesian experience. Journal of Islamic Marketing, 15(9), 2399–2418. https://doi.org/10.1108/JIMA-01-2023-0016
Handoko, B. L., Febriyanne, E. C., & Ayuanda, N. (2025). Enhancing Fraud Prevention: Exploring the Interplay of Internal Control System, Organizational Culture, Internal Audit Roles and Online Whistleblowing Mechanisms. ACMLC 2024 - 2024 6th Asia Conference on Machine Learning and Computing, 46–52. https://doi.org/10.1145/3690771.3690783
Irianto, G., Novianti, N., Rosalina, K., & Firmanto, Y. (2012). INTEGRITY, UNETHICAL BEHAVIOR, AND TENDENCY OF FRAUD. EKUITAS (Jurnal Ekonomi Dan Keuangan), 16(2). https://doi.org/10.24034/j25485024.y2012.v16.i2.2320
Jamaludin, H., Zhang, H., Syed Salleh, S. N., & Lacheheb, Z. (2025). Trust as the engine of change: a conceptual model for trust building in zakat institutions. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-03-2024-0099
Kohlberg, L. (1971). Stages of Moral Development as a Basis for Moral Education. Center for Moral Education, Harvard University.
Maulani, S. N., Amalia, P. S., & Birton, M. N. A. (2024). Can Good Corporate Governance Moderates the Influence of Internal Control and Integrity towards Fraud Prevention? Journal of Accounting Science, 8(1), 1–21. https://doi.org/10.21070/jas.v8i1.1731
Paranoan, N., Padolo, A., Patiung, N., & Palalangan, C. A. (2024). Examining the integrity of whistleblowing systems and apparatus in the context of fraud prevention. International Journal of Public Policy and Administration Research, 11(4), 137–149. https://doi.org/10.18488/74.v11i4.4003
Qorny, F. N., Laela, S. F., & Avivy, A. L. F. (2024). Fraud Mitigation By Embodying Maqashid Sharia Values And Islamic Work Ethics. Jurnal Akuntansi Dan Keuangan Indonesia, 21(2). https://doi.org/10.21002/jaki.2024.10
Rifai, M. H., & Mardijuwono, A. W. (2020). Relationship between Auditor Integrity and Organizational Commitment to Fraud Prevention. Asian Journal of Accounting Research, 5(2), 315–325. https://doi.org/10.1108/AJAR-02-2020-0011
Sawmar, A. A. (2021). Enhancing zakat compliance through good governance: a conceptual framework. ISRA International Journal of Islamic Finance, 13(1), 136–154. https://doi.org/10.1108/IJIF-10-2018-0116
Sharif, A. A., & Osman, A. I. (2026). Assessing the effectiveness of internal auditors in fraud detection and prevention: a study of Somali Deposit Money Banks. International Journal of Disclosure and Governance. https://doi.org/10.1057/s41310-026-00378-8
Wahyuni-TD, I. S. (2021). The effects of good governance and fraud prevention on performance of the zakat institutions in Indonesia: a Sharīʿah forensic accounting perspective. International Journal of Islamic and Middle Eastern Finance and Management, 14(4), 692–712. https://doi.org/10.1108/IMEFM-03-2019-0089
Yulianti, L., Yadiati, W., Sukmadilaga, C., & Soemantri, R. (2025). Exploring The Mediating Effect Of Sharia Audit Quality In The Relationship Between Internal Audit Characteristics And Fraud Prevention. Corporate Law and Governance Review, 7(4), 78–89. https://doi.org/10.22495/clgrv7i4p8
Zakiy, M., & Satyarini, J. N. E. (2025). Becoming a whistleblower and the role of a leader: desires and barriers. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-06-2024-0173
Copyright (c) 2026 Neny Suhaeny, Sigid Eko Pramono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
