Abstract

Law is the procedure to maintain harmony and balance within society. While humans were originally the only subjects of law, the industrial revolution led to the rise of corporate giants that now hold more wealth than some small national economies, placing themselves as major subjects of law. Every corporation is led by a CEO who directs policies primarily focused on earning profit. Although capital is collected from the general public, a few wealthy families often control the corporate world in practice. Corporate fraud has become a global issue, but it can be managed by clearly separating personal and corporate funds, which is vital for ethical business conduct. Ethical dilemmas frequently arise from the conflicting interests of different parties. Managing these frauds involves two main areas: Corporate Governance and Corporate Social Responsibility (CSR). Corporate Governance is a system of processes and principles that ensures a company is run fairly and transparently. CSR provides the philosophical foundation for ethical behavior, helping a business become effective while also acting as a just member of society. It ensures the business follows principles of justice. The author suggests that the solution to corporate fraud lies in combining the strengths of both corporate governance and corporate social responsibility.

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