Abstract: The scope of corporate governance is broad. Apart from the institutional element, corporate governance also includes a social element. Namely, through corporate governance in the organization, the conditions for creating an ethical and reliable business environment are ensured. Good corporate governance in an organization can have a positive effect on increasing the organization capacity to reduce the risk of corruption and fraud. Through the establishment of clear and comprehensive written policies and procedures, the organization can ensure that all employees in the organization understand their responsibilities and expectations regarding business compliance and financial reporting. By defining the roles and responsibilities of everyone in the organization, as well as by creating an efficient system of supervision and eliminating opportunities for abuse, the practice of good corporate governance can suppress the occurrence of corrupt activities at the organizational level.