The Effect of Distributive Justice in the Remaining Business Profits Distribution Scheme on the Potential of Fraud in Credit Distribution with ESG-Based Sustainable Profits as a Moderating Variable

This study aims to analyze the effect of distributive justice in the distribution of the Remaining Business Profits/RBP (=Sisa Hasil Usaha/SHU) on the potential of fraud in credit distribution with sustainable profits based on Environmental, Social, and Governance (ESG) as a moderating variable in cooperatives. The research is motivated by the importance of implementing the principle of justice in the distribution scheme of RBP as part of cooperative governance, which is expected to minimize the potential of fraud in the credit distribution process. Furthermore, ESG implementation is viewed as a sustainable governance approach that has the potential to strengthen the effectiveness of fraud control.

The study used a quantitative approach with a survey method by distributing questionnaires to 33 respondents consisting of cooperative administrators, supervisors, and managers. Data were analyzed using SPSS through validity tests, reliability tests, descriptive statistical analysis, classical assumption tests, linear regression analysis, and moderated regression analysis (MRA).

The results indicate that the research instrument meets the criteria for validity and reliability. The results of the classical assumption test indicate that the data are normally distributed and do not experience multicollinearity or heteroscedasticity. Regression analysis shows that Distributive Justice in the RBP Distribution Scheme has a positive and significant effect on the Potential of Fraud in Credit Distribution, indicating that the independent variable explains 37.4% of the variation in the dependent variable. Meanwhile, the results of the Moderated Regression Analysis indicate that the interaction between Distributive Justice in the RBP Distribution Scheme and ESG-Based Sustainable Profits has no significant effect on the Potential of Fraud in Credit Distribution. Therefore, ESG-Based Sustainable Profits are not proven to moderate the relationship between Distributive Justice in the RBP Distribution Scheme and the Potential of Fraud in Credit Distribution.

This research implies that increasing the implementation of distributive justice principles scheme in RBP distribution needs to be accompanied by strengthening internal control systems, organizational governance, and effective oversight mechanisms. Furthermore, ESG implementation in cooperatives needs to be more comprehensively integrated into operational processes so that it not only functions as a sustainability policy but also supports fraud prevention efforts.