Abstract

This paper explores the role of the U.S. corporate governance framework in enhancing fraud prevention and promoting ethical business practices, with a focus on its global influence. The aim is to critically assess the effectiveness of U.S. governance mechanisms, such as the Sarbanes-Oxley Act (SOX), the Foreign Corrupt Practices Act (FCPA), and internal controls, in fostering transparency and accountability within organizations. A qualitative approach was used, analyzing relevant case studies, legislation, and scholarly articles to examine both successes and failures in fraud prevention. Key findings reveal that while the U.S. model provides valuable tools for combating fraud, its applicability in other regions is influenced by cultural, economic, and regulatory differences. The paper highlights the challenges of applying U.S. governance standards globally and calls for a more adaptable, context-sensitive approach. The implications of this study suggest that for corporate governance frameworks to be effective internationally, there is a need for greater global cooperation and the development of harmonized standards that balance local and global expectations. Finally, the paper proposes directions for future research to examine the evolving relationship between emerging technologies, cultural factors, and corporate governance in the fight against fraud and unethical practices.