This study examines the interplay of ethical leadership, organizational controls, and individual morality in the chemical industry, focusing on strategies to counteract fraudulent practices. Recognizing the chemical industry's crucial role in global supply chains, this research emphasizes the importance of ethical leadership in shaping the industry's strategic and operational aspects and influencing its ethical climate. The study explores the consequences of ethical breaches, highlighting those beyond financial repercussions, such breaches can result in significant environmental, health, and safety hazards. The research adopts a quantitative approach, targeting decision-makers in Indonesian chemical companies. A total of 173 respondents were involved, with a participation rate of 87%, ensuring a comprehensive representation of industry practices. The data analysis employs SmartPLS software, suitable for exploratory research and complex models. The study's findings indicate that ethical leadership, organizational culture, and individual morality play vital roles in shaping an ethical environment and preventing fraud. Ethical leadership emerged as a key influencer in reducing fraudulent practices, while a strong organizational culture was found to be critical in deterring unethical behaviors. Individual morality, shaped by personal beliefs and values, was also significant in ethical decision-making. The study concludes that a synergy between these elements is essential for fostering integrity and accountability, crucial in maintaining public trust and adhering to safety standards. The research contributes both academic insights and practical guidance for stakeholders in the chemical industry, aiming to strengthen ethical foundations and combat fraud.