The overriding objective of islam is to establish a just sociomoral and economicpolitical order in this world. A comparative analysis with oecd principles article pdf available in critical perspectives on accounting 205. Corporate governance and corporate performance of malaysian companies. A discursive attempt in islamic epistemology maszlee malik abstract. The paper intends to discuss the concepts, framework, structure of fraud, and its two contending theories i. Islamic corporate governance debates reflect the gaps between western and islamic corporate governance hasan, 2009.
Abstract good governance has been the subject of theoretical and pragmatic discourses during the last three decades. The first impression and the main thesis of this chapter is that the quran does not teach us the art of slavery. Pdf corporate governance from the islamic perspective. T, which if properly implemented and giving a sound attention, the issue of fraud in.
Major failures in the business world, from enron to lehman brothers, have. A careful analysis of principles of administration and qualities of an administrator from islamic point of view would show that mans personal character is the key to good governance. A conceptual study on islamic corporate governance model in. While the united states and some other systems of government has three branches. In the end, these placed god and islam itself as key players in the corporate governance practice. Principles of good governance in islam iium repository irep. Corporate governance in islamic perspective, corporate. Corporate governance of islamic financial institution. Apr 18, 2010 good governance an islamic perspective 1. Good governance an islamic perspective linkedin slideshare. Sharia governance is a feature of governance for islamic financial institutions ifi, whose concern is the religious aspects of the overall activities of ifis as compared to the conventional concept of corporate governance. In addition, mannan, 1984 in his compilation of abstract of researches in islamic economics also further shows the absence of specific research on shariah governance. Management of resources in muslim countries and communities.
Corporate governance in islamic financial institutions. Most this research used the theoretical approach given in conventional corporate governance and provide additional tahwid concept. Influence of accountability and transparency on governance in. Oct 02, 2010 the difference rooted from the fact the islamic perspective sees the corporate governance practice as muslims obligation to god, thus leads to the existence and obedient of the implicit contract with god and explicit contract with humans. Hafeez advocatelegal consultant, the islamia university of bahawalpur abstract corporate governance is a set of relationship between a companys boards, its shareholders, and other stakeholders as well as. Although in the absence of similar terms for governance from islamic perspective, there are two aspects that shape islamic corporate governance according to lewis 2005.
It is an essential prerequisite for all state and nonstate organisations to abide by the principles of good governance in order to move. Analysis of issues in islamic financial industry, by tariqullah khan and habib ahmed. It accountabilities and processes cross all organisational boundaries and, from a board perspective, we need to know that these processes and accountabilities are in place and are being rigorously monitored. The status of women in islam, is an issue that is pertinent in. An analysis of corporate governance in islamic and western perspectives dr.
The first trend is a literalist tradition, which considers the sharia laws as expounded in the medieval manuals. Lewis examine, from an islamic perspective, some central issues in public, economic and corporate governance. Religion and animal welfarean islamic perspective ncbi. Corporate governance has been at the forefront of discussions of the financial services industry for decades. This study describes a radically different approach focusing the similarities and differences of conventional corporate governance from the islamic perspective. Asyraf wajdi dusuki abstract sound corporate governance practices have become essential for efficient, viable and sustainable growth of islamic financial institutions. The paper also intends to analyse the concept of islamic corporate governance, its theories and the popular theory of shariah enterprise theory s. Constructing the architectonics and formulating the articulation of islamic governance. Corporate governance in islamic perspective corporate governance in islamic perspective masudul alam choudhury. Oct 10, 2009 an islamic perspective on governance new horizons in money and finance by zafar iqbal and mervyn k. Corporate governance in institutions offering islamic. The liberal islamic view is influenced by muhammad abduhs emphasis on the role of. Sudan and morocco in a comparative perspective by waleed mousa august 2005 chair.
Lewis reads like a carefully constructed dissertation setting forth a theory of justice, taxation, government finance and accountability, governance and corruption grounded in islam. The researcher referred the principles of corporate. Principles of good governance in islam iium repository. Government officials in charge of livestock, especially at abattoirs, should be. An analysis of corporate governance in islamic and western perspectives part1. Hebrew bible is a good way to put a kindred ancient religion like islam in perspective. Evolution of companies shamsulbasar malik muhammad hafeez 1. It was on this background that this paper looks at the influence of accountability and transparency from islamic perspective in achieving good governance in the society. It is a different matter though that the muslims are busy in reversing this process.
International relations under islamic law library of congress. Five books you should read to better understand islam. Azram, mohammad 2012 principles of good governance in islam. The fourth paper, which is now in your hands, is on corporate governance in islamic banks by m. This paper identifies the difference between conventional view of accountability and accountability in islam. Amongst topics analysed are theories of justice, taxation, budget deficits, islamic financing modes, public and private accountability, and corruption. Recently the indeterminate terms governance and good governance are being gradually used, in the literature of political science. These qualities differentiate the islamic leadership with other leadership concepts. Mar 02, 2012 corporate governance is the process andstructure used to direct and manage thebusiness and affairs of the companytowards enhancing business prosperity andcorporate accountability with the ultimateobjective of realising longterm shareholdervalue, whilst taking into account theinterest of other stakeholders.
The basic theory of corporate governance in islamic perspective. No nation can dream of development without good governance. Working paper, sabic chair for islamic financial market studies, 2012. A firm might be an association of persons, group of people, a limited or unlimited partnership, a company or corporation and several variants attached to each. Islamic perspective of corporate governance, to some extent, has differences in comparison to.
From a governance perspective all organisations are social institutions with hierarchies and power bases where business is managed by owners and managers who in theory are responsible for their own actions and the actions of their subordinates mcmanus, 2004. Recent studies that discuss governance in islamic perspective have been done by various islamic researcher including abutapanjeh 2008, hassan 2009, haweez 20, etc. The bottom line is that, it governance is not it management and it governance is not just inside the it department. Corporate governance and corporate performance of malaysian. An islamic state is a form of government based on islamic law. International institutions have promoted a good governance.
In addition to analyzing the issues involved in the corporate governance of islamic banks, it gives the results of a survey on the subject. The theoretical framework for economic development by islamic economics and finance is based on four fundamental pillars. Political aspects of islam are derived from the quran, the sunnah muslim history, and elements. The concept of management in islamic perspective is to manage all things. Islam is a religion that shows compassion to animals as mentioned in the holy book. A comparative analysis of corporate governance in indonesia. Anis is meritorious professor and vice chancellor, riphah international university, islamabad.
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