MAQASID AL-SHARI’AH AND CORPORATE GOVERNANCE IN ISLAMIC FINANCE: INTEGRATING ESG PRINCIPLES FOR SUSTAINABLE DEVELOPMENT

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Published: 2024-12-31
DOI: https://doi.org/10.46281/ijscgr.v7i1.2773
Keywords:
Maqasid al-Shari’ah, Corporate Governance, Islamic Finance, ESG, Sustainable Development

Main Article Content

Nurjahan Akter Monira
Lecturer, Department of Business Studies, State University of Bangladesh, Bangladesh
https://orcid.org/0009-0002-4387-2602
Arnob Debnath Arup
Student, Department of Business Studies, State University of Bangladesh, Bangladesh
https://orcid.org/0009-0002-8390-121X
Maisha Rainak
Student, Department of Business Studies, State University of Bangladesh, Bangladesh
https://orcid.org/0009-0005-8209-6169

Abstract

Islamic finance has expanded alongside the growing prominence of Environmental, Social, and Governance (ESG) frameworks, yet the integration between Shariah-based objectives and ESG standards remains uneven and conceptually fragmented. While both systems emphasize ethics, social welfare, and sustainability, there is limited consolidated evidence explaining how Maqasid al-Shari’ah and Islamic corporate governance mechanisms practically align with ESG performance in Islamic financial institutions.The purpose of this study is to examine the convergence between Maqasid al-Shari’ah, Islamic corporate governance, and ESG frameworks, with a focus on how governance structures translate ethical objectives into measurable sustainability outcomes. This study employs a structured literature review and content analysis of peer-reviewed journal articles, policy reports, and empirical studies published between 2010 and 2024. A final sample of 72 academic studies was analyzed, covering Islamic banking, Shariah governance, ESG disclosure, and sustainable finance instruments. Descriptive statistics and thematic mapping were used to align ESG dimensions with Maqasid objectives and governance attributes. The results show that more than 80 percent of the reviewed studies report a strong conceptual alignment between ESG principles and Maqasid al-Shari’ah. Empirical studies indicate that Islamic banks with stronger Shariah governance frameworks demonstrate higher ESG scores, with social and governance dimensions improving by approximately 10–25 percent compared to peers with weaker Shariah oversight. Environmental performance shows a comparatively lower but positive association. The major findings suggest that Maqasid al-Shari’ah provides a coherent ethical foundation for ESG integration, and that effective Islamic corporate governance plays a measurable role in enhancing ESG outcomes within Islamic financial institutions.


JEL Classification Codes: G21, G34, Q56, M14, O13.

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Article Details

Issue

Vol. 7 No. 1 (2024): International Journal of Shari'ah and Corporate Governance Research

Section

Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Nurjahan Akter Monira , Lecturer, Department of Business Studies, State University of Bangladesh, Bangladesh

Nurjahan Akter Monira is a Lecturer in the Department of Business Studies at State University of Bangladesh. She is involved in teaching and academic mentoring at the undergraduate level, with a focus on developing students’ understanding of core business and management concepts. Her academic interests include business studies, management practices, and contemporary issues in commerce and higher education. She actively engages in academic activities related to curriculum development, student supervision, and institutional initiatives, and is committed to contributing to quality teaching and learning in business education in Bangladesh.

Arnob Debnath Arup , Student, Department of Business Studies, State University of Bangladesh, Bangladesh

Arnob Debnath Arup is a student in the Department of Business Studies at State University of Bangladesh. He is pursuing his academic interests in business and management, focusing on developing a strong foundation in core business principles and practical skills. He actively engages in academic projects and learning opportunities to enhance his understanding of contemporary business practices and is committed to building a career in the field of commerce and management.

Maisha Rainak , Student, Department of Business Studies, State University of Bangladesh, Bangladesh

Maisha Rainak is a student in the Department of Business Studies at State University of Bangladesh. She is focused on gaining comprehensive knowledge in business and management, with an emphasis on applying theoretical concepts to practical scenarios. She actively participates in academic and co-curricular activities to strengthen her skills and understanding of modern business practices, preparing for a future career in the field of commerce and management.

How to Cite

Monira , N. A. ., Arup , A. D. ., & Rainak , M. (2024). MAQASID AL-SHARI’AH AND CORPORATE GOVERNANCE IN ISLAMIC FINANCE: INTEGRATING ESG PRINCIPLES FOR SUSTAINABLE DEVELOPMENT. International Journal of Shari’ah and Corporate Governance Research, 7(1), 1-5. https://doi.org/10.46281/ijscgr.v7i1.2773
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