Corporate governance through the lens of Islam: A comparative review and analysis
Department of Finance, Faculty of Management Sciences, Eelo University, Somaliland.
Review
International Journal of Scholarly Research and Reviews, 2024, 04(02), 001–010.
Article DOI: 10.56781/ijsrr.2024.4.2.0029
Publication history:
Received on 18 February 2024; revised on 29 March 2024; accepted on 01 April 2024
Abstract:
Corporate governance is a set of relationship between a company’s boards, its shareholders, and other stakeholders as well as provides the structure and mechanism through which the objectives of the company are set and the means for attaining those objectives and monitoring performance are determined. The concept of corporate governance (CG) has gained critical interest and has become a debating point since the mid-1980s. It became an aspect of concern when the corporate world became aware of the importance of protecting the rights of all stakeholders. This paper critically reviews the existing literature on Islamic Corporate Governance (ICG), presents a basic understanding of Islamic Corporate Governance (ICG) and compares the Islamic concept of Corporate Governance to the Organization for Economic Cooperation and Development principles. The study reveals that the Islamic system of governance encourages and promotes the ethical norms of transparency and honesty in every business transaction.
Keywords:
Corporate Governance; Islamic Corporate Governance; Shura; Sharia; Organization for Economic Cooperation
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