Advantages Of Islamic Corporate Governance

Corporate governance defined as the system of rules, practices and processes by which a company is directed and controlled. Balancing the interests of the stakeholders is essential involves in a company, which include its shareholders, management, customers, suppliers, financiers, government and community. There are five major elements of corporate governance, which are, board commitment, good board practices, functional and effective control environment, transparent disclosure, and well defined shareholder rights. To prevent corporate scandals, fraud and the criminal liability of the organization, good executed corporate governance is important and must apply and respect in the organization. There have a relationship between corporate governance and internal control, for example, the more in corporate governance, the more of internal control in the organization and the less of fraud occur. One of the tasks and goals of the corporate governance is to ensure there have adequate internal control within organization to protect the organization from any conflicts for the benefits of

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

Strategy I : Accelerate establishment of sharia pension funds institutional Action Plans: 1) Conduct research on potential Sharia DPPK 2) Develop arrangements regarding sharia pension program effectuation 3) Conduct research in order to develop sharia pension funds Strategy II : Develop risk-based supervision gradually Action Plans: Conduct education of risk-based supervision model to the new sharia pension funds Strategy III : Develop reporting and monitoring system that support implementation of early warning system Action Plans: Develop arrangements regarding reporting system and types of sharia pension program effectuation

A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by

In “Should Western Corporations Ban the Use of Shari'a Arbitration Clauses in their Commercial Contracts?” by Albert D. Spalding Jr. and Eun-Jung Katherine Kim, the writers query the role of Shari’a in international companies’ commercial contracts, specifically Western companies. Shari’a is Islamic Law that dictates the path of members of Islamic faith as detailed in the Qur’an, Sunna and Hadiths (Islamic religious texts). Shari’a decrees measures for Islamic religious culture as well as it’s laws and governments.

is the Financial Accounting Standards Board (FASB). The FASB is a private organization responsible for establishing a broad range of reporting standards and specific accounting rules. The FASB has made possible for investors, creditors, auditors, and others a means of using financial information that is transparent and comparable here in the U.S.

The Quran tenets encompass various life aspects that include God’s teachings, the way of harmonious living in the community, moral virtues, the regulations on financial matters, and specific obligations among Muslims males and females. In general, the sharia law is an extended platform that provides guidance on family affairs, criminal judgment, political perception, and economic factors. The law thrives on the precepts of religious attributions to God. Since the emergence of sharia law, various Islamic nations have endorsed most or parts of the

The forming of integrated system can directly provide information related to sharia multifinance institutional, among others data about company profile, shareholders,

In order to have an effective and efficient manner The Sharia review procedures should be planned and to include a complete understanding about the IFI’s operations in the field of products, operation size, locations and divisions. It will include obtaining a list of all fatwas and guidelines by the SSB, This will have a strong effect on the nature, extent and timing of the Sharia review procedures.

Now we can go specifically into Sharia Law, which is the foundation of religious politics. There are two categories of Sharia law that we can break down to. They are

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

The Sharia regulatory framework is another major challenge for takaful. Setting up an appropriate Sharia regulatory framework for takaful can be a long and tiring process, and at times conflicts in interest between the Sharia scholars may

Islamic banking is a controlled institution based on the principles of sharia Islamic rules on transactions made. This means that the Islamic banking system does not accept or allow payment of benefits based

First, The International Accounting Standards Board (IASB) issues The International Financial Reporting Standards (IFRS) on U.S securities and exchange companies listed.

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the