Bioumy, Mysara and Hassan, Rusni and Al-Daihani, Meshari and Mahmoud, Ali
(2025)
Issues and challenges in the adoption of good governance at Islamic social finance institutions in Kuwait: the case study of direct aid society.
International Journal of Environmental Sciences, 11 (20S).
pp. 1412-1425.
ISSN 2229-7359
Abstract
Good governance is so vital and inventible, particularly in the context of governance within charitable social finance institutions in contemporary times. However, there are many issues and challenges that hinder the adoption of good governance in charitable institutions. The objective of this study is to examine the issues and challenges in adopting good governance practices at Islamic social finance institutions in Kuwait, focusing on Direct Aid Society. This study employs a qualitative research approach, utilizing interviews. The methodology is designed to capture and identify the issues and challenges in adoption good governance within the Direct Aid Society and how to overcome these issues. Semi-structured interviews were conducted with key stakeholders, including board members, management, and staff of the Direct Aid Society. The findings indicate that these institutions face several challenges due to their unique characteristics, the dynamics of their employees and board members, and the regulatory framework. Despite these challenges, Direct Aid Society has successfully implemented governance standards that prioritize public interests and stakeholder protection. However, ongoing issues such as the need for comprehensive policies and clearer procedural guides remain to be addressed to enhance governance practices further. Based on these findings, the study has implication for policy makers to address the challenges faced by Islamic social finance institutions, such as Direct Aid Society, in adopting good governance practices
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