Hassan, Rusni and Mohamad Noor, Fatimah Azzahra
(2021)
Promoting peace and equality through the practice of good Islamic governance: the case of Islamic finance.
Vidyabharati International Interdisciplinary Research Journal (Special Issue).
pp. 1679-1692.
ISSN 2319-4979
Abstract
The aim of this article is to examine the idea of good governance in Islamic finance (IF) practice and how it may
contribute to the development of peace and equality within a community. Many have perceived that as a financial
system, Islamic finance only focuses on commercial aspects or profit maximisation. This may not be the case, however,
with Islamic financing. Islamic finance lays a premium on enhancing human well-being, social justice, and fair
commercial relations. It recognizes the critical nature of environmental protection and prohibits reckless profiting at
the cost of others or investing in enterprises that may cause harm to our society. The element of ibqa’ (promoting good)
and hifz (preventing harm) are the fundamental principles of Shariah in Islamic finance. This research is a qualitative
studythat uses documentary analysis method. The data is gathered from primary and secondary data.According to the
study's results, Islamic finance hassufficiently upheld the concept of Islamic good governance through Shariah
governance framework. The application of Islamic good governance is observable in the practice of Shariah
Governance Framework 2010. However, in the aspect of promoting peace and equality within a society as part of
achieving a comprehensive human development and Maqasid Shariah,the contribution of Islamic financial institutions
(IFIs) is still lacking. Even though several initiatives have been taken by some IFIs to expand their role in the society
particularly in the sustainability agenda, the result is still insignificant due to several challenges in its implementation.
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