Book Chapters

With the emergence of Islamic finance, legal precepts of

This discursive research paper is appraising issues pertaining to legal compatibility of sukuk, which is at the heart of Islamic finance.

The paper’s purpose is to contribute to the existing body of work in the area of Islamic finance through the discovery of the feasibility of effective dispute resolution mechanisms for the resolution of disputes for Islamic banks and institutions offering Islamic financial services. This is investigated to determine whether the Shariah framework for the enforcement of financial contracts and dispute resolution is a legal risk or appropriate alternative mechanism to the world on whole, individual countries, the business environment, organisations and individuals.

The growth and development of an Islamic capital market and finance depends on the institutions in which its dispute resolutions are anchored. The institution for Islamic finance dispute resolution and its practitioners must be knowledgeable and versed in Islamic finance. Despite this, those who are trained in common law, either as judges or advocates, continue to weigh a considerable influence in matters that border on Islamic finance dispute resolution. This problem is further compounded by the constitutional backing given to these judges and advocates.

Social performance is incumbent as one of the maqasid Shariah of Islamic banks. A perception study involving questionnaire surveys was conducted of 152 Islamic bank managers in Malaysia as a means of searching for empirical evidence of what constitutes Corporate Social Performance (CSP) indicators for Islamic banks. Using 50  indicators as a CSP construct, the study found that there are forty-seven important indicators for CSP in Islamic banks.

This paper seeks to explore the level of support investors attach to the social responsibility dimension in Islamic investment. The call to address this ‘neglected’ dimension as observed in the practice of Islamic finance is emphasized in the face of the rapidly growing Socially Responsible Investment (SRI) industry in the West and other developed markets, where various social, ethical, and environmental considerations are central to the investment decision.

One of the goals of Islamic banking operations is to increase the economic growth towards a better and just society. This study aims to examine the criteria and Islamic instrument of corporate social responsibility towards the creation of a sustainable economic development. Specifically, the study analyses the various approaches to improve the quality of life and alleviate poverty and the methods of applying Islamic instruments to corporate social responsibility programs in Islamic banking.

Corporate social activities have become major subjects because of their effects on the quality of life of citizens, in particular, and on society at large. Currently, there is an increased awareness of social responsibility due to the challenges faced by financial institutions (particularly Islamic banking) globally. This paper examines the influence of characteristics of the board of directors, that is, board size, board composition, and the separation of the roles of chief executive officer (CEO) and chairman, on corporate social responsibility (CSR) disclosure.

Given the phenomenal increase in Islamic banking activities globally, it is important that there exists good governance practice around Islamic financial institutions (IFIs). This is primarily to ensure its sustainability in the long run. More importantly, in order for Islamic banks to play an optimum role in the development of Islamic countries, it is pertinent to develop regulatory structures to control fraud, exploitation, and un-Islamic behavior.