Maqasid al-Shariah-Based Corporate Governance: A Paradigm for Ethical Sustainability in Islamic Banking

Abstract

This study aims to develop a Maqasid al-Shariah-based corporate governance paradigm that enhances ethical sustainability in Islamic banking. Employing a qualitative approach with a case study and conceptual-exploratory design, the research is intended to capture the depth of governance practices and their alignment with Islamic ethical principles. This design is selected due to its suitability in exploring complex, value-oriented phenomena that cannot be adequately measured through quantitative methods. The study is conducted in Indonesia, chosen for its dynamic Islamic banking sector and regulatory commitment to Shariah compliance. Data are collected from twelve informants, including Shariah scholars, banking practitioners, regulators, and academics, selected purposively based on their expertise and direct involvement in governance processes. The findings reveal that corporate governance in Islamic banking remains largely compliance-driven, with limited integration of Maqasid al-Shariah into strategic and operational frameworks. Although elements of accountability and stakeholder engagement are present, ethical sustainability is not yet fully institutionalized. The study recommends the development of integrated governance models that embed Maqasid principles into performance indicators, regulatory policies, and organizational culture to ensure a more holistic and sustainable Islamic financial system.