VALUE CREATION FOR SHARIAH-COMPLIANT COMPANIES FROM THE PERSPECTIVE OF MAQASID SHARIAH: A PROPOSED FRAMEWORK

Abstract

Purpose: Integrated reporting (IR) is to convey the integrated thinking (IT) process in creating value for organisations. Drawing from the framework of Maqasid Shariah, the paper seeks to propose a framework for measuring value creation for Shariah-compliant Companies (ShCCs).   Methodology: Based on the existing literature on the performance of companies, this paper explores the measurements of value creation, which is arguably the consequence of integrated reporting and integrated thinking in an organization that matches the framework of Maqasid Shariah. This issue is examined by looking at the context of ShCCs in Malaysia.   Findings: The findings support the contention by Shariah Enterprise Theory, which is the extension of legitimacy and stakeholders’ theory. The various measurements of value creation can be classified under the broad classification of Abu Zahrah (1997)’s Maqasid Shariah framework.   Contributions: This paper enhances the understanding of value creation from the perspective of Islam, thereby contributing to meeting the initial aim of ShCCs classification, which is to fulfill the need of Muslim stakeholders. Additionally, the proposed framework provides measurements of value creation based on the Maqasid Shariah framework that can be used in future research. Keywords: Maqasid Shariah, value creation, integrated reporting, integrated thinking, Shariah-compliant companies.   Cite as: Sutainim, N. A., Mohammed, N. F., Mahmud, R., & Muhammad, R. (2023). Value creation for Shariah-compliant companies from the perspective of Maqasid Shariah: A proposed framework. Journal of Nusantara Studies, 8(TI), 87-108. http://dx.doi.org/10.24200/jonus.vol8issTIpp87-108