An alternative conceptual corporate governance framework for high-context cultures: A case for the Islamic & Arabian Middle East

Abstract

The distinctiveness of Islam and the reaction toward the domination of the Western ideologies on the rest of the world especially on Islamic nations generated a movement among many scholars toward applying Islamic principals in the field of corporate governance. Islam is the dominant religion in the Middle Eastern region. This region consist of two major blocs the Arab League and most importantly the GCC. Thus, the cultural, political and legal environments have a significant impact on both profit and non-profit organisations. The proposed concept is generated by considering; the narrowness of the Agency theory illustrated by its limited explanations of such complexity associated with corporate governance issues yet its greatness of simplicity in regards to accountability; the Stakeholders theory serves wider views and shares many aspect with Islam yet this theory by nature suffers from practical complexity; Institutional theory are considered to ensure some degree of stability in the concept by considering the importance of the Islamic corporate supervisory institution in developing a sustainable Islamic corporate governance standards.