The Interaction of Maqasid Al-Shariah in the Relationship Between ESG and Firm Financial Performance

Authors

Dayang Nuradzlina Radin, Department of Postgraduate and Professional Studies, Faculty of Business and Management Universiti Teknologi MARA, Shah Alam Campus. Selangor
Norhasimah Shaharuddin, Faculty of Business and Management Universiti Teknologi MARA, Puncak Alam Campus. SelangorFollow
Imbarine Bujang, Faculty of Business and Management Universiti Teknologi MARA, Kota Kinabalu Campus. Sabah
Igo Febrianto Rijanto, Faculty of Economics and Business, Universitas Lampung

Abstract

This paper aims to analyse the role of Maqasid Al-Shariah as a value-added factor in the implementation of ESG for firms' financial performance. Most publicly listed firms are encouraged to get involved in sustainability reporting; however, the adoption rate of ESG among non-financial firms seems unattractive. Therefore, this paper will evaluate the literature review using the systematic literature review approach to justify the role of Maqasid Al-Shariah in implementing ESG. The general conclusion suggested that ESG plays an essential role in financial performance despite the implementation focusing more on cost. The inclusion of Maqasid Al-Shariah in ESG believes that the sustainability of the environment and governance is seen as a robust integration for the long-term benefit of business stakeholders.

Keywords

Sustainability ESG, Maqasid Al-Shariah, Firm Financial Performance

Publication Date

2024

Received Date

23-Oct-2023

Revised Date

2-Jan-2024

Accepted Date

28-Feb-2024

Recommended Citation

Radin, Dayang Nuradzlina; Shaharuddin, Norhasimah; Bujang, Imbarine; and Rijanto, Igo Febrianto (2024) "The Interaction of Maqasid Al-Shariah in the Relationship Between ESG and Firm Financial Performance," ASEAN Journal on Science and Technology for Development: Vol. 41: No. 2, Article 14.
DOI: https://doi.org/10.61931/2224-9028.1580
Available at: https://ajstd.ubd.edu.bn/journal/vol41/iss2/14