Papers by Hartinie Abd.Aziz
International Journal of Academic Research in Business and Social Sciences
Jurnal Media Hukum
Corporate Social Responsibility (CSR) is an essential component of the shariah corporation framew... more Corporate Social Responsibility (CSR) is an essential component of the shariah corporation framework. In the current corporate model, CSR is still an option rather than a company objective. The need for CSR is still being debated among companies, with some believing that it is in the long-term self-interest of a business to be socially responsible, while others view CSR as weakening a business's primary purpose. Islamic law requires Muslims to not only be governed by the al-Quran and as-Sunnah but also to be subject to the objective of Syariah, namely Maqasid Syariah. The research aims to provide analysis and recommendations to improve the practice of CSR according to the concept of Maqasid Syariah. This qualitative research used doctrinal legal method with employing secondary data. The outcome of this research is significant as a basis for law reform to develop a Shariah Compliant Corporation. It is crucial to incorporate CSR into the Shariah-compliant business model to ensure...
Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022), 2022
International Conference On Islamic Bussiness Law : Sharia Compliance, Sep 27, 2017
SSRN Electronic Journal, 2007
We argue that Corporate Social Responsibility (CSR) may affect the agency relationship inside a f... more We argue that Corporate Social Responsibility (CSR) may affect the agency relationship inside a firm. We analyze how CSR and the threat of stakeholder activism influence effort of manager and shareholder, and describe how CSR may arise endogenously in this context. By engaging in CSR the shareholder can commit to less monitoring, increase the manager's effort, and raise profits. Even a socially indifferent shareholder may thus benefit from CSR and prefer to behave socially responsibly. He may even find it optimal to sponsor a social activist, giving it the means to exert pressure.
Proceedings of the International Joint Conference on Arts and Humanities 2021 (IJCAH 2021), 2022
Corporate governance emphasise on the moral and ethical dimensions of managing a company's busine... more Corporate governance emphasise on the moral and ethical dimensions of managing a company's business. The word corporate governance refers to a system of control of corporation and systems of accountability of those in control. The High Level Finance Committee Report 1999, defines corporate governance as a process of directing a business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realising long-term shareholder values, whilst taking into account the interest of other stakeholders". Under Shariah, corporate governance main purpose is not only to work for the benefit of the shareholders and the stakeholders but also to acknowledge the duty of mankind to God and to the rest of the people living in the community. This paper analyse the corporate governance legal framework from both conventional and Shariah perspective to identify what would be the appropriate corporate governance model for Shariah compliant corporation.
Psychology and Education Journal, 2021
Corporate Social Responsibility (CSR) is primarily a philanthropic concept. The underlying princi... more Corporate Social Responsibility (CSR) is primarily a philanthropic concept. The underlying principle that CSR is merely a business voluntary endeavor has become the main problem in the implementation of CSR. One of the developments of CSR enforcement is through the Corporate Code of Conduct (CoC) which is a standard procedure in a company conducting its business activities on the basis of economic, legal and ethical factors. Recently, there are a new business entities known as Low Profit Limited Liability Company (L3C), Benefit Corporation (B Corps), and Community Interest Company (CIC) introduced in the UK as a new vehicle to promote social well-being through business activities, which is believed to be more effective than corporate social responsibility, whereby these new business entities enforce CSR as an obligatory obligation rather than a voluntary act. Main purpose of this article is to examine legal jurisprudence behind establishment of these business entities. This resea...
International Journal of Academic Research in Business and Social Sciences, 2019
Corporate social responsibility has been widely and internationally accepted as an element of goo... more Corporate social responsibility has been widely and internationally accepted as an element of good governance and one of the key factors in sustainability of a business. Nonetheless, the inculcation and practices of CSR are still subjected to discretion of the companies. In the present corporate model, CSR is still an option to be practiced rather than part of the objective of the company. Under the Sharia, it is also important for the businessmen to undertake that the main purpose or object of carrying out the business is not only for profit maximization but more importantly to ensure the utmost benefit of the society. This concept is known as "Maqasid al-Sharia". A Sharia corporation or any Sharia business entities should put the welfare and interest of the society as the ultimate goal of the business. Such principle is seen as the best CSR model which could be practiced by all corporations be it Sharia based or conventional businesses. Objective: This paper discusses the concept of "Maqasid al-Sharia" and its role and significance in changing the way business to be carried out in achieving the true and effective CSR. The main objective of this paper is to highlight how CSR could be implemented directly via a business model/entity. Results: The principles of Maqasid and
Proceedings of the International Conference on Ethics in Governance (ICONEG 2016), 2017
Shura or consultation is an instrument for reconstruction and reform, mentioned in the Qur'an and... more Shura or consultation is an instrument for reconstruction and reform, mentioned in the Qur'an and suggested in the practices of the Prophet and his Companions Muhammad (PBUH) Generally, it is a tool used by Muslim scholars and rulers or caliphs in arriving a decision or ruling on particular matters or issues relating to the affairs of Muslims. However, there is a little discussion on the applicability of shura in business matters. In developing the framework of shariah corporation, there are few aspects that need to be scrutinized such as legal personality, principle of limited liability, registration of a company and the like. Other than that, board's decision making is another important structure to be analyzed in order to ensure its operation is shariah-compliant. In normal process in the company, the decision making had been done without collectively. This article discusses the concept of shura in Islam and why it should be applied in companies to promote shariahcompliant practices; especially those which carries out Islamic businesses. In this respect, this paper aims to highlight the role of siyasah syari'yah in promoting the practices of shura in corporate structure.
Journal of Modern Accounting and Auditing, 2017
In Malaysia, the Islamic commercial institutions were established under respective legislations w... more In Malaysia, the Islamic commercial institutions were established under respective legislations which contain express term on their status as a body corporate. Examples of these institutions are Islamic banks, zakah institutions, Pilgrimage Board and Islamic insurance (takaful) companies. In 1998, Johor Corporation (JCorp) initiated a corporate waqf entity known as Waqaf An-Nur Corporation Berhad (WANCorp). In 2011, Majlis Agama Islam Wilayah Persekutuan (MAIWP) collaborated with Tabung Haji to develop a Class AWaqf building leased to Bank Islam Malaysia Berhad (BIMB). The developments in waqf involving corporate entities are worth to be analyzed in order to create a new framework of waqf practice. This paper deliberated the attributes of corporations under the Malaysian law and compares them with the principles of Islamic law (Shari'ah). For the purpose of discussion, this paper refers to WANCorp and Awqaf Holdings as examples of waqf corporations in Malaysia.
Journal of the International Institute of Islamic Thought and Civilization, 2019
Under company law, the doctrine of limited liability is applied to promote economic development v... more Under company law, the doctrine of limited liability is applied to promote economic development via a legal entity. The main advantage of a limited liability is that it enables business owners to reduce and transfer the risks in business to their company. However, the application of limited liability is often criticized for causing unfairness to creditors. Under English common law, which is the basis of Malaysian company law, a body corporate is recognized as a legal person distinct from the owners. The metaphor of corporate personality is used to justify the attributes of a company as a legal person and its ability to limit liability of its members. However, such principle is not found in Sharī‘ah business entities because under Islamic law, a business entity is not separated from the owner and as such, the owner cannot totally transfer the business risks to the business entity. A doctrinal analysis was carried out to analyze the application of the doctrine of limited liability und...
Pertanika Journal of Social Sciences and Humanities
The inclusion of welfarist ideology in the consumers’ trade derived from the ideal of paternalism... more The inclusion of welfarist ideology in the consumers’ trade derived from the ideal of paternalism is a paradigm change from the doctrine of freedom of contract. Regulatory and legislative steps must be taken to support and attract consumers to the industry. Judicial and legislative actions must be taken to correct the market flaws that create consumers’ vulnerability while trading in the global market. As one of ASEAN members’ founders, Malaysia is moving towards people-centered economic endeavours to balance both industry and consumer interests through exclusion clauses to prevent unfair practices in consumer contracts. Legal intervention is one of the ways to curbing the issues that arise from exclusion clauses. Before 2010, the non-existence of a specific regulatory framework to limit exclusion clauses usage in contracts involving consumers further increases consumers’ vulnerability. Traditional judicial approaches in the battle against coercion and unethical behaviour of traders...
International Journal of Law, Government and Communication
Shariah Corporation has developed rapidly offering various product and services that comply with ... more Shariah Corporation has developed rapidly offering various product and services that comply with the shariah principles. Nevertheless, all the so-called shariah corporation was framed under the conventional framework beginning from its incorporation as a company up until its corporate governance, and the decision’s making the process. Such conventional framework does differ from the shariah framework. Hence, it is a need to develop a new framework of governance that can be applied to all shariah corporations. This is mainly because the objective of the conventional and the Islamic Corporate governance is different as conventional corporate governance structure is more focused on the protection of the rights of the stakeholders; while Islamic corporate governance focus on retaining the Islamicity of the whole corporation This paper emphasizes that Shari’ah compliance is the core element of shariah corporation and thus Shari’ah governance is an ideal platform to ensure such adherence ...
Pertanika Journal of Social Sciences and Humanities
The inclusion of welfarist ideology in the consumers’ trade derived from the ideal of paternalism... more The inclusion of welfarist ideology in the consumers’ trade derived from the ideal of paternalism is a paradigm change from the doctrine of freedom of contract. Regulatory and legislative steps must be taken to support and attract consumers to the industry. Judicial and legislative actions must be taken to correct the market flaws that create consumers’ vulnerability while trading in the global market. As one of ASEAN members’ founders, Malaysia is moving towards people-centered economic endeavours to balance both industry and consumer interests through exclusion clauses to prevent unfair practices in consumer contracts. Legal intervention is one of the ways to curbing the issues that arise from exclusion clauses. Before 2010, the non-existence of a specific regulatory framework to limit exclusion clauses usage in contracts involving consumers further increases consumers’ vulnerability. Traditional judicial approaches in the battle against coercion and unethical behaviour of traders...
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Papers by Hartinie Abd.Aziz