Integrating Maqashid Sharia Principles into Good Corporate Governance to Build a Sustainable Economy

Abstract

This study explores the integration of Maqāṣid al-Sharīʿah principles into the framework of Good Corporate Governance (GCG) as a means to build a sustainable and ethically grounded economy. It employs a qualitative literature review approach, examining contemporary Islamic economic thought, policy frameworks, and governance practices from both theoretical and applied perspectives. The objective is to understand how the philosophical foundations of Maqāṣid al-Sharīʿah the preservation of faith (al-dīn), life (al-nafs), intellect (al-ʿaql), lineage (al-nasl), and wealth (al-māl) can complement and strengthen the five pillars of modern corporate governance: transparency, accountability, responsibility, independence, and fairness. The analysis reveals that integrating maqashid principles transforms governance from a compliance-based mechanism into a holistic ethical system that prioritizes justice, trust, and social welfare. Demonstrate that organizations applying Maqāṣid Sharia-based GCG frameworks show stronger stakeholder confidence, improved corporate reputation, and better alignment with long-term sustainability objectives. However, regulatory implementation remains uneven, with limited standardization in measuring maqashid-based governance performance within Islamic financial institutions. This study concludes that embedding Maqashid Sharia principles in corporate governance systems enhances ethical accountability and drives the creation of a sustainable and inclusive economic model consistent with Islamic values and the United Nations Sustainable Development Goals (SDGs). Future directions include the development of standardized maqashid-based governance indicators, integration into Sharia supervisory board frameworks, and empirical validation across different Islamic financial contexts.