The Ethical and Social Dimension of Financial Institutions in the Context of Islamic Finance Governance

Abstract

The spread and development of Islamic financial institutions have led to the emergence of modern concepts aligned with the principles of Sharia, aiming to achieve the investors' goals and their social priorities, regardless of their diverse objectives and desires. Additionally, these institutions strive to achieve familial, social, and ethical harmony within the community. Therefore, social and ethical responsibility plays a significant role in contributing to the formation, improvement, and protection of community welfare and in safeguarding the social interests and goals of its investors. This is achieved through the formulation of procedures and the activation of methods and approaches that lead to this end, contributing to the establishment of solidarity, cooperation, and social awareness, and achieving comprehensive development. Furthermore, these institutions mobilize individuals' funds and savings and direct them towards investment to serve the community in accordance with Sharia principles. Hence, Islamic financial institutions have taken serious steps towards Islamic finance governance with social and ethical dimensions to ensure that neither investors nor community members are harmed, giving them an advantage over other institutions.