THE EVOLUTION OF ISLAMIC CORPORATE GOVERNANCE FROM THE EARLY AGES TO THE SUSTAINABLE DEVELOPMENT GOALS’ (SDGs) ERA

Purpose — This study aims to capture the waves of Islamic corporate governance (ICG) from its original concept to its latest evolutionary manifestations.

Design/Methodology/Approach — This study conducted a literature review with an in depth content analysis of 173 relevant articles from a selective database using Covidence.

Findings — The findings reveal five distinct waves of ICG, spanning from the era of Prophet Muhammad (SAW) to the Sustainable Development Goals’ (SDGs) era, each characterised by unique features. The study also finds the top three key actors in modern ICG to be the Chief Executive Officer (CEO), the Board of Directors (BOD), and the Sharīʿah supervisory board (SSB).

Originality/Value — This paper is the first to trace the roots of the ICG concept from the early ages to the current period of sustainable economy while also discussing the involvement of key actors.

Research Limitations/Implications — This study offers a dual ICG mechanism framework for both Sharīʿah-compliant and Sharīʿah non-compliant companies in Muslim-majority countries.

Practical Implications — The research findings can assist scholars and researchers in gaining insights into the effective implementation of ICG in contemporary business practices, especially in significant Muslim markets.