Roles for Islamic Business Ethics in the Environmental, Social, and Governance Concept

Abstract

The purpose of this study, which used a deskriptif qualitative method with a library type riset, is to (1) understand the role of Islamic law, ethics, and business principles in the implementation of the Environmental, Social, and Governance (ESG) concept in financial institutions. (2) Outlining  the benefits of Islamic law, ethics, and business principles in the application of the Environmental, Social, and Governance (ESG) concept in financial institutions. The study's findings indicate that (1) Islamic law, ethics, and business principles should be applied in the implementation of the Environmental, Social, and Governance (ESG) concept to identifying sustainable development goals and enhancing the efficiency of financial services while ensuring the longevity of financial institutions. (2) Providing a framework for the organization's financial strategy in starting a business based on financial principles and creating products with social and environmental considerations. The implications of this research include the application of Islamic law, ethics, and business principles to the Environmental, Social, and Governance (ESG) framework at the World Bank, which is expected can strengthen government programs in the area of sustainable development goals (SDGs). The novelty of this study is in its application of flexible Islamic economic principles that are centred on the material and social needs of the current population.