The Interaction of Maqasid Al-Shariah in the Relationship Between ESG and Firm Financial Performance

• Published in: ASEAN Journal on Science and Technology for Development
• Main Author: Radin D.N.; Shaharuddin N.; Bujang I.; Rijanto I.F.
• Format: Article
• Language: English
• Published: University of Brunei Darussalam 2024
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85195047364&doi=10.61931%2f2224-9028.1580&partnerID=40&md5=9fa46a7ac29c386117ee9bfad5000e69

This paper aims to analyse the role of Maqasid Al-Shariah as a value-added factor in the implementation of ESG for firms' financial performance. Most publicly listed firms are encouraged to get involved in sustainability reporting; however, the adoption rate of ESG among non-financial firms seems unattractive. Therefore, this paper will evaluate the literature review using the systematic literature review approach to justify the role of Maqasid Al-Shariah in implementing ESG. The general conclusion suggested that ESG plays an essential role in financial performance despite the implementation focusing more on cost. The inclusion of Maqasid Al-Shariah in ESG believes that the sustainability of the environment and governance is seen as a robust integration for the long-term benefit of business stakeholders. © 2024 University of Brunei Darussalam. All rights reserved.