Ethical Leadership in External Governance of Sharia Business Entities: A Case Study on the Role of Leadership in Improving Shariah Compliance
Keywords:
Ethical Leadership, Performance of Sharia Business Entities, Sharia Compliance and Company PerformanceAbstract
The positive impact of ethical leadership on the performance of sharia business entities that follow Islamic sharia principles is researched with a focus on leaders who not only understand but also apply ethical and moral values in their leadership. This research reveals various ethical leadership practices, such as fairness, transparency, and commitment to social responsibility, which have a positive influence on sharia compliance and company performance. In addition, research highlights the important role of leaders in shaping organizational culture in accordance with Islamic principles. Leaders who practice ethics not only set an example for their teams but also inspire them to adopt behaviors that support sharia compliance. Therefore, understanding and implementing ethical values by leaders is the key to creating a work environment that supports the sustainability of sharia business entities. The practical implications of this research include the need for employee development, the development of sharia-compliant products and services, and a commitment to social responsibility as part of the company’s sustainability strategy. Ethically oriented leaders not only contribute to a company’s Shariah compliance but also play an important role in guiding an organization to success in a global context. Therefore, this research provides in-depth insight into the close relationship between ethical leadership and the success of sharia business entities.
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