A Comparison between Corporate Governance and Corporate Governance in Islamic Perspective

Abstract

The corporate governance issues have been endlessly discussed in the wake of perpetual corporate scandals and crisis. Thus, the Malaysian government has indeed made several initiatives to strengthen the practice of Malaysia’s corporate governance, where the Malaysian Code on practicing good Corporate Governance has been introduced in 2000, which was later revised in 2007 and 2012 with the objectives to strengthen the monitoring in the interest of shareholders of several systems. The concept of corporate governance can be explored from different sources, which most of the previous scholars exploring the corporate governance from conventional perspective compared to corporate governance from Islamic perspective. Moreover, the conventional of corporate governance has been influenced by cultures, faith and religion of Christian which grown in Western. Therefore, the main focus of this study is to discuss the comparison between corporate governance and corporate governance in Islamic perspective in the context of definition and role of corporate governance in Islamic Financial Institutions.