Corporate and Shariah Governance Mechanisms in Islamic Financial Institutions

Corporate governance is a set of organizational arrangements designed to align the actions of the management of a corporation with the interests of its stakeholders. In addition to corporate governance, a Shariah compliant business will follow some additional elements of governance to adequately meet the ethical and philanthropic requirements:
 i) Do not cause any harm to mankind, animals, and the environment. Its actions shall be beneficial to all.
ii) Deals with its customers fairly, ensuring its products are suitable for their needs, and staff interactions with clients are courteous and efficient. iii) Competes with its rivals fairly by avoiding monopoly, hoarding and any manipulation to corner the market.
iv) Makes sure that the personal and confidential information about its customers and their business, staff and other parties is held securely and not open to abuse.
v) Treats its staff fairly and in turn, its staff respects the business and act professionally in their daily dealings.
 vi) Promotes transparency and does not exploit or abuse a customer’s market ignorance.
vii) Fulfills its promises and obligations towards the stakeholders by abiding the law and complying to the regulations.

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