Shariah Compliant Model of Business Entities

Abstract

The twentieth first century has witnessed resurgence in the observance of fundamental Islamic business practices around the world. However, the fact cannot be denied that the current state of business under unbridled capitalism in the majority of cases in the Muslim world remains far from the Islamic ideal. This gap between the ideal and the reality is widening rapidly and has become a threat not only to the well being of the masses but also to the very peace and stability of Muslim societies.This paper try to describe the model of shariah compliant business entities. It presents the basic understanding of the concept of business in Islam and its business characteristics. It also explore the form of business management model that is shariah compliant. This paper will also propose a model of shariah compliant of business that is focusing on five aspects of business entities: the functions of management, the process of business, corporate culture, corporate governance, and corporate social responsibility.

Keywords: Shariah Compliant, Business Entities, Business Management

JEL Classification: K00, M00, M10