Influence Of Taqwa (Piety) On Sustaining Corporate Governance Of Zakat Institutions

Abstract

This study examines the influence of taqwa (piety) on sustaining corporate governance. Taqwa (piety) manifests sincerity, integrity, wisdom, and persistency in generating ethical decisions and actions. Organizational corporate governance is in the hands of gatekeepers, employees, and other stakeholders of organizations. Any inadequacy of ethical decisions and actions is a reflection of deficit in taqwa (piety). This study uses personal interview to solicit the views of selected gatekeepers and executives of zakat institutions in Southeast Asia pertaining to the influence of taqwa (piety) level of the gatekeepers in sustaining good corporate governance in zakat institutions. The gatekeepers argued that professionalism and transparency are embedded in the code of conduct for professionals. The legal abiding behavior is confined within the scope of the code of conduct. Beyond legal obligation is the social obligation. The executives contended that taqwa (piety) is the essential spiritual strength to sustain ethical action through corporate governance. The study argued that taqwa (piety) in ethical leadership sustains organizational corporate governance.