Holistic Practice of Fiqh Al-Muamalat: Halal Accountability of Islamic Microfinance Institutions

Muhammad, Helmi

doi:10.17977/um060.2020v1p022-031

Cited by 4 publications

(7 citation statements)

References 23 publications

(19 reference statements)

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“…The aim is to raise awareness of the ethical dimensions of the economy and businessso that the wealth obtained is halal and blessed through an ethical transaction. What has been stated by the management has strengthened the results of the previous research and showed that Islam does not just let an employee work as he/she wishes to achieve the objectives and wishes and justifies any means such as gambling, cheating, usury, and other vanities and must pay attention to moral and halal responsibilities (Muhammad, 2020;Sachedina, 2001). However, in Islam, there is a separation between what is permissible and what is not, the right and wrong and the lawful and the unlawful, and this is the ethics of Islam.…”

Section: Islamic Ethics Responsibilitymentioning

confidence: 66%

Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions

Muhammad¹

2020

JAFEB

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The research objectives are to study the implementation of Islamic Corporate Social Responsibility (i-CSR) values in BMT UGT Sidogiri, an Islamic microfinance institution in Indonesia based on Islamic boarding school or pesantren. This research employed a post-positivist paradigm. Data observation was performed by conducting an in-depth interview with several informants. The data analysis utilized an interactive model technique. The research results showed that i-CSR was successfully implemented in the Islamic microfinance institution based on Islamic boarding school due to the mutual passion (convergence) with conventional CSR typologies. The convergence is in two ways, firstly managerial behavior that focuses on protecting company stakeholders, second, creating sustainable corporate values through effective and efficient business activities. The orientation is the creation of a social role based on justice and sustainable development. The convergence is mainly in the dimensions of economic, legal, ethical and philanthropic responsibilities. The Islamic values have enriched the implementation of i-CSR as the form of practicing the teachings of Islam and evidence of human servitude to God so that the behaviors become worthy of worship. The implementation of i-CSR focused on the Islamic teachings. Compliance to Islamic jurisprudence and apply it in business activities became a divergent element of conventional CSR concept.

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Section: Islamic Ethics Responsibilitymentioning

confidence: 66%

Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions

Muhammad¹

2020

JAFEB

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“…Due to human resource constraints, even the risk of Sharia compliance, which is recognized as a unique risk for Islamic financial institutions, has not been fully implemented. Sharia compliance is not only seen as a requirement for business operational systems, but must also be implemented so that it becomes a work culture and ensures halal business transactions (Muhammad, 2020).…”

Section: Introductionmentioning

confidence: 99%

Risk management of Islamic microfinance institutions: unique practices at crucial risks

Muhammad

2023

IJBES

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The objective of this study is to gain a better understanding of risk management and control practices at BMT UGT Nusantara, an Islamic microfinance institution in Indonesia, with a particular emphasis on financing risk, liquidity risk, and Sharia compliance risk. These three risks are said to occur frequently and have a direct impact on performance. Because of the uniqueness of the site, the design of this qualitative research is descriptive and exploratory with a holistic single-case approach. In-depth interviews, field observations, focus group discussions, and a review of supporting documents were used to collect data. Because the interactive cycle process includes data collection, data reduction, data presentation, and data withdrawal, data analysis employs an interactive model. The data was validated using the criteria of credibility, transferability, dependability, and confirmability. The study's findings show that BMT UGT Nusantara, an Islamic microfinance institution in Indonesia, employs traditional-partial risk management on financing risk, liquidity risk, and Sharia compliance risk. Risk management is carried out by integrating "macul bumi", or outward efforts based on sincerity, and "macul langit", or spiritual efforts. Furthermore, it employs information systems that play an important role in risk management in order to improve organizational performance and competitive advantage.

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“…Therefore, the application of religious and cultural values is essential in sustainable and ethical halal business. In fact, an Islamic understanding of laws is also crucial for businesspeople, including the law of the products being transacted, the transaction process, and the purpose of ensuring the halal business process [18]. In addition, the internalization of moral axioms leads to efficient and ethical businesses [19] if accompanied by a solid commitment to Islamic ethics [20].…”

Section: Introductionmentioning

confidence: 99%

Halal Business and Sustainability: Synergy of Islamic Business Ethics and Culture

Helmi¹

2022

NHJ

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This research aims to examine Islamic business ethics and culture in the halal business practice and sustainability in Tirtoyudo traditional market, Malang Regency, Indonesia. This study used a single case study approach with an exploratory descriptive design. The data were collected through an in-depth interview with eleven informants through purposive and snowball sampling. The obtained data were analyzed using an interactive model. To maintain research quality, validity tests, data comparisons, and data verification were carried out using triangulation of data sources, methods, and sources as well as member checks. Triangulation of data sources, methods and member checks were used to maintain research quality. The result showed that the Islamic business ethic and the cultural values run harmoniously in the business practice in Tirtoyudo traditional market, Malang regency, Indonesia, which resulted in ethical and cultural values based on religion. This research also formulated a traditional market business model as a local trademark with universal features, which can be adopted by other traditional markets. The harmony of Islamic business ethics and cultural values in business practice became the key to the sustainability of Titoyudo's traditional market, which has been running for more than half a century.

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Holistic Practice of Fiqh Al-Muamalat: Halal Accountability of Islamic Microfinance Institutions

Cited by 4 publications

References 23 publications

Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions

Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions

Risk management of Islamic microfinance institutions: unique practices at crucial risks

Halal Business and Sustainability: Synergy of Islamic Business Ethics and Culture

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