Impact of Zakat Distribution as a Reduction In Poverty Case Study in the Province of West Sumatra

Sari, Dian Fitriarni; Beik, Irfan Syauqi; Rindayanti, Wiwiek

doi:10.37706/ijaz.v4i2.180

Cited by 18 publications

(12 citation statements)

References 4 publications

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“…Thus, such empowerment is based on the investment and not in the form of consumption. Moreover, Sari et al (2019) suggest that the business empowerment conducted by BAZNAS should also be developed based on the priority scale.…”

Section: Resultsmentioning

confidence: 99%

“…In addition, Wibisono et al (2019) also narrate that the Zakat has a significant positive effect on increasing regional income and community benefit. Sari et al (2019) find that assuming economic growth of 6% West Sumatra Province will require six years to decrease the poverty rate; however, by using the Zakat as one of the poverty instruments managed professionally it can reduce poverty in 2.8 years. Moreover, with the assumption that economic growth is 7%, poverty alleviation can be achieved in 5.2 and 2.4 years with the contribution of Zakat.…”

Section: The Role Of Zakat As An Instrument Of Poverty Reduction In I...mentioning

confidence: 99%

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Zakat as an instrument of poverty reduction in Indonesia

Herianingrum

Supriani

Sukmana

et al. 2023

JIABR

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Purpose This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia. Design/methodology/approach This study used a qualitative method based on library research sourced from books, financial reports and another previous research. Findings The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line. Research limitations/implications This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia. Originality/value Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

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Section: Resultsmentioning

confidence: 99%

Section: The Role Of Zakat As An Instrument Of Poverty Reduction In I...mentioning

confidence: 99%

Zakat as an instrument of poverty reduction in Indonesia

Herianingrum

Supriani

Sukmana

et al. 2023

JIABR

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“…Zakat is defined as alms or charity (Lewis, 2001;Tuan Ibrahim et al, 2020;Al-Malkawi & Javaid, 2017) Zakat has been tested in empirical studies and found to have a significant impact on the society and economy. Many empirical studies have investigated the impact of Zakat on poverty, such as in Malaysia (Senadjki & Sulaiman, 2015), in Indonesia (Herianigrum et al, 2020;Sari et al, 2019); and in Bangladesh (Ali et al, 2019). These scholars have found the benefit of zakat in reducing poverty in their countries.…”

Section: Performancementioning

confidence: 99%

Zakat As a Corporate Social Responsibility: How Does It Affect the Financial Performance of Islamic Banks?

Ali¹,

Shuib²,

Nor³

2023

JJBA

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Islamic banks should actively engage in Corporate Social Responsibility (CSR) activities as part of their moral obligations to contribute to society and surroundings. This study aims to investigate the influence of Zakat contribution, as a proxy of CSR, on the financial performance of Islamic banks in Malaysia. The study used panel-data analysis, whereby the annual reports of 11 local Islamic banks in Malaysia were analyzed over a ten-year period from 2010 to 2019. Fixed- and random-effect regression model analyses were conducted to analyze the results of the study. The findings reveal that there is a positive and significant relationship between Zakat contribution and the financial performance proxied by Return on Asset (ROA) and Return of Equity (ROE) of the Islamic banks in Malaysia. Hence, the findings of the study confirmed the importance of social elements, like Zakat, in the operations of Islamic banks, as well as in the banks’ performance.

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“…Corporations are increasingly recognizing that digital accounting systems not only streamline financial processes but also have the potential to enhance sustainability reporting and practices (Alflaieh, 2022). Simultaneously, the Islamic tradition of zakat, which mandates the provision of alms to support the less fortunate, has found its place in the digital realm (Sari et al, 2019). Digital zakat platforms and technologies have emerged, offering individuals and corporations streamlined methods to fulfill their philanthropic obligations (Al-Zaqeba and Al-Rashdan, 2020).…”

Section: Introductionmentioning

confidence: 99%

Exploring the impact of digital accounting and digital zakat on improving business sustainability in the Middle East and Malaysia

Al-Taani,

Al-Zaqeba,

Maabreh

et al. 2024

Int. j. adv. appl. sci.

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This paper seeks to explore the potential of digital accounting and digital zakat in enhancing corporate sustainability. It primarily examines the role of these digital modalities in enhancing philanthropic contributions, improving financial transparency, and achieving sustainability goals. The study explores the synergistic effects of combining digital accounting and digital zakat, and aims to fill the knowledge gap regarding their collective impact on sustainable business practices. The results confirm the primary hypothesis and show a positive correlation with corporate sustainability. Consistent with previous research, digital zakat is identified as a catalyst for stakeholder engagement and a facilitator of sustainable development initiatives. Similarly, digital accounting is associated with increased financial transparency, thereby strengthening corporate sustainability efforts. These findings underscore the need for further exploration and integration into corporate strategies and highlight the prospects of digital technology in strengthening corporate sustainability. The study provides strategic recommendations for businesses, policymakers, and academics to promote sustainable practices and align financial systems with broader sustainability goals. This research is central to deepening the understanding of digital technologies' ability to enhance sustainability in business contexts, and future studies should extend these findings to examine the complex dynamics of how digital solutions can optimize sustainability in different sectors and settings.

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Impact of Zakat Distribution as a Reduction In Poverty Case Study in the Province of West Sumatra

Cited by 18 publications

References 4 publications

Zakat as an instrument of poverty reduction in Indonesia

Zakat as an instrument of poverty reduction in Indonesia

Zakat As a Corporate Social Responsibility: How Does It Affect the Financial Performance of Islamic Banks?

Exploring the impact of digital accounting and digital zakat on improving business sustainability in the Middle East and Malaysia

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