Business Ethics and Good Governance in Indonesian Sharia Stock Index
Abstract
Kata kunci — Etika Bisnis, Tata Kelola Perusahaan, ISSI, Shariah Compliant, Keberlanjutan
Abstract
Ethical business practices are increasingly recognized as critical to sustainability. Companies that disregard ethical standards often engage in greed-driven behaviors, including fraud, to maximize profits. Firms listed on the Sharia Stock Index are presumed to align with Islamic ethical norms, positioning them as inherently "ethical" enterprises. However, the extent to which these companies disclose their adherence to business ethics remains uncertain. This study investigates whether companies included in the Sharia Stock Index demonstrate a commitment to business ethics as an integral component of good governance. The research focuses on firms listed in the Indonesian Sharia Stock Index (ISSI) between 2015 and 2018, analyzing 1,512 observations. The findings reveal that companies within the Sharia index exhibit superior ethical disclosures, indicating both qualitative and quantitative adherence to ethical standards. This commitment to business ethics fosters healthier business practices and contributes to long-term sustainability.
Keywords — Business Ethics, Corporate Governance, ISSI, Shariah Compliant, Sustainability
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