Islamic Green Accounting Concepts for Safeguarding Sustainable Growth in the Islamic Management Institutions

Abstract

The Islamic accounting concepts circulate within the social contexts and social welfare bounded by the Islamic Shariah Law. The realisation of social contexts is based on the relationship to Allah SWT and relationship to mankind, which revolves within the social accountability relations between interested parties. The Islamic green accounting conception derives from the Islamic values of business transactions particularly in understanding the waqf management and zakat accounting in undertaking its social welfare. Therefore, the paper discusses on the fundamental features of Islamic green accounting conception to the public spheres in attaining sustainable growth and financial stability. Consequently, this paper aims to investigate the Islamic green accounting concepts within the Islamic philosophical perspectives and examine the requirements within the Islamic accounting spectrum for documenting Islamic transactions particularly waqf and zakat transactions. The interpretive qualitative research is employed by conducting five interviews for contemplating its procedures and routines in addressing the research objectives. The documentary review was conducted related to interpretive inquiry of the texts mainly from the al-Quran, Hadiths and other specific literatures. Content analysis has been undertaken to investigate the Islamic green accounting concepts and scrutinise on the possible ways to securing sustainable growth and financial stability in the public spheres. The findings reflect the appropriate management of Islamic accounting in delineating the contribution of waqf and allocation of zakat are essential in ensuring the distribution of wealth to people in need. The Islamic green accounting consists on the operationalization, management and implementation of waqf and zakat strategies to accommodate social needs and social welfare. In summary, the paper suggests a thorough future research to be conducted in extending the accounting for waqf and zakat transactions. The development will accommodate social welfare through appropriate distribution of wealth that indirectly reduced the poverty level within the social community and retaining for sustainable growth.