Islamic Work Ethics And Corporate Sustainability Performance: An Empirical Study

Abstract

Sustainability issue has been given great attention from many stakeholders which include Malaysian manufacturers. Manufacturing organizations face the sustainability issue which leads manufacturers to realize the importance of achieving corporate sustainability performance and various steps have been taken in achieving the organization sustainability performance. Islamic work ethics provide guidelines for employees in sustaining the organization in a sustainable manner while carrying out the manufacturing activities. Malaysian government has highlighted the importance for every individual to have good ethical values. The objective of this paper is to examine the effect of Islamic work ethics on corporate sustainability performance which comprises of economic, environmental and social sustainability performance. Questionnaires are distributed to the employees from middle to top level of management in chemical manufacturing organization. This study uses multistage sampling technique and the data is analysed using Partial Least Square (PLS) analysis. The findings indicate that there is a positive effect of Islamic work ethics on the three dimensions of corporate sustainability performance which are economic, environmental and social sustainability performance. This study contributes to the body of knowledge on sustainable manufacturing by investigating the effect of Islamic work ethics on corporate sustainability performance. This study will guide employees in achieving corporate sustainability performance by the implementation of Islamic work ethics in the work place.