Understanding Prudence Corporate Governance: An Alternative Approach

UUM, College Of Business, 06010 Sintok Kedah, Malaysia

^* Corresponding author: zakaria@uum.edu.my

Abstract

In the past decades, the world was stunned by the collapse of few established corporate organization worldwide. These high profile organizations are said to have a weak corporate governance system among others lack of accountability, lack of transparency and poor leadership and decision making that plunge their organization towards an endemic financial and management crisis. Since then and until today, corporate governance received a continuous high attention by all parties concerned, whereby exercising good corporate governance practises is becoming a mandatory within their respective organization. To elaborate further, perhaps maybe there is an abundance of established guidelines and practical perspective of corporate governance within the literature, however, this paper offers an attention-grabbing alternative approach of understanding prudent corporate governance thought that based on Islamic perspective. Perhaps we could revisit the philosophy of corporate governance, review the possibilities in light of adopting a more comprehensive perspective on the concept of development which includes individual, organizational and societal goals.