Maqashid sharia and corporate sustainability under financial vulnerability
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Abstract
This study examines the effect of CSR, Islamic CSR, and environmental quality on corporate performance, measured by profitability and growth, with financial vulnerability as a moderating variable. This research will conduct with Moderated Regression Analysis of panel data from 108 observations basic material entities achieving PROPER on 2021-2024 by Ministry of Environment and Forestry of Indonesia Republic, which Islamic CSR is measured using a GRI-Maqasid Index, CSR using the GRI Standards 2021, and financial vulnerability with DER, use EViews 13. The results show that CSR and Islamic CSR positively affect profitability but do not significantly firm growth. In contrast, environmental quality negatively affects short-term profitability yet supports growth. Financial vulnerability moderates these relationships by weakening the profitability effects of CSR and ICSR, while also reducing the positive influence of environmental quality on corporate growth. The findings highlight aligning ethical, social, and environmental strategies grounded in Maqasid Sharia with financial conditions to sustain long term corporate performance. This study compares Islamic CSR and CSR in a single framework, using profitability and growth as well as financial vulnerability, revealing the role of ethical orientation and financial constraints on long term corporate performance.
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How to Cite
Wulandari, L. A., Paulus, H., Melzatia, S., Oktris, L., & Akbar, T. (2026). Maqashid sharia and corporate sustainability under financial vulnerability. Indonesia Auditing Research Journal, 15(1), 75–84. https://doi.org/10.35335/arj.v15i1.640
References
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Amar, F., Sumardi, S., & Nugraha, D. P. (2025). Role Strategic Management and Maqasid Sharia Toward Islamic Cooperative Performance. Etikonomi, 24(1), 247–264. https://doi.org/10.15408/etk.v24i1.44588
Arsad, S., Said, R., Yusoff, H., & Ahmad, R. (2022a). Islamic Corporate Social Responsibility Disclosure Index : The Application of Maqasid Shari ’ ah and Maslahah Islamic Corporate Social Responsibility Disclosure Index : The Application of Maqasid Shari ’ ah and Maslahah. International Journal of Academic Research in Business and Social Sciences, 12(7), 988–1006. https://doi.org/10.6007/ijarbss/v12-i7/14331
Awalia, N. R., Badriati, B. El, & Rosyidah, U. (2025). Bridging Divine Accountability And Stakeholder Theory: An Islamic Maqashid Al-Shariah Framework For ESG Performance. Iqtishaduna: Jurnal Ekonomi Dan Keuangan Islam, 16(2), 57–70. https://doi.org/10.20414/iqtishaduna.v16i2.14769
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review, 22(S2), S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Bachtiar, A. M., & Abdullah, A. (2025). The Effect Of Islamic Corporate Social Responsibility On Financial Performance And Reputation Of Islamic Bank In Indonesia. Jurnal Dinamika Ekonomi Syariah, 12(2), 628–638. https://doi.org/10.53429/jdes.v12i2.1528
Bao, X., & Yu, B. (2023). The Impact of Environmental Regulation on Corporate Financial Performance: An Empirical Study From China. Environment, Development and Sustainability, 25, 15003–1023. https://doi.org/10.1007/s10668-022-02699-4
Brigham, E. F., & Houston, J. F. (2022). Financial Management: Theory and Practice (16th ed.). Cengage Learning.
Driastuti, M., Nengzih, N., & Oktris, L. (2024). The Impact of ESG Disclosure, Environmental Cost, And Corporate Reputation on Financial Performance. Business and Investment Review (BIREV), 2(3), 47–56. https://lgdpublishing.org/index.php/birev
Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shari`ah, Maslahah, and Corporate Social Responsibility. American Journal of Islam and Society, 24(1), 25–45. https://doi.org/10.35632/ajis.v24i1.415
Fahmi, I. (2020). Analisis Laporan Keuangan (7th ed.). Alfabeta.
Faturohman, T., Nugraha, T. H., & Irawan, A. (2021). Corporate Social Responsibility Disclosure and Islamic Bank Profitability (Evidence from Indonesia). Review of Integrative Business and Economics Research, 10(1), 369–399. http://buscompress.com/uploads/3/4/9/8/34980536/riber_10-s1_31_u20-062_369-399.pdf
Global Reporting Initiative. (2021). Consolidated Set of GRI Standards. In Global Reporting Initiative (GRI). https://www.globalreporting.org
Inayati, N. I., Rahmawati, I. Y., Pandansari, T., Hapsari, I., & Ramadhani, A. N. (2025). Environmental, Social and Governance (ESG) and Corporate Financial Performance: Moderating Effects of Financial Slack. Maksimum, 15(1), 110. https://doi.org/10.26714/mki.15.1.2025.110-120
Javaid, D. M. E., Shah, M. H., & Khan, S. Y. (2025). The Impact of ESG Disclosures on Financial Performance: Evidence from European Listed Companies. Research Consortium Archive, 3(3), 559–569. https://rcresearcharchive.com/index.php/Journal/article/view/218
Kamruzzaman, M., & Newaz, H. T. M. Q. (2025). Corporate Social Responsibility ( CSR ) and Performance of Shariah-Based Banks in Bangladesh : An Anatomy of the Relationship. Journal of Business and Development Studies, 1–20. https://isu.ac.bd/assets/backend/pdf/journal/20260120070330.MI 04 CSR.pdf
Kasmir. (2020). Analisis Laporan Keuangan (Revisi). PT Raja Grafindo Persada.
Kementerian Lingkungan Hidup dan Kehutanan. (2025). Kriteria penilaian PROPER terdiri dari dua kategori. https://proper.menlhk.go.id/proper/kriteria
Melzatia, S., Mahroji, Daryanto, E., & Setiono, K. Y. (2025). Digitalisation of Islamic Economy and Maqasid Sharia for Social Resilience and Welfare. Jurnal Lemhannas RI (JLRI), 13(1), 89–102. https://doi.org/10.55960/jlri.v13i1.1153
Meydinda Usman, R., Restuningdiah, N., & Juliardi, D. (2025). Sustainability Reporting and Firm Perfomance Based On Maqashid Sharia Perspective. International Journal of Science, Technology & Management, 6(3), 544–552. https://doi.org/10.46729/ijstm.v6i3.1318
Naeem, N., Cankaya, S., & Bildik, R. (2022). Does ESG Performance Affect The Financial Performance of Environmentally Sensitive Industries ? A Comparison Between Emerging and Developed Markets. Borsa Istanbul Review, 22, S128–S140. https://doi.org/10.1016/j.bir.2022.11.014
Ningrum, R. F., Handajani, L., & Diswandi, D. (2025). The Impact of Environmental Accounting on Firm Value : Evidence from Indonesian Manufacturing Firms. International Journal of Management, Accounting and Economics, 12(9), 1461–1481. https://doi.org/10.22034/ijmae.2025.228026
Paulus, H., & Tarmidi, D. (2025). Dynamics of Earning Management, Transfer Pricing, and Sales Growth on Tax Avoidance: the Role of Managerial Ownership Moderation. Jurnal Akuntansi Trisakti, 12(2), 183–204. http://dx.doi.org/10.25105/jat.v12i2.22711
Rafiqi, Sari, N., Qodri, M. A., & Roihan, M. (2025). Toward a Maqasid-Based ESG Framework: Reconceptualizing Sharia Investment Screening for Sustainable Finance. SHARE Jurnal Ekonomi Dan Keuangan Islam, 14(2), 867–881. https://doi.org/10.22373/share.32259
Romadhonia, S., & Kurniawati, S. L. (2022). The Effect of Islamic Corporate Governance, Sharia Compliance, Islamic Social Responsibility on the Profitability of Sharia Banks. EKONOMIKA SYARIAH: Journal of Economic Studies, 6(1), 90–104. https://doi.org/10.30983/es.v5i2.5566 Abstract
Rosharlianti, Z., & Laia, Y. (2025). Peran Green Acconting dan Struktur Modal dalam Meningkatkan Financial Performance. Jurnal Proaksi, 12(2), 219–230. https://e-journal.umc.ac.id/index.php/JPK/en/article/view/6999
Saba, I., Kouser, R., Abdeen, M. Z. U., & Mehmood, Z. (2025). The Nexus of Sustainability Practices and Financial Performance A Perspective of Asian Islamic Banks. World Scientific Annual Review of Islamic Finance, 2. https://doi.org/10.1142/S2811023424500059
Sabrina, D. A., Sriyono, & Yulianti, R. (2025). The Effect of Environmental , Social , and Governance (ESG ) Disclosure on Basic Material Company Financial Performance. Jurnal Ilmu Manajemen (JIM), 22(1), 98–114. https://doi.org/10.21831/jim.v22i1.81565
Salimudin, M., & Jubaedah, D. (2024). Islamic Corporate Social Responsibility (ICSR): Kerangka Konseptual dan Pelaporan Berdasarkan Maqashid Syariah. Jurnal Ilmiah Ekonomi Islam, 10(3), 2448–2458. http://dx.doi.org/10.29040/jiei.v10i3.14087
Septian, Y., Eliza, A., & Bahtiar, M. Y. (2022). Zakat, Islamic Corporate Social Responsibility Dan Kinerja Keuangan Bank Umum Syariah Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 10(1), 5–30. https://doi.org/10.35836/jakis.v10i1.274
Sisdianto, E., Shahril, M., Razimi, A., Masykur, R., Diana, R., Sari, M., Robiansyah, A., & Mei, R. D. (2023). The Effect of Environmental Performance on Financial Performance with Islamic Corporate Social Responsibility (ICSR) as an Intervening Variable. JIA (Jurnal Ilmiah Akuntansi), 8(1), 191–205. https://doi.org/10.23887/jia.v8i1.52442
Suryadwi, M. A. B., & Andayani, W. (2025). The Effect of Environmental Costs, Green Accounting, Environmental Responsibility Disclosure, And Capital Structutre On Financial Performance (A Study Of Energy Sector Companies Listed On The Indonesia Stock Exchange 2019-2022 Period). International Journal of Research on Finance & Business (IJRFB), 7(1), 1–19. https://doi.org/10.70575/ijrfb.v7i1.104
Syurmita, Kurniawan, R. F., Rahmi, A. N., Welkom, S. S., & Rachman, M. E. (2024). The Influence Of Maqashid Sharia And Islamic Social Reporting on The Profitability of Islamic Commercial Banks In Indonesia. Agroteksos, 34(3), 957–967. https://doi.org/10.29303/agroteksos.v34i3.1226
Usman, R. M., Restuningdiah, N., & Juliardi, D. (2025). Sustainability Reporting and Firm Perfomance Based On Maqashid Sharia Perspective. International Journal of Science, Technology & Management, 6(3), 544–552. https://doi.org/10.46729/ijstm.v6i3.1318
Wu, D., & Zhu, Q. (2024). The Impact of ESG Performance on Corporate Risk-Taking: Empirical Evidence From China. Frontiers in Sustainability, 14(4), 745–765. https://doi.org/10.3389/frsus.2025.1654564
Wulandari, L. A., & Akbar, T. (2025). Green Accounting, Company Size, Leverage on Financial Performance: Moderation Role of CSR. Jurnal ASET (Akuntansi Riset), 17(2), 275–288. https://doi.org/10.17509/jaset.v17i2.91842
Yavuz, M. S., Tatlı, H. S., Bozkurt, G., & Öngel, G. (2025). Does ESG performance have an impact on financial performance? Evidence from Turkey. Journal of Entrepreneurship, Management and Innovation, 21(1), 24–42. https://doi.org/10.7341/20252112
Al Mahmuda, N., & Al-Mukit, D. M. (2023). Corporate Social Responsibility Disclosures And Profitability Of Islamic Banks An Empirical Study. Social Responsibility Journal, 19(6), 1142–1160. https://doi.org/10.1108/SRJ-10-2020-0401
Amar, F., Sumardi, S., & Nugraha, D. P. (2025). Role Strategic Management and Maqasid Sharia Toward Islamic Cooperative Performance. Etikonomi, 24(1), 247–264. https://doi.org/10.15408/etk.v24i1.44588
Arsad, S., Said, R., Yusoff, H., & Ahmad, R. (2022a). Islamic Corporate Social Responsibility Disclosure Index : The Application of Maqasid Shari ’ ah and Maslahah Islamic Corporate Social Responsibility Disclosure Index : The Application of Maqasid Shari ’ ah and Maslahah. International Journal of Academic Research in Business and Social Sciences, 12(7), 988–1006. https://doi.org/10.6007/ijarbss/v12-i7/14331
Awalia, N. R., Badriati, B. El, & Rosyidah, U. (2025). Bridging Divine Accountability And Stakeholder Theory: An Islamic Maqashid Al-Shariah Framework For ESG Performance. Iqtishaduna: Jurnal Ekonomi Dan Keuangan Islam, 16(2), 57–70. https://doi.org/10.20414/iqtishaduna.v16i2.14769
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review, 22(S2), S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Bachtiar, A. M., & Abdullah, A. (2025). The Effect Of Islamic Corporate Social Responsibility On Financial Performance And Reputation Of Islamic Bank In Indonesia. Jurnal Dinamika Ekonomi Syariah, 12(2), 628–638. https://doi.org/10.53429/jdes.v12i2.1528
Bao, X., & Yu, B. (2023). The Impact of Environmental Regulation on Corporate Financial Performance: An Empirical Study From China. Environment, Development and Sustainability, 25, 15003–1023. https://doi.org/10.1007/s10668-022-02699-4
Brigham, E. F., & Houston, J. F. (2022). Financial Management: Theory and Practice (16th ed.). Cengage Learning.
Driastuti, M., Nengzih, N., & Oktris, L. (2024). The Impact of ESG Disclosure, Environmental Cost, And Corporate Reputation on Financial Performance. Business and Investment Review (BIREV), 2(3), 47–56. https://lgdpublishing.org/index.php/birev
Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shari`ah, Maslahah, and Corporate Social Responsibility. American Journal of Islam and Society, 24(1), 25–45. https://doi.org/10.35632/ajis.v24i1.415
Fahmi, I. (2020). Analisis Laporan Keuangan (7th ed.). Alfabeta.
Faturohman, T., Nugraha, T. H., & Irawan, A. (2021). Corporate Social Responsibility Disclosure and Islamic Bank Profitability (Evidence from Indonesia). Review of Integrative Business and Economics Research, 10(1), 369–399. http://buscompress.com/uploads/3/4/9/8/34980536/riber_10-s1_31_u20-062_369-399.pdf
Global Reporting Initiative. (2021). Consolidated Set of GRI Standards. In Global Reporting Initiative (GRI). https://www.globalreporting.org
Inayati, N. I., Rahmawati, I. Y., Pandansari, T., Hapsari, I., & Ramadhani, A. N. (2025). Environmental, Social and Governance (ESG) and Corporate Financial Performance: Moderating Effects of Financial Slack. Maksimum, 15(1), 110. https://doi.org/10.26714/mki.15.1.2025.110-120
Javaid, D. M. E., Shah, M. H., & Khan, S. Y. (2025). The Impact of ESG Disclosures on Financial Performance: Evidence from European Listed Companies. Research Consortium Archive, 3(3), 559–569. https://rcresearcharchive.com/index.php/Journal/article/view/218
Kamruzzaman, M., & Newaz, H. T. M. Q. (2025). Corporate Social Responsibility ( CSR ) and Performance of Shariah-Based Banks in Bangladesh : An Anatomy of the Relationship. Journal of Business and Development Studies, 1–20. https://isu.ac.bd/assets/backend/pdf/journal/20260120070330.MI 04 CSR.pdf
Kasmir. (2020). Analisis Laporan Keuangan (Revisi). PT Raja Grafindo Persada.
Kementerian Lingkungan Hidup dan Kehutanan. (2025). Kriteria penilaian PROPER terdiri dari dua kategori. https://proper.menlhk.go.id/proper/kriteria
Melzatia, S., Mahroji, Daryanto, E., & Setiono, K. Y. (2025). Digitalisation of Islamic Economy and Maqasid Sharia for Social Resilience and Welfare. Jurnal Lemhannas RI (JLRI), 13(1), 89–102. https://doi.org/10.55960/jlri.v13i1.1153
Meydinda Usman, R., Restuningdiah, N., & Juliardi, D. (2025). Sustainability Reporting and Firm Perfomance Based On Maqashid Sharia Perspective. International Journal of Science, Technology & Management, 6(3), 544–552. https://doi.org/10.46729/ijstm.v6i3.1318
Naeem, N., Cankaya, S., & Bildik, R. (2022). Does ESG Performance Affect The Financial Performance of Environmentally Sensitive Industries ? A Comparison Between Emerging and Developed Markets. Borsa Istanbul Review, 22, S128–S140. https://doi.org/10.1016/j.bir.2022.11.014
Ningrum, R. F., Handajani, L., & Diswandi, D. (2025). The Impact of Environmental Accounting on Firm Value : Evidence from Indonesian Manufacturing Firms. International Journal of Management, Accounting and Economics, 12(9), 1461–1481. https://doi.org/10.22034/ijmae.2025.228026
Paulus, H., & Tarmidi, D. (2025). Dynamics of Earning Management, Transfer Pricing, and Sales Growth on Tax Avoidance: the Role of Managerial Ownership Moderation. Jurnal Akuntansi Trisakti, 12(2), 183–204. http://dx.doi.org/10.25105/jat.v12i2.22711
Rafiqi, Sari, N., Qodri, M. A., & Roihan, M. (2025). Toward a Maqasid-Based ESG Framework: Reconceptualizing Sharia Investment Screening for Sustainable Finance. SHARE Jurnal Ekonomi Dan Keuangan Islam, 14(2), 867–881. https://doi.org/10.22373/share.32259
Romadhonia, S., & Kurniawati, S. L. (2022). The Effect of Islamic Corporate Governance, Sharia Compliance, Islamic Social Responsibility on the Profitability of Sharia Banks. EKONOMIKA SYARIAH: Journal of Economic Studies, 6(1), 90–104. https://doi.org/10.30983/es.v5i2.5566 Abstract
Rosharlianti, Z., & Laia, Y. (2025). Peran Green Acconting dan Struktur Modal dalam Meningkatkan Financial Performance. Jurnal Proaksi, 12(2), 219–230. https://e-journal.umc.ac.id/index.php/JPK/en/article/view/6999
Saba, I., Kouser, R., Abdeen, M. Z. U., & Mehmood, Z. (2025). The Nexus of Sustainability Practices and Financial Performance A Perspective of Asian Islamic Banks. World Scientific Annual Review of Islamic Finance, 2. https://doi.org/10.1142/S2811023424500059
Sabrina, D. A., Sriyono, & Yulianti, R. (2025). The Effect of Environmental , Social , and Governance (ESG ) Disclosure on Basic Material Company Financial Performance. Jurnal Ilmu Manajemen (JIM), 22(1), 98–114. https://doi.org/10.21831/jim.v22i1.81565
Salimudin, M., & Jubaedah, D. (2024). Islamic Corporate Social Responsibility (ICSR): Kerangka Konseptual dan Pelaporan Berdasarkan Maqashid Syariah. Jurnal Ilmiah Ekonomi Islam, 10(3), 2448–2458. http://dx.doi.org/10.29040/jiei.v10i3.14087
Septian, Y., Eliza, A., & Bahtiar, M. Y. (2022). Zakat, Islamic Corporate Social Responsibility Dan Kinerja Keuangan Bank Umum Syariah Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 10(1), 5–30. https://doi.org/10.35836/jakis.v10i1.274
Sisdianto, E., Shahril, M., Razimi, A., Masykur, R., Diana, R., Sari, M., Robiansyah, A., & Mei, R. D. (2023). The Effect of Environmental Performance on Financial Performance with Islamic Corporate Social Responsibility (ICSR) as an Intervening Variable. JIA (Jurnal Ilmiah Akuntansi), 8(1), 191–205. https://doi.org/10.23887/jia.v8i1.52442
Suryadwi, M. A. B., & Andayani, W. (2025). The Effect of Environmental Costs, Green Accounting, Environmental Responsibility Disclosure, And Capital Structutre On Financial Performance (A Study Of Energy Sector Companies Listed On The Indonesia Stock Exchange 2019-2022 Period). International Journal of Research on Finance & Business (IJRFB), 7(1), 1–19. https://doi.org/10.70575/ijrfb.v7i1.104
Syurmita, Kurniawan, R. F., Rahmi, A. N., Welkom, S. S., & Rachman, M. E. (2024). The Influence Of Maqashid Sharia And Islamic Social Reporting on The Profitability of Islamic Commercial Banks In Indonesia. Agroteksos, 34(3), 957–967. https://doi.org/10.29303/agroteksos.v34i3.1226
Usman, R. M., Restuningdiah, N., & Juliardi, D. (2025). Sustainability Reporting and Firm Perfomance Based On Maqashid Sharia Perspective. International Journal of Science, Technology & Management, 6(3), 544–552. https://doi.org/10.46729/ijstm.v6i3.1318
Wu, D., & Zhu, Q. (2024). The Impact of ESG Performance on Corporate Risk-Taking: Empirical Evidence From China. Frontiers in Sustainability, 14(4), 745–765. https://doi.org/10.3389/frsus.2025.1654564
Wulandari, L. A., & Akbar, T. (2025). Green Accounting, Company Size, Leverage on Financial Performance: Moderation Role of CSR. Jurnal ASET (Akuntansi Riset), 17(2), 275–288. https://doi.org/10.17509/jaset.v17i2.91842
Yavuz, M. S., Tatlı, H. S., Bozkurt, G., & Öngel, G. (2025). Does ESG performance have an impact on financial performance? Evidence from Turkey. Journal of Entrepreneurship, Management and Innovation, 21(1), 24–42. https://doi.org/10.7341/20252112
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