Analysis of Financial Managers' Perceptions of Corporate Sustainability in Indonesia's Sharia Banking Sector

Abstract

This study analyzes the perceptions of financial managers regarding corporate sustainability within Indonesia's Sharia banking sector, with a focus on understanding their attitudes and insights into sustainable practices and their alignment with Islamic principles. Employing a qualitative approach, this research relies on literature review and library research methods to explore existing academic and industry sources on corporate sustainability and Sharia banking. By synthesizing insights from scholarly articles, regulatory guidelines, and case studies, the study identifies key themes in financial managers' perspectives on sustainability, including economic, social, and environmental dimensions, as well as the unique ethical considerations inherent to Islamic finance. Findings suggest that financial managers in Sharia banks increasingly recognize the importance of corporate sustainability, viewing it as integral not only to financial performance but also to fulfilling religious and ethical obligations. However, challenges such as limited regulatory frameworks, resource constraints, and balancing profit with sustainable objectives are noted. The study highlights the need for more structured guidelines and training to enhance managers' understanding of sustainable practices that comply with Sharia principles. This research contributes to the growing discourse on sustainability in Islamic finance and provides insights into the complexities of implementing corporate sustainability within the Indonesian Sharia banking landscape, offering implications for policy development, organizational training, and future research in sustainability within Sharia-compliant sectors.