The Existence of Business Entities as Instruments of the Caliph: An Ontological Approach to Organizations in Islam

This study proposes an ontological approach to organizations based on Islamic principles, which positions business entities as instruments of human caliphate on earth. Through qualitative-conceptual methods and Islamic epistemological approaches (bayani, irfani, and burhani), this study examines the Shari'ah Enterprise Theory (SET) and Waqf Entity Theory (WET) as alternative conceptual frameworks. The findings suggest that Islamic organizations function not only economically, but also as a means of worship and public welfare. Value-added statements are proposed to replace conventional income statements to emphasize moral and spiritual accountability. This framework has important implications for the reform of organizational theory, financial reporting, and managerial practices in the Islamic context.

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Publication Details

Journal
Formosa Journal of Science and Technology
Published
2025-06-30
DOI
https://doi.org/10.55927/fjst.v4i6.138
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

The Existence of Business Entities as Instruments of the Caliph: An Ontological Approach to Organizations in Islam

Rahmawati Umar, Sumarlin Sumarlin, Wahyuddin Abdullah
Formosa Journal of Science and Technology
Islamic Finance and Banking Studies
article

The Existence of Business Entities as Instruments of the Caliph: An Ontological Approach to Organizations in Islam

Rahmawati Umar, Sumarlin Sumarlin, Wahyuddin Abdullah
article en

Abstract

This study proposes an ontological approach to organizations based on Islamic principles, which positions business entities as instruments of human caliphate on earth. Through qualitative-conceptual methods and Islamic epistemological approaches (bayani, irfani, and burhani), this study examines the Shari'ah Enterprise Theory (SET) and Waqf Entity Theory (WET) as alternative conceptual frameworks. The findings suggest that Islamic organizations function not only economically, but also as a means of worship and public welfare. Value-added statements are proposed to replace conventional income statements to emphasize moral and spiritual accountability. This framework has important implications for the reform of organizational theory, financial reporting, and managerial practices in the Islamic context.

Formosa Journal of Science and TechnologyVol. 4(6)
Universitas Patria Artha (ID)
No poverty
Openalex Percentile: Top 70%
Islamic Finance and Banking Studies
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The Existence of Business Entities as Instruments of the Caliph: An Ontological Approach to Organizations in Islam — Rahmawati Umar, Sumarlin Sumarlin, et al. · Formosa Journal of Science and Technology (2025) | TGRS Research Map | TGRS