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.
Authors
- Rahmawati Umar
- Sumarlin Sumarlin
- Wahyuddin Abdullah
Institutions
- Universitas Patria Artha (ID)
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