Introduction

In today’s increasingly complex global economy, the implementation of Good Corporate Governance (GCG) has become an important element in maintaining a company’s sustainability and credibility. GCG functions not only as a control and monitoring mechanism, but also as a way to ensure that the interests of all stakeholders are protected fairly.

In the context of Sharia-based companies, GCG has an additional dimension, which is the obligation to comply with Islamic principles. These include the prohibition of riba (interest), gharar (uncertainty), and maysir (speculation or gambling), as well as the application of ethical values such as honesty, justice, and social responsibility. Therefore, the integration of GCG and Sharia compliance is a crucial aspect of business operations.

The Concept of Good Corporate Governance in the Sharia Perspective

Good Corporate Governance is a system designed to direct and control a company so that it operates in a transparent, accountable, and responsible manner. The main principles of GCG include transparency, accountability, responsibility, independence, and fairness.

From a Sharia perspective, these principles are not only administrative but also moral and religious. Transparency means not only openness of information but also honesty in reporting the company’s condition. Similarly, accountability is not only toward shareholders but also toward God as a form of spiritual responsibility.

Thus, GCG in Sharia-based companies is not only focused on business efficiency but also on achieving Islamic values as a whole.

The Role of the Sharia Supervisory Board (DPS)

One of the key elements that distinguishes Sharia-based companies from conventional ones is the presence of the Sharia Supervisory Board (DPS). The DPS plays a strategic role in ensuring that all company activities comply with Islamic principles.

The main responsibilities of the DPS include:

• supervising company operations
• providing Sharia opinions or fatwas
• conducting Sharia audits
• advising management

The presence of the DPS not only ensures compliance with Islamic law but also increases public trust in the company. It acts as a guardian of Sharia integrity by ensuring that all products, services, and policies follow Islamic principles.

Indicators of Sharia Compliance

Sharia compliance in a company can be measured through several key indicators.

First, compliance with international standards such as AAOIFI and IFSB. These standards provide guidelines for financial reporting, governance, and operations based on Islamic principles.

Second, the elimination of prohibited elements such as riba, gharar, and maysir. Sharia-based companies must ensure that all transactions are free from these elements.

Third, transparency in financial and operational reporting. Companies must clearly disclose sources of income, zakat distribution, and other activities related to Sharia compliance.

By fulfilling these indicators, companies not only meet legal requirements but also build trust and a strong reputation.

Key Dimensions of GCG in Sharia-Based Companies

Based on the literature, there are three main dimensions of GCG that support Sharia compliance.

First, the role of the DPS as a Sharia supervisor. It ensures that all activities follow Islamic principles and provides guidance for decision-making.

Second, transparency and Sharia financial reporting. Transparency helps stakeholders understand the company’s condition and increases accountability.

Third, the independence of the board of directors and commissioners. This independence is important to avoid conflicts of interest and to ensure that decisions are not only profit-oriented but also aligned with Sharia values.

These three dimensions work together to create a strong governance system in Sharia-based companies.

Challenges in Implementation

Despite its importance, the implementation of GCG in Sharia-based companies still faces several challenges. One major challenge is the dual legal system, where companies must comply with both conventional laws and Sharia principles.

In addition, the lack of harmonization between international standards and local regulations can hinder effective governance. Another challenge is the limited number of professionals who understand both business practices and Sharia law.

Therefore, efforts are needed to improve capacity, harmonize regulations, and strengthen the role of the DPS to ensure effective implementation of GCG.

Conclusion

Good Corporate Governance plays a very important role in encouraging Sharia compliance in Islamic-based companies. Through the implementation of transparency, accountability, and independence, supported by the strategic role of the Sharia Supervisory Board, companies can ensure that all activities comply with Islamic principles.

The integration of GCG and Islamic values not only improves compliance but also strengthens public trust and global competitiveness. Therefore, strengthening Sharia-based governance is essential to create a sustainable and ethical business system.

Reference:

Wahyuni, P. (2025). The role of good corporate governance in encouraging compliance in sharia-based companies: A systematic literature review. Proceeding International Seminar on Islamic Studies, 6(1), 1854–1869.