The Function Of Sharia Financial Institutions In Social Activity

Alias Candra, Muhammad Ridho Muttaqin

Abstract


This study examines the underlying motives of Islamic Financial Institutions in Social Activities. A qualitative descriptive approach was used to obtain primary data through interviews with 24 informants of Islamic Financial Institutions. Secondary data is collected from public companies with annual reports on the IDX in 2021. The data is sampled and researched using trigulation and content analysis techniques. The results of the study indicate that there are 2 motives in Sharia Financial Institutions, especially social and economic. Furthermore, the motive economy is more dominant and expects the provision of input money. As a result, Islamic Financial Institutions become less effective and most programs do not follow the actual needs of stakeholders. The dignity of Islamic financial institutions needs to be restored by implementing the social dimension. There are 2 approaches used to implement Sharia Financial Institutions, including a support system that utilizes pressure. The transcendental approach is initiated by corporate actors through religious values from social activities, so that the implementation is more humanistic and oriented to stakeholders.

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