An Institutional Analysis of Corporate Zakat in Malaysia
Abstract
This study examines the institutional dynamics shaping corporate zakat practices in Malaysia. Corporate zakat, an almsgiving obligation for Muslim-owned businesses, operates within a complex regulatory and socio-economic framework influenced by religious institutions, state authorities, and corporate governance structures. By employing an institutional analysis approach, this study explores the interplay between legal frameworks, enforcement mechanisms, corporate compliance, and stakeholder expectations. It identifies key institutional factors that drive corporate zakat contributions, including state-led incentives, Shariah governance, and corporate social responsibility (CSR) considerations. The findings highlight the role of state Islamic religious councils, tax regulations, and corporate culture in shaping zakat compliance and reporting practices. This study contributes to the discourse on Islamic finance and corporate philanthropy by offering insights into the institutionalisation of zakat within Malaysia’s business landscape.
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