Corporate Transparency and Social Responsibility: An Islamic Approach to Sustainability and Economic Growth

Abstract

Corporate Social and Environmental Reporting (CSER) has become essential to corporate governance, accountability, and transparency. This study explores the motivations behind voluntary social and environmental disclosures, emphasising legitimacy theory and stakeholder theory within an Islamic framework. Drawing on Ibn Khaldūn’s concept of  Al-‘Aṣabiyyah  (social cohesion), the research examines its role in economic development and its implications for Pakistan’s socioeconomic stability. Recent advancements in Social and Environmental Accounting Research (SEAR), including stakeholder engagement, regulatory compliance, and strategic positioning, are also contextualised. Findings suggest that economic benefits, social legitimacy, ethical responsibility, and regulatory expectations drive corporate transparency. Furthermore, the study highlights the growing importance of standardized sustainability reporting frameworks, such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI), alongside emerging digital innovations. By integrating Islamic principles with contemporary sustainability practices, this research underscores the ethical and economic significance of corporate transparency in fostering long-term growth and stability.