CORPORATE ZAKAT COMPLIANCE BEHAVIOR AND ITS IMPACT ON ENHANCING SOCIAL JUSTICE OUTCOMES
Indonesia Indonesia Indonesia 
Kuwait 
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Corporate Governance, Corporate Zakat, Institutional Trust
Abstract
Social justice remains a fundamental objective of sustainable development, particularly in societies facing persistent challenges related to poverty, inequality, and social exclusion. Corporate zakat represents an important Islamic redistributive mechanism with the potential to contribute significantly to equitable socioeconomic development. Variations in corporate zakat compliance behavior, however, continue to affect the effectiveness of zakat as an instrument for promoting social welfare. This study aims to examine the determinants of corporate zakat compliance behavior and evaluate its impact on enhancing social justice outcomes. A quantitative explanatory research design was employed involving 400 corporate executives, financial managers, compliance officers, and zakat administrators from various industries. Data were collected using structured questionnaires and analyzed through Structural Equation Modeling (SEM). Findings indicate that governance quality and institutional trust significantly influence corporate zakat compliance behavior. Results further reveal that compliance behavior exerts a strong positive effect on social justice outcomes, including poverty alleviation, wealth redistribution, and social inclusion. Organizations characterized by higher compliance levels demonstrated greater contributions to community welfare and socioeconomic empowerment initiatives. Governance effectiveness and stakeholder confidence were also found to strengthen the relationship between compliance behavior and social impact. The study concludes that corporate zakat compliance functions as a strategic mechanism for advancing social justice by integrating Islamic ethical principles, organizational accountability, and sustainable development objectives within contemporary Islamic economies.
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