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SRI Sukuk, with its outcome-based emphasis, aims to align the Islamic finance industry with its original ideals and address criticisms related to form over substance. In Malaysia, while the pioneering Sukuk Ihsan was a “social” sukuk, recent SRI Sukuk issuances have predominantly been “green” or “sustainable” sukuk. This paper aims to evaluate the Malaysian SRI Sukuk market, identifying factors favouring “green” sukuk. It also examines whether structural issues in Sukuk Ihsan deterred subsequent issuers from “social” sukuk. The emergence of SRI Sukuk responds to sustainable development goals and the shift towards a low-carbon economy. Sukuk Ihsan, as the first Shariah-compliant pay-for-success structure, poses complexity and risk management challenges to meet performance criteria.

The study used a qualitative method in the form of a critical review of literature, interview sessions with experts and stakeholders who are familiar with SRI Sukuk and Sukuk Ihsan and a case study analysis of Sukuk Ihsan.

The popularity of “green” sukuk reflects the growing global environmental consciousness. The main factors driving the popularity of “green” sukuk are the maturity of the market and the existence of a strong supporting infrastructure for “green” issuances while the positive profiling benefits and availability of incentives for “green” issuances also contribute to a lesser extent. The recommendations include the promotion of “social” sukuk by regulators through a focus on establishing a similar supporting infrastructure for “social” sukuk as there are for SRI and standard Sukuk. In addition, issuers of “social” sukuk may want to reconsider the inclusion of key performance indicators (“KPI”) into the structure of future “social” sukuk issuances.

Although all respondents considered Sukuk Ihsan to be a success, some potential areas of improvement were also noted. These include the structuring of future “social” sukuk issuances with a bigger discount to compensate for the additional risk being assumed by the investor; the need to be more careful in the KPI selection process; and one respondent even went so far as to suggest the possibility of totally removing the step-down feature of Sukuk Ihsan.

Industry implications of Sukuk Ihsan study include findings that require balancing disclosure and economics by providing additional disclosure requirements for SRI Sukuk that may pose risks without corresponding benefits for issuers. KPI selection and investor confidence should also be properly identified, as KPIs are essential for the pay-for-success model to work successfully. For sukuk holders, findings indicate that any approval for waivers during issuance can impact investor confidence negatively. Investor literacy and impact understanding should also be improved for social Sukuk success. Investors should understand the different risk exposures and evolving impact requirements vital for sustainable growth.

The findings provide significant implications for social impact Sukuk issuance. They include providing a substantial case study for future social impact issuances, based on the pioneering impact of Sukuk Ihsan. Furthermore, Sukuk Ihsan’s unqualified success validates the feasibility of socially responsible sukuk. Despite its early introduction, both tranches being fully subscribed reflects robust investor interest. Stakeholders were also proud of their involvement in such an initiative, viewing it as a significant achievement in creating societal impact.

Although there have been several prior studies done on Sukuk Ihsan, the focus of those studies was on its structure and the novelty of its “step down” returns structure where investors would receive lower returns if certain key performance indicators (“KPIs”) are met by Yayasan AMIR in the execution of its Trust School Programme. Bearing in mind that the first Sukuk Ihsan has a June 2022 maturity date, and the results of its KPIs were announced in December 2021, to the best of the authors’ knowledge, this is the only documented case study that comprehensively reviews Sukuk Ihsan and identifies lessons learned and/or opportunities for improvement for the benefit of potential SRI Sukuk issuers in the future.

The main objective of this paper is to analyze works of literature on SRI sukuk to highlight the potential for these kinds of instruments in financing more sustainable financial systems (SFSs). The analysis mainly accentuates a dearth of knowledge on the various challenges and opportunities in the realm of SRI.

This paper pioneers the bibliometric and systematic literature review of the development of the SRI sukuk from 2016 (the first available year in the field) to and 2021.

The study findings highlighted several pertinent SRI issues: the lack of standardization due to the different interpretations of Shariah and green, the lack of retail investors, which inevitably produce a lack of liquidity in the secondary market, thus limiting their growth, its funding allocation’ close resemblance to green financing, and the role of Malaysia and Indonesia as global sustainable financial hubs to stimulate the development of Shariah-compliant sustainable instruments and contribute to the international debate about the building of a global standardized framework related to sustainable investments.

The integration of the environmental principles of a green bond with the Shariah-compliant financial structure of a sukuk, the SRI sukuk, represents a vital crossroad in both sustainable and Islamic finance. Social-impact sukuk and green sukuk is an undervalued instrument that could play an important role in financing a more sustainable economic and financial system, including Islamic investing. This kind of instruments, which is based on a “pay for success” principle in the conventional layout, perfectly fit with the profit-and-lost sharing’s (PLS's) ethicality, the sustainability principles of Islamic finance and the religious principles of Islamic law.

This study aims to investigate the relationship between managerial corporate social responsibility (CSR) mindset and business performance in small- and medium-sized enterprises (SMEs), focusing on the mediating role of CSR practices and the moderating influence of institutional forces.

A structured questionnaire was administered to 221 SME managers. The data was analysed using the Hayes process in SPSS to test the hypothesized relationships.

This study found that a managerial CSR mindset significantly improves operational and financial business performance. In addition, CSR practices mediate the relationship between managerial CSR mindset and business performance. Furthermore, institutional forces moderate this relationship, highlighting the critical role of external factors in shaping SME performance.

The findings suggest that SME managers should adopt a proactive managerial CSR mindset and integrate CSR into their core strategies to enhance business performance. Moreover, managers must be responsive to institutional forces as they adjust their strategy to meet external pressures to ensure sustainable performance.

This study demonstrates the theoretical explanation of how CSR practices serve as a conduit through which a managerial CSR mindset improves business performance under varying conditions of institutional forces.

Institutional pressures, increased competition and environmental changes demand sustainable business performance. Using the lens of stakeholder theory, this study aims to explore the simultaneous relationships of corporate social responsibility (CSR), green practices and perceived organizational politics (POP) with sustainable business performance, incorporating employee pro-environmental behavior (EPB) as a moderator.

Using a cross-sectional research design, data were collected via a survey of employees (n = 422) from across industries.

Based on hierarchical regression analyses, the findings support stakeholder theory by showing that CSR and green practices positively affect sustainable business performance. The findings also extend stakeholder theory by showing that the CSR-sustainable business performance relationship is moderated by EPB.

The study has practical implications for leaders, managers and supervisors in managing CSR and green practices for sustainable business performance and managing EPB to capitalize on the benefits of CSR.

This study assesses the previously untested simultaneous effects of CSR, green practices and POP on sustainable company performance and the moderating effect of EPB.

This study aims to theoretically discuss and empirically test the mediating mechanism of psychological distress and the moderating effects of Islamic work ethics (IWE) in the relationship between despotic leadership and adaptive performance.

A three-wave survey was used to gather the data from middle managers and their supervisors of construction firms in Pakistan. The final sample consisted of 304 respondents and data analysis was performed through SEM analysis.

Despotic leadership enhances employees’ psychological distress which results in a negative impact on adaptive performance. In addition, IWE played a buffering role in mitigating the harmful impacts of despotic leadership on adaptive performance.

The study is among the pioneers that have investigated how despotic leadership impacts employees’ adaptive performance via the underlying mechanism of psychological distress through the conservation of resources and social exchange theory lens.