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Sustainable Development Goals (SDGS) And Sharia Financial Performance
Farida Farida, Pranita Siska Utami

Last modified: 2023-09-11

Abstract


The Sustainable Development Goals (SDGs) are a long-term global program to optimize all the potentials and resources of each country. The ultimate goals of the SDGs are to end global poverty, spread prosperity, and still preserve the earth. The implementation of SDGs must be carried out in company operations, especially related to the twelfth goal, namely sustainable consumption and production. Banking is one company that takes part in implementing the concept of sustainable development. Financial performance can be affected by the implementation of the SDGs in the company's operation. This study aims to analyze the effect of Sustainable Development Goals (SDGs) on Islamic financial performance. The sample used is Islamic Commercial Banks which publish financial reports and sustainability reports in Indonesia in 2020 and 2021. The data analysis uses multiple linear regression. The results showed that the Sustainable Development Goals (SDGs) had a negative effect on financial performance from the profit sharing aspect. These results indicate that the company has a relationship with many interested parties. The funds that owned by the company will be distributed more broadly and complexly in accordance with the existing SDGs formulation, not only to investors.


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