When Sharia-Compliant Business Becomes Merely a Label: A Critical Examination of the Implementation of Sharia Principles in Contemporary Business Practices

Abstract

The development of Islamic business and finance in the contemporary era has demonstrated significant growth, accompanied by increasing public awareness of the importance of halal and Sharia-compliant economic activities. However, the rapid expansion of Sharia-based businesses also raises critical questions regarding whether the application of Sharia principles is substantive or merely symbolic. In some cases, the term “Sharia” may function primarily as a marketing label without being fully reflected in business practices, governance, transactions, and relationships with stakeholders. This study aims to critically examine the implementation of Sharia principles in contemporary business practices and identify the gap between normative Sharia values and their practical application. This research employs a literature review method with a qualitative and critical-analytical approach. Data were obtained from relevant scientific journal articles, academic books, research reports, and literature discussing Islamic business ethics, Sharia governance, halal business, Islamic finance, and contemporary business practices. The findings indicate that the implementation of Sharia principles faces several challenges, including commercialization of religious identity, weak understanding of Islamic business ethics, limited transparency, inconsistent governance, and the prioritization of profit over social responsibility. The study argues that a Sharia-based business should not be assessed solely through its name, products, or formal certification, but also through the integrity of its entire business process. Genuine Sharia compliance requires the integration of tawhid, amanah, justice, honesty, transparency, social responsibility, and maslahah into business decision-making and organizational governance.