Embedding ethics in Shariah audit: organisational commitment and ethical governance in Islamic banks

Purpose This study aims to explore how ethical values are embedded within organisational commitment that underpins Shariah audit in Islamic banks. It examines how structural and cultural dimensions of governance interact to sustain ethical accountability within Shariah audit practices. Design/methodology/approach Drawing on Islamic agency theory (IAT) and the principles of Maqasid al-Shariah, this study adopts an interpretive qualitative approach. Data were collected through in-depth interviews with governance actors – including internal Shariah auditors, audit committee (AC) members and Shariah supervisory board (SSB) representatives – and complemented by document analysis of institutional and regulatory materials. Findings The findings reveal that integrity, professionalism and accountability are core ethical values internalised through leadership example, collective awareness and organisational culture. Oversight from ACs and SSBs reinforces ethical assurance, but gaps in specialisation, coordination and ethical standardisation persist, reflecting a partial institutionalisation of Shariah values. Practical implications Islamic banks should embed Maqasid-driven ethical indicators within governance frameworks to strengthen both moral accountability and professional competence across audit functions. Regulators are encouraged to complement structural reforms with ethical integration guidelines that harmonise Shariah compliance and value-based governance. Originality/value This study contributes to the literature on ethical governance and organisational ethics by conceptualising Shariah audit as an ethical infrastructure – a system shaped by the interaction of institutional design, cultural commitment and spiritual accountability. It extends the application of IAT and Maqasid al-Shariah beyond compliance towards a comprehensive model of value-based governance in Islamic financial institutions.