Ethics vs. Image in Green and Islamic Finance

This chapter conducts a comparative analysis of green and Islamic finance to examine the governance foundations of ethical finance. Despite the fact that both systems are founded on strong moral commitments, environmental sustainability, and Shariah-based principles, they are at risk of legitimacy hazards due to Islamic-washing and greenwashing. The chapter introduces the Sustainability Governance Alignment Model (SGAM), which integrates ethical product integrity, independent assurance, and stakeholder-inclusive governance. This model is based on legitimacy, stakeholder, institutional, and signalling theories. It contends that the misalignment between ethical image and operational substance undermines systemic stability and trust capital. The research delineates regulatory, institutional, and technological pathways that can be implemented to enhance transparency and long-term credibility.