Accountability, Transparency, and Islamic Good Corporate Governance (IGCG) on Muzakki Trust in Indonesia

Abstract

This study aims to analyze the effect of accountability, transparency, and Islamic good corporate governance on muzakki trust in LAZISMU Cirebon Regency. The potential for collecting zakat in zakat institutions is currently still not optimal, because there are still many people who choose to pay zakat independently. This is also due to the absence of full trust in amil zakat institutions by the community, especially among muzakki. In the management of zakat, financial statements should meet the requirements or principles of good governance which include transparency, accountability, responsibility, and independence. According to Law No. 23 of 2011 article 02 that zakat management must adhere to Islamic law, such as trustworthiness, expediency, justice, legal clarity, honesty, and responsibility.  Accountability and transparency are important components in good corporate governance that play a role in fostering trust among muzakki towards zakat management institutions. Islamic Good Corporate Governance is a management system that prioritizes spiritual accountability and combines the basic principles of morality, reliability, transparency, responsibility, and accountability, which are seen as substantial benchmarks for the pleasure of Allah (s.w.t.). This research uses quantitative methods. The types of data used are primary data and secondary data. Primary data comes from questionnaires distributed via google-form to muzakki totaling 78 respondents who are muzakki LAZISMU Cirebon Regency, while secondary data from the results of literature review relevant to this research. The data analysis techniques used are research instrument test, classical assumption test, multiple linear regression analysis test, determination coefficient test, and hypothesis testing.  The results showed that transparency and Islamic good corporate governance had a significant effect on muzakki trust, while accountability had no effect on muzakki trust. This can occur because muzakki already fully trust LAZISMU Cirebon Regency in managing zakat funds effectively, so they focus more on other aspects such as the effectiveness of programs organized by LAZISMU Cirebon Regency.