Social Capabilities and Corporate Zakat Commitment: Evidence from Mission-Driven and Stakeholder Management Perspectives

Abstract

This study investigates the influence of social capabilities on corporate zakat commitment, drawing on the Social Resource-Based View (SRBV) framework. While corporate zakat represents an important Islamic social finance mechanism, its implementation remains largely voluntary, resulting in inconsistent participation among firms. This study focuses on two key dimensions of social capabilities, mission-driven capabilities and stakeholder management capabilities, to explain variations in corporate zakat commitment among zakat-paying companies in Malaysia. Using survey data collected from the senior management of 142 corporate Zakat payers, the study applies partial least squares structural equation modelling (PLS-SEM) to test the proposed relationships. The findings indicate that stakeholder management capabilities have a significant positive effect on corporate zakat commitment, whereas mission-driven capabilities do not exhibit a statistically significant influence. These results suggest that effective stakeholder engagement, communication, and accountability mechanisms are more critical to motivating corporate Zakat practices than the formal inclusion of Zakat within organisational mission statements. The study contributes to accounting and Islamic governance literature by providing empirical evidence on the role of social capabilities in shaping voluntary zakat commitment. From a practical perspective, the findings highlight the importance of stakeholder-oriented governance strategies for zakat institutions, regulators, and corporations seeking to enhance zakat compliance and reporting practices