Islamic Values in Sustainable Leadership: Navigating Ethical Dilemmas Between Profit and Planet

In conjunction with global environmental crises, corporate leaders are expected to employ sustainable practices, which often contradict profit maximization. With this regard, this chapter analyses how Islamic values can guide leaders to balance their roles in both reaching organizational profitability and attaining environmental sustainability. This chapter argues that Islamic principles, namely khilafah (stewardship), tawhid (oneness of God), and ‘adl (justice), provide a framework that can be used in the sustainable decision-making process. Such values encourage leaders to prioritize the sustainability of the environment and society alongside corporate growth. However, in implementing these values, leaders may encounter challenges, such as resistance from stakeholders and cultural factors in various settings. As such, the chapter proposes strategies to deal with these barriers, including fostering an organizational culture integrated with Islamic values, developing new performance standards beyond financial indicators, and organizing partnerships with aligned organizations. Finally, this chapter promotes a sustainable leadership model where corporate profitability and environmental responsibility can be navigated by doing Islamic-based ethical business practices.