Abstract: This paper discusses a new model of Islamic code of
ethics for directors. Several corporate scandals and local (example
Transmile and Megan Media) and overseas corporate (example
Parmalat and Enron) collapses show that the current corporate
governance and regulatory reform are unable to prevent these events
from recurring. Arguably, the code of ethics for directors is under
research and the current code of ethics only concentrates on binding
the work of the employee of the organization as a whole, without
specifically putting direct attention to the directors, the group of
people responsible for the performance of the company. This study
used a semi-structured interview survey of well-known Islamic
scholars such as the Mufti to develop the model. It is expected that
the outcome of the research is a comprehensive model of code of
ethics based on the Islamic principles that can be applied and used by
the company to construct a code of ethics for their directors.