Conclusion
This paper analyses bank corporate governance under different paradigms either for Islamic bank or western banks. The functionalist paradigm views that all models in corporate governance seek to reduce the agency problem, the Islamic corporate governance model demonstrates that the governance of Islamic banks is multi-level governance system where the religious elements play a considerable role in the governance structure; this religious board is the distinguishing feature of Islamic business organizations. The interpretive paradigm demonstrates that corporate governance is social constructed. Thus according to this paradigm demonstrates the corporate governance in Islamic banks is characterized by social commitments ethical norms that are based on the moral framework of the Islamic religion. Corporate governance from the radical humanist paradigm considers that corporate governance models are chosen through a fair and democratic process. In this paradigm view of the Islamic corporate governance depends on the principle of consultation (Shura principle) between all stakeholders in the bank. Finally, the radical structuralist paradigm demonstrates that corporate governance has its base in social classes. Thus, the reason for the existence of governance in Islamic banks is a turning point for the unwillingness of people in Islamic society to deal with banking interests which are forbidden in the Islamic religion. The paper showes that Islamic governance demonstrates that mainstream corporate governance is not a law of nature but a social construct. It is thus evident that there is no unified governance model that covers all societies, all cultures, and all companies; each society has its own social structure and culture, through which the principles of governance are shaped.
