Corporate Social Responsibility from an Islamic Perspective

Abstract

This study explores the concept of Corporate Social Responsibility (CSR) from an Islamic perspective with reference to existing CSR frameworks. CSR has become a core component of sustainable business practices worldwide. Through qualitative descriptive analysis of the Qur’an, the Sunna, and other relevant sources, this study articulates the fundamental Islamic concepts that inform and underpin the corporate social responsibility (CSR) concept within the Islamic framework. Findings indicate that CSR is embedded in the Islamic Shariah through the concept of Khilafah. Businesses and other forms of organizations are established as trusts to manage economic and social affairs. Within this framework, businesses are expected to conduct themselves in an ethical manner and to demonstrate stewardship of the environment, of employees, of the distribution of justice and of charity. Contemporary CSR frameworks are found to be largely compatible with the Islamic framework of CSR. In contrast to the partial framework of CSR offered by Islam, within the framework of Islamic principles on CSR, accountability is offered in the first place to Allah and then to humanity, in all its diversity. Therefore, by incorporating the Islamic values and ethics into the business activities, of the corporate entities, it is possible to enhance the confidence of the stakeholders and the corporate reputation, to bring about sustainable human development.