The term corporate social responsibility csr refers to strategies whereby corporations or firms conduct their business in a way that is ethical, society friendly, proenvironment and beneficial to communities in terms of development. Corporate social responsibility csr has been the concept of social responsibility and justice associated with related terms like business ethics, in islam in light of the holy quran and hadith corporate performance, corporate accountability, suggests that there seems to be congruence corporate responsibility and stake holder between the. A literature survey elena platonova abstract islamic finance reemerged in modern times as an alternative ethical financial proposition shaped with the norms and principles of islam. The presentday csr also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity is a concept whereby business organizations consider the interest of society by taking responsibility for the impact of their activities on customers, suppliers, employees. As per islamic business ethics, corporate social responsibility csr of the business organizations and islamic financial institutions ifis should be seen as a benefit rather than a cost. Ib csr ini akan menyalurkan dananya kepada yang berhak dengan komposisi 50% untuk pengusaha ekonomi mikro lewat dana bergulir, 25% untuk sektor pendidikan, dan 25% untuk bantuan bencana alam.
What does islam say about corporate social responsibility. Islamic perspective of corporate social responsibility. Corporate social responsibility in islam munich personal. Even the payment of the annual religious tax, zakat, on agricultural products was coercive. The scope of social responsibility in islam the individual members of society should work together embraces all the needs of the society and its members extends to humanity mutual responsibility 3. Perhaps, that is why studies on csr are quite few in islam a. The notion of corporate social responsibility csr from the islamic perspective has been viewed by reference to the tawhid and shariah paradigms and other concepts such as maqasid shariah objectives of shariah, maslahah ammah public interest and masuliyyah accountability. Students can download the study materials and pdf books and they can use them in their academic preparation. This chapter is a literature study on corporate social responsibility csr of islamic banks since the concern over csr is significant to islamic banks. Csr is the imperative of modern business and one of the prerequisites for achieving. Corporate social responsibility, islamic banks, islamic perspective, shariah. The term corporate social responsibility csr is also found in the literature, treated by the islamic economy and finance.
Islam provides a basis and guideline for living ones life. The purpose of this study is to examine the concept of corporate social responsibility csr and explore its connection to islamic marketing with the view of providing the basis for an. And provide a practical through the international financial institutions that can implement csr policies framework. Islam rejects the dogma of separation of church and state, offering instead a complete and godcentered way of life. Corporate social responsibility in islam munich personal repec. Social responsibility has become increasingly important in recent times. Corporate social responsibility dalam perspektif islam. The importance of corporate responsibility the importance of corporate responsibility is an economist intelligence unit white paper, sponsored by oracle. An islamic based organization therefore establishes an icsr. The intense commitment of islam to justice and brotherhood demands that business organization should take care of some of the needs of the community, therefore, there is. Perhaps, that is why studies on csr are quite few in. Religion and attitudes to corporate social responsibility.
Many western theoreticians have attempted to provide theoretical, moral and ethical groundings for. Milton friedman, capitalism and freedom 3 40th anniv. What does islam say about corporate social responsibility csr abstract the escalating social and economic problems brought about by globalization have raised new questions as well as expectations about governance, ethical and social responsibilities. Pdf on corporate social responsibility and islamic marketing. Aug 28, 2009 purpose as per islamic business ethics, corporate social responsibility csr of the business organizations and islamic financial institutions ifis should be seen as a benefit rather than a cost. An islamic perspective on corporate social responsibility of islamic.
Another most prominent writer in the area of corporate social responsibility is keith davis, who extensively wrote on this topic. The essays offer new insights into the relationship between morality. If we all are willing to listen, then we may clear up some of the misunderstanding, which has hindered western appreciation of middle eastern ethics and values, especially since islam itself is now pushing into the cities of north america, great britain and continental europe. Concept of corporate social responsibility in islamic law, the. Many western theoreticians have attempted to provide theoretical, moral and ethical. The economist intelligence units editorial team executed the surveys, conducted the interviews and wrote the report. Islamic roots of corporate social responsibility springerlink. Like any young endeavor, contemporary islamic finance faces challenges. In this way, their mutual responsibility towards each other is fulfilled from the first generation to the last. In this new construct not only the form or the legality of. Especially in the last decade, not only the large companies are involved in practice of. An overview of corporate social responsibility 4 what is the business case for csr. This study provides the basis of social responsibilities that apply to those derived from divine.
A comparative analysis between islamic concept on corporate. Corporate social responsibility csr but also a good number of small. Corporate social responsibility dalam perspektif islam sarnoid. Corporate social responsibility csr disclosure by islamic banks varies significantly across the sample.
Islamic concept of corporate social responsibility csr from. Pdf corporate social responsibility in islam admir. Sep 27, 2011 findings corporate social responsibility csr disclosure by islamic banks varies significantly across the sample. Manifestations of social responsibility in islam a general outline of social responsibility should be clear from what has already been said. Making as much profit as possible was the driving force, not social commitment. Once again, the issue of corporate social responsibility remained of minor concern to the investors. Corporate social responsibility of islamic banks in malaysia. Consequently, corporate social responsibility csr has emerged and developed rapidly as a field of study. At the organizational level, islamic work ethics can be formally referred to as islamic.
Determinants of corporate social responsibility disclosure. Various corporate leaders maintain that business is considured to contribute fully to the society if it is efficient, profitable. The individuals responsibility for the community in islamic societies and conversely the communitys responsibility for the individual are of primary magnitude, constituting a trust of life and the highest of its responsibilities. This study provides the basis of social responsibilities that apply to those derived. The intense commitment of islam to justice and brotherhood demands that business organization should take care of some of the needs of the community, therefore, there is needed that the ifis. Major organisations throughout the world now realise that corporate social responsibility csr is an important part of a companys operations. Pdf corporate social responsibility in islam hussein. Business ethics, corporate social responsibility, and. International journal of business and technopreneurship volume 2, no. Power and postcolonialism as underrepresented perspectives in the discourse on corporate social responsibility. The concept of corporate social responsibility has a vast history and basic idea along with practice on csr can be found from centuries ago in the. The ethnography, which is rich and authoritative, highlights the distinctiveness of the malaysian case and it is sure to influence future scholars in the field for many. It was found that there was a statistica l significant relationship between the islamic banks corporate social responsibility and societal development in malaysia.
Mohammed, jawed a, abstract phd thesis on corporate social responsibility in islam, 2007 aut university a weak compliance to ethical codes and a weakening of the sense of corporate social responsibility may exist due to numerous social, economic and cultural pressures. Some thoughts on future research agenda april 6, 2017. Islam, muhammad azizul, csr reporting and legitimacy theory. Using a comprehensive csr index covering ten dimensions, we analyse the csr disclosures in a sample of 90 islamic banks. Corporate islam is a muchneeded text on the contemporary engagement of economy with sharia and its demands and outcomes for both producers and consumers in the economy. Corporate social responsibility from an islamic moral economy. What is corporate social responsibility and does it work. Cambridge core islam corporate islam by patricia sloanewhite. At the organizational level, islamic work ethics can be formally referred to as islamic corporate social responsibility icsr. There are many extremely important commands to perform social activities in islam.
Download business ethics, corporate social responsibility, and governance notes for mba pdf. And provide a practical through the international financial institutions. Among these is the persistent critique of its focus on transaction and cash flow structuring that is more form than substance, and the consequent inability to produce greater social balance and justice. Indeed, values and principles that have been central to islam since the time of the holy prophet mohammed peace and blessings be upon him may serve as a foundation for notions of corporate social responsibility csr similar to those in the west.
Corporate social responsibility corporate social responsibility practice islamic banking muslim country protestant work ethic these keywords were added by machine and not by the authors. The concept of corporate social responsibility csr implies that the company has far more responsibilities that overcome its basic economic responsibility. Apr 10, 2017 islam, muhammad azizul, csr reporting and legitimacy theory. Within this, there is a very detailed concept of ethical and social behavior which allows us to deduce that the concept of social responsibility automatically has a role in islam. Consequently corporate social responsibility csr has emerged and. Corporate social responsibility in islam 2014 youtube. Corporate social responsibility from an islamic moral. Nov 22, 2006 this paper explores the relationship between religious denomination and individual attitudes to corporate social responsibility csr within the context of a large sample of over 17,000 individuals drawn from 20 countries. From the islamic perspective, corporate social responsibility csr is a mean to maintain a good relationship with allah swt, other human beings and the environment. Corporate social responsibility is an elusive concept, but it can be measured and compared within a structural framework and within the cultural context of each organization. Principles of corporate social responsibility in islam. Notions of corporate social responsibility csr have been suggested to be consistent with an islamic view of society. According to the regression results, variation is best explained by the influence of the relevant publics and the shariah ssb supervisory boards corporate governance mechanism variables. Corporate islam, global capitalism and the performance of economic moralities.
Islamic concept of corporate social responsibility csr from the perspective of csr players at bank islam malaysia berhad fathiyyah abu bakar, mohd atef md yusof school of accountancy, universiti utara malaysia abstract the issue of csr has received an increasingly high profile in recent years all over the world. Determinants of corporate social responsibility disclosure sayd farook roman lanis islamic banks offer distinct financial services and as such have grown significantly in bahrain, bangladesh, jordan, kuwait, malaysia, qatar, turkey and u. Csr in islam although the term corporate social responsibility was coined in the 1. Islam and corporate social responsibility in the arab. Islam recognizes that an organization has the right to make a profit, but not at the expense of the claims of various other stakeholders. Commission green paper promoting a european framework for corporate social responsibility, at j 20, com 2001 366 final july 18, 2001. Perusahaan memasukkan normanorma agama islam yang ditandai dengan adanya komitmen ketulusan dalam menjaga kontrak sosial di dalam operasinya. It is true that there is nothing in the islamic faith or law that dictates that corporations should be socially responsible in those terms. Islamic corporate social responsibility icsr concept. Some of the great scholars of islam have affirmed and emphasized islams social dimension. This process is experimental and the keywords may be updated as the learning algorithm improves.
This study aims to examine the criteria and islamic instrument of corporate social. Much contemporary discussion of csr, however, has not recognized this. Muhammad azizul islam professor in accountancy and. Pdf corporate social responsibility in islam researchgate. Implementing corporate social responsibility 18 task 1. Within this, there is a very detailed concept of ethical and social behaviour which allows us to deduce that the concept of social responsibility automatically has a role in islam. Indeed, values and principles that have been central to islam since the time of the holy prophet mohammed peace and blessings be upon him may serve as a foundation for notions of. From this point of view, csr engagement is a tool to. Religion and attitudes to corporate social responsibility in. Corporate social responsibility in islam ideasrepec. The escalating social and economic problems brought about by globalization have raised new questions as well as expectations about corporate governance, ethical and social responsibilities.
This paper examines the relationship between corporate social responsibility csr and financial performance in islamic banks. Corporate social responsibility csr dalam perspektif islam merupakan praktik bisnis yang memiliki tanggung jawab etis secara islami. Islamic work ethics and corporate social responsibility in. The issue corporate social responsibility csr has been of growing concern among business communities in recent years. Islamic corporate social responsibility in islamic banking. This paper explores the relationship between religious denomination and individual attitudes to corporate social responsibility csr within the context of a large sample of over 17,000 individuals drawn from 20 countries. You can easily adapt the mba lecture notes, study materials, and. Islamic concept of corporate social responsibility csr. The handbook of islamic marketing provides stateoftheart scholarship on the intersection of islam, consumption and marketing and lays out an agenda for future research. Corporate social responsibility csr ternyata selaras dengan pandangan islam tentang manusia sehubungan dengan dirinya sendiri dan lingkungan sosial, dapat dipresentasikan dengan empat aksioma yaitu kesatuan tauhid, keseimbangan equilibrum, kehendak bebas free will dan tanggung jawab responsibility. Pdf corporate social responsibility csr is a phenomenon that had been discussed from decades. Pdf islamic perspective of corporate social responsibility. Apr 22, 2016 corporate social responsibility corporate social responsibility practice islamic banking muslim country protestant work ethic these keywords were added by machine and not by the authors. Corporate social responsibility of islamic financial.
913 157 926 1289 83 678 88 964 457 1361 814 1383 1365 773 468 770 221 300 1487 1133 1508 530 513 530 1282 1080 261 991 770 896 675 1081 526 307 1463 658 514 346 195 426 948 1090 1387 222