A Conceptual Framework for Waqf-Based Social Business from the Perspective of Maqasid Al-Shariah

Abstract

Waqf, a non-profit voluntary sector, have an important and integral role in developing communities during various phases of Islamic communities' development. Recently, voluntary sectors are increasing their presence felt in development of communities. Current reports suggest a surge in the role of voluntary sectors in communities' development. This development also leads to the formation of Social Business (SB) which is hybrid in nature. SB is an entity that incorporates both features of profit sector and non-profit sector. SB model has been presented as a viable model in ensuring organization's longevity. This is evident in the case studies discussed. SB while operates on a business-like conduct, however its main objective is still dedicated for the betterment of society. The trend can also be observed in Islamic based voluntary sectors with the creation waqf-based SB (WSB). Issues regarding sustainability and impact of activities to beneficiaries are of concern to stakeholders. Furthermore, for Islamic based voluntary sector such as WSB, they are bound by Maqasid al-Shariah (MS) or objectives of the shariah. Based on MS index developed for the Islamic banking sector, this paper proposed a conceptual framework that could assist in determining the performance of WSB from the perspective of MS.

Empowering Economic Sustainability after Pandemic through Waqf linked Social Entrepreneurs

“…Waqf awareness campaigns are also conducted in the community, especially universities (waqf publications, websites). (Noor et al, 2018) Saiful Nang, a philanthropist with several social enterprise businesses, is another example of WLSE Type I. Saiful Nang is based in Malaysia and runs Colors of Asia Sdn Bhd and its subsidiaries, which include Social Media Warfare Consulting, Apparel & Apparel, Event Management, Online Retail, Professional Large Format Photography Printing, Training Center, Petronas Gas Station, Transportation & Logistics, Used Cars, Online Security Systems, and Importer This business donates all of its earnings to charitable organizations. Additionally, these businesses employ needy and impoverished people.…”

“…The Asnaf are additionally trained to improve their skills. (Noor et al, 2018) The most commonly used type in Malaysia is WLSE Type II. For all waqf assets, State Islamic Religious Councils (SIRCs) serve as trustees.…”

Waqf and Waste: An Unexplored Potentials

“…The concept of waqf on waste management is an attempt to give options for the community and the government and push waqf on the light of public service but based on the contributions of individuals and communities. As of now, the research on waqf is mostly based on productive waqf for poverty alleviation or other socio-economics issues [13] [14] [15] [16] [17] but only a handful of the research discuss the public function of waqf on environmental protection or enhancement [20] [21] [22] [23] [24] and almost none on waste management, as it is under the jurisdiction of government which in charge of public service duties as stipulated in constitution. This concept has its own advantages compared to current practices: 1.…”

Muhammadiyah Nazhir Organization : is That Productive Waqf Literacy Needed?

“…Social business is an institution established mainly to serve social problems in a financially self-sustainable way by creating revenue from products and services [17]. Social business is a concept undergoing debates about its very nature that it consists of innovative social value creation by organizations from the public, private, civic, and hybrid sectors [19].…”