“Social Corporation” The Sharia Business Entity Model: A Corporate Structure with Embodied CSR

Abstract

Corporate social responsibility has been widely and internationally accepted as an element of good governance and one of the key factors in sustainability of a business. Nonetheless, the inculcation and practices of CSR are still subjected to discretion of the companies. In the present corporate model, CSR is still an option to be practiced rather than part of the objective of the company. Under the Sharia, it is also important for the businessmen to undertake that the main purpose or object of carrying out the business is not only for profit maximization but more importantly to ensure the utmost benefit of the society. This concept is known as "Maqasid al-Sharia". A Sharia corporation or any Sharia business entities should put the welfare and interest of the society as the ultimate goal of the business. Such principle is seen as the best CSR model which could be practiced by all corporations be it Sharia based or conventional businesses. Objective: This paper discusses the concept of "Maqasid al-Sharia" and its role and significance in changing the way business to be carried out in achieving the true and effective CSR. The main objective of this paper is to highlight how CSR could be implemented directly via a business model/entity. Results: The principles of Maqasid and

Incorporating Islamic Value in Corporate Social Responsibility (CSR) Practice of Malaysia Small Medium Enterprises (SMEs) Food Operators: Does Manager’s Religiosity Influence CSR Practice?

“…It may foster buyers' confidence that the firms have concern on the quality standards, enhance the corporate reputation and cares about the community and environmental welfares. Previous studies also confirmed that CSR practice is important as a sustainable strategy to growth and compete longer in the business (Desiyanti & Kassim, 2020;Ghadas et al, 2018;Samuel et al, 2011).…”

“…Previous studies had shown that managers' religiosity plays an important role as contributing factor towards SMEs' performance such as in Saudi Arabia (Alharbi et al, 2021) and Indonesia (Desiyanti & Kassim, 2020). Moreover, Ghadas et al (2018) revealed that it is crucial for managers to include the religiosity aspect in their business in terms of CSR so that it can give the highest benefit to the society and increase organizational performance and reputation. Tahir et al (2015) investigated the managers' perception towards religiosity and CSR in the Malaysian context.…”

Corporate Social Responsibility under the Maqasid Syariah Concept in Malaysia: Why Does it Matter?

“…24 Being a khalifah, Muslims must always concede that Allah is the only God that deserve to worship and that all possessions, wealth, expertise, abilities, positions and power belong to Allah as mentioned in Quran: "To Him belongs what is in the heavens and on earth, and all between them, and all beneath the soil." [Qur'an, Taha: 6] 25 Subsequently, Muslim's social responsibility is to manage these possessions to the best of their abilities with intention of creating benefit to the community. 26 They are not supposed to cause corruption in any form on earth (i.e.…”

“…35 It is obvious that all responsibilities mentioned in the verse including helping relatives, orphans, poor, needy, wayfarers, and freeing of captives all are relevant to the CSR. 36 The term Maqasid is derived from a verb qaseda which means the goals and purposes. Maqasid itself means goals or objectives and when such term is attached to the word Syari'ah it specifically refers to goals or objectives of Syari'ah.…”