Maqasid al-Shari`ah, Maslahah, and Corporate Social Responsibility (2007)*

Abstract

The doctrine of corporate social responsibility (CSR), which hasemerged and developed rapidly as a field of study, is a frameworkfor the role of business in society. It sets standards of behavior towhich a company must subscribe in order to impact society ina positive and productive manner while abiding by values thatexclude seeking profit at any cost. Despite the many attempts toconstrue CSR initiatives, it remains open to wide criticism for itsinherent problems via-à-vis justification, conceptual clarity, andpossible inconsistency. These problems are more acute when itcomes to implementing and operationalizing CSR on the ground,especially in a situation that involves trade-offs.This paper offers an instructive understanding of CSR froman Islamic perspective. In particular, the implication of maqasidal-Shari`ah (the Shari`ah’s objectives) and the applicationof maslahah (the public good) to CSR are discussed in detail toshed light on how Islam’s holistic and dynamic perception of CSRtake into consideration reality and ever-changing circumstances.These principles also provide a better framework that managerscan use when faced with potential conflicts arising from thediverse expectations and interests of a corporation’s stakeholders. *This article was first published in the American Journal of Islamic Social Sciences 24, no. 1 (2007):25-43