Concept of CSR in islam

CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY IN ISLAM

References from Qur'an, Hadith, and Islamic history.

CONTENTS:

1) Islamic CSR ( philanthropic activities/charities)

2) Islamic CSR (Environmental dimension). 3) Islamic CSR....(Fair Treatment of Workers) 4) Islam and CSR…beyond legal obligation. 5) Islamic CSR….(Ethical dimension) 6) Islamic View: Community Development.

1) ISLAMIC CSR (PHILANTHROPIC ACTIVITIES/CHARITIES)

“It is not righteousness that you turn your faces towards East or West; but it is righteousness- to believe in Allah and the last Day and the Angels, and the Book, and the Messengers; to spend of your substance, out of love for Him, for your kin for orphans, for the needy, for the wayfarer, for those who ask; and for the freeing of captives; to be steadfast in prayer, and practice regular charity; to fulfill the contracts which you made; and to be firm and patient in pain (or suffering) and adversity and throughout all periods of panic, Such are the people of truth, the God-conscious”. (Qur’an, Sura Albaqara-2:177)


According to Allah, And prophet (PBUH) said: "The generous man is near Allah, near paradise, near men and far from hell, but the miserly man is far from Allah, far from paradise, far from men and near hell. Indeed, an ignorant man who is generous is dearer to Allah than a worshipper who is miserly."(Tirmidhi)


Abu Huraira related that the Prophet said: The Lord’s commandment for every one of his slaves is, ‘Spend on others, and I will spend on you’. [Bukhari; also in Muslim].

2) ISLAMIC CSR (ENVIRONMENTAL DIMENSION)

Decision of Ottoman Court (Hanafi) was like the following;

“If any person constructs a drain or a sewer near a well of water belonging to some other person, and pollutes the water thereof, he may be made to remove the damage. If it is impossible to remove the damage, he may be made to close up the drain or sewer. Again, if any person constructs a sewer near to a water channel, and the dirty water from such sewer flows into the channel and causes great injury thereto, and no other way can be found to remove such injury than by closing it, the sewer shall be closed.” (Majallah, 1365)


B)“Indeed, the mis-spender are the brother devil.” ( Surah Al-Isra: 27).

The Prophet says, “If the Judgment Day comes when one of you is

holding a seedling in his hand, if you are able to plant it before the Day arrives, do so” (Al-Bukari, 1997)


"Corruption has appeared on the land and in the sea because of what the hands of humans have wrought. This is in order that we give them a taste of the consequences of their destructiveness in order that they will return to the path of right guidance." (30:41 Sura Rome)

Qur'anic exegetes have described this corruption as the drying up of the rains, the disappearance of the harvest of the sea, and other ecologically relevant meanings.

3) ISLAMIC CSR....(FAIR TREATMENT OF WORKERS)

“The wages of the labourers must be paid to him before the sweat dries upon his body.” (Ibn Majah, No: 2434)

“I will be the foe to the persons on the day of judgement, one of them being the one who does not give him his due when he employs a person who has accomplished his duty”. (Hadith-Bukhari, No.2109).

4) ISLAM AND CSR…BEYOND LEGAL OBLIGATION:

“And why should you not fight in the cause of Allah and of those who, being weak, are ill treated(oppressed)-men, women and children,[….]” (Qur’an,sura an nissa-4:75).

The saying of prophet (PBUH)“The one who looks after and works for widow

and for a poor person, is like a warrior fighting for Allah's cause or like a person who fasts during the day and prays all night” (Hadith-sahih Bukhari, No 8.35)

5) ISLAMIC CSR….(ETHICAL DIMENSION)

“Whosoever sells a defective product without disclosing its defect to the purchaser, shall earn the permanent anger of Almighty Allah and the angels continuously curse such a person.” [Ibn-e-Maja].

Abu Said related that the Prophet (PBUH) said:

“The truthful and trustworthy businessman will be in the company of Prophets, saints and martyrs on the Day of Judgment.” [Darimi, Tirmidhi].

6) COMMUNITY DEVELOPMENT: ISLAMIC VIEW

Abu Huraira narrated that the Prophet said:“The best charity is that which is practiced by

a wealthy person. And start giving first to your dependents.” [Bukhari].

The Quran rules out any kind of human injustice, exploitation or cheating of any kind, whether it is individual, societal, religious, sectarian, political or economic:

6) COMMUNITY DEVELOPMENT: ISLAMIC VIEW

“Verily God enjoineth (on you) the doing of justice and the doing of good (to others)” [Nahl (16): 90]

“O ye who believe! Be steadfast as witnesses for God with justice, and let not malice of any people (toward you) induce you to depart from justice. Deal justly, that is nearer to piety, and be careful (of your duty) to God. Verily God is aware of what ye do.” [Maidah (5): 8]

7)ISLAMIC CSR…. (CONCERN FOR LIFE):

Islam prohibits certain type of business due to the “concern to protect health and life” (Zinkin 2005).

Therefore, products and services that put these at risk such as casino and alcohol are prohibited. This exclusion is best justified by the Quran: “They ask thee concerning wine and gambling. Say: In them is great sin, and some profit for men; but the sin is greater than the profit” (Quran 2:219).

8) GENDER & ETHNIC DISCRIMINATION: ISLAMIC VIEW

‘O people! We created you from one man and one woman and made you divided in branches and tribes so that you may recognize one another. Undoubtedly, the most respected among you in the sight of Allah is he who is more pious, verily, Allah is knowing, Aware. [Al-Hujurat: 13].

Corporations must also be fair in giving full measure and right weight;

“And give full measure when you measure, and weigh with a just balance; this is better and fairer for your end” (Qur’an, 17: 35). Their failure in this respect renders them liable for fraud;

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Concept of CSR in islam