| Abstract |
This article examines the political perspective of corporate social responsibility from the standpoint of normative Islam. We argue that large firms within Muslim majority countries have the moral obligation to assist governments in addressing challenges related to sustainable socioeconomic development and in advancing human rights. In substantiating our argument, we draw upon the Islamic business ethics, stakeholder theory, and corporate governance literatures, as well as the concepts ofMaqasid al Shariah(the objectives of Islamic law) andfard al 'ayn(obligation upon all individuals within society) versusfard al kifayah(obligation upon some individuals within society) to introduce a normative model elucidating critical Islamic precepts. Finally, we propose an Islamic "political" corporate governance framework, which democratizes firm decision making by embedding "core" stakeholders, nongovernmental organizations (NGOs), andShariahscholars in the corporate board, thereby enhancing the ability of businesses to respond to stakeholder concerns and priorities, while mitigating interstakeholder and intraboard power asymmetries. |
