LAW 208- Corporate and Islamic Social

This Article analyzes whether the concept of corporate social responsibility (CSR) is consistent with Islamic law (Sharia). The goal is to survey the primary sources of Sharia in an attempt to find any Islamic notions, Quranic verses, or Prophetic Hadiths that are related to CSR and that show that it is supported by and consistent with Islamic law. Part I discusses the concept of CSR and what it represents in the West by comparing the most widely accepted definitions of CSR. After determining what constitutes CSR, the Article explores whether CSR exists in Islamic law. The analysis of whether CSR is consistent with Islamic law is done via a discussion of two jurisprudential tools. Eminent Muslim jurists, who were confronted with questions relating to Sharia that had no direct answers in the primary sources, created these tools. They came up with jurisprudential solutions to make Islamic law more flexible, capable of accommodating the rapidly changing world, and able to provide answers to any new notions that were not existent during the legislation process of Sharia. After showing that CSR is consistent with Sharia, in Parts II-IV, the Article looks more closely at Islamic law to extract any ideas, notions, or concepts that indicate CSR is required by the Sharia. The Article then briefly explains these notions and shows the Quranic verses and Prophetic Hadiths that embody them. Part V discusses prohibited commercial activities in Islamic law, including usury, gambling, gharar, and others. This section provides definitions for each activity as well as the reasons for its prohibition. Part VI introduces Islamic financial institutions (IFIs), the reasons for their existence, and the services they offer as alternatives to the prohibited activities in Islamic law. Part VII discusses some implications of the prohibitions for doing business in and with Islamic countries in the 2 1s' century. Part VIII offers concluding remarks.