Asian and African Area Studies, 11 (2): 137-150, 2012

Frontier of Islamic Economics and Finance: New Challenges

Integrating Moral in a Dynamic Model of Corporate Social Responsibility in
Islamic Economics and Finance
Shifa Mohd Nor *Abstract
This paper focuses on Corporate Social Responsibility (CSR) in Islamic Economics andfinance. The escalating social and economic problems in particular during the current
financial crisis have raised new questions as well as expectations about corporate
governance, ethical and social responsibilities. Commentators have raised“ethical”asthe missing link in financing and also in running financial institutions. Corporate Social
Responsibility (CSR) has emerged and developed with the aim of constructing anddirecting the social responsibilities of economic and financial institutions. The main
objective of this paper is to study the concept of CSR from an Islamic perspective withspecial reference to the moral values that are essential in Islam. Importantly, Islamicbanks are criticized for not considering the social dimensions related to development,
which is an essential distinguishing point of Islamic moral economy. This paper
therefore attempts to respond by suggesting a new paradigm within CSR framework to
help Islamic banking and financial institutions to overcome the gap between aspirations
and realities. As a concrete policy implication, the paper suggests that Islamic banks
should shift from the practice of giving charity and zakah in a traditional manner to amore systematic method of performing charity and zakah in order to ensure community
development.

Introduction
The shock awakening of the global economic crisis proved guilty beyond doubt the current
financial practices which have generated social problems such as poverty, decline in moral values,
environmental destruction, crime, and unemployment in addition to reckless financial attitudes.
Hence, the search for morality and ethics became a quest to reconcile the deep wound in theworld’s purely interest based financial system. Interestingly, Corporate Social Responsibility(CSR) related concerns were raised during the crisis and this effort did not lessen except in thecase of total bankruptcy [Møller 2009]. CSR became an important subject which was neither* Ph. D student, School of Government and International Affairs, Durham University
Accepted January 13, 2012137

Asian and African Area Studies, 11 (2)abandoned nor diminished but instead welcomed openly. As reported by KPMG [2008], only 50
percent of companies surveyed in year 2005 reported their CSR activities, which increased to 80
percent in 2008 indicating a positive shift towards ethicality. The drivers that force this upward
shift in CSR reporting were mainly ethical considerations and a greater emphasis on efficient risk
management. Indeed, the cause of the crisis was related to unethical behaviour caused by greed
and a materialism which lead to irresponsible actions and a total disregard for ethical values inbusiness transactions.
By its very nature and construct Islam stipulates a moral economy, and therefore as its
economic system, Islamic banking and finance (IBF), is expected to fulfil such aspirations. Thisimplies that Islamic moral economy aims at CSR from a religious angle, as the promotion ofsocio-economic justice, and social and environmental concerns are values inherited from Islamic
moral economy.
IBF, which has been operating for about forty years, came as a revelation to the banking
system in combating this turmoil. Besides this, the world has been watching the Islamic banking
industry since its acknowledgment by the International financial system, to see whether it isresilient to the crisis or not. This could be evidenced from the eagerness of certain non-Muslim
countries in Europe and Asia such as the UK, France, Singapore, Japan, South Korea, China andHong Kong to encourage the practice of Islamic finance, believing it to be a future market leader.
Besides this, IBF, based on the Islamic economic system is to be said less affected by the crisis
since it endorses socio-economic justice.
The aim of this study is to locate the ethical values which are incorporated in CSR froman Islamic perspective. Specifically, CSR will be studied from the concept of Islamic economics
and finance. Hence, this paper offers an understanding of CSR from an Islamic worldview bydiscussing Islamic values that are consistent to the CSR concept. This paper will be presented
in five sections, Section I being the Introduction. Section II offers an overview of the conceptof Corporate Social Responsibility. Section III discusses the role and significance of religion
towards ethical values. Developing from these two sections, this paper will elaborate on theconcept of CSR from an Islamic view in Section IV. Then, Section V will expound the Islamic
Moral Economy. Section VI explains the role of CSR in Islamic economics and finance. The
paper is concluded in Section VII.

1. Corporate Social Responsibility (CSR): An Overview
The concept of CSR has been evolving for more than half a century up to the present day, and138

MOHD NOR：Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Financefinding the most suitable definition is a challenge. CSR has different meanings to different
people according to different situations [Cama 2004]. In the 1950’s, Howard R. Bowen, whois commonly known as the ‘Father of Corporate Social Responsibility,’ explicitly claimed theimportance and responsibility of corporations to fulfil the social welfare demands made by thesociety [Carroll 1999]. This covers every business decision and operation that could influence
the society’s life. CSR then was referred to as a guideline for businesses to be socially responsible[Masaka 2008].
However, as the literature has proliferated, so the definition of CSR has been dissected
into more specific details. CSR is associated with certain traits such as gender equality, fairtreatment, human rights, women’s rights, employee’s rights, environmental awareness, charityand philanthropy. The importance of CSR has made it a ‘licence-to-operate’ a business by
ensuring that every business operation must be efficient and effective, for without it the future of
the business is at stake [Zinkin 2004].
Although the prospects of CSR benefiting the society may have sounded very promising,
there were always issues opposing this spirit. CSR has been criticised since its early infancy.
Among the most prominent arguments was the one that claimed the responsibility of business
was only to maximise profit, and CSR should be left to the free market. However if this fails,
then the government and legislation should come forward to perform it [Carroll and Buccholtz
2006; Friedman 1970]. Another strong factor contesting the concept of CSR was that it was
costly and thus only rich and financially stable corporations could operate a CSR program[Handy 2002]. Many other criticisms of CSR have continued until today, such as that it is time
consuming, uses up human resources, bureaucracy and so on.
Despite all the arguments and criticism, CSR has been growing and moving towards a stable
platform. CSR is not only performed by non-profit organisations, rather the banking sector isslowly moving towards being more socially responsible. This is supported by the existence of
ethical and socially responsible banks in Europe and other parts of the globe such as Triodos
Ethical Banking, Ethical and Green banking, The Co-operative Bank, Grameen Bank, Nasser
Social Bank and many more. Commercial banks are also keen to embed CSR measures in theirpolicy to be seen as more responsible to the community. For example, Standard Charteredbank, HSBC and Deutsche Bank are very committed to CSR activities such as helping the poor,
contributing to environmental awareness, adopting social investment and also nurturing arts.

139

Asian and African Area Studies, 11 (2)2. Religion and Ethical Values
Ethical behaviour is suggested to be a prescriptive value that is normally embedded in one’s
character.

Ethics stands on the principles of good behaviour and doing what is right andacceptable to society.

Mousa [2007] asserts that ethics are behaviour beyond the legal

requirements which act as the basic code of ethics. Ethical values such as truthfulness, honesty,
justice, and fairness are not inherited but need to be nurtured. Ethics are normally mentioned
interchangeably with morals and actually have a similar definition. Indeed, morals are also
concerned with the principles of ‘right’ and ‘wrong’; ‘good’ and ‘bad’ behaviour which caneventually be differentiated and judged. As affirmed by Boatright [2007], morals and ethics are
similar and always used together. The difference is that the word ‘ethic’ originates from Greekand ‘moral’ comes from Latin.
In locating the root of ethical values, religion has always been associated with enjoining
good behaviour. In fact one’s religion, which is a set of beliefs in God(s) has a significant
influence on one’s perception of CSR [Brammer et al. 2007] that could change one’s social
attitude and personal values [Wilson 1997]. Hence, at this point it is relevant to explore theimpact of religion on ethics from a business perspective.
This study will only focus on the Abrahamic faiths that are among the oldest religions in theworld. These three religions; Judaism, Christianity and Islam have much in common. They arecommonly known as monotheistic religions that uphold belief in one God. Interestingly, thesereligions share common ground in acknowledging God-centred values and the commanding
ethical behaviour in every walk of life as prescribed in their Holy Books. By acknowledging
God as the Almighty Creator, one is obliged to submit to His Will and Command and to show
Him gratitude [Choudhury 1989]. Besides, men are regarded as His caretakers who ensure that
His wealth is managed in a responsible and ethical way [Green 1997; Pava 1998; Yousri 2005].
Each religion has specifically mentioned following ethical norms and regulation with regard to
economic activities as a way to achieve divine blessings.
In referring to economic activities, these religions agree upon two practices; 1) they prohibit
riba or usury and 2) they encourage lending to the poor.
Jews believe that usury is forbidden [Green 1997]. However, lending with interest to a nonJew is permissible. This is simply because Jews have a very strong bonding with each other andperforming this unjust act would jeopardise their relationship. Each of them is treated with trust
and they uphold the concept of brotherhood as a very important value [Buckley 2000; Wilson
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MOHD NOR：Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Finance1997]. Another reason for prohibiting usury is to avoid any exploitation of the poor and needy.
In Christianity, usury was prohibited for more than 1400 years [Abbasi et al. 1989]. The famous
Roman Catholic scholar, St. Thomas Aquinas was against the act of usury which brought thelender money without any effort. He regarded it as a sinful act, and this was actually a dogma of
the Catholic Church at that time. He claimed that money was a fungible good and that its value
might fluctuate from time-to-time. It was a medium of exchange and not for creating money outof money [Buckley 2000; Wilson 1997]. Islam also condemns the act of giving and taking riba
as it has a negative impact both economically and socially. Riba does not promote economic
growth and also creates unbalance in the society. This unethical act is unjust and will only createchaos by making the poor poorer and the rich richer; in the end it creates a wide gap in thesociety that will eventually lead to social corruption.
Further common practices among these religions are the giving of charity and lending to
the poor. In Judaism, it is a priority to lend money to family members who are in need of help
before extending it to the society at large [Pava 1998], while in Christianity it is a religious call toshare one’s wealth by helping the poor and needy through money lending. Charity must be done
voluntarily without duress from any entity such as the church or state property [Wilson 1997].
In Islam the Qur’an mentions helping the poor and needy repeatedly and indicates several
ways to them, such as by giving sadaqah (charity), zakah (alms) and waqf (endowment). The
implication of these practices is to promote the welfare of society by sharing one’s wealth and byfeeling empathy with the poor. Avoiding greed and ill behaviour among property owners would
make the society a better place [Sairally 2007]. In addition, Islam regards highly the giving ofqard hasan (a benevolent loan) to the needy instead of giving them charity. This is to ensure hat
the recipient makes an effort to repay the creditor, for such behaviour is highly valued by God.
Prophet Muhammad (pbuh) narrated that the reward granted from Allah for qard hasan is infact greater than for giving sadaqah (Hadith: Ibn Majah & Baihaqi).
The role of religion has indeed influenced the establishment of business ethics as practiced
today. Among the ethical values are the practices of just price, fairness, honesty, transparency
and many more. Hence, business ethics which is rooted in the religious teachings upholds socioeconomic justice.

3. The Concept of CSR from Islamic Perspective
Although the principles of CSR have been respected in the West for more than half a century,
it has only quite recently been explored in the Islamic context. Similar to CSR from a Western141

Asian and African Area Studies, 11 (2)perspective, achieving a common definition of CSR from an Islamic point of view would be
perplexing. Moreover, at the moment, there are only a few researchers who focus on this subject.
Thus, there is no commonly accepted definition that could be employed at the moment.
Knowledge of Islam begins from the fundamental understanding of the Islamic law which
will be explained below. For a Muslim, Shariah law, which governs every aspect of life, should
never be abandoned.
3.1 Fundamental Source: The Shariah Framework
The central objective of Shariah is to promote Maslahah (public good) and to fulfil a human’swell-being by relieving them from hardship in this World and in the Hereafter. Further, its law
is created to improve and perfect the quality of life by establishing ‘adl (justice) and educating
people. It advocates the holistic view of Islam by highlighting the elements of akhlaq, that is themoral and ethical values in all aspects of life [Azid and Asutay 2007; Chapra 1979; Dusuki and
Abdullah 2007]. The relationship between aqidah (faith) and akhlaq (ethics) is that aqidah is thefoundation of an Islamic system that depicts Shariah as the source of guidance in performing the
ethical behaviour that is demanded by God.
Shariah, also commonly known as Islamic Law, is divided into two major constituents;‘ibadah (ritual worship) and muamalah (social transactions).

The former relates to therelationship between man and God which also is indicated as a vertical relationship, while thelatter is horizontal and signifies the relationship with fellow human beings [Naqvi 1994]. The
vertical equality depicts that God gives equal rights to everyone regardless of race, colour, genderand so on.
The bedrock of CSR from an Islamic worldview is the divine source prescribed by God, theHoly Qur’an, and the Prophet’s Sunnah. Additionally, two other sources which acknowledge
human reasoning are used to complement the divine sources, ijtihad (mutual consensus) andqiyas (analogy). These sources of reference are employed according to sequential orders to solve
any newly arising matters which are not stated clearly in the Qur’an and Sunnah. Hence Shariah
is not only a law but also a source of guidance in every walk of life.
3.2 Philosophical Tenets
The philosophical tenets that will be outlined below are the backbone of the Islamic economic
system. Fundamentally they revolve around the notion of taqwa (God-consciousness) that isparamount in Islamic belief, whereby a believer must do his utmost to achieve the best possible
reward in this World and Hereafter. Taqwa is a believer’s awareness of God’s presence in his or
her daily life and transactions with others [Iqbal and Mirakhor 2007].
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MOHD NOR：Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Finance

It is not an exhaustive ideology that covers the whole system since there are other peripheral
elements which complement it; however these tenets are the main subject without which Islamic
economics would not exist.

(i) Tawhidic Approach (Oneness of God)Man is created by God as His steward to cultivate and enjoy His bounty on the Earth. Besides, it
is prescribed in the Qur’an [51: 56] that men are created to serve and worship the Almighty. It isvery important that this core tenet be embraced by every Muslim in achieving the spirit of taqwa(God-consciousness). Thus, by acknowledging God as the Creator and Owner of the Universe,
man relinquishes any right to the property they possess. Yet, men are appointed as an agent ora trustee to ensure this property is used in wholesome and responsible way that does no harm tothemselves or to others [Abbasi et al. 1989; Ahmad 1980; Nomani and Rahnema 1994; Siddiqi
1980; Utvik 2006; Zarqa 1980].
Tawhid has three branches.

Rububiyyah, being one of them, implies that it is a very

important axiom for the development of Islamic economy. Rububiyyah as described by Ahmad[1980] is a divine avenue for nourishment, sustenance and directing things towards perfection.
This entails that God Almighty encourages work to be done with the best effort for the best
outcome. Rububiyyah is the source of axioms in directing towards a robust Islamic economy ata sustainable level besides being a tool for competitive advantage.

(ii) Ukhuwwah (brotherhood) and Unity
Tawhid not only confirms the relationship between men and God but also determines therelationship between men and the rest of God’s creation, especially with other human beings,
by asserting the role of ukhuwwah and unity [Naqvi 1994]. Islam respects both the right ofindividualism and also collectivism. Each individual is treated as a family member embracing thespirit of brotherhood and rejecting discrimination on account of wealth, status, race, colour, andorigin, etc. While the idea of collectivism leads to a spirit of equality and unity with each other[Iqbal and Mirakhor 2007], within Islamic sphere, brotherhood denotes broader responsibilities
that suggest collective cooperation and safeguarding each other’s well-being. The implication of
instilling the spirit of brotherhood is that it would shape a better society with a high regard forsocial welfare, since such people will be passionate to ensure a better life, not only for themselves
but for everyone.

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Asian and African Area Studies, 11 (2)(iii) ‘Adl (justice)
Man has been created by God and appointed as His khalifah (vicegerent) on the Earth to cultivateand develop its bounty. Thus, as a vicegerent, man is required to establish justice and forbids any
destructive activity in the pursuit of a balanced and harmonious system. Islam is a religion thatadheres to the principle of justice as paramount as prescribed in the Qur’an [57: 10]. Justice is notestablished for human beings only, but for the universe as well [Abbasi et al. 1989]. The upholding ofjustice generally depicts the level of piousness and God-fearing of a Muslim [Chapra 1979]. Justiceis extended to a broader horizon beyond law and regulation. It includes morality; such values arerationality, fairness, equality and ethics. Hence it is known as the social equilibrium which Naqvi[1994] asserts is ‘adl wal ihsan (justice and kindness) which brings social justice to the society. In
Islamic economics, social justice is a crucial principle to ensure a fair economic system. Social
justice as viewed from [Nomani and Rahnema 1994] inculcates two important elements; equity andequality. These two elements have strong positions articulating the role of justice. Equity is referred
to as a just reward according to the effort made and not given equally to everyone. Hence, whoever
makes the best effort will get the highest return. Equality is understood as the equal rights that all
human beings share from God’s view without any discrimination. God entrusted His vicegerent toshare His bounties on the Earth with every human being. Indeed from the Islamic economic pointof view, the poor have a right to the wealth of the rich. Therefore, socio-economic justice shouldbe established in fulfilling human rights by providing equal opportunity such as equitable income
and wealth distribution. In addition, zakah and sadaqah would also be good tools for alleviating
poverty and overcoming social problems.

(iv) Tazkiyyah (growth and development)
To ensure that Islamic economics is sustained in the financial industry, it is vital to implement
this last axiom. Making efforts towards improvement and perfection in order to succeed in thisworld and the Hereafter is very significant in Islam. It is an exclusive process of self-purification
to improve the quality of life [Nomani and Rahnema 1994] containing elements of morality,spirituality and worldliness. These integrated elements are the sustenance for the robustness of
the Islamic economic system.
These philosophical tenets explained above represent the spiritual element that should beembraced to shape a moral economic system that also acknowledges the concept of taqwa asa central belief. Hence, the Islamic economic system truly follows a different path from theconventional economic system based on capitalism which excludes moral values.
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4. Islamic Moral Economy: The Way Forward
Since the recent economic crisis, many economists have tried to find solutions to aid the recoveryof the whole economic system. Among their ideas was the integration of moral values withcapitalism. As far as we are concerned, capitalism is purely maximising profits, which makes it achallenge to incorporate moral values in business transactions.
At this point, moral economy, which is more traditional, comes to mind. Moral economy isnormally associated with the values of justice, fairness and equity and is commonly known to beeffective in a small community.
Reviewing and understanding the whole concept of Islamic economics, it is suggested that
Islamic economy falls under the category of moral economy in that it deems the assimilationof moral values and/or cultural beliefs with economic activities. The cultural beliefs that are
mentioned here could be referred to as the holistic values of Islam. Moral and ethical values
according to the Islamic view are known as akhlaq. Thus, the components of Islamic moral
economy are: aqidah or faith together with akhlaq or moral and ethical values that shape thenature and substance of economic and financial activity.
The objective of moral economy is rather similar to Islamic economy in that it promotessocial justice. Hence Tripp [2006] introduced it as Islamic Moral Economy. Islamic economy
was ideally discussed in earlier literature by Ahmad [1980], Chapra [1980], Siddiqi [1980] as an
economic system that follows the Shariah parameters which ought to accomplish the objectiveof social and economic justice. Yet in reality, if we consider the last thirty years, it is still far
beyond reach and it hasn’t contributed much to development in the Muslim countries [Zaman
and Asutay 2009]. Hence, renaming it as ‘Islamic Moral Economy’ would at least alert thecurrent practice of IBF to reconsider its original purpose. Clearly, this system is in competition
with capitalism, which has failed to uphold moral values. However, it is reckoned that it is more
effective in delivering material benefits for the development of the economy [Siddiqi 1980; Tripp2006] as it is more transparent and ethical.
The essence of Islamic moral economy very much relies on the concept of CSR which at thisinstance has made a great contribution towards being God-consciousness or Taqwa-centric in
Dusuki’s [2008: 21] CSR continuum. Achieving the state of an Islamic moral economy would
be utopian if one could only forgo being materialistic. At this level, everyone should be socially
responsible by their own will and because of their God-consciousness and not for the sake of any
financial gains or losses. The lowest level in the pyramid describes how irresponsible a person
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Asian and African Area Studies, 11 (2)could be, even to the point of breaching the moral standards of human civilization. Such deviant
behaviours are fraud, misrepresentation, violating human rights, polluting the environmentand so on, which are in fact strictly against the Shariah. However, the other traits are all
Shariah compliant. In brief, the minimalist, apathetic and tactical approach does acknowledge
the presence of social responsibility and only differs according to the level of its contributions
and involvement in this field. A company with a minimalist approach normally satisfies theminimum legislation requirements, and performing CSR would not be an important subject on
their agenda. A business with an apathetic approach is committed to the law and also to certain
moral responsibilities, but there is no serious or strategic effort to perform CSR. Companies
with a tactical approach operate beyond the legal requirements by exercising a voluntary
contribution to society and the environment and CSR is definitely among the objectives orpolicies of such an organisation.

5. The Role of CSR in Islamic Economics and FinanceIt seems that every time a financial problem has occurred, morality and ethics have come tomind to save the day. In the recent financial crisis, there was an endless argument about who
was to blame. Albeit, it has been discovered that among the problems pointed out was anirresponsible way of banking and investing which revealed the failure of risk management andpoor governance at the banks. On the contrary, Islam emphasizes that transparency should exist
at every level. Thus, Islamic economic’s scholars call for Islamic banks to be socially responsible
to ensure socio-economic development [Sairally 2007]. Khan [2004] interprets the intersectionof economic and social aspects as the ‘zone of sustainability’ which is suggested as an ideal
and balanced framework for a moral banking system. Indeed, the aspiration to create an idealbanking system would be a challenge especially in attempting to satisfy all the different needs ofthe society.
At the moment, Islamic banks are being very thorough in their governance to ensure aresilient system at the operational and managerial levels. Indirectly, CSR has very much influence
on overall business operations. At the operational level, Shariah has strictly pronounced theprohibition of riba (interest), maysir (gambling) and gharar (uncertainty). Moreover, Islamicbanks must also avoid anything that is impermissible and immoral. With this in mind, theShariah screening of products is essential to ensure that all haram products or transactions that
could contribute to the detriment of society and the environment are avoided. For instance,businesses dealing with liquor, pork, arms, adult entertainment, pollution and so on are
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MOHD NOR：Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Financeprohibited. On a managerial level, Islamic banks are committed to being socially responsible
by collecting, managing and distributing zakah, performing charititable and philanthropic
activities that contribute to community development, upholding employees’ rights and being
environmentally friendly.
Ramadan is deemed as a Holy month in Islam whereby each and every Muslim will be
enthusiastic to perform good deeds. Thus, it also inspires the extensive performance of CSR
in Islamic banks. The New Horizon magazine reported that many Islamic banks around theWorld such as Maybank Islamic Bank, Saudi Arabian Bank, Shamil Bank of Bahrain and Qatar
International bank have taken this important opportunity to enhance the practice of CSR with atwofold intention of achieving success in this World and Hereafter.1）
As there have been many disputes on the social failure of Islamic banks, Asutay [2008]
regards that most Islamic banks have simply regarded the role of performing zakah distribution
and non-systematic charitable activities as performing CSR. It has been reported in a study
conducted by Sairally [2005] at 50 Islamic banks and IFIs that they have CSR deficiencies interms of not having a systematic method for giving back to the society. She found that they do
distribute zakah and undertake charitable giving; but this does not contribute to developing thesocio-economic capacities of the societies in which they operate.
As reported from a survey conducted in 2009 by Dinar Standard and Darul Istithmar at 29
IFIs around the globe, 77 percent of IFIs see charity as a priority deed and support this activity.
While discussion on giving more concern to the performance of charitable services continues,
ways to cure social ills have not been not resolved and programs for community development
are yet to be included in the picture. The banking sector and governments should play andactive role to ensure CSR is practiced extensively beyond zakah and charity, and in this instance,
learning from their conventional counterparts is a must.
With the growing concern for CSR, it is timely that Dinar Standard and Darul Istithmar[2009] issued a CSR report on Social Responsibility Trends in Islamic Financial Institutions (IFI).
This study is among the first to examine CSR in IFIs around the world which is a very goodeffort for the contribution of CSR from an Islamic perspective, yet it fails to cover the real impact
of social responsibility towards IFIs. The survey has employed indicators from the AAOIFI(Accounting and Auditing Organization for Islamic Financial Institutions) Standard which
covers 13 aspects of social responsibility such as client engagement, employee welfare, charity,
1）“Ramadan Inspires CSR in Islamic banks.”New Horizon. Retrieved from〈http://www.newhorizon-islamicbanking.
com/index.cfm?section=news&action=view&id=10819&return=search〉.

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Asian and African Area Studies, 11 (2)environment, investment quotas and others. These 13 aspects are not exhaustive since CSR is avery broad subject. However, it could be used as a guideline that could be updated from time totime. Islamic banks should adopt this guideline in their practice in order to fulfill the aspirationof CSR.

Conclusion
This paper discusses the concept of CSR from an Islamic view with special reference to the moral
values that are essential in Islam.
The concept of western CSR that highlights ethical and moral values is inevitably embeddedin Shariah. Hence it is relevant to and supports the objective of Islamic economics and finance.
It is an essential tool that would bring IBF to the next level, as well as making it resilient andunique. However, in making this a reality, it is suggested that IBF be morally conscious by reexamining the objective of Islamic (moral) economy that upholds the spirit of socio-economic
justice. This could be evidenced from the example of the empirical study provided that shows
the practice of CSR in Islamic banking is still incomparable to its conventional counterparts.
Islamic banks should come out of the dogma of giving charity and performing zakah in a
traditional manner in order to be socially responsible. Furthermore, they should extend it to awider sphere that contributes to socio-economic growth. At this point, a systematic method ofgiving charity and zakah is needed to ensure that community development and the welfare ofsociety at large is guaranteed.
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