“Social Corporation” The Sharia Business Entity Model: A Corporate Structure with Embodied CSR

Abstract

Corporate social responsibility has been widely and internationally accepted as an element of good governance and one of the key factors in sustainability of a business. Nonetheless, the inculcation and practices of CSR are still subjected to discretion of the companies. In the present corporate model, CSR is still an option to be practiced rather than part of the objective of the company. Under the Sharia, it is also important for the businessmen to undertake that the main purpose or object of carrying out the business is not only for profit maximization but more importantly to ensure the utmost benefit of the society. This concept is known as “Maqasid al-Sharia”. A Sharia corporation or any Sharia business entities should put the welfare and interest of the society as the ultimate goal of the business. Such principle is seen as the best CSR model which could be practiced by all corporations be it Sharia based or conventional businesses.