The Koranic Discourse on Corporate Social Responsibility

Abstract

Asia is home to the majority of world’s Muslims. Around 1 billion out of total 1.62 billion Muslims live in Asia. These countries range from very poor to very rich. Some of the Asian corporate hubs are located in Muslim countries. With a very few exceptions, every Asian country has a significant Muslim population. Muslims lives their lives in accordance with the dictates of the holy Koran. There is hardly an aspect of life which is beyond the reach of Koranic ethical dictates, and in principle it is out of the question for a Muslim to disobey what the Book of Allah commands. If corporate social responsibility is defined as ethical running of a business which results in the benefits and welfare of not just employees but society at large, the Koran has a great deal to offer by way of ethical-mandatory commands and practical guidelines whether one is a businessperson or a customer. For instance, paying the zakat is one of the five fundamental foundations of Islam whose corporate social responsibility implications are immense. In the third chapter of the Koran, there is warning to those who hoard wealth. Similarly the laws of evidence and contract in Islamic countries, even where English civil law prevails, are understood and implemented with reference to the Koran. This paper tries to recount and interpret the Koranic view of corporate social responsibility. It begins by introducing (i) the significance of the Koran in the lives of Muslims; (ii) the importance of the Koran as a business document in the Asian-Muslim context; (iii) corporate social responsibility as a concept; (iv) the Koranic view of the concept of corporate social responsibility and its various implications.