Corporate Social Responsibility (CSR) in Islamic Banks in the Light of Sharia: A Comparative Study of Islamic and Western Perspectives in Saudi Arabia

The focus of this study is the concept of corporate social responsibility (CSR), social justice and business ethics in relation to Sharia. The key role that Sharia plays in shaping CSR principles in business and society is explored and the related concepts of Ummah (Muslim community) and brotherhood in Islam are highlighted. In addition, Islamic social responsibility in both its mandatory (zakat) and voluntary (sadaqah, waqf, quard al-hassan) forms as practiced over centuries in Muslim society are considered. Further, the study provides significant insights into the Islamic transactions jurisprudence (fiqh al-mu\u27amalat). Against this background, CSR in its current incarnation in Saudi Arabia is explored with a specific focus on the practices if Islamic banks. Through this exploration, it is evident that philanthropy in mandatory and voluntary forms is ingrained in the Kingdom\u27s culture in multiple ways. The fundamental differences that distinguish Islamic banking from conventional banking systems are established. Also highlighted is the rile of the Sharia Supervisory Board (SSB) in the Islamic Banking System. It is recommended that the SSB promote Islamic ethics and values in the Islamic banks. The role of the SSB should include structuring CSR policies to ensure that all social activities are fully compliant with the principles of Sharia. Islamic banks should be in the forefront of motivating businesses to remain conscious of their social responsibilities. Businesses including Islamic banks operating in Saudi Arabia should align their goals and CSR initiatives with Saudi Arabia Vision 2030 especially in regard to issues related to social development. The conclusion that CSR is part and parcel of Sharia principles and CSR principles in Islam are designed to promote social justice and more importantly to obey Almighty Allah\u27s commandments by fulfilling Maqasid Al-Sharia