Islamic Corporate Social Responsibility for Poverty Alleviation, Analysis Concept of Maslahah

One of the goals of Islamic corporate operations is to increase the economic growth towards a better and just society. This study aims at examining principles of Islamic CSR and its contribution to improve social justice. Specifically, the study analyses the the concept of maslahah approaches to improve the quality of life and alleviate poverty applying Islamic corporate social responsibility programs. Based on the review of literature, the study reveals that there are five (5) fundamental principles considered as critical for corporate social responsibility to make considerable impact on the society. CSR concept in Islam is practiced in three areas of responsibility. First is the responsibility to God. Second is the responsibility towards mankinds, and third, the responsibility to the environment. These responsibilities are supported by the basic principles of monotheism (tauhid), the caliphate (khalifah), justice, brotherhood (ukhuwwah) and the creation of maslahah. The application of Islamic CSR in the society should be guided with application of maqasid al Shariah which provides a better framework can be used by managers in dealing with potential conflicts arising from diverse expectations and interests of any corporation’s stakeholders. Practices of CSR should not only be based on responsibility al kifayah (obligatory upon community) in order to get positive corporate image, but can also be deemed as a method to alleviate poverty and achieve the true economic goals of Islam