ISLAMIC ECONOMY PROMOTES CORPORATE SOCIAL RESPONSIBILITY

Abstract

UDK 336.71:28]

Islamic economics and finances have gained significance especially after the recent financial crisis (2008). Growing interest in Islamic economy as well as in the products of Islamic financial institutions is attributed to its social responsibility aspect which is often absent from the conventional financial systems. Aim of the article is to analyze principles of the Islamic economics in view of the principles of social responsibility, following the Carroll’s concept of four dimensions. Analyzing and comparing concepts of social responsibility and principles of Islamic economy, we synthesized and discussed the common elements thereof. The results of these analysis show that the principles of Islamic economy successfully incorporate principles of social responsibility. That is, the principles of Islamic economy are in conformity with the aims of Shariah (maqasid), and those aims in themselves promote common interests and social justice. Thus, we may say our analysis illustrate the need for more significant implementation of principles of the Islamic economy in the practice of Islamic financial institutions, which in turn, would bring about realization of the aims of Shariah. In this way Islamic economics would be in service of social welfare and will essentially conform to all generally accepted principles of social responsibility.