Social responsibility of businesses: a philosophical framework in Islam

Businesses across the globe have enormous power. Their decisions directly or indirectly shape the social fabric of the country and society they operate in---politically, economically and socially. But with such power come social responsibilities. Numerous societies have articulated their notion of social responsibilities of businesses in context of their own socio-cultural and religious background. This study will highlight one such background, focussing on a major world religion---Islam. Islam has laid down a universal framework for humanity as a whole, which are to be observed and respected under all circumstances. As such, businesses must also adhere to this fundamental philosophical framework. A set of axioms that systematize and summarize the philosophical foundation of the religion is presented in this study that will also provide a framework for social responsibilities of businesses. The fundamental axioms of Unity, Equilibrium, Free Will and Responsibility, which quintessentially form the fundamental foundation of Islam, are discussed in light of the Shari'ah (Islamic social/legal system). The elements of trust, social justice, freedom and accountability that results from the adherence to these core axioms are further discussed. A brief description follows. The axiom of Unity links belief in one and only Allah (The Most Exalted) with His creation. The underlying philosophy of this principle is that Allah (TME) is an absolute owner of everything on earth and the heavens. Man, as His vicegerent (Khalifa) on Earth must hold these resources in trust (amanah) and are obliged to utilize them responsibly in accordance to Allah's (TME) will. Equilibrium emphasizes on social justice and responsibility. It provides a sense of balance among the various aspects of a man's life to produce the best social order. Free Will gives mankind the freedom to choose between the right and the wrong, the knowledge of which is clearly provided through the divine commandments in the holy Qur'an and Hadith. As a trustee (al 'amin) of Allah's (TME) resources, one can utilize them either responsibly or misuse them. The final ethical axiom of Responsibility is logically related to Free Will. Freedom must be counter-balanced by responsibility and having opted for the power to choose between good and evil, man must endure its logical consequences. Since he is responsible for all that he does, man must be accountable for his actions. Propositions and business expectations/applications based on the axioms have been presented to further elaborate a philosophical framework of social responsibilities of businesses in Islam.