Shariah Obligations, Legal Mandates, and CSR Practices for Corporate Bodies: An Islamic Perspective

Abstract

This paper identifies a significant gap within the literature focused on corporate social responsibility (CSR) by proposing a mechanism based on Islamic jurisprudence and Shariah principles capable of addressing the challenges of the contemporary world. Most of the literature has transitioned from classical theories of CSR to the current dominant paradigm of Environmental, Social and Governance (ESG) criteria, and the United Nations Sustainable Development Goals (SDGs). However, it has remained largely secular, utilitarian, "box-ticking", and not deeply Shariah-imbued. This study attempts to articulate a vision of corporate responsibility coherent enough to be globally relevant, while deeply rooted in the doctrinal principles of maqāṣid al-sharīʿah and contemporary regulatory frameworks. The paper highlights the implications of Islamic principles of masʾūliyyah, maqāṣid al-sharīʿah, and farḍ kifāyah, analyzing Qurʾānic and ḥadīth texts, classical jurisprudential writings, and the recent legal developments in Pakistan, to illustrate how they morally underpin current ESG ideals and SDG-oriented practices. The argument presents Islamic law’s Shariah and teleological, corporate vision as morally anchored, sustainable, and above mainstream ESG discourse, teleologically focused on expanding sustainability concepts to include a Shariah-defined corporate scope.