{"id":3839,"date":"2021-11-15T02:35:04","date_gmt":"2021-11-15T02:35:04","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=3839"},"modified":"2022-11-15T04:03:43","modified_gmt":"2022-11-15T04:03:43","slug":"social-responsibility-islamic-banking","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/social-responsibility-islamic-banking\/","title":{"rendered":"Social Responsibility of Islamic Banking"},"content":{"rendered":"\n

By Abdulazeem Abozaid<\/em><\/strong><\/p>\n\n\n\n

In general, social responsibility of Islamic banks reflects two things: the type of expectations Muslims had from Islamic banking, and the failure of Islamic banks to perform their perceived social role. However, it is unclear whether the social good is something embedded in Islamic financial transactions so that whenever they are applied on banking scale a social good is to be expected, or that the social good is something Islamic banking should undertake and seek after since it is not embedded in its transactions per se<\/em>! <\/p>\n\n\n\n

Should the latter be true, one, on the other hand, should not overlook the fact that Islamic banks are not charitable institutions, but rather profitable ones entrusted with investing depositors\u2019 money, and that the absence of independent charitable organisations, whose establishment is the responsibility of the Muslim treasury under the Muslim state, must not place the blame on Islamic banks. The query however remains valid if upholding social responsibility comes at no additional financial cost or loss to Islamic banks and remains a matter or preference influenced by extra caution and subjective assessment of the potential returns.<\/p>\n\n\n\n

To give a fair answer to the question raised above, Islamic financial transactions in general if executed properly and with full observance of their Shariah<\/em> rules and conditions do carry within some embedded good. Nevertheless, contracts remain merely tools so they need to be directed to serve a particular purpose. If this purpose has to be the social good, then it must be set in advance and worked on, but Islamic banks would not be then doing something against Islamic banking nature, but rather they would only be administering malleable ingredients.<\/p>\n\n\n\n

Ethis Ventures Sdn Bhd<\/a>, Malaysia\u2019s first Shariah-compliant equity crowdfunding<\/a> platform, also focuses on social good, with a specific focus on impact and sustainable campaigns carried out through Islamic values & ethics. Ethis has a vision to be an Integrated Digital Banking & Capital Market platform that is Shariah compliant and free from riba<\/em> <\/a>(Interest).<\/p>\n\n\n\n

This article will highlight the social responsibility of Islamic banking as guidance for those interested in pursuing Islamic banking license and existing Islamic banking institutions.<\/p>\n\n\n\n

\"Islamic
Ethis Product Vision<\/strong><\/em><\/figcaption><\/figure>\n\n\n\n
\"Islamic<\/figure><\/div>\n\n\n\n

Ethis\u2019s brand consist of two pillars, making profits and achieving goals, achieved through the bridging Islamic values and ethics, while providing a solid foundation and being sustainably impactful. <\/em><\/p>\n\n\n\n

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Table of Contents<\/p>\n