Islamic work ethics and corporate social responsibility in business organizations: Issues and challenges

Corporate Social Responsibility (CSR) practices in modern business organizations are consistent with Islamic principles and as laid down in Qu'ran and Hadith. The Islamic ethical practices at both individual and organizational levels promote ideal CSR practices and can be seen embedded in all organizational operations and decision-making processes. A shariah compliant organization plans CSR activities by carefully strategizing and incorporating them into its corporate strategy. This study argues that CSR applications in these organizations are as per Islamic principles and that all types of businesses apply CSR initiatives to further their relationships with their customers, their employees and their community. The study provides examples of shariah compliant CSR activities and highlights issues and challenges that Islamic organizations have to face in the successful implementation of CSR practices.