Page 83 - FREN-C2021 PROCEEDINGS

• Economic (providing consumer needs, delivering jobs and respectable wages and raising capital for
investments)
• Legal (obeying with laws and regulations);
• Ethical (take on morally justifiable codes and conduct, distinguishing between right/wrong and
honest/dishonest and not harming others); and
• Discretionary or philanthropic (strongly contributing to community wellbeing by investing in
education and charity).

Khurshid et al. (2014) have carried out a study on Islamic CSR. Their research aims to develop a new
dimension of CSR from an Islamic perspective, to improve on Carroll's (1979) concept of CSR, which
includes economic, legal, ethical, and philanthropic dimensions. Hence, they recommended that
Islamic CSR include the economic, legal, ethical and philanthropic dimensions of Islam (Figure 1).

Figure 1: Islamic CSR Model (Khursid et al., 2014)

The Distinction between Corporate Social Responsibility and Islamic Corporate Social
Responsibility
The differentiation of CSR and i-CSR concepts is based on the organizations' ideology in targeting
their Muslim consumer. Both concepts are based on the philosophy responsibility of the organization
towards all the stakeholders. However, some ideologies are making i-CSR suites to the Muslim
consumer market. CSR does not cover an organization's religious duties or a religious code of conduct
for business (Asim et al, 2020). In contrast to Western theories, the Islamic perspective on CSR takes
a more holistic approach and is derived from the Quran and the Sunnah (Asyraf Wajdi Dusuki, 2008).
The social responsibility based on the western concept is primarily concerned with the stakeholders'
expectations from the organizations and policies that are aimed at meeting such expectations. The
majority of CSR theoretical approaches focus on the physical benefits, reporting, and disclosure of an
organization's socially responsible operations, but they mostly overlook an organization's religious or

[78]