Promoting <i>business zakah</i> as a product of Islamic finance to fund social causes for well-being of the underprivileged: evidence from Bangladesh

Hoque, Nazamul

doi:10.1108/jima-10-2021-0337

Cited by 10 publications

(30 citation statements)

References 62 publications

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“…Business/corporate zakah is a recent addition to the zakah system. Many scholars (Al-Qardawi, 1999;Abdul Rahman, 2007;Sabiq, 1985;Muhammad, 1980;Saad et al, 2020;Hoque, 2022) and institutions (MASB, 2006) have conceived the concept though not widely promoted yet in the Muslim societies. As a result, literature on it is yet scanty.…”

Section: Discussionmentioning

confidence: 99%

“…As a result, literature on it is yet scanty. Hoque (2022) reported that a few business entrepreneurs in Bangladesh are aware of business zakah. Similarly, empirical evidence of business zakah is found in the context of a few countries such as Pakistan (Ahmad and Haq, 2021), Malaysia (Noor et al, 2017) and Indonesia (Alfitr and Samarinda, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…Similarly, empirical evidence of business zakah is found in the context of a few countries such as Pakistan (Ahmad and Haq, 2021), Malaysia (Noor et al, 2017) and Indonesia (Alfitr and Samarinda, 2017). Business zakah being the recent addition to the zakah system, most businessmen don't have clear knowledge about it and its calculation (Hoque, 2022). Fortunately, some regulatory bodies in some countries have taken steps for developing accounting standards (or at least accounting guidelines) which may be useful for business zakah assessment (Akhyar Adnan and Barizah Abu Bakar, 2009;Sarea, 2013;Obaidullah, 2016;Islam, 2016).…”

Section: Discussionmentioning

confidence: 99%

“…With time, the concept of zakah is no more confined to its traditional form. In modern literature, the base of zakah has been broadened into business zakah or corporate zakah (Al-Qardawi, 1999;Muhammad, 1980;Sabiq, 1985;Abdul Rahman, 2007;Hoque, 2022). However, business zakah or corporate zakah is relatively a new dimension of zakah and is yet to be promoted for making its functioning effective in modern socio-economic structure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Zakah is an ethico-economic and socio-economic institution in the Islamic way of life. It is a built-in mechanism for compulsory redistribution of wealth from the rich to the poor to ensure social well-being (Kahf, 1997; Abdul Rahman, 2007; Hoque et al ., 2015; Hoque, 2022). Though in the first place, zakah is a religious instruction, in terms of essence and spirit it can be regarded as an economic institution for social well-being based on equity and social justice.…”

Section: Introductionmentioning

confidence: 99%

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Pursuing sustainable development goals through integrating the aspirations of zakah and CSR: evidence from the perspective of an emerging economy

Hoque

Uddin

Islam

et al. 2023

IJSE

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PurposeThis study looked into the scope of integrating the aspirations of zakah and corporate social responsibility (CSR) to counter poverty, inequity, illiteracy, malnutrition and environmental pollution to ensure peace, happiness, prosperity and sustainability as envisaged in sustainable development goals (SDGs).Design/methodology/approachThis is a qualitative research study conducted using both primary and secondary data. Primary data were collected from 29 business enterprises in Bangladesh employing a semi-structured interview protocol. The secondary data were collected through content analysis of annual reports, websites and CSR publications of sample organizations. Finally, collected qualitative data have been analyzed thematically following the due procedures to address the research questions.FindingsThe findings reveal that integration of the aspirations of zakah and CSR is a convenient and wholehearted approach for entrepreneurs resulting in pursuing SDGs. In addition, business entrepreneurs in Bangladesh consider such practices as killing two birds with one stone because this approach warrants performing both religious and social obligations simultaneously. Interestingly, the study explores that shariah compliance acts as a guiding force for selecting well-being-oriented projects in zakah-funded CSR resulting in pursuing the priority goals – No Poverty (1), Zero Hunger (2) – of SDGs, thereby addressing some of the most critical issues of emerging economies such as Bangladesh.Practical implicationsThe findings of this research can be used as a guide to incorporate the spirit and principle of zakah into the CSR programs aimed at pursuing SDGs mainly in Muslim countries representing one-fourth of the world population.Originality/valueIntegration of the aspirations of zakah and CSR is an innovative move and net addition to the literature on sustainability, CSR and zakah because Muslim business entrepreneurs will now conveniently be able to use the entrepreneurs' zakah money – readily available in each financial year – to fund the entrepreneurs' various CSR projects (within shariah framework) relating to poverty alleviation, humanitarian and disaster relief, health and sanitation and environmental conservation which will eventually contribute to pursuing various SDGs.

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Section: Discussionmentioning

confidence: 99%