Islamic Social Finance and Economic Recovery After a Global Health Crisis

Islamic Social Finance and Economic Recovery After a Global Health Crisis

Salina Kassim (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Malaysia), Anwar Hasan Abdullah Othman (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Malaysia) and Razali Haron (IIUM Institute of Islamic Banking and Finance, Malaysia)
ISBN13: 9781799868118|ISBN10: 1799868117|EISBN13: 9781799868132|DOI: 10.4018/978-1-7998-6811-8

Description

With the increasing emphasis of Environmental, Social and Governmental (ESG) and Social Development Goals (SDGs) by international agencies, an integrated reporting of a more balanced and equitable integrated social reporting is sought given the limitations of capital centric reporting model. Social financial reporting as an economic tool presents the firm as a socio-economic unit with empowered social capital to enable a sustainable economic solution to the crisis of COVID 19 Global Pandemic.

Islamic social finance (ISF) is a corporate social responsibility (CSR) initiative in the form of humanitarian and socio-development programmes by Islamic financial institutions (IFI) and Shariah-compliant corporations. ISF is applied through various methods and tools that structure based on Islamic Syariah Law. For example, Islamic social finance tools would either be philanthropic, involving activities such as zakat (obligatory alms-giving), Sadaqah (voluntary alms-giving/charity) and waqf (endowment), or ta’awun (cooperation-based activities) which include Qardh al-hasan (benevolent loan) and kafala (guarantee). Thus, Islamic social finance instruments would play a vital role in alleviating poverty and addressing the socio-economic issues such as illiteracy, unemployment, malnutrition, and health issues. ISF tools such as waqf and zakat can be leveraged to bridge financing gaps especially for low income people. Thus, understanding the conceptual and practical implications of ISF instruments as shown in this book will provide guidance for relevant stakeholders including policy makers, business practitioners, academicians, and students to deeply understand how Islamic social finance leads to poverty alleviation, achieving economic empowerment and sustainable development in our societies.

Islamic social finance is referred to the provision of financial services to the vulnerable members of the society to achieve socio-economic welfare. Thus, the objective of this book is to provide an insight to understand the role of Islamic Social finance in supporting and facilitating economic recovery in the Post-COVID-19 era, as well as reducing poverty and addressing the challenges of socio-economic problems such as education, unemployment, malnutrition and health issues. It is an ideal reference source for professionals who want to improve their understanding on the role of Islamic social finance theoretically and empirically in solving the issue of poverty and develop excellent funds management to achieve the economic empowerment with better environmental sustainability development.

In addition, this book describes the role of integrated social reporting from stakeholder perspective with a steward function as compared to the investor-creditor agency reporting perspective. The reporting function is re-examined within the context of a community-based network economy to highlight the limitations of disconnect and displaced reporting practices. Integrated Islamic Social Finance reporting is proposed to empower sustainable economic development as a response to the COVID 19 Global Pandemic.

The target audience of this book will be composed of professionals and practitioners, researchers working in the field of Islamic Social finance; Covid-19 crisis recovery; fund managements of Waqf, Zakat, and Sadaqat; Islamic microfinance institutions and Financial Sustainability; and more.

Table of Contents and List of Contributors

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