Corporate Social Responsibility and Islamic Corporate Social Responsibility: Conceptual Foundations and Key Distinctions

Abstract

Corporate Social Responsibility (CSR) has become a widely accepted framework that guides firms in addressing the social and environmental consequences of their business activities. While CSR has traditionally been grounded in Western ethical and stakeholder-oriented perspectives, Islamic Financial Institutions (IFIs) have developed Islamic Corporate Social Responsibility (i-CSR), which integrates conventional CSR practices with Islamic ethical values, such as justice, accountability, and social welfare, within a Shariah based framework. Both CSR and i-CSR offer complementary perspectives on corporate responsibility. However, the conceptual distinction between them has not been fully explored in the literature. This paper reviews the foundations of both frameworks, examines how Islamic principles reshape the understanding of corporate responsibility, and highlights the key elements that differentiate i-CSR from conventional CSR practices. Building on this review, the paper argues that i-CSR extends the conventional CSR framework by embedding spiritual accountability, Maqasid al-Shariah, and social justice considerations. Accordingly, this study proposes an integrated framework that combines stakeholder theory with Islamic ethical principles to better explain the relationship between CSR and Islamic CSR. Overall, the findings contribute to the growing discourse on ethical finance and provide guidance fo IFIs to operationalize socially responsible practices that align with both global CSR expectations and Islamic ethical principles