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In the West, the concept of Corporate Social responsibility (CSR) began in the 1970s and discussions on the concept of CSR often centred on the view that is based on the customs, cultures and beliefs of the West, especially Europe and America. Under the common law, CSR is an option for the corporations to practice rather than part of the objective of the company. It is treated merely as a standard of behaviour to which a corporation subscribes in order to have good reputation in society. Under Shariah governance framework, it is a requirement for corporation to practice CSR as it is obligatory on each Muslim community to implement collective religious obligation (fardh kifayah). The Shariah perspective of CSR is commonly discussed from the perspectives of Maqasid al-Shari‘ah and Maslahah. This paper discusses the principles of Corporate social responsibility in corporate governance under both the Common law and Shariah perspectives. Main objective of this paper is to highlight the application of Corporate social responsibilty in conventional companies and Shariah compliance businesses. Findings of this paper will shows that, the application of CSR according to Shariah perspective would contribute to a good corporate governance in businesses and the implementation of the concept of CSR implies the commitment of the corporation to continuously upholding the noble objectives of Shari‘ah.
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