Social Responsibility Journal

An introspect into the Islamic roots of CSR in the Middle East: the case of Savola Group in Egypt
Menatallah Darrag Noha E-Bassiouny
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Menatallah Darrag Noha E-Bassiouny, (2013),"An introspect into the Islamic roots of CSR in the Middle East: the case of Savola Group in
Egypt", Social Responsibility Journal, Vol. 9 Iss 3 pp. 362 - 378
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 An introspect into the Islamic roots of CSR
in the Middle East: the case of Savola
Group in Egypt
Menatallah Darrag and Noha E-Bassiouny
Menatallah Darrag is based
at the International
Business Department,
German University in Cairo
Downloaded by Universitas Gadjah Mada At 06:02 21 March 2015 (PT)
(GUC), Egypt. Noha
E-Bassiouny is based at the
Marketing Department,
German University in Cairo
(GUC), Egypt.
The Savola Co.’s information
was acquired via personal
communication (personal
interview) from the researchers
with Lamyaa Abu Bakr, CSR
Head, and Nora Abdel Ghaffar,
HR Head of Savola Group
Egypt.
PAGE 362 j SOCIAL RESPONSIBILITY JOURNAL
Abstract
Purpose – This paper aims to look into Islamic CSR, a literature domain that is rarely researched. The
article has three goals. First, it provides an overview of the varying conceptualizations and paradigms
underpinning CSR. Second, it presents an analogy relating commonalities and deviations between
Islam and some of the basic international CSR paradigms. Third, it proposes a novel model of Islamic
CSR based on the Islamic legislation (shar’iah) and applies it to an MNC with explicit application of
Islamic CSR.
Design/methodology/approach – A case study of an explicitly Islamic-abiding corporation has been
investigated to test for the applicability of the proposal model. Semi-structured interviews have been
employed with both the CSR and the HR Heads in Egypt. In addition, various corporate communications
have been also utilized in this study.
Findings – The research reflects upon international paradigms of CSR versus the Islamic one,
highlighting its origins and providing an analogy among both perspectives. Also, a new model is
developed and further put into action by the case study employed. Further research is needed to assess
further the generalizability of the proposed model, especially with companies operating in
Muslim-majority countries and, hence, with potential implicit application of Islamic CSR.
Research limitations/implications – Generalization of the model cannot be generated at this stage of
the model development. Further large-scale empirical research is needed for further development of the
proposed model.
Practical implications – This research would prove useful for corporations operating in Muslim-majority
countries as well as for managers of companies interested in understanding the Islamic perspective on
important contemporary world issues like CSR.
Originality/value – This article put forth a comprehensive Islamic CSR model based on the shari’ah
while presenting the commonalities and differences between basic international CSR paradigms and
the Islamic perspective on CSR.
Keywords Islam, Corporate social responsibility (CSR), Islamic CSR, Egypt, Social responsibility
Paper type Research paper
1. Introduction
Although CSR had been a topic of interest for decades across the literature, it still earns a
considerable amount of research and interest that contributes to enriching its body of
knowledge and helps in further evolving the concept. In the literature, the CSR concept has
varying conceptualizations and definitions, where the majority of empirical research focuses
on some aspects and dimensions of CSR while disregarding others (Vaaland et al., 2008).
Such ambiguity could provide a basis for arguing that the CSR concept itself is still vague
until now. No conclusive definition had acquired unanimous consensus or endorsement from
researchers or practitioners for that matter. A rationale for such ambiguity provided by Valor
(2005) rests on the fact that the CSR concept stems from societal demands that continuously
change over time. In the 1990 s, the increased incidence rate of corruption of managerial
executives within the corporate world had caused communities to be self-indulged and
j VOL. 9 NO. 3 2013, pp. 362-378, Q Emerald Group Publishing Limited, ISSN 1747-1117 DOI 10.1108/SRJ-10-2011-0096
 caused more deployment to the CSR notion rather than other various ones, like
environmental responsibility, stakeholder involvement or some similar terms. Thus, the
term entered into a vague area where no agreed upon definition had been set to reflect it
(Crowther and Martinez, 2004).
CSR in the Muslim world stands as no stranger to the overall notion of CSR with its problems
and inconsistencies countered in justification, conceptual definition, implementation and
operationalization (Dusuki and Abdullah, 2007). Upon reviewing the literature of CSR
theories and conceptualizations, a thread of varying ideas from classical, neo-classical,
social contract and institutional theories arises (Freeman, 1984; Jones, 1980; McWilliams
et al., 2005, 2006; Lee, 2008; etc.). Such variations and sometimes discrepancies result in
the further implementation and operationalization problems that corporations face. An
important gap in literature emerges in this respect since the Islamic perspective of CSR is a
relatively limited researchable realm. Given its holistic nature, Islamic shari’ah could provide
a relatively pragmatic foundation to contribute in laying the foundation, understanding and
implementation of CSR and serve as accurate guidelines for corporations to exercise their
business and social responsibilities (Dusuki and Abdullah, 2007). The culture of giving
characterizes the Middle East and North African Region (MENA) which are religion-specific
countries embracing the concept of ‘‘giving’’. Further, the inadequate performance of
governments in the MENA region drives businesses to undertake CSR from a philanthropic
perspective in order to reduce the social injustice along with gaining legitimacy to their
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entities and creating safer and more trustful consumer environments to operate within them
(Kolkailah et al., 2012). This could highlight the increased focus on CSR activities supporting
education and research, building hospitals and schools, all of which are the responsibilities
of states and governments (Ararat, 2006). This topic is also important due to the fact that
Muslims constitute more than a billion of the world’s population and are becoming more
empowered consumers (El-Bassiouny et al., 2008, 2011; Marinov, 2007; Saeed et al., 2001).
This research aims at investigating and establishing a syllogism with prominent CSR theories
and the Islamic dimension of CSR in terms of commonalities and differences through
presenting an analogy between Islamic and CSR literature that is based on both international
literature and Maqasid ash- shari’ah; which are the purposes of Islamic legislations. A
conceptual framework of Islamic CSR is proposed addressing such gap in the literature. In
addition, the research generated a potential model for usage in corporations with Islamic
culture/notion. It is important to note that this research reflects an international experience of
CSR in the MENA region by a corporation with an explicit Islamic culture/orientation in Egypt
and for this reason it was selected. This might aid other MNCs in identifying and applying
their CSR practices in Egypt and other Muslim countries in general, in as much as they are
operating in countries with a majority of Muslim consumers and hence might have implicit
Islamic CSR or variants of it.
The paper starts with probing into a mapping of the CSR literature domains, then moves on
to defining CSR from an Islamic perspective. A conceptual model of Islamic CSR is then
presented and applied on Savola Group in Egypt, a Saudi company that operates from
Casablanca to Kazakhstan. Finally, conclusions and future research directions are
presented.

2. The CSR territory: theory overview and classifications

In spite of the different definitions and conceptualizations of CSR – which started since the
1950 s – they all had two aspects in common; the societal concerns of companies and the
expectations of stakeholders and the society as a whole (Podnar and Golob, 2007; Vaaland
et al., 2008). First, the societal concerns and the company’s relationship with its society are
found in common in most CSR definitions (Swaen and Vanhamme, 2003; Vaaland et al.,
2008). This is composed of three parts. The first part is how the conduct of business reflects
ethical considerations. The second part is how the company’s operations affect the
environment. The final part is the extent to which these operations interfere with social and
human rights (Vaaland et al., 2008). However, other researchers disagree with the belief that
companies have an underlying responsibility towards the society at large. These scholars

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 believe that companies in general as a group have a responsibility towards the whole
society, however a company by its own is only responsible for a defined group of agents
only; its stakeholders (Maignan et al., 2005). That is why the second aspect that is common
in most CSR definitions is the inclusion of stakeholders and meeting their expectations
(Podnar and Golob, 2007; Swaen and Vanhamme, 2003).
Several theories had addressed CSR. The basic ones addressed in the literature are the
stockholder theory, the stakeholder theory, the social capital theory, the ethical theory, the
integrative theory, the political theory and the instrumental theory and others (see Table I)
(McWilliams et al., 2005).

The agency theory mainly introduced within CSR discussion by Friedman (1970) when he
argues that corporate managers would make unreliable and inefficient agents of social
responsibility. His basic assumption was that the responsibility of managers was to maximize

Table I An adopted summary of theories studying CSR

Author(s) Nature of theoretical perspective(s) Key argument/result

Friedman (1970) Agency theory CSR is indicative of self-servicing behavior on the part of
managers, and thus, reduces shareholder wealth
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Freeman (1984) Stakeholder theory Managers should tailor their policies to satisfy numerous
constituents, not just shareholders. These stakeholders
include workers, customers, suppliers, and community
organizations
Donaldson (1990) Stewardship theory There is a moral imperative for managers to ‘‘do the right
thing’’, without regard to how such decisions affect firm
performance
Donaldson and Preston (1995) Stakeholder theory Stressed the moral and ethical dimensions of stakeholder
theory, as well as the business case for engaging in CSR
Jones (1995) Stakeholder theory Firms involved in repeated transactions with stakeholders
on the basis of trust and cooperation have an incentive to
be honest and ethical, since such behavior is beneficial to
the firm
Hart (1995) Resource-based view of the firm For certain companies, environmental social responsibility
can constitute a resource or capability that leads to a
sustained competitive advantage
Jennings and Zandbergen (1995) Institutional theory Institutions play an important role in shaping the consensus
within a firm regarding the establishment of an
‘‘ecologically sustainable’’ organization
Baron (2001) Theory of the firm The use of CSR to attract socially responsible consumers is
referred to as strategic CSR, in the sense that firms provide
a public good in conjunction with their marketing/business
strategy
Feddersen and Gilligan (2001) Theory of the firm Activists and NGOs can play an important role in reducing
information asymmetry with respect to CSR on the part of
consumers
McWilliams and Siegel (2001) Theory of the firm Presents a supply/demand perspective on CSR, which
implies that the firm’s ideal level of CSR can be determined
by cost-benefit analysis
McWilliams et al. (2002) Resource-based view of the firm CSR strategies, when supported by political strategies,
can be used to create sustainable competitive advantage
Waldman et al. (2006) Theory of the firm/strategic leadership Certain aspects of CEO leadership can affect the
theory propensity of firms to engage in CSR. Companies run by
intellectually stimulating CEOs do more strategic CSR than
comparable firms

Source: McWilliams et al. (2005, p. 25)

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 the returns to shareholders and that any actions that further some social good beyond the
interest of the stockholders can be viewed as deriving from an agency problem. Thus,
managers using corporate resources to further some social good could be doing so only to
advance a personal agenda such as promoting their self-image. Presuming that corporate
managers are self-interested homogenous individuals simply did not allow expecting that
CSR and corporate financial performance (CFP) could be simultaneously and effectively
pursued (Lee, 2008).
The stakeholder theory was on one hand developed by Freeman (1984, 2001), where he
identified that managers have to satisfy a number of constituents or stakeholders
(e.g. workers, customers, suppliers, local community organizations) who can affect the
corporation’s outcomes. Thus, stockholders’ concerns turned to be no more sufficient for
organizations to consider alone. The stakeholders identify a corporation would reap from
participating in CSR activities perceived important to non-financial stakeholders. This is
essential, because in case organizations do not venture into these investments, the varying
stakeholders might withdraw their support for the organizations. Further expansion to the
stakeholder view was done by Donaldson and Preston (1995) stressing the ethical and moral
dimensions of CSR within organizations (McWilliams et al., 2005). Further, McWilliams et al.
(1999) had emphasized the concept of multiple stakeholders for corporate CSR activities
and objected to mere testing of the financial implications of CSR on the stockholders
(McWilliams et al., 2006).
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The stewardship theory was introduced by Davis et al. (1997) and McWilliams et al. (2005).
The theory extended from the agency theory, in that managers act as ‘‘stewards’’ of the
assets that they mange. The main difference is in the point of manifested self-interest of the
managers when acting as stewards as they tend to focus on their own interests versus other
stakeholders (Farook and Lanis, 2007). Thus, managers fail to consider the moral imperative
faced in their ‘‘doing the right thing’’, without considering the implications the right act had to
do on the corporate financial performance. Institutional theory was applied to CSR by Jones
(1995) who identified that companies involved in repeated transactions with stakeholders on
the basis of trust and cooperation are motivated to be honest, trustworthy and ethical
because the returns to such behavior are high (McWilliams et al., 2005, 2006).
The resource based-view (RBV) of the firm notes that firms or corporations ‘‘are bundles of
heterogeneous resources and capabilities that are imperfectly mobile across firms’’
(McWilliams et al., 2005, p. 8). Thus, if these resources and capabilities remain valuable,
rare, inimitable and non-substitutable, they (referring to CSR) can be a source of sustainable
competitive advantage. The RBV had contributed to the development of a more concise
theory of the firm for profit maximization framework in studying CSR developed by
McWilliams and Siegel (2001). Corporations in this framework introduce a social dimension
or feature in their output that is valued by some stakeholders, while calculating the costs as
well as the expected profits from adding such social dimension (McWilliams et al., 2005).
After reviewing the main CSR theories in the literature, we now proceed to reviewing previous
scholarly classifications of these theories.
Marrewijk (2008) classified CSR theories into three basic categories. First, the shareholder
approach adopting Friedman’s (1962) opinions in that a corporation’s prime concern is profit
maximization for the benefit of its stockholders. Second, the stakeholder approach adopting
Freeman’s (1984) approach in the multiple stakeholders any corporation should be
accountable for because of the role each plays in affecting and effecting its operations and
profits. Finally, the societal approach, which perceives corporations as responsible for the
totality of society they are members within. Corporations’ success depends upon the public
consent they acquire from their societies granting them a ‘‘license to operate’’ to serve the
overall needs of society and attain its satisfaction.
Garriga and Melé (2004) defined four basic theory domains for CSR, while maintaining that
the most studied one had been the stakeholder theory. In this theory, the organization
identifies its different stakeholders and works on undertaking actions aiming at maximizing
the benefits of these groups of stakeholders, including customers, local suppliers,

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 stockholders, local community, skilled labor among others (Jenkins, 2006). The first domain
was the ‘‘institutional’’ one that dealt with organizations as mere instruments for wealth
creation while their CSR activities are means to reach their economic ends. It includes the
stockholder theory, stakeholder theory, which relates to cause– related marketing along with
using CSR activities in creating competitive advantages. The second was the ‘‘political’’
domain that mainly dealt with the political power of the organizations and the wise usage of
such power in the political arena. It mainly included three theories, the corporate
constitutionalism theory, and the corporate citizenship theory along with the integrative
social contract theory. The social contract theory is based on the ideas that society is
created on a number of social contracts between its different groups. The political theory is
also based on the fact that an organizations’ legitimacy is tied to its behaviors and the
general perception of such behaviors of whether they are deemed acceptable by a group of
beholders or not. Thus, if organizations do not act in a right way, then they will lose their
legitimacy. The third was the ‘‘integrative’’ theory, where organizations were focused on
societal satisfaction. The fourth and last one was the ‘‘ethical’’ theory, which dealt with
organizations’ ethical responsibilities towards the societies they operated within. This
included universal rights, sustainable development and the common good approach
(Garriga and Melé, 2004).
Dusuki (2008) and Siwar and Hossain (2009) identified five theories for CSR, the
classical/stockholder, the institutional/instrumental/strategic, the social contract, the legal
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and the stakeholder theories. They argued that CSR activities are only deemed acceptable
for purposes of generating profits only and do not include voluntary activities as per the
classical theory. Again, businesses may select to pursue CSR activities for reasons of good
image and to gain competitive advantage according to the institutional approach. This
would help in protecting the organization’s ‘‘reputational capital’’ (Garriga and Melé, 2004).
The social contract theory identifies such contracts as implicit along with assuming that
social norms guide how the different groups behave. Organizations are to act in a
responsible manner that serves both commercial interests and meets societal expectations
from the businesses that operate as an integral component within the society’s fabric.
Legitimacy theory indicates the response to environmental pressures involving social,
political and economic forces where organizational compliance to these different aspects
may affect the survival of the businesses. Organizations strive to create a balance between
their actions and how they are looked upon by outsiders and what is judged by the society to
be appropriate and what is not. The stakeholder theory addresses the attention to the needs
and rights of all stakeholders of a business as a useful way of developing socially
responsible behavior. Stakeholder theory represents an attempt to broaden the perspective
of the stockholder/classical view that the dominant interest of organizations is namely
towards their stockholders only.

3. Roots of Islamic CSR

In this section, an overview of Islam, its roots and its different attributions and revelations is
highlighted as reflected within different CSR theory propositions introduced in the earlier
section. In the following section, an analogy is presented to show Islamic CSR postulation
versus international literature.
Islam is a:
[. . .] comprehensive way of life that results from one living in a state of surrender to God (whereby)
all daily living (are sanctified) into worshipful acts that unify life in a manner consistent with the
Tawhidic principle of the divine unity, self-purification and self-perfection through worship, the
ongoing acquisition of knowledge and performing of selfless (deeds) (Krauss et al., 2005, p. 175).

According to Chapra (2008, p. 1):

The ultimate goal of all Islamic teachings is to be a blessing for mankind. This is the primary
purpose for which the Prophet (Muhammad – peace be upon him) was sent to this world (Qur’an,
21:107). One of the indispensable ways to realize this goal is to promote the falah or real
well-being of all the people living on earth, irrespective of their race, color, age, sex or nationality.

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 The word falah and its derivatives have been used 40 times in the Qur’an. Another word, fawz,
which is a synonym of falah, has also been used 29 times along with its derivatives. This is also the
goal towards which the muezzin (person who calls for prayer) calls the faithful five times a day,
showing thereby the importance of falah in the Islamic worldview.

The Holy Qur’an also clearly states that there is no ‘‘compulsion in religion’’ (Qur’an 2: 256).
This renders the myth of violence in Islam irrelevant since if people are violently requested to
become Muslims, they still cannot be considered Muslims since Islam is an internal act of the
heart. According to the Islamic framework, human beings also differ in their level of
religiosity. Religiosity represents ‘‘a belief in God accompanied by a commitment to follow
principles believed to be set by God’’. (McDaniel and Burnett (1990, p. 101) and Vitell et al.
(2005, p. 180) presented a ‘‘call for interdisciplinary research regarding religiosity’’, whereas
Spilka et al. (2003, p. 3) note that most of the research in this domain had focused on the
‘‘Judeo-Christian framework.’’
On the societal level, according to Chapra (2008, p. 24):
Islam also aims at creating an enabling environment that is conducive to righteousness, the
strengthening of family and social solidarity, and the promotion of mutual care and cooperation
among individuals. Without such an enabling environment, the values as well as the motivating
system may both become blunted. congregational prayers, fasting in Ramadan, almsgiving
(zakah) and pilgrimage (hajj), along with the society’s respect of, and admiration for, those who
abide by moral norms and disdain for those who violate them (al-amr bil ma’rouf wan-nahy ‘an
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al-munkar) are a part of the Islamic programme to create such an environment.

Though Islam’s fundamentals of aqidah (creed), ibadah (worship), and akhlaq (morality and
ethics), are fixed and stable; their manifestations in practical areas of life (i.e. businesses,
trade, economies, etc.) are subject to flexibility in accordance to time and space. Thus,
Islam’s basic core or source, the Shari’ah, along with its main purpose (al-maslahah), need to
be understood (Dusuki and Abdullah, 2007).
According to Imam al-Ghazali (as cited in Dusuki and Abdullah, 2007, p. 31):
The objective of the Shari’ah is to promote the well-being of all mankind, which lies in
safeguarding their faith (din), their human self (nafs), their intellect (aql), their posterity (nasl) and
their wealth (mal). Whatever ensures the safeguard of these five serves public interest and is
desirable.

The purpose of Islamic legislation (shari’ah) is to fulfill compassion and guidance within
society at large, by establishing and enacting the concepts of ‘‘justice, eliminating prejudice,
and alleviating hardship by promoting cooperation and mutual support’’ (Dusuki and
Abdullah, 2007, p. 31). Like other monotheistic religions, Islam establishes a core focus on
accountability of deeds in front of God (Allah). Thus, the shar’iah incorporates laws and
regulations that aim at improving and facilitating human lives and serve the benefits of all
such beneficiaries, where the proper norm for God is Al-Akirah (the eternal
afterlife/hereafter).
‘‘Maslahah’’ or public interest is defined as ‘‘a principle that concerns the subsistence of
human life, the completion of one’s livelihood, and the acquisition of what his/her emotional
and intellectual qualities require of him/her in an absolute sense’’ (Al Ghazali and Al-Shatibi
as cited in Dusuki and Abdullah, 2007, p. 31).
Thus, based on the earlier explanation of the core pillars of Islamic religious beliefs, CSR
definition, manifestation and activities are divinely-guided in comparison to the Western
perception of CSR (Dusuki and Abdullah, 2007).

4. Islamic CSR in the international context

In the following lines, the researchers present the positioning of Islamic CSR in the
international literature. In Islamic nations, the CSR concept is ideally and ultimately based on
divine revelation stemming from Islam’s teachings, whereas in the Western nations, the CSR
concept is derived from secular ethics and morality where such ethics are inevitably
transitory. Nonetheless, researches in CSR models, theories and dimensions had

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 succeeded in matching some of their works between Islamic and Western nations;
especially in the financial sector (Dusuki and Dar, 2005). On considering Islamic Financial
Institutions (IFIs), social responsibility and ethical investment are found to be at the center
and soul of such rapidly growing sector. To further elaborate, Islamic ethical principles lay a
solid foundation for a framework of CSR which would more efficiently motivate IFIs to pursuit
the CSR agenda in their organizations. On one hand, as IFIs possess a higher tendency
towards CSR based upon strong religious and ethical principles, IFIs are deemed to protect
and honor such values. On another hand, as CSR and SRI are perceived as voluntary acts
for conventional financial institutions, there would be fewer tendencies to employ such
values in financial institutes other than IFIs if they do not directly serve the welfare of the
organizations (Ullah and Jamali, 2010). Freeman (1984, 2001) had developed the famous
stakeholder theory in relation to CSR, where such theory aligns to a large extent with the
Islamic perspective, except that the latter is based on an absolute divine and moral code of
conduct and the sincerity of the intentions are the basic factor in acceptance in the Hereafter
(cf. Ullah and Jamali, 2010). The main aim of every human being in Islam is felicity (al-falah)
and prosperity in this life and the next.
Scholars have reviewed the concept of Islamic CSR to encompass a broader meaning that
embraces the ‘‘taqwa’’ or God consciousness dimension. This concept means that
corporations as a group of individuals do assume the roles and responsibilities as servants
and vicegerents in all situations. Thus, relationship with God should inspire the values of
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truthfulness, fairness, kindness, uprightness rather than envy, backbiting and discrimination
in the corporate setting, where such relationship should be held in business activities as well
as in with all stakeholders (Siwar and Hossain, 2009).
Dusuki and Abdullah (2007, p. 33) support the same ‘‘Taqwa’’ dimension that Islam enforces
within the CSR realm and explain that ‘‘Islam’s concept of CSR encompasses a broader
meaning, embracing the Taqwa (God-consciousness) by which corporations (as groups of
individuals) assume their roles and responsibilities as servants and vicegerents of God in all
situations’’. In other words, if corporations deem themselves responsible to God, the sole
Owner of their very selves (as employees and organizations) and the resources that they
utilize and manage, they would fulfill their responsibilities of being good Muslims. This
justification is based on the fact that for Muslims to be devout and faithful, they have to
submit to God’s will and show concern for others and the surrounding environment. All of
these aspects reflect intrinsic values of the Muslims’ lives (Abdul-Matin, 2011).
In brief, Islamic CSR requires a taqwa-based paradigm, where corporations are not only
driven by profit-maximization; albeit being one of its main driving forces; but also driven by
Islam’s directions to pursue ultimate felicity in this life and in the Hereafter (Al-falah).
Corporations have to acknowledge their social and moral responsibilities for the well-being
of others including consumers, employees, shareholders, and local communities. Islam
strives to fetch a balance in the business world by a set of practices based on beliefs
embodying Islam’s core. Islam’s core belief of justice brings into the business model a need
to balance between an individual’s rights and his/her duties and responsibilities towards
others. The concept of reward encourages Muslims to exert their utmost efforts to benefit
themselves and others to increase their rewards in their current lives and the Hereafter. Thus,
by integrating these two basic beliefs, Islam creates for human beings a natural, strong and
self-directed motivation for good and just behavior, without denying the individual’s natural
desire for personal gains. Eventually that places moderation, concern for one’s interest,
concern for others’ interests as the basis for Islamic CSR. Hence, the Islam’s perception of
CSR calls for an integrated and shared responsibility from multiple stakeholders to protect
and endorse the interest of the society in general and even places a higher responsibility on
the higher-fortunate corporations and individuals (Dusuki and Abdullah, 2007).
Dusuki and Dar (2005, p. 396) highlighted the dense commitment of Islam to the concepts of
brotherhood and justice. Thus, by adopting the aforementioned concepts, the ultimate goal
of attaining and enhancing the well-being of all human beings as the principle goal of Islam
will be attained eventually, which includes physical and spiritual satisfaction of the persons
including their well-being in the present world and the hereafter. Therefore, for Islamic

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 societies and organizations, outputs maximization cannot and is not a sufficient goal, unless
supported by efforts that enhance ‘‘the spiritual health at the inner core of human
consciousness, and justice and fair-play at all levels of human interaction’’. The current
civilization model that lacks such ‘‘human consciousness’’ has led to the current world
problems of an over materialistic focus, consumerism, the needs of societies, neglect of
vulnerable groups (such as children and the elderly) and eventually the financial crisis.
According to Ferguson (2011, p. 198), ‘‘the consumer society is so all-pervasive today that it
is easy to assume it has always existed. Yet in reality it is one of the more recent innovations
that propelled the West ahead of the Rest.’’ Developed countries (with only 20 percent of the
global population) are consuming ‘‘seventy percent of the world’s energy, seventy five
percent of its metals, and eighty-five percent of its wood’’ (Rice, 1999, p. 347). Saeed et al.
(2001, p. 129) note that ‘‘the development of a global moral order in fact reflects a natural
universal desire for a more stringent moral and ethical value system and gives support to the
view that there exist innate universal moral values in every human being irrespective of their
culture, creed, or religion.’’ In this respect, they note that Islam ‘‘believes in a natural
inclination to higher ideals’’ and the Islamic philosophy is a ‘‘value-maximizing’’ one. Thus,
the optimal call for balance stemming from Islamic justice is to balance between profit and
social objectives. Islamic CSR is a comprehensive paradigm, as it embeds different
commonalties from varying theoretical standpoints/paradigms that had addressed CSR in
international literature across years by varying researchers (see Table II, shows such
analogy).
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Thus, it can be deduced that Islam holds a holistic position carrying commonalities
alongside certain departures in relevance to CSR theories in international literature (see
Table II). Thus, through such analogy the path of studying and understanding Islamic CSR in
light of the international literature earlier discussed is highly emphasized considering the
size and number of Muslim countries and populations worldwide.

5. Conceptual framework
When considering Islamic CSR and its applicability in corporations, Dusuki and Abdullah
(2007) had proposed a general framework that encompasses two pillar models. One model
that reflects the levels of alleviated decisions undertaken by corporations in relevance to
their CSR activities and the other reflects the prevention of harm (see Figure 1). Following the
masalah concept of Islam, three categorizations thereof are found. The essential
responsibilities or (daruriyat) that have to be undertaken and fulfilled by organizations,
which are usually less controversial ethical decisions. Following this base level comes the
complementary and the embellishments categories. This model is developed on the basis of
the motivation embedded in Muslims’ beliefs in their continuous drive to be better and more
ethical. Thus, the pyramid-like model moves upward in a not in a mutually exclusive format;
but rather all levels are inter-related and mutually dependent. This fits with the manifestation
of the Islamic principle of flexibility in accordance to changing times and places while
preserving and protecting the fixed Islamic core beliefs and values.
The manifestation of the God-consciousness (taqwa) is highlighted in this model through the
individuals’ strive to always be better not being content with only fulfilling the essentials
(i.e. profit maximization), but always striving to improve the corporation’s fulfillment of its
social responsibility. Here, the role of taqwa is highlighted as the individuals’ personalities
and characters have been shaped by their sense of ultimate accountability to God, from
which no one can escape. The second pillar, the model of preventing harm is based on two
Islamic values which are removing hardship (raf ’ al-haraj) and preventing harm (daf ’
al-darar) (Dusuki and Abdullah, 2007).
Further to the earlier conceptualization (Figure 1), in Islamic jurisprudence ( fiqh), there is two
very important branches focusing on prioritization and choice between deeds, commonly
known as fiqh al-awlawiyyaat (jurisprudence of priorities) and fiqh al-muwazanaat
(jurisprudence of balance), which outline that not all deeds share common standing,
some are more essential than others. In case of conflicting choices as well, deeds are
prioritized.

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 Table II Islam and basic CSR paradigms: an analogy
Islam and basic CSR paradigms: an analogy
Theory Commonality Deviation

Agency theory The agency theory matches the Islamic
perspective in its aim to act as agents for the
best interest of stockholders, as a main
jeopardized party (Lee, 2008)
Al-Gazali is reported to have said, ‘‘The very
objective of the Shariah is to promote the
welfare of the people, which lies in
safeguarding their faith, their life, their
intellect, their posterity and their wealth.
Whatever ensures the safeguarding of these
five serves public interest and is desirable’’
(SBP, 2007, p. 4)
Stakeholder theory The stakeholder theory seems to align with
Islamic justice, as one of its main ethical
principles calling for the justice and equality
among different parties at stake; not only
stockholders or business owners; but all
parties involved. Further to that, Islam
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Agency theory strays from Islamic teachings
and values when whatever positive implication
resulting to any party aside of the main
stockholders is presumed to be for personal
gains and interests of the agents. Islam calls
for public and general welfare, free of personal
agendas (Lee, 2008)a
Islam’s guidelines attributes rights to
obligations and stakes; thus Islam tends to
give each stakeholder party right in
accordance to the stake such party has (Ullah
and Jamali, 2010, p. 623)b

supports any and all activities that aim

Stewardship theory
Resource based-view (RBV) theory
towards the welfare of the whole society (Ullah
and Jamali, 2010, p. 623)
Stewardship theory matches Islamic
perspective in the presumption that managers
would act as stewards of the assets they have
control of. Thus, this complies with the
trusteeship that is embedded in Islam, where
God had entrusted mankind to use the earth’s
resources and be held accountable towards
such usage (Holy Quran 33, p. 72)
The RBV similarity to Islam appears in the
provision of a social dimension or feature for
one or more involved group(s) with the aim of
profit maximization for main stockholders as
they take up the largest stake of risk
(McWilliams et al., 2005)
A major difference is that stewardship
proposed by the theory falls in the main
advantage of the managers and their best
interests, not that of the stakeholders. This
contradicts the basic Islamic tenet of
Trusteeship. Under Islamic perspective, the
greater good towards all stakeholders and the
Ummah takes precedence (Farook and Lanis,
2007, p. 221). Every party in Islam assumes
equity in rights as people are equal in front of
God; whereby preferences are set only by
piety and righteousness
RBV deviates from Islam in the intentions or
maqasid ash- shar’ia in terms of having a
financial profit-maximization goal in the
provision of any social benefit; not the general
welfare at heart in and of itself (McWilliams
et al., 2005)

Notes: a For ‘‘sincerity of intentions’’ for God’s sake is of critical importance since human beings are the Vicegerents (trusteeship: Istikhlaf)
of God on earth in the Islamic perspective; b The Islamic paradigm is based on an absolute moral code of conduct that is divine-based

This research presents a first attempt for such comprehensive conceptualization proposed
in the study, especially in an Arab context. Previous literature that dealt with Islamic
perspective of CSR did not present a comprehensive shar’iah-based perspective of Islamic
CSR (Dusuki, 2008), unlike the proposed model in this study.
Building upon such notion in addition to the rhetoric presented previously in Section III, the
corporation as a citizen (hence the common term ‘‘corporate citizenship’’) is initially set up
on the basis of sincere intentions toward contributing to society in addition to maintaining its
own sustainability, which comes first and foremost as a prerequisite before any
voluntary/social activities. This sincerity of intention lies at the heart of all other activities.
Within that framework, it then is most responsible for enhancing and maintaining its own work
ethics, i.e. with its own employees. Every employee in this context has individual and social
responsibilities. The corporation is responsible first for its own house before extending to
external social responsibility acts. The corporation then embeds all its strategizing and

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 Figure 1 Dusuki and Abdullah’s Model of Maslahah in enacting Islamic CSR
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operability on the boundaries set by the shari’ah in terms of lawful and prohibited, preferred
and less preferred, most pressing social issues based on the welfare of the people (see
Chapra, 2008). Beyond that, the corporation is responsible for breaking down such
strategizing into fulfilling obligations to all relevant stakeholders, including customers,
suppliers, government, etc. After expending its resources and focusing on fulfilling
obligations, the corporation can then extend beyond obligations to embellishments, doing
acts of philanthropy and extending an arm toward societal welfare (see Figure 2).

6. An outlook on the research methodology

Comprehensive conceptualization is in need if further empirical investigation, especially with
regards to spillover effects of the Islamic culture in the post-revolutionary Egypt on the
day-to-day corporate operations. Expectations are that the CSR operations will be one of the
most highly affected aspects; where recent publications highlight the need to stress on the
field (Kolkailah et al., 2012). Any contribution starts out by a theoretical conceptualization
and then moves to initial empirical application and last ends by full-fledged empirical results
and analysis. This research addressed the first two earlier aspects and leaves future
research to further adopt and enhance the model and further researches its empirical
applicability.
Previous papers in the field in relevance to Islamic CSR had relied on theoretical
conceptualizations only (Dusuki, 2008; Dusuki and Abdullah, 2007; etc.). In the present
research, the case method had helped in applying, explaining and supporting the main notions
of the presented model where it had been used across literature in supporting conceptual
papers (Eisenhardt, 1989). Further, case studies serve as exemplars, where any field without
them would not be effectively studied. In social sciences, executing exemplary good case
studies could be vouched as a strengthening technique for the field (Flyvbjerg, 2006).
Due to the difficulty and sensitivity of the topic, along with the problems faced in data
collection in post-revolutionary Egypt; which is a country that is not research-intensive to
begin with; the case research method represents the optimum methodology to be employed
in studying the current topic. Through screening different corporations in the CSR-field

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 Figure 2 Circles of corporate CSR under Islamic perspective (proposed model of
research)
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operations in Egypt, it was found that only Savola Group had complied with such Islamic
connotation in main attribution to the Saudi Arabian origins of the group. It was found that the
group explicitly follows the proposed Islamic CSR model (highlighted in Figure 2).
The case study was conducted via two interviews. First, the HR manager in Egypt; Ms.
N. Abd El Ghaffar; was contacted and interviewed (Personal Communication, Abd El
Ghaffar, 2011). In addition, the CSR manager in Egypt; Ms. L. Abu Bakr; was interviewed to
project a more holistic overview of Savola’s CSR operations and provide all relevant
research-needed information about Savola’s CSR activities and operations (Personal
Communication, Abu Bakr, 2011). Though interviewing employees is used as a
comprehensive interviewing technique to complement managerial interviewing; it was not
planned within the scope of this exploratory research. It can and is planned to be conducted
later on to further probe the proposed model. Nonetheless, the goal of this research had
been to test the proposed model holistically and the most qualified party to provide us with
such information had been the CSR along with the HR managers; as both share the steering
of the CSR operational activities in Savola and as such both had been interviewed.

7. The case of Savola Company

Savola company stands as a fair example of an Arab MNC that had started to adopt its
ethics-based perspective holding the CSR initiative in 2001 till present time. Savola’s startup
was witnessed in 1979, as a Saudi public listed company and became to be one of the
largest diversified conglomerates in MENACA region (Middle East, North Africa and Central
Asia) managing a wide portfolio of businesses. Four major business sectors encompass

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 Savola’s portfolio or sectors; Savola foods sector, including edible oils, foods and sugar and
retail sector, real estate sector and Savola plastics sector, in addition to a franchising unit
which has exclusive rights in Saudi Arabia for international fashion brands of fashion. In this
case, our focus will be on the first sector, the food one. Moreover, Savola has major
investment in Al Marai Dairy Company (30 percent), Herfy Foods Company (47 percent),
where both are huge MNCs that strive to embed sustainability, environmental and
community protection in their production (Savola web site, 2011).

CSR in Savola
The adopted ethical notion is ‘‘our belief that despite all efforts, success in business needs a
blessing from Allah. That blessing comes only if our intentions are moral and free from
hypocrisy’’. To reiterate words from Savola’s vision, it is simply stated that ‘‘we firmly believe
that Allah’s help and blessings will always be there supporting those who maintain good and
sincere intentions’’ (Savola web site, 2011).
The definition Savola adopts for CSR is the same adopted and presented by the European
Commission (EC), which is:
CSR means open and transparent business practices that are based on ethical values and
respect for employees, communities and the environment. It is designed to deliver sustainable
value to society at large, as well as to shareholders.
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This reflects Savola’s managerial emphasis on the concept and its importance in its strategic
agenda.
Further, Savola’s mission highlights that as it states ‘‘in terms of our culture of ‘The Balanced
Way’, we at The Savola group are committed to our Social Responsibility, and we will work
relentlessly in achieving world class standards of openness, transparency and
accountability towards all our stakeholders, and build bridges to reach out and serve the
communities we operate in’’. To elaborate, ‘‘The Balanced Way’’ is simply the
operationalization of Savola’s CSR model explained below. Savola perceives that by
abiding to the ‘‘Balanced Way’and its underlying four principles it will successfully attain its
CSR objectives. Savola’s CSR model is later highlighted (see Appendix). Savola’s
relationships and interactions with its multiple stakeholders are governed through the four
pillars of Honesty, Conscientiousness, Caring Justice and Personal Control, namely the
‘‘Balanced Way’’ (Personal communication, Abu Bakr (2011) and Abdel Ghaffar (2011)).
Savola’s ethics pertain that they ‘‘engage in three classes of external relations – with their
partners, with their third party customers (customers, suppliers and the community at large)
and with their colleagues. At the same time, Savola is in constant touch with itself. These
relationships and interactions are governed through four ethics proposed via Savola, which
are Honesty (Amanah), Conscientiousness (Taqwa), Caring Justice (Birr), and Personal
Control (Mujahadah)’’.

8. A reflection on the Islamic model of Savola Company

Savola’s CSR vision is starting to shift from a fairly Altuistic CSR to a Startegic CSR direction.
This shift had been witnessed in Y2010, upon the appointment of the new board that carried
the newer managerial thought shifting the CSR from the altruistic level to the strategic level;
whereby Islamic pillars represent its cornerstones Amanah, Taqwa, Birr, and Mujahadah
(Personal communication, Abu Bakr (2011) and Abdel Ghaffar (2011)).
Thus, it can be fairly deduced that Savola’s CSR direction; earlier and currently; is based on
the tenets of Islam that is highly embedded in Savola’s strategic formulation, where this
builds upon the ‘‘Genuine CSR’’ as Savola labels it. This perspective qualifies the
corporation to develop the Islamic notion of CSR as in our proposed model, which is the
‘‘sincerity of intentions’’.
Further, companies should build upon the enhancement and setting of the work ethics for all
and every employee. For that matter, Savola directs its efforts towards its employees as
primary stakeholders through different witnessed initiatives. Savola allots due attention to its

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 employees. In Ramadan, the company provides yameesh packages to its employees.
Again, Savola organizes tournaments and sport activities for its employees. Besides that,
Ramadan tent is ran regularly for the neighboring areas to the Savola quarters and/or
factories to serve back the communities Savola operates in. Again, employees were asked
to donate all unused items to an NGO for further re-usage to persons in need. In addition,
consent forms were used throughout Savola to acquire employees’ consent to donate a
portion of their salaries that they set (even 1 EGP) for charity purposed that is to be set by a
pre-specified NGO (Personal communication, Abu Bakr (2011) and Abdel Ghaffar (2011)).
As Sha’riah guides the overall strategic directions and goals of any company, companies
formulate their strategies to attain economic, legal and social objectives and satisfy their
obligations. As such, Savola sets the Islamic Shar’iah in all of its dealings and strives to help
out its communities along with all its groups of stakeholders while attaining the
predetermined strategic objectives. In 2010, Savola had assisted the harmed individuals
from the floods across different Egyptian governorates by providing a variety of its products
to help in alleviating damages inflicted upon the residents of such areas (Personal
communication, Abu Bakr, 2011). In 2009, Savola within its social responsibility initiatives
had hosted an orphanages’ day, where they were invited into the manufacturing facilities and
had spent a whole day within premises and interacting with Savola’s employees; having fun
and playing. Moreover, Savola organizes blood donation campaign for its employees for
hospitals in need of such supply. In 2009, Savola offered a re-habilitation program; known as
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‘‘WAYANA’’ that had a considerable share allotted to persons with special needs. It was
mainly built upon the idea of providing such persons with soft skills and basic knowledge in
key areas to qualify them as possible to enter the workforce and succeed (i.e. Human
Resources, Marketing, Sales, etc.). All of the offered training in form of eight modules was
donated by Savola’s workforce (Personal communication, Abu Bakr (2011) and Abdel
Ghaffar (2011)).
Thus, from the aforementioned manifestation of Savola’s example for the proposed Islamic
CSR model, it portrays how the corporation aims to reach to embellishments.

9. Conclusion and the way forward

Islam is divine, but its interpretation is different in different cultural contexts. Islam accepts
both the nature of human beings (that they are not angels) and accommodates different
cultures and habits in a framework that establishes an absolute common core and a flexible
frame which can match the needs of different people, cultures and times. According to
Wilson and Liu (2011, p. 37):

[. . .] Culture remains the rate-determining step. Islam is a divine standard, which is interpreted by
Muslims and therefore subject to the fingerprints of mortals – which imbibes it with culture’’
entailing the social and the material context. Hence, ‘‘Muslim consumer behavior is largely a
cultural construct, which necessitates that marketers should understand Islam through the varied
lenses of Muslim consumers, imperfections and all. This also separates social sciences
marketing insight from Islamic scholastic Shari’ah-based postulations. As an adjunct, however, it
is suggested that the two positions, like wheels of a cart, need to work in tandem – lest each is
sub-optimized. . .

The Islamic creed had long called from its earliest inception for a culture of ‘‘giving’’ to match
taking from others. Thus, adapting an Islamic perspective with a modernized view fitting this
age’s organizational operations and market competitiveness and building upon its tenets is
deemed quite a rational call for corporations.
Seemingly, proposing such a model fits with the current trend calling for CSR worldwide
within the Islamic context. Proposing the Savola Company’s example manifests the
applicability and success that such model could entail for corporations with Islamic
culture/orientation. To complement the methodological review of the model, interviews could
be run with employees as well as managers in the corporations under study.

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 Model applicability could be further deployed and tested in a comparative format between
the corporations operating in Islamic countries versus other corporations with explicit
Islamic-oriented cultures, as Savola Group.
Further, the proposed model can be used to conduct cross-sectoral studies to identify which
fields and to what extent do such sectors comply with Islamic notion of CSR.
Moreover, investigating the possible spillover effects on other corporations that do not follow
a full-fledged Islamic perspective proposes itself as an interesting debatable business
question in the Islamic countries in a generic format especially in the light of the recent
increased tide of Islamic political movements in the MENA region (i.e. Egypt, Tunisia,
Algeria, etc.).
Eventually, further investigations towards the success of such model are recommended
with more due concern allotted toward the Islamic tenets proposed or others that might
have not been considered in the proposed model. Finally, more thorough analysis and
investigations are recommended and needed across the MENACA region to illustrate and
test the model.

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Appendix. Savola’s four main principles

Principle 1
Honesty: it is the pillar reflecting Savola’s (2011) responsibility towards its shareholders. The
main principles are:
B Always tell the truth no matter what situation we might find ourselves in, or how beneficial,
in the short-term, lying might seem to be.
B This way we will have nothing to hide, and transparency will become a natural byproduct
of this behavior.

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 B Always fulfill our promises and obligations.
B Always honor our pledges to others.
B Always commit to resolve conflicts with respect and objectivity.
Principle 2
Contentiousness: it is the pillar reflecting the accountability and responsibility Savola (2011)
holds towards its stakeholders. The main principles are:
B Legality. Is the decision legal and have we in fact checked its legality with the proper
reference;, e.g. our legal department.
B Public opinion. Even if the decision is legal, will I be able to publicly admit to it and stand
by it? In other words, if the decision is revealed, will I be proud of it in front of others?
B Personal opinion. Do I feel comfortable with the decision? Do I feel that what I am doing is
fair and not just legal?
Principle 3
Caring justice: it is the pillar related to personal dealings and interaction with Savola’s (2011)
related stakeholders. Its principles are:
B Providing our managers, subordinates and colleagues with clear and accurate feedback.
B Acknowledging the accomplishments and achievements of others both financially and
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non-financially.
B Ensuring that those for whom we are responsible are developed in accordance to their
needs and the needs of the organization.
B Helping the progress of others if they are deserving of this progress.
Principle 4
Personal control: it is the pillar reflecting the realistic perspective in Savola’s (2011) handling
of its responsibilities and accountabilities towards its stakeholders. Its principles are:
B We should concern ourselves only with that which falls within our realm of responsibility.
That is:
B We should not bother ourselves with what others are doing when what they are doing
does not concern us.
B We should not attempt to search or look for information about the actions of others, if we
are not in a position to assist in those actions.
B We should not attempt to search or look for information about the problems of others, if we
are not in a position to assist in solving those problems.
B We should not become involved in the initiation or propagation of gossip.
B When an issue falls within our realm of responsibility we should exert every effort to
resolve it in a manner consistent with our ethical values.
B We should exploit any free time we find to improve ourselves, to learn something new or
perfect a task to a higher standard.

Corresponding author
Menatallah Darrag can be contacted at: Menatallah.darrag@guc.edu.eg

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