It is important for awqaf to establish clear guidelines and boundaries in their relationship with corporations to ensure that their mission and core values are not compromised.
By DR HISHAM DAFTERDAR
Waqf is a voluntary act by individuals dedicating assets for the purpose of making long-term social, economic and environmental impacts. Waqf is driven by a desire to make a difference in the lives of others without expecting any material rewards.
The waqf has long been recognised as a benevolent instrument that provides a wide range of social services, environmental conservation and infrastructure development, ultimately leading to a world of prosperity, peace and dignity for all.
In contrast, corporate social responsibility (CSR) is a strategic decision made by companies or enforced by legislation to take responsibility for their impact on the environment and the communities where they operate. CSR initiatives remain cloaked by profit motives, and the prospect for more favourable public perception and greater stakeholder support.
While awqaf and CSR share similarities in terms of their undertakings, there are significant differences between the two approaches.
The waqf is an important institution in the Islamic social framework based on beliefs, values and ethics. Awqaf undertakings are high in relational and emotional content. Human well-being and social welfare are central goals of awqaf.
On the other hand, companies’ CSR activities are formalised, impersonal and market led. They are driven by three main reasons: growth, profitability and long-term survival.
Despite their different motivations, social responsibility serves as a common ground between awqaf and for-profit businesses insofar as the objectives of awqaf are also served by corporate CSR programs. By leveraging relations with businesses, awqaf can play a vital role in promoting CSR projects. Through advocacy and awareness campaigns, awqaf can shed light on important social and environmental issues that need attention. On their part, corporations can provide valuable resources, expertise and networks that help awqaf expand their reach and create a more sustainable impact.
While collaboration between awqaf and corporations may seem like an ideal scenario, it’s not always without challenges. When embarking on an awqaf-corporate partnership, it’s important for awqaf to clearly define their goals and objectives, maintain their independence and ensure that corporate social programmes are in line with their mission. Awqaf must also consider potential conflicts of interest that may arise, as well as the risk of losing control over their assets or compromising their values. By carefully navigating these challenges and maintaining a strong sense of purpose and integrity, awqaf can effectively collaborate with corporations to achieve shared benefits and create significant social impact.
Notwithstanding the potential benefits of awqaf-CSR collaboration, these partnerships are still regarded as controversial, and their legitimacy is frequently questioned. Some people view companies’ CSR as being ad hoc and no more than a public relations exercise that lacks credibility.
Awqaf organisations, on the other hand, may find themselves at a disadvantage risking their autonomy and mission integrity. Issues such as conflicts of interest or perceived commercialisation of social causes can tarnish a waqf organisation’s reputation. Awqaf stakeholders may express concerns about aligning with businesses whose primary objectives are growth and profit maximisation.
Market research has predominantly focused on the CSR benefits of contributing corporations. While companies’ CSR initiatives get a lot of media coverage, there’s hardly any mention of awqaf contribution. This is because CSR is typically associated with for-profit entities, leading to a lack of awareness on the role and impact of awqaf commitments. The positive effects of awqaf efforts – which may be equally or even more beneficial than those of corporations – are overlooked and rarely acknowledged.
Accurately measuring and reporting the impact of social programmes is a challenge for both waqf organisations and companies. The measurement of social impact involves translating abstract goals into tangible results. This can be highly subjective largely due to lack of a standardised measurement framework. Companies can have both positive and negative impacts on society and the environment through their CSR activities. Stakeholders and regulators are increasingly scrutinising CSR reports to prevent false or misleading claims. Evaluating social impacts includes looking at the benefits to society, the environment, the economy, the waqf organisation and the company to determine if the CSR activities are effectively achieving their intended goals.
The collaboration between awqaf organisations and corporations is a natural progression of social responsibility, given the work both entities do in supporting communities. Awqaf play a vital role in advancing societal welfare, while CSR has become increasingly integral to modern business strategies. Awqaf is basically a trust profession. Therefore, it is important for awqaf to establish clear guidelines and boundaries in their relationship with corporations to ensure that their mission and core values are not compromised. Future trends in cross-sector partnerships are set to focus on innovative models, technology-driven solutions, and a continued emphasis on ethical practices. By aligning their goals, leveraging each other’s strengths and working together towards a shared vision, awqaf and corporations can create a significant impact in their community and beyond.
- Dr Hisham Dafterdar, CPA, PhD is chairman of Awkaf Australia Ltd.
