"Corporate Social Responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large."
Islam is considered a pioneer in attending to the concept of Social Responsibility, and putting in place the mechanism that shapes the relations between community members; Islam equally urged each and every individual to fulfil his/her duties towards others. The Social Responsibly is an integral part of Islam, and not obtrusive neither to the Islamic communities nor to the principals of Islamic Economics, by contrast with capitalism, where SR is obtrusive, and unlike communism where SR is the only available option.
Allah Almighty says in Quran: ((O you who believe, bow down and prostrate yourselves and serve your Lord, and do good that you may succeed)), and prophet Mohammed (ﷺ) put it in fewer words: ((All of you are shepherds and each of you is responsible for his flock)), for that SR is our property that has been returned to us.
Ethical investment is the one that takes into consideration the fundamental values of the organisation, and provides opportunity to pursue a similar ethical and social responsibility policy, and creates a value of precedence for the organisation vis-à-vis other organisations.
The concept of Social Responsibility went through many phases until the 1980s, where the Stakeholder Groups term came into existence. The emergence of this term led to the development of the theory of the contemporary Social Responsibility which started to attend, more comprehensively, to issues and affairs never been dealt with in the past.
The spread of this theory served as a wake-up call, both for individuals and organisations towards new segments in the society, among which: (customers, suppliers, stakeholders & owners, competitors, employees and the local community), among others. And the yardstick for measuring the successful application of the SR theory is the type of relation between these groups and the organisations, and the response rate of these corporates and organisations to the needs of these groups, and how to handle them.