Ethical investment policy
This criterion assesses whether the organization has established and implements a comprehensive policy governing ethical investment of its funds in accordance with Islamic principles. It evaluates the organization's commitment to ensuring that all investments, particularly those of waqf (endowment) assets, avoid prohibited elements while promoting positive social and environmental impact alongside financial returns. Ground policy in Qur’an 4:58 (trusteeship), Qur’an 4:29 (prohibition of unjust consumption), and the preservation of wealth (ḥifẓ al-māl), demanding prudent, transparent, and Shariah-compliant investment. It ensures donor expectations are met per the Code of Fundraising Practice.
Ḥalāl investment
Adherence to Sharia by avoiding Riba, Gharar, and Maysir.
Sadd al-dharā’iʿ
Blocking the means to harm; justifies screening out sectors that cause societal damage.
Lā ḍarar wa lā ḍirār
No harm shall be inflicted or reciprocated; basis for ESG and impact screening.
Ḥifẓ al-māl
Preservation of wealth; a key objective of Shariah, necessitating prudent risk management, especially for Waqf.
Ṭayyib
Wholesome and pure; investing in ethical, beneficial activities.
Maqāṣid al-Sharīʿah
Higher objectives of Shariah, guiding positive screening for holistic value.
Istikhlāf
Stewardship; humanity's role as vicegerents managing God's wealth.
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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