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.
Compliance 1
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Due Diligence (Bribery/Sanctions/Fraud)Process Essential
Good 8
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Documented ethical investment policyDocumentation Essential
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Defined Shariah screening methodology (AAOIFI-aligned)Compliance Essential
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Operational Purification (tathīr) Policy & WorkflowProcess Essential
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Treasury & Liquidity Sub-policy (incl. Zakat buffers)Risk Management Essential
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Stewardship & Voting PolicyGovernance Important
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Investment committee with appropriate expertiseGovernance Essential
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Implementation monitoring (Breach Register)Monitoring Essential
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Transparent reporting aligned with Charities SORPTransparency High
Better 3
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Independent Shariah advisory oversightLeadership High
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Integration of ESG based on 'No Harm' (Lā ḍarar)Sustainability High
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Doubtful Matters approach (avoidance of ambiguity)Compliance High
Best 1
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Benchmarking against UN PRI / UK Stewardship CodeExcellence High
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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