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TS-BGS-02 Trust & Stewardship Board Governance & Strategy CORE Compliance v2.9.7

Trustees set direction & strategy

Evaluating whether the organization's trustees actively establish and document its strategic direction is essential. Strategic direction-setting is a fundamental responsibility of governance, ensuring the organization has clear goals and a roadmap for achieving its mission. In Islamic stewardship, this reflects the profound duty of Amanah (trust) and Shura (mutual consultation). By setting a deliberate strategy, the board safeguards the Maslahah (public interest) and aligns organizational objectives with the broader Maqasid al-Shariah (objectives of Islamic law).

Assessment Questions
  1. How do the trustees establish and document the organization's long-term strategic direction, mission, and vision?
  2. What formal process is used for strategic planning, and how often is the strategic plan reviewed and updated by the board?
  3. How do the trustees ensure that stakeholder consultation (Shūrā) is integrated into the strategy-setting process, and how is it ensured to be safe and appropriate (safeguarding)?
  4. What data protection controls apply to consultation data (lawful basis, retention, anonymisation)?
  5. How is the strategic direction explicitly aligned with the organization's duty of trust (Amānah) and the public interest (Maṣlaḥah)?
  6. Can you provide examples of how the higher objectives of Sharīʿah (Maqāṣid al-Sharīʿah) have informed key strategic decisions?
  7. What is the board-approved risk appetite (incl. safeguarding/finance), and how are strategic risks identified, owned, and reviewed?
  8. How are strategic objectives cascaded into annual plans, budgets, and staff performance?
  9. How does the trustees’ annual report demonstrate delivery of objectives and public benefit in line with the strategy (SORP)?
  10. What horizon scanning or scenario planning does the board undertake?
  11. How does the strategy evidence public benefit and compliance with charitable purposes?
  12. How does the board ensure periodic muḥāsabah (self-audit) is linked to strategy review cycles? (Qur’an 59:18)
Evidence Requirements
  • A formally approved and documented Strategic Plan.
  • Board meeting minutes where strategic direction, planning, and review were discussed and decided.
  • Board-approved Scheme of Delegation and Matters Reserved.
  • Evidence of stakeholder consultation process and outcomes (e.g., survey results, workshop minutes, community feedback reports).
  • The organization's documented Mission, Vision, and Values statements.
  • Evidence of environmental scanning or needs analysis that informed the strategy (e.g., SWOT, PESTLE analysis).
  • Board-approved risk appetite statement and strategic risk register with controls mapping.
  • Annual operating plan and approved budget mapped to strategic objectives.
  • Board KPI dashboard/scorecard and quarterly performance reports.
  • Strategy-on-a-page summary for stakeholder communication.
  • Strategic change control log (material deviations, approvals, reasons, learning).
  • Reserves policy and (if applicable) investment policy showing alignment with strategy.
  • Theory of Change/logic model.
  • Latest Trustees’ Annual Report demonstrating strategic objectives, achievements, and plans (SORP compliant)
  • Conflict of interest register/minute extracts from strategy meetings.
Scoring Guidelines
LevelRatingDescription
5 5/5 Board-approved 3–5 year strategy; Theory of Change; KPIs with quarterly dashboard; annual review completed with muḥāsabah; stakeholder shūrā documented (≥2 methods); risk appetite and strategic risk register current; cascading to annual plan and budget; ≥80% KPIs on track or adaptive governance evidenced (corrective actions taken within 1-2 quarters).
4 4/5 Clear strategic direction with good documentation and monitoring
3 3/5 Basic strategic plan exists but limited monitoring or implementation
2 2/5 Informal or outdated strategic direction
1 1/5 No documented strategic direction or board involvement

Related Criteria

TS-BGS-01 Trustee board meetings are scheduled, quorate, and minuted TS-BGS-03 Trustees meet statutory reporting TS-BGS-04 Finance represented in decisions TS-BGS-05 Annual board and executive skills-gap analysis conducted and actioned TS-BGS-06 Public remuneration & expense disclosure for senior staff
Version
2.9.7 2025-11-06

Discussion (1)

Administrator 2026-03-07 11:07:39.494907

📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json

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