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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).

Compliance 4
  • Alignment between strategy and organizational mission
    Quality Essential
  • Board-approved risk appetite statement (covering finance, safeguarding, compliance, reputation, delivery, cyber) and a strategic risk register with explicit mapping of objectives to risks and controls (CC26, CC8).
    Risk Management Essential
  • Documented strategy communication plan ensuring accessibility/inclusion (Equality Act 2010) with feedback mechanisms.
    Communication Essential
  • Explicit articulation of how strategic objectives deliver public benefit in line with charitable purposes (Charities Act 2011).
    Compliance Essential
Basic 5
  • Documented strategic plan with clear objectives
    Documentation Essential
  • Regular review of strategic direction (at least annually) including a 'muḥāsabah' (self-reckoning) assessment
    Monitoring Essential
  • Board involvement in strategy development and approval
    Governance Essential
  • Strategy communicated to all stakeholders
    Process Important
  • Ensure strategy considers both short-term and long-term goals
    Sustainability High
Good 7
  • Board-approved Scheme of Delegation and Matters Reserved clarifying trustee vs. executive responsibilities
    Governance Essential
  • Cascade strategic objectives into an annual operating plan and budget approved by trustees, monitored via a board KPI dashboard each quarter (CC12).
    Implementation Essential
  • Use a structured strategic planning process
    Leadership High
  • Include measurable objectives and key performance indicators
    Excellence High
  • Document strategic decisions in board minutes with clear rationale and options considered
    Transparency Medium
  • Review strategy implementation progress quarterly
    Continuous Improvement High
  • Record and manage conflicts during strategy-setting; include conflict register entries/minute management decisions.
    Governance Medium
Better 4
  • Involve key stakeholders in strategy development using 'Naṣīḥah' (sincere advice) principles
    Stakeholder Engagement High
  • Align reserves policy and (where applicable) investment policy with strategic risk appetite and multi-year plans (CC19, CC14).
    Financial Sustainability High
  • Develop a Theory of Change linking activities to outcomes and KPIs.
    Impact Measurement High
  • Conduct horizon scanning and scenario planning (e.g., PESTLE, 2–3 scenarios) annually.
    Foresight High
Best 1
  • Define programme entry/exit criteria (impact threshold, cost-effectiveness, safeguarding triggers) and require trustee approval for material changes.
    Mission Alignment High

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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