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TS-BGS-21 Trust & Stewardship Board Governance & Strategy CORE Compliance v2.9.7

Ethical & Values-Based Decision-Making Framework

Assesses the application of a formal framework that embeds Shūrā (consultation), ʿAdl (justice), and Iḥsān (excellence) into strategic decisions. This process upholds Amānah (trust) by ensuring choices are just, value-driven, and consistently serve the best interests of all stakeholders and the organization's higher purpose, anchored by clear intention (Niyyah). Ultimately, this approach aligns leadership actions with Maqāṣid al-Sharīʿah (objectives of Islamic law), actively promoting Maṣlaḥah (public benefit) while safeguarding against harm to fulfill profound moral accountability.

KPI / Measure
Metric% Major Decisions with completed ethical checklist
Target≥90%
FrequencyQuarterly
MethodComposite of 6 metrics: % Major Decisions with completed ethical checklist; % Major Decisions with stakeholder engagement evidence; % Decisions with COI declared/managed (where applicable); Comms timeliness (within 10 working days); Training completion rate (incl. assessment pass); % Emergency decisions with 30-day ex-post review
UnitPercentage/Score
Maturity Levels
Level 1: Initial/Ad-hoc

Decision-making is informal and ad-hoc. Islamic values like Shūrā and ʿAdl are occasionally referenced but not systematically integrated into any process.

Level 2: Developing

A basic, unwritten process for some strategic decisions exists. There are inconsistent attempts to consult stakeholders (Shūrā) and ensure fairness (ʿAdl), often dependent on the individuals involved.

Level 3: Established

A formal, documented decision-making framework is established and communicated. It explicitly requires the application of Shūrā, ʿAdl, and Iḥsān for all strategic decisions, and its use is monitored.

Level 4: Advanced

The effectiveness of the decision-making framework is systematically measured (KPIs ≥80%). Data on stakeholder impact, fairness of outcomes, and alignment with Maqāṣid al-Shari'ah is collected and analyzed to refine the process.

Level 5: Optimizing

The values-based framework is deeply embedded (KPIs ≥90%). The organization conducts quarterly post-mortems, publishes ethics summaries, and is recognized as a benchmark for applying Iḥsān and Niyyah in strategic choices.

Applicability

Organisation Types

ALL

By Organisation Size

SizeApplicabilityNotes
Micro exempt Formal SOPs, decision registers, and complex frameworks are highly disproportionate for volunteer-run micro charities.
Small partial Basic values-based principles should guide key decisions, but formal registers, JEIA links, and complex protocols are disproportionate.
Medium partial Requires a documented protocol for major decisions, but extensive stakeholder mapping and formal decision registers can be simplified.
Large full
Major full

Applicable When

  • Organization has a formal board or governing body
  • Organization makes decisions that significantly impact its stakeholders
  • Organization possesses stated higher objectives beyond mere profit or service provision

Not Applicable When

  • The organization is a sole proprietorship or has a single-owner structure where all strategic authority resides with one individual, and there is no formal board or governing body.
  • The organization's governing body functions in a purely advisory capacity by charter, with final strategic decision-making authority legally and operationally vested in a separate, external entity (e.g., a parent organization).
  • The organization is a non-operational or passive entity (e.g., a holding company, a dormant entity) whose functions are pre-determined and do not involve making new strategic decisions that impact stakeholders.

Discussion (1)

Administrator 2026-03-07 11:07:44.893283

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

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