Formal Shariah Governance/Oversight
Evaluates the structured process for obtaining and implementing scholarly guidance (iftāʾ) through consultative deliberation (shūrā). This formal oversight is crucial for upholding Amānah, assuring stakeholders of Shariah compliance in contracts, public claims, and operations, and safeguarding the organization’s integrity. Rooted in the pursuit of Maqāṣid al-Sharīʿah (objectives of Islamic law), particularly Ḥifẓ al-Māl (preservation of wealth), such governance ensures institutional practices remain strictly within the bounds of Ḥalāl (permissible). By institutionalizing Taqwā (God-consciousness), it actively prevents prohibited elements.
| Metric | Shariah Governance Process Documentation |
|---|---|
| Target | Yes |
| Frequency | Annual |
| Method | Binary check for documented process existence (1=Yes, 0=No) |
| Unit | Binary |
Level 1: Initial/Ad-hoc
Shariah guidance is sought on an informal, ad-hoc basis from individuals. There is no structured process, formal body, or documentation.
Level 2: Developing
A process for seeking Shariah guidance is defined but inconsistently applied. A designated individual or an informal group is responsible, but there is no formal charter or authority.
Level 3: Established
A formal Shariah advisor or committee is established with a defined charter/ToR and meets at least annually. Rulings and minutes are documented, though risk integration and COI controls may still be basic.
Level 4: Advanced
The SSB is fully integrated into the organization's governance structure with semi-annual meetings. Its oversight covers strategic planning and operations. A formal Shariah audit function exists to monitor compliance with its rulings.
Level 5: Optimizing
The Shariah governance framework is a benchmark for excellence. The organization actively contributes to Shariah governance knowledge, engages in continuous improvement based on internal and external reviews, and ensures succession planning for its SSB.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | exempt | Formal Shariah boards and materiality matrices are disproportionate for volunteer-run groups; informal local guidance suffices. |
| Small | optional | A formal SSB is highly resource-intensive; ad-hoc access to a recognized scholar is generally acceptable at this size. |
| Medium | partial | Needs documented access to a scholar for Zakat and ethics, but a full formal SSB with complex materiality matrices can be scaled down. |
| Large | full | |
| Major | full |
Applicable When
- The organization provides services or activities that are claimed to be Shariah compliant
- The organization aims to operate according to Islamic principles
- The organization's activities raise complex Shariah-related questions
Not Applicable When
- The organization explicitly operates without reference to Islamic principles.
Related Criteria
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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