Islam and 'social accounting'

The authors discuss the concept in social theory of social accounting, linking this idea to both Western thought and Islamic economics. According to Gambling and Karim, the Islamic ban on riba (interest) is rooted in the notion of externalizing social cost and preventing one individual from avoiding the natural risks of life by putting the burden of loss on another individual. As Muslim societies evolve, certain enhancements to the basic Islamic practices can help increase their usefulness. The authors discuss a proposition to expand the idea of Zakah to call for a demand on businesses to create reserve funds with overseers and specific investments. The creation of such funds would be in accordance with the dictates of the shari`a , and at the same time provide a type of social insurance fund. Thus, the social accounting will be in line with the laws and the spirit of Islam.