Social Responsibility

There is much that Islamic finance can do to change the world in a manner profitable to its shareholders. Islamic law requires some sort of re-distribution of wealth and opportunity. This is most evident in contracts such as mudaraba and musharaka but we must first develop institutions, infrastructure and controls the likes of credit bureaus to reduce moral hazard. We must also develop a strong culture of strong governance to be able to implement mudaraba and musharaka in their true form. Yet the truly Islamic objective of wealth and opportunity redistribution does not necessarily require them: conventional financial institutions rose to the challenge of helping the poor in the form of micro-finance. Other non-Islamic innovations have evolved to serve public interest, such as public-private residential ownership, while Islamic finance and its rationalizing masses delve deep into legal semantics. Scholars and academics are saying that too little is being done to achieve the ends while