A Conceptual Study on Shari'ah Compliance on Risk Mitigation of MS 1900-Certified Companies

Muhammad Hisyam Mohamad, Fadillah Mansor

Abstract


Essentially, sharīʿah is aimed at the realisation of benefits (tahqīq al-maṣāliḥ) for all mankind in this worldly life and the Hereafter. The realisation can be achieved either through promoting what is good and beneficial (jalb al-maṣlaḥaḥ); or preventing what is evil and harmful (dafʿ al-mafsadah). To achieve such an objective, man must abide by sharīʿah laws. Theoretically, practising Muslims will observe all sharīʿah requirements. Subsequently, this will result in quality performance in all aspects of life, be it spiritual, individual, social, intellectual and economic. Moreover, compliance to sharīʿah will not only result in quality performance but also will minimise the risk exposure of individuals and organisations. On the other hand, non-compliance with sharīʿah principles is a risk that could potentially give rise to negative effects on personal and institutional wellbeing. Using the analogy of positive relationship between sharīʿah compliance and risk mitigation, the article seeks to explore the relationship between the concept of sharīʿah compliance and risk mitigation. In order to make the analogy relevant with contemporary organisational management, the scope of study is narrowed down to the MS 1900-certified companies. This study is descriptive in nature involving review and analysis of academic works of other scholars and ISO documents.

Keywords


Maṣlaḥah, sharīʿah, compliance, risk, MS 1900, halal standards

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