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Corporate Social Responsibility In Islamic Business: Case Study Of Indonesia Company

It is widely acknowledged that Corporate Social Responsibility (CSR) has become socially “mandatory” for company to partake in the development of their community. Furthermore, CSR fills the blank space where the government cannot reach or has limited access. This paper will be addressing two issues: (a) CSR concept in accordance with Islamic Value; and (b) How the Indonesian Government regulates the application of Islamic CSR Model in the country. This research aims to analyze the concept of Zakat as a CSR model under the Islamic Business Law, with the objective to compare Zakat and the conventional CSR. This research is conducted in Normative-Juridical method which establishes that Islamic CSR means more than just “helping the humanity and the environment”, but also as a “Heavenly duty”, as opposed to Western business system in which CSR serves as the company’s tool to protect its interest and public image leverage.