Faith-Based Corporate Social Responsibility in Muslim Family Businesses: A Model Search Through Conceptual Evaluation

Sociologically, few fields remain untouched by religion's influence. The shared beliefs and values foundational to religion shape individual activities and influence the business world. Studies suggest that religious beliefs have a considerable impact on the decision-making of family businesses, particularly in environments where faith-based values are deeply integrated into the organizational culture. Religion guides ethics, both in spoken and written forms. Additionally, literature indicates that religiosity is crucial in how family businesses set and prioritize their goals. In this light, it is vital to explore whether the understanding of corporate social responsibility (CSR), which has gained significant attention in management, varies according to the religious beliefs held by family firms. CSR aims to generate both social and economic benefits. To understand the connection between religious family businesses and their approach to philanthropy and CSR, it is essential to recognize that the literature suggests that religiosity enhances an organization's CSR performance. This study aims to uncover how the religious beliefs of family members influence the planning and execution of CSR activities in family-owned enterprises. The findings indicate that CSR practices within Muslim family businesses are influenced by economic, ethical, cultural, and religious considerations. Islamic values, particularly concepts of justice, charity, and giving, establish a normative framework that directs business social responsibility strategies. Through a literature review, this study examines the influence of religious norms on strategic decision-making in family businesses, highlighting the distinctions of the Islamic CSR approach compared to Western models. It has been found that CSR is embraced not merely for social legitimacy and reputation but as an ingrained management philosophy driven by moral accountability. Additionally, the discussion contextualizes how both instrumental and normative bases influence CSR.