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1 – 10 of 512Said Adekunle Mikail, Muhammad Ali Jinnah Ahmad and Salami Saheed Adekunle
This paper aims to investigate the utilisation of both zakāh and waqf fund as external resources to ensure micro-takāful services are delivered to underserved communities in an…
Abstract
Purpose
This paper aims to investigate the utilisation of both zakāh and waqf fund as external resources to ensure micro-takāful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Sharīʿah issues related to the zakāh- and waqf-based model.
Design/methodology/approach
The study is a qualitative-based research. It uses both focus group and content analysis approach to gather primary data and identify and interpret relevant secondary data and Sharīʿah concepts in developing the zakāh- and waqf-based micro-takāful model.
Findings
It is discovered throughout the investigation of attributes of beneficiaries of zakāh and waqf institutions as well as micro-takāful scheme that all share commonalities in terms of social securities and socio-economic support to low-income households in societies. The study also finds that the disintegration of zakāh and waqf which form part of the Islamic ecosystem from the micro-takāful model makes it less effective and sustainable.
Originality/value
This study appears as a primitive attempt to discuss and develop a zakāh and waqf-based micro-takāful model with reference to Malaysian jurisdiction.
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Nazamul Hoque, Mahi Uddin, Mohammad Tazul Islam, Abdullahil Mamun, Mohammad Nazim Uddin, Afzal Ahmad and Md Thowhidul Islam
This study looked into the scope of integrating the aspirations of zakah and corporate social responsibility (CSR) to counter poverty, inequity, illiteracy, malnutrition and…
Abstract
Purpose
This study looked into the scope of integrating the aspirations of zakah and corporate social responsibility (CSR) to counter poverty, inequity, illiteracy, malnutrition and environmental pollution to ensure peace, happiness, prosperity and sustainability as envisaged in sustainable development goals (SDGs).
Design/methodology/approach
This is a qualitative research study conducted using both primary and secondary data. Primary data were collected from 29 business enterprises in Bangladesh employing a semi-structured interview protocol. The secondary data were collected through content analysis of annual reports, websites and CSR publications of sample organizations. Finally, collected qualitative data have been analyzed thematically following the due procedures to address the research questions.
Findings
The findings reveal that integration of the aspirations of zakah and CSR is a convenient and wholehearted approach for entrepreneurs resulting in pursuing SDGs. In addition, business entrepreneurs in Bangladesh consider such practices as killing two birds with one stone because this approach warrants performing both religious and social obligations simultaneously. Interestingly, the study explores that shariah compliance acts as a guiding force for selecting well-being-oriented projects in zakah-funded CSR resulting in pursuing the priority goals – No Poverty (1), Zero Hunger (2) – of SDGs, thereby addressing some of the most critical issues of emerging economies such as Bangladesh.
Practical implications
The findings of this research can be used as a guide to incorporate the spirit and principle of zakah into the CSR programs aimed at pursuing SDGs mainly in Muslim countries representing one-fourth of the world population.
Originality/value
Integration of the aspirations of zakah and CSR is an innovative move and net addition to the literature on sustainability, CSR and zakah because Muslim business entrepreneurs will now conveniently be able to use the entrepreneurs' zakah money – readily available in each financial year – to fund the entrepreneurs' various CSR projects (within shariah framework) relating to poverty alleviation, humanitarian and disaster relief, health and sanitation and environmental conservation which will eventually contribute to pursuing various SDGs.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and Alhassan Haladu
As one of the constituted main pillars of Islam, Zakah compliance (ZC) is mandated upon Muslims from all studies of life. Taking the disappointingly low compliance level in…
Abstract
Purpose
As one of the constituted main pillars of Islam, Zakah compliance (ZC) is mandated upon Muslims from all studies of life. Taking the disappointingly low compliance level in developing countries, including Yemen, as its backdrop, the purpose of this study is to investigate ZC behavior among entrepreneurs, drawing on the economic approach perspective.
Design/methodology/approach
The study adopted a cross-sectional design based on a survey of entrepreneurs in Yemen. It used primary data collected via self-administered questionnaires, involving a sample of 500 participants. A variance-based structural modeling equation-partial least squares were used to measure the instruments and assess the hypothesized relationships.
Findings
The findings affirmed the suitability of the economic factors approaches in the context of ZC in a developing country. Specifically, the study demonstrated that Zakah law complexity has a significant negative influence on ZC of entrepreneurs. It also found a significant positive relationship between religiosity and ZC among the study sample, whereas the study revealed that law enforcement has no influence on compliance behavior.
Practical implications
Policies and programs focused on Zakah laws and regulations could be formulated to make them less complex and simpler for acceptable levels of ZC. The result is further relevant to policymakers in Muslim communities to strengthen the religious faith of Zakah payers toward compliance with one of the fundamental religious obligations such as Zakah.
Originality/value
This study enriches the limited previous studies on actual ZC from the perspective of developing communities, especially Yemen. Most importantly, the value was added to the limited literature internationally from an economic aspect.
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This paper explores the role of Zakah in social cause marketing. Academic literature on Islamic economics, finance and management mostly deals with the links that exists between …
Abstract
Purpose
This paper explores the role of Zakah in social cause marketing. Academic literature on Islamic economics, finance and management mostly deals with the links that exists between Zakah and consumption, neglecting important and strategic links with social cause marketing. This paper emanated from need to outline social cause and the charitable role of Zakah in promoting Halal businesses, poverty alleviation and sustainable development. Most works in the field of Zakah did not foresee the role of marketing. This is a misjudgement, as this work showed that Zakah yields large and measurable social gains to help the society and a firm.
Design/methodology/approach
Secondary sources were used in writing this paper. Available literature in the form of journals, books, manuals and reports was referred to. As a conceptual work, the paper does not test hypothesis or pretends to provide empirical evidences. It uses mathematical economics in arriving at some of the conclusions. Findings were derived through deductions and critical discourses, not through crunching of primary data.
Findings
The paper shows how Zakah, Halal consumption and corporate social responsibility are connected and highlights the role of Zakah as a social marketing tool. It shows how Zakah affects consumption through marginal propensity of Zakah recipients who spend Zakah money on basic needs.
Research limitations/implications
The paper looks at the broad aspects of Zakah and social marketing. How to make Zakah a pillar of Islamic firms’ social cause programs shall be the focus of future academic works in this area.
Originality/value
The paper is unique in drawing attention of Islamic firms to the effectiveness of Zakah in building a corporate image. It draws the attention of firms, activists, academics and governments to functions of Zakah that have not been studied in depth.
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Fahmi Ali Hudaefi and Irfan Syauqi Beik
Despite the COVID-19 recession, the collection of zakat (almsgiving) managed by the National Board of Zakat Republic of Indonesia (BAZNAS RI) has increased, especially during…
Abstract
Purpose
Despite the COVID-19 recession, the collection of zakat (almsgiving) managed by the National Board of Zakat Republic of Indonesia (BAZNAS RI) has increased, especially during Ramaḍān 1441 Hijra. Previous works show a positive relationship between digital zakat campaign and zakat collection. This paper aims to study the means of digital zakat campaign during COVID-19 outbreak. This topic is theoretically and practically important in the emerging debate of Islamic marketing, notably in Islamic social finance field.
Design/methodology/approach
This paper uses a qualitative research approach. A case study is engaged in the selection of BAZNAS RI for a detailed discussion of a zakat organisation. Meanwhile, a netnographic approach is used to analyse the number of 549 posts from BAZNAS RI’s social media, which are Facebook, Instagram, Twitter and YouTube. Furthermore, a qualitative software analysis of NVivo 12 Plus is used in performing the analytical procedures.
Findings
This work explains the means of digital zakat campaign during COVID-19 outbreak with a case of BAZNAS RI. It is identified the number of 6 parent nodes and 64 child nodes from the analysis using NVivo 12 Plus. The authors’ parent nodes are “donation”, “infaq” (Islamic spending for charities), “Ramaḍān matters”, “ṣadaqah” (voluntary charity), “virtual events” and “zakat”. These nodes detail digital campaign of BAZNAS RI posted in its social media during COVID-19 period in Ramaḍān. A theoretical implication of inclusive marketing is derived from the analysis. It explains that the inclusiveness of digital contents is practically significant in campaigning zakat as a religious obligation that contributes to social and financial benefits.
Research limitations/implications
This paper does not claim a positivist perspective on the relationship between digital zakat campaign and zakat collection. Instead, this paper explores in-depth the practice of digital zakat campaign, which the previous study confirms its association with a muzakki’s (Muslims who are obliged to pay zakat) decision to pay zakat.
Practical implications
This paper establishes the Islamic marketing theory that is derived from industrial practices. The inclusiveness of digital contents in zakat campaign is critical in activating zakat as a religious obligation that authentically shapes the social and economic processes of a Muslim community. This theory is practically important for 'amils (employees) of zakat institution who work in the marketing division, chiefly to create such contents to post in social media.
Social implications
The authors’ node of zakat distribution for COVID-19 relief indicates the importance of a formalised zakat institution to actualise zakat’s role in handling socioeconomic problems. Thus, paying zakat formally in an authorised organisation may contribute to a greater social contribution and maṣlaḥah (public interest) than paying it informally without any effective measurement.
Originality/value
This study contributes to the novelty in the Islamic marketing debate within two folds. First, this paper is among the pioneers in studying digital zakat campaign during COVID-19 outbreak by using a netnographic approach. Therefore, a theoretical implication derived from industrial practices is contributed. Second, this paper details the steps in using NVivo 12 Plus to analyse the unstructured data sampled from the internet. The future studies may thus refer to this work to understand the application of netnography and the procedures in analysing data from social media using this software.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and Adel Sarea
Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money…
Abstract
Purpose
Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money and property, many administrative and legal improvements need to be made to ensure that Zakah funds are managed effectively and efficiently in Muslim states. It is therefore important to recognize why some Muslims are not paying their Zakah through Zakah authorities. The purpose of this paper is to propose a viable and comprehensive research model, derived from an economic and socio-psychological perspective, to provide a richer understanding of Zakah payers’ compliance behaviour.
Design/methodology/approach
Drawing on extant literature, this study offers a conceptual framework for a better understanding of compliance behaviour by proposing an economic and socio-psychological model based on Fischer’s tax compliance model, which could be applied cautiously in an Islamic setting like Zakah.
Findings
The four main categories of the Fischer model are derived from socio-psychological and economic perspectives, namely, attitude and perception (system fairness, ethics and peer influence); Zakah system structure (Zakah law complexity and law enforcement); non-compliance opportunity (education level, wealth source and occupation); and demographic factors (age and gender). Each has much to offer in understanding Zakah payers’ compliance decisions. To suit the nature of Zakah, the influence of Islamic religiosity and the moderating effect of trust in the Zakah institution are incorporated into the model.
Practical implications
Those Muslim communities that strive to have functional Zakah systems to search for solutions to the perennial problem of low Zakah funding and its damning consequences, are offered a compliance model for systematically assessing Muslims’ compliance behaviour with Zakah provisions. This framework is anticipated to offer invaluable input to policymakers in streaming and strategizing the minimization of losses of Zakah revenue to Zakah authorities.
Originality/value
Although behavioural models such as the theory of reasoned action and the theory of planned behaviour have been extensively used in Zakah compliance studies, to the best of the authors’ knowledge, this study is perhaps the first to apply a socio-psychological and economic framework, emerging from tax literature, in the Zakah environment to develop fully understanding of Zakah payers’ compliance decisions.
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Abdus Samad and Lowell M. Glenn
The unity of Divine Law is reflected in monotheistic faiths having their origin with Prophet Abraham (pbuh), but later divided into three major religions: Judaism, Christianity…
Abstract
Purpose
The unity of Divine Law is reflected in monotheistic faiths having their origin with Prophet Abraham (pbuh), but later divided into three major religions: Judaism, Christianity, and Islam. There is a unity of Divine practice in a variety of areas among these monotheistic faiths. One such area is Zakah, in Islamic tradition, and often characterized as “the poor due” in Christianity and Judaism. By whatever name, Zakah or “the poor due,” is an important Divine institution in all three monotheistic faiths. The purpose of this paper is to trace and examine the development of the Zakah institution and Zakah type coverage in those faiths.
Design/methodology/approach
First, the paper provides a brief description of the meaning and objectives of Zakah (the poor due) and the group of people who have been described as worthy to receive Zakah. Additional sections trace the development of Zakat (the poor due) in Islam, Judaism, and Christianity. Finally, some conclusions are presented for the consideration of the reader.
Findings
The administration and process for distribution of Zakah in contemporary Muslim states varies depending on the school of Islamic thought most prevalent in that society and the level of theocratic involvement of the government in those societies.
Originality/value
This paper usefully examines the development of the Zakah institution and Zakah type coverage in the three monotheistic faiths.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and K. Kuperan Viswanathan
To provide a sound understanding of Zakah compliance behaviour, this paper aims to shed light on the relationships between Zakah system fairness, Zakah morale, peer influence and…
Abstract
Purpose
To provide a sound understanding of Zakah compliance behaviour, this paper aims to shed light on the relationships between Zakah system fairness, Zakah morale, peer influence and law enforcement with Zakah compliance behaviour among entrepreneurs.
Design/methodology/approach
The underpinning model used in this paper is the socio-economic theory of regulatory compliance for assessing the probable determinants shaping Zakah payers' compliance behaviour. Based on a survey of active entrepreneurs in a typical Islamic situation like Yemen, a total of 500 self-administered instruments were distributed to the respondents. Partial least squares-structural equation modelling (PLS-SEM) was used to estimate the compliance model.
Findings
All the variables included in the compliance model are statistically significant, except for law enforcement. Zakah compliance of entrepreneurs is significantly influenced by Zakah system fairness, Zakah morale and peer influence.
Practical implications
Zakah institutions and agencies in Muslim-majority countries may use the results of this work to focus attention on appropriate proactive policies to formulate a fair Zakah system, inculcating moral responsibility among Zakah payers, embarking on sensitisation programmes in society as a whole, and being more proactive in educating Muslims in the importance of paying Zakah to the respective Zakah agencies.
Originality/value
This paper complements the limited literature on Zakah by examining both tangible and intangible motivations affecting Zakah payers' compliance decision.
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This study aims to look into the scope of exploring and promoting business zakah for the enhancement of the well-being of the underprivileged in society.
Abstract
Purpose
This study aims to look into the scope of exploring and promoting business zakah for the enhancement of the well-being of the underprivileged in society.
Design/methodology/approach
This is mainly a qualitative research conducted using both primary and secondary data. Primary data have been collected from 34 business entrepreneurs in Bangladesh through semi-structured in-depth interviews. The secondary data have been collected from annual reports with a view to calculating business zakah of five business enterprises for providing an indicative picture of prospective volume of business zakah in Bangladesh. Finally, collected qualitative data have been analyzed thematically following the due procedures with a view to addressing the research questions.
Findings
The findings reveal that around thirty five percent of sample entrepreneurs have used business zakah fund for fully and partially financing their social projects. It also reveals that on average annual business zakah fund amounts to nearly 144m BDT (around US$1.7m) per business enterprise. These findings bear clear witness that business zakah has extensive scope and promising prospect to be an instrument of financing social projects aimed at ensuring social well-being of the disadvantaged.
Practical implications
The findings of this research can be used as a guide to promote business zakah to finance social programs aimed at ensuring the well-being of the underprivileged of all societies particularly of Muslim countries representing one-fourth of the world population.
Originality/value
Exploring and promoting business zakah as an initiative of broadening the base of zakah is an innovative move and net addition to the literature of Islamic finance. It contributes greatly to the poverty alleviation movement in the sense that Muslim business entrepreneurs will now find their business zakah fund readily available to finance their social projects aimed at ensuring well-being of the impoverished.
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Ram Al Jaffri Saad and Roszaini Haniffa
– The purpose of the paper was to examine factors influencing business zakah compliance behavior.
Abstract
Purpose
The purpose of the paper was to examine factors influencing business zakah compliance behavior.
Design/methodology/approach
The theory of reasoned action (TRA) was adopted to investigate whether attitude, subjective norm and intention were the determinants of zakah compliance behavior based on questionnaire survey of 227 active businessmen in one district in Malaysia.
Findings
Results indicate intention to be a significant predictor for zakah compliance behavior. Intention is further found to be influenced by both attitude and subjective norm, and it mediates the relationship between both factors with business zakah compliance behavior.
Practical implications
As attitude, subjective norm and intention are found to influence business zakah compliance behavior, zakah institutions should give serious attention on these factors to improve their zakah collection in the future.
Originality/value
The study supports the argument that in a loosely regulated environment like zakah, the TRA can still effectively explain the behavior of zakah compliance.
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