SC Explores Integrating Maqasid Al Shariah Principles To Enhance Social, Governance Practices For Companies

KUALA LUMPUR, Sept 7 (Bernama) -- The Securities Commission Malaysia (SC) is exploring on how  companies can best apply the Maqasid Al Shariah aspirations and principles in their products and services and have better social and governance practices.

Chairman Datuk Mohammad Faiz Azmi said the actions needed are urgent as some of the companies are purely focusing on profit maximisation to the detriment of its stakeholders and the planet.

“In the context of climate change, the data being provided by scientists on the alarming decrease in biodiversity, the changing weather patterns, the intensity of weather events and the impending rise of the sea levels, all of which need to be factored into the way companies operate,” he said in his opening remarks at the 15th SC-Oxford Centre for Islamic Studies (OCIS) Roundtable held in the OCIS, United Kingdom today.

He said another area for companies to focus on is their commitment to environmental, social and governance (ESG) standards.

“Again, we have a lot of examples in the media of companies who appear to put profit before safety or are indifferent to how they run their businesses without considering proper governance and accountability.

“And there are also many companies who continue to treat their employees badly. The difficulty I feel is sometimes in the pursuit of profit, compassion, empathy and basic humanity seem to be forgotten,” he said.

He said the SC issued the Maqasid Al Shariah Guidance for the Islamic Capital Market in Malaysia in November 2023 to apply these aspirations and principles in the context of the capital markets.

“We have been engaging with a number of parties in Malaysia, both foreign owned and domestic, on how these principles can be applied to real products and services.

“We have also started a dialogue with local players to see how the Maqasid principles can be applied to existing projects and whether some form of screening is appropriate,” he said.

Therefore, he hopes to see how these universal values, encapsulated in the Maqasid Al Shariah can best be applied throughout the value chain of a company, from the funding, to delivery of products and services and how they meet stakeholder expectations.

“It will serve to also make Islamic Finance products and services more relevant to the issues at hand,” he added.

-- BERNAMA