Corporate social responsibility as a principle of ESG in the light of the federal law on partner financing

The article discusses corporate social responsibility in the light of the new federal law “On the Experiment of Establishing Special Regulations in Order to Create the Necessary Conditions for Partner Financing Activities in Certain Subjects of the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation”. The adoption of this law is a big step for Russia towards the implementation of ESG principles, since one of them is precisely the social responsibility of business, therefore, the article reveals the obligations of Islamic financial institutions in terms of determining mandatory and recommended corporate social responsibility policies for all aspects of their activities in accordance with management standard No. 7 AAOIFI Corporate Social Responsibility, Conduct and Disclosure of Islamic Financial Institutions. Based on the results of the study, the article concludes that the prerequisites are specific obligations that an Islamic financial institution must fulfill, while there is guidance on independent methods by which these specific obligations can be implemented in the following types of policies: customer selection policy; policy of responsible business dealing with clients; policies regarding income and expenses prohibited by Sharia law; employee welfare policy; zakat policy; policy towards Qard al-Hassan; policy to reduce adverse environmental impacts; policy regarding the investment contribution to the project of public promotion, development or the idea of environmental protection; best customer service policy; policy on micro and small businesses and social savings and investment; charity policy; Waqf management policy.

In addition, the article concludes about the ideological proximity of ESG principles and partner (Islamic) financing, which we have formulated as “corporate social responsibility”.

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