Maqasid syariah in relation to cooperatives’ contracts and operations

• Published in: Trends and Issues in Interdisciplinary Behavior and Social Science - Proceedings of the 5th International Congress on Interdisciplinary Behavior and Social Science, ICIBSOS 2016
• Main Author: Safawi A.R.; Wan Mohd Yusof W.C.; Rohana O.; Nooraslinda A.A.; Marziana M.M.
• Format: Conference paper
• Language: English
• Published: CRC Press/Balkema 2017
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85046542734&doi=10.1201%2f9781315269184-18&partnerID=40&md5=bd1dff11996b57a2b9b11fe9c424ba6c

Cooperatives are business institutions that have demonstrated significant growth nationally and globally. As an economic entity, cooperatives possess unique resilience and sustainability compliant to current demands of the global economy. In terms of Islamic jurisprudence (Fiqh), cooperatives are governed by the concepts of al-nahd, al-shirkah or al-taáwun. However, the contracts and operations of cooperatives are doubtful viewed from Islamic Fiqh concepts. This study aims to revisit the contracts and operations of cooperatives from the viewpoint of Islamic Fiqh and compliance with the concept of maqasid syariah. The results from the synthesis indicated that cooperative’s contracts are complex and should not be considered as a “generalization” as the contracts involve at least two layers of operations. The outcome implies that in complying with the maqasid syariah, a cooperative’s contract could not be generalized but contextualized, closely treated and executed on the basis of specific contracts in relations to the operations of the cooperatives. © 2017 Taylor & Francis Group.