Islamic Approach Towards Combating Fraud, Abuse and Conflict of Interest in Charitable Organizations

Purpose: Charities credibility and public trust in them have important implications for their survival. The main aim of this paper is to provide alternative views of how fraud, abuse and conflict of interest can be tackled, if not minimized, from an Islamic perspective. Design/Methodology/approach: This paper explores the application of Islamic values besides acknowledging the role of conventional oversight approach in mitigating fraud in charitable organizations. Findings: Charitable organizations are not exception to fraud, embezzlement and abuse perpetrated on them by their own managers and employees. Conflicts of interest, if not mitigated, can lead to loss of reputation and eventually the fall of charitable organizations. Practical implications: We argue from the perspectives of self-interest and lack of religious oversight as underlying problems that could have allowed fraud amongst charitable organizations to occur. Originality/value: This paper proposes maslahah conceptual framework for resolution of conflict of interest and prevention of fraud in the charities