Stakeholder Engagement Impact Report: Driving Transformation Impact Through Stakeholder Engagement At Lembaga Zakat Negeri Kedah (LZNK)
This Stakeholder Engagement Impact Report presents Lembaga Zakat Negeri Kedah’s (LZNK) strategic approach to multi-sectoral collaboration in advancing the welfare of asnaf and the broader community of Kedah. The report documents how LZNK has positioned itself as a catalyst for meaningful partnerships that bridge the objectives of Islamic finance, corporate social responsibility, and social development.
At the heart of LZNK stakeholder engagement model is a mutually beneficial ecosystem where Islamic Financial Institutions (IFls), Takaful operators, Government-Linked Companies (GLCs), government agencies, and various organizations contribute funds through zakat wakalah arrangements and infaq contributions. These financial commitments are strategically deployed by LZNK through targeted programs and interventions designed to uplift the socioeconomic status of asnaf, transforming lives through sustainable income generation, skills development, financial inclusion, and community empowerment initiatives.
This collaborative framework creates a win-win paradigm for all stakeholders involved. For Islamic Financial Institutions, partnerships with LZNK provide tangible pathways to fulfill their Value Based Intermediation (VBI) commitments, enabling them to demonstrate positive impact on the economy, community, and environment through direct participation in poverty alleviation and wealth redistribution. Their contributions support financial literacy programs, microfinancing initiatives for asnaf entrepreneurs, and community development projects that align with their institutional missions of creating shared prosperity while maintaining Shariah compliance.
Similarly, Takaful operators find strategic alignment between their engagement with LZNK and the Value-based Intermediation for Takaful (VBiT) framework. Through their contributions and collaborative programs, takaful operators enhance their social impact credentials by supporting protection schemes for vulnerable communities, promoting the principles of mutual assistance (tabarru’), and demonstrating their commitment to holistic stakeholder value creation beyond mere transactional relationships.
For GLCs, government agencies, and corporate partners, collaboration with LZNK offers authentic opportunities to fulfill their ESG commitments, strengthen their social license to operate, and contribute meaningfully to national development priorities related to poverty eradication and inclusive growth. Their support enables LZNK to scale proven interventions, reach more beneficiaries, and create sustainable pathways out of poverty.
