(1) Social Media Complaint – It is Never Really Anonymous

Emory University dealt with this issue in 2008, and in April Formspring.com became a popular social media space for online gossip.  More often than not, posting an anonymous comment in an online burn book is not actually anonymous.  There are several ways to ascertain who posted the comment:  (1) if it was done through a work-owned server, it can be tracked; (2) if it was done through your phone, it can be easily tracked and it lessens the possible deniability option; and (3) if the social media or forum site wants to cooperate with a “the man,” they can easily turn over your identity.  In essence, it is never really anonymous.

(2) Workplace Issues from Social Media Gossip – Getting Fired

If someone finds out you posted gossip (true or untrue) about them on a social media website, they can complain and potentially lead to getting YOU fired.   A social media lawyer would tell you: workplace gossip should stay within the workplace (we realize it is impossible to eradicate it completely). Posting gossip about your co-worker can create a “hostile” work environment, and people have won lawsuits on less.  So if you would not make a poster of your comment and hang it in a conference room at work, then you probably should not be posting it online.

(3) Social Media Gossip – Getting Someone Else Fired

If someone is fired from their job based on gossip you posted on a social media or forum website, they may have a claim against you.  For example, if you incorrectly publish on asocial networking site or any other online space that your co-worker is sleeping with his boss, causing said co-worker to lose his job – he may have a claim against you.  And those few hours of laughs you had at his expense with your friends while posting gossip online – those few hours are now the bane of your existence when his lawyer contacts you with a lawsuit.

Take a lesson from Mean Girls (the movie), gossip is never a good idea:  especially once you put it in writing.

– Sheheryar Sardar, Esq., Sardar Law Firm LLC

Part I: Islamic Financing through a Joint Venture

Developing your business in an economic downturn creates a host of difficulties for businesses of varying sizes.   The most critical issue is the availability of capital to grow the business.  With a continuing credit crunch, many banks and lending institutions are denying business loans due to more stringent risk analysis and lack of liquid assets.  For those businesses that are able to secure a loan in this economic climate, high interest rates take a toll on company profits.

An untapped lending structure for businesses is found in Islamic Financing principles -  a low-risk financing structure that provides much needed investment capital for start-ups, joint ventures, and growing companies.

Structuring the Deal Under Islamic Finance Principles:  Mudaraba

The theoretical model of Islamic Financing is based in the concept of profit and loss sharing through the Mudaraba mode of financing.  Mudaraba style financing is a form of investment partnership between a lending entity and a business that mandates the share of risk and losses/profits between both parties through a pre-determined business structure.  A Mudaraba structure effectively requires the lender to take a stake in the business, with the business investing time and expertise in running the enterprise.

A fundamental component of Mudaraba is the appropriation of profits and loss.  The business procuring the loan cannot be placed at the risk of losing any monetary investment/value provided by the lending investor.  If the business venture fails, then the maximum loss to the entrepreneur is the investment they made into the business enterprise themselves, i.e., their own capital investment.  Furthermore, a Mudaraba structure releases the investor from management decisions.  Day-to-day decision making and enterprise management must be left to the business entity.

Application of Mudaraba for Joint Ventures

It is a misconception that Islamic Financing may only be provided through a banking structure.  Developing an investment strategy through a joint venture accurately utilizes the underlying concept of Mudaraba.  In the case of a joint venture, there will be three parties involved in the deal structure:  (1) Investors; (2) Fund; and (3) Business Entity.  The Investors will deposit their capital investments into the Fund and the Fund shall use the Investors’ monies to finance the projects of the business entity.  The Fund plays a two-fold role:  as the business entity being invested in by Investors and as the investor to the Business Entity.  Essentially, the position of the Fund is that of an investment intermediary.

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Sheheryar T. Sardar is a partner at Sardar Law Firm in New York City.