Corporate social responsibility of Islamic banks: Malaysian practitioners’ outlook

Abstract

PurposeThe purpose of this paper is to investigate Malaysian practitioners’ general perspective on corporate social responsibility (CSR) of Islamic banks and their views on having a special CSR framework.Design/methodology/approachThis study used semi-structured face-to-face interviews, which contained both qualitative and quantitative data. The study also used observation and document review to support the data drawn from the research participants whenever necessary.FindingsIn total, 34 practitioners from all 16 Islamic banks in Malaysia responded to the interview questions designed for this purpose. The results show that the majority of the research participants viewed positively that Islamic banks should have a special CSR framework.Practical implicationsThe Islamic concepts of CSR will be of interest not only to academicians but also, especially, to Islamic financial institutions. This paper will also send a strong signal to regulators that they should develop and introduce an Islamic CSR framework to Islamic financial institutions, especially Islamic banks.Originality/valueThis paper contributes to the growing debate on CSR among Islamic financial institutions, especially in the Islamic banking industry, by investigating practitioners’ views on having a CSR framework. In addition, to the knowledge of the authors, this is the first research that has involved Chief Executive Officers, Heads of Shari’ah, and Heads of Corporate Communications as research participants to talk about the CSR of Islamic banks.