CSR narrative under Islamic banking paradigm

Abstract

Purpose This paper aims to understand corporate social responsibility (CSR) narrative under the Islamic banking paradigm by three aspects, narrative review of the literature, review of the definitions of CSR and review of factors that cause divergence from conventional percepts. Design/methodology/approach This is a theoretical paper based on literature and aims to understand the CSR narrative under the paradigm of Islamic banking. Findings Religion brings new dimensions of ethics and expands the scope of morality in business. Islamic banking is a new wave of corporation whose social goals are as much important as making profit. There are diverse narrations and definitions prevailing in the literature of CSR under the Islamic paradigm which also encounters the aspects of divergence from conventional percepts. The academic debate of CSR-Islamic banking brings on surface a plausible CSR paradigm, that is to guide the role of Islamic banking in society under the Islamic provisions, ethics and axioms. This paper also paves the way for future direction, particularly in terms of a holistic understanding of CSR narrative under the Islamic banking paradigm. Research limitations/implications This is a theoretical paper; it primarily discusses the theoretical aspects of CSR narrative under the paradigm of Islamic banking, while it does not give insight into the empirical narrative or disclosure of CSR in Islamic banking. Practical implications The theoretical review of literature brings plausible understanding, that Islamic banking is a new wave of corporate and has standings on divine guidance. The structure of the institution in its foundation insists on real economic activity. The legitimacy of Islamic banking has roots in ethical compliance and in inculcating the broader interests of stakeholders. There are several social responsibilities, which are expected from the practitioners of Islamic banking. The practitioners as well must understand that the CSR of Islamic banking is far beyond the conventional percepts of CSR. Originality/value There are several normative and theoretical studies in the domain of CSR-Islamic banking. It is hard to find a comprehensive narrative review of such literature. This review is unique, which brings a holistic understanding of CSR narrative under the Islamic banking paradigm.