EXAMINE THE IMPACT OF SHARIA COMPLIANCE ON ISLAMIC CORPORATE SOCIAL RESPONSIBILITY ADOPTION IN PAKISTANI ISLAMIC BANKS: MODERATING ROLE OF COMMUNITY EXPECTATIONS

Abstract

The current study examines the impact of sharia compliance on Islamic corporate social responsibility adoption and further analyzes the moderating effect of community expectation on the linkage between sharia compliance and Islamic corporate social responsibility adoption. The researcher gathered data through Islamic bank employees working in the Sahiwal district, Punjab, Pakistan. Three hundred seventy-five complete responses were collected and analyzed using the partial least square structural equation modeling technique through SmartPLS Software 4.0. The findings revealed the significant relation between sharia compliance and Islamic corporate social responsibility adoption, and community expectations positively moderate the relationship between sharia compliance and Islamic corporate social responsibility adoption in Pakistani Islamic banks. The current study provides numerous guidelines for scholars and policymakers to understand the importance of community expectations to adopt Islamic corporate social responsibility in Islamic banks successfully. Keywords: Sharia compliance, Islamic corporate social responsibility, community pressure, Islamic banking sector, developing economy, Pakistan.