Factors influence intention of management of Shariah-compliant companies to participate in Islamic voluntary charity

Abstract

PurposeThe present study aims to focus on the management of public listed companies (PLC) in Malaysia. It aims to explore the factors that influence the behavioural intention of the managers in donating cash waqf (endowment) as part of their organisations’ corporate philanthropy.Design/methodology/approachThe theory of planned behaviour was used, and 701 questionnaires were emailed to PLCs’ managers. Four main variables, i.e. economic attitude, political pressure, perceived behavioural control (PBC) and personal moral obligation, were tested and analysed by using structural equation modelling.FindingsThe findings showed that the first three variables, attitude, subjective norms and PBC of the management, significantly influenced management’s behavioural intention to donate cash waqf. Nonetheless, the personal moral obligation of the management was found to be insignificant.Research limitations/implicationsOne of the main limitations is that it involved only quantitative surveys with managers in Malaysia. In future, the findings of this study can be supported by interviews.Originality/valueThe present study integrates the corporate social responsibility (CSR) fund of Shariah-compliant companies for the development of waqf property. The combination of CSR funds and waqf land will solve the waqf institution’s fund deficit issue. This will optimize waqf land development efficiency and benefit society.