The Alternative Model of CSR in Indonesian Islamic Banking By The ISO 26000 Standard

Abstract

In Indonesian regulation, CSR is ruled in article 74, law number 40 of 2007 concerning Limited Liability Company. Obligation of CSR just for company in environmental sector or have impact in environmental. It is just focus in environmentally sustainable. The law number 40 of 2007 does not give the obligation of CSR to Islamic Banking as a company in financial sector . There are 3 issues in this paper: The CSR concept (ISO 26000 standard) in Islamic Law perspective, the regulation of CSR in the law number 21 of 2008 concerning Banking and the alternative model of CSR in Islamic banking as company in financial sector. The result of the analyzis: the CSR concept in ISO in 26000 standard is according to the Islamic law, the law number 21 of 2008 does not rule about obligation of CSR. The alternative models CSR for Islamic Banking in Indonesia, the first is the obligation of qardh hasan as CSR can ruled in the law number 21 of 2008 concerning Syariah Banking. Thus, it to be socially responsible and become support micro enterprises.The second is Islamic Banking can analysis in submission credit. The Islamic bank will not accepted the company submission of credit which effect enviromental damages.