Islamic Corporate Social Responsibility Research Articles

Characteristics of Islamic Corporate Social Responsibility (ICSR) Disclosures

The company’s CSR activities illustrate that, in addition to carrying out its operational activities, the company is also responsible for the sur-rounding environment. This sharia-based social performance reporting is assessed based on the sharia index developed by AAOFI (Accounting and Auditing Organization for Islamic Financial Institutions). The purpose of this study was to determine the effect of public share ownership, firm size, leverage, profitability, and corporate governance on the disclosure of Islamic Corporate Social Responsibility (ICSR). The sample was taken from 12 sharia companies registered in the Jakarta Islamic Index (JII) for the 2015-2020 period using a purposive sampling technique. The data were analysed using panel data regression analysis through the EViews 11 application. Firms and profitability affect Islamic Corporate Social Responsibility (ICSR) disclosures, and public share ownership has a negative effect on ICSR disclosures, while leverage and corporate governance variables do not affect Islamic Corporate Social Responsibility (ICSR) disclosures. Based on the results of this study, it is expected that elements in corporate governance can carry out their duties and responsibilities in carrying out their duties so that ICSR disclosure is carried out better.

Intellectual capital and islamic corporate social responsibility on the financial performance of sharia commercial banks in Indonesia

This study aims to examine Intellectual Capital, Islamic Corporate Social Responsibility on the Financial Performance of Islamic Commercial Banks in Indonesia based on the Islamicity Performance Index. The dependent variable is the Financial Performance of Islamic Commercial Banks in Indonesia based on the Islamicity Performance Index. The independent variables used in this study are Intellectual Capital and Islamic Corporate Social Responsibility. The population in this study is 14 Islamic banking companies. The sampling technique used purposive sampling, as many as 8 Islamic banking 2016-2019. The data were analyzed using Partial Least Square (PLS) tools. General Sharia based on Islamic City Performance Index with indicators of Equitable Distribution Ratio and Profit Sharing Ratio. Islamic Corporate Social Responsibility has no effect on the Islamic City Performance Index with indicators of Equitable Distribution Ratio and Profit Sharing Ratio.

Islamic Corporate Social Responsibility And Conventional Corporate Social Responsibility

Islamic Corporate Social Responsibility And Conventional Corporate Social Responsibility

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

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.

Pengaruh Islamic Corporate Social Responsibility (ICSR) dan Sharia Governance Terhadap Kinerja Bank Umum Syariah

This study aims to examine the effect of Islamic Corporate Social Responsibility (ICSR) and Sharia Governance on the performance of Islamic commercial banks. This research is quantitative through time series and cross section data. The population in this study are Islamic commercial banks registered with the Financial Services Authority in 2015-2019. By using purposive sampling method, there are 8 Islamic commercial banks as research samples. Performance variables were measured using Return On Assets (ROA), Return On Equity (ROE), Net Interest Margin (NIM), and Capital Adequacy Ratio (CAR). The ICSR variable is measured using the ISR index and the Sharia Governance variable is measured using the number of Sharia Supervisory Board meetings. The analytical method used is multiple regression analysis. The results of this study indicate that ICSR has no significant effect on ROA, Sharia Governance has a positive and significant effect on ROA, ICSR has no significant effect on ROE, Sharia Governance has a positive and significant effect on ROE, ICSR has a positive and significant effect on NIM, Sharia Governance has a negative and significant effect on NIM, ICSR has no significant effect on CAR, and Sharia Governance has a significant and negative effect on CAR.

Determinant of Islamic Corporate Social Responsibility (ICSR) Disclosure in Companies Registered in Jakarta Islamic Index (JII)

Social aspects are important aspects that must be considered by every individual. Similarly, companies that must disclose social responsibility or what is called Corporate Social Responsibility (CSR) through the mandate of the Act. This research aims to determine the factors that affect the Islamic corporate social responsibility disclosure in Indonesia. This research is categorized in quantitative research with associative approaches. The population in this study amounted to 30 companies registered in the Jakarta Islamic Index in 2016-2018 with a purposive sampling technique to obtain 51 samples. The data analysis model in this study is a panel data linear regression test with a combination of time series data and cross-section which is carried out through three approaches, namely the common effect model, the fixed-effect model, and the random effect model. The results of this study indicate that partially and simultaneously the size of the company's profitability, and the Muslim board of directors influence the disclosure of the company's ICSR. The most influential factor in company ICSR disclosure is company size. The results of this study imply that each company uses the ISR Index as a reference for the preparation of sharia corporate social responsibility reporting standards and increases the number of Muslim board of directors who are competent and have innovative ideas to increase company assets, thus positively impacting ICSR disclosure.

Corporate Governance and Islamic Corporate Social Responsibility Disclosures : Shari’ah Compliant Companies in Malaysia

The paper attempts to examine the relationship between six (6) Corporate Governance mechanisms (namely board matters, nomination matters, audit matters, remuneration matters, communication matters and risk management matters) of Shari’ah Compliant Companies (ShCC) with Islamic Corporate Social Responsibility (i-CSR) disclosure. The i-CSR disclosure index was developed by incorporated the five values of Maqasid Shari’ah and Maslahah. While, this study employed the corporate governance index based on the Malaysian Code on Corporate Governance (MCCG) 2007 (Securities Commission, 2007b), MCCG 2012 (Securities Commission, 2012), Corporate Governance Guide issued by Bursa Malaysia (Bursa Malaysia, 2012), and MCCG Index 2011 from the Minority Shareholder Watchdog Group (MSWG, 2011); Omar & Abdul Rahman, (2009) and Mohammed et al. (2009). The research used content analysis and a sample of 187 ShCC annual reports from 2008 to 2013. STATA was used to assess the relationship between CG mechanisms and i-CSR disclosure in this analysis. The result of the relationship between CG mechanisms and i-CSR disclosure after statistically control by firm size (proxy by total assets) and profitability (proxy by return on assets, net profit margin and return on equity) showed that only remuneration matters (RM), communication matters (CM) and risk management matters (RK) positive and significantly influenced the i-CSR disclosure.

Pengaruh Ukuran Perusahaan, Umur Perusahaan, dan Investment Account Holder terhadap Pengungkapan Islamic Corporate Social Responsibility (Studi kasus pada Bank Umum Syariah yang terdaftar di Otoritas Jasa Keuangan (OJK) Tahun 2016-2019)

Islamic Corporate Social Responsibility is a reporting of corporate social responsibility using sharia principles. Disclosure of social responsibility must be appropriate based on the values of the concept of Maqashid Shari'ah. For sharia-based companies, use Islamic Social Reporting in reporting corporate social responsibility. The entire implementation of social responsibility that has been carried out by the company will announce it to the public through social disclosure in the annual report issued by the company. This study aimed to determine the effect of company size, company age and Investment Account Holder on Islamic Corporate Social Responsibility disclosure. The population in this study is Sharia Commercial Banks registered with the Otoritas Jasa Keuangan using purposive sampling technique. This analysis techniques in this study is panel data regression. The test result of this study indicated that company size, company age and Investment Account Holder intensity simultaneousy influenced Islamic Corporate Social Responsibility disclosure. Partially, company size intensity positively affected Islamic Corporate Social Responsibility disclosure, while company age and Investment Account Holder did not affect Islamic Corporate Social Responsibility disclosure.

The role of Islamic Corporate Social Responsibility in building corporate image to increase customer loyalty

This research aims to determine the influence of Islamic Corporate Social Responsibility and Corporate Image on Customer Loyalty. The research was conducted by sending questionnaires to sharia banking customers in Malang. There were 100 respondents to the study. This research is quantitative. The analysis technique used is Partial Least Square. The results showed that Islamic Corporate Social Responsibility affects Corporate Image and Customer Loyalty. This study successfully proved that CSR activities carried out by Sharia banking can increase customers' trust in Sharia banking. Besides, the survey results also showed that corporate image could not mediate ICSR's influence on customer loyalty because many customers do not know CSR activities done by Sharia banking. This study's limitations were question items in the questionnaire that did not pass the validity and reality test and a relatively small number of respondents. Further research can use question items that better describe the variables used, and analysis can be done on sharia banking customers throughout Indonesia so that the results can be more generalized.

Islamic Corporate Social Responsibility and Patronage of Non-interest Cooperative Societies in North-central, Nigeria

Purpose: This study interrogates the extent of implementation of economic and philanthropic dimensions of the Islamic Corporate Social Responsibility (ICSR) concept by Shar¯ı‘ah based cooperative societies with the primary purpose of ascertaining its effect on members’ rate of patronage of non-interest cooperative societies in Nigeria. Methodology: Partial least squares structural equation modelling (PLSSEM) with bootstrap processes were used to analyse the data collected from 210 members of the selected non-interest cooperative societies operating in the North-central region of Nigeria. Findings: The study’s results revealed that h. al¯al products and h.al¯al investments positively affect the members’ patronage rate of non-interest cooperative societies. In addition, it was discovered that Islamic philanthropic responsibility influenced the image/reputations of non-interest cooperative societies. Significance: This study is among the few studies that have examined the effect of corporate social responsibility on members’ patronage from an Islamic perspective. The import of the study stems from the fact that it broadly investigated the extent of implementation out of the six dimensions of corporate social responsibility. Limitations: The main constraints of the study are predicated on the fact that it was conducted in a region of the country and the study’s inability to isolate other factors which might have contributed to members’ patronage of non-interest cooperative societies. Implications: The study’s findings can aid the management of noninterest cooperative societies and other similar institutions in formulating strategic policies and programmes geared towards operating and promoting h.al¯al investment opportunities and supporting the indigent members of the communities through corporate charities/donations.

The effect of Islamic intellectual capital, corporate governance, and corporate social responsibility disclosure on maqashid sharia performance, with reputation as a moderating variable

This study aims to show that there is a positive relationship between Islamic intellectual capital, corporate governance, disclosure of corporate social responsibility on the performance of maqashid sharia, and this study wants to show that reputation strengthens this positive relationship. This study's sample consists of 33 annual reports from 11 Islamic banking companies in Indonesia for the 2016-2018 period, chosen using the purposive sampling method. This study was tested by using the Moderated Regression Analysis test. The results of this study indicate that Islamic intellectual capital, corporate governance, disclosure of corporate social responsibility have a negative effect on the performance of Islamic maqashid. The role of reputation can not increase the relationship of Islamic intellectual capital to the performance of maqashid sharia. Reputation also can not increase the relationship of disclosure of corporate social responsibility to the performance of maqashid sharia, but reputation has been proven to improve the relationship of corporate governance to the performance of maqashid sharia. The results of this study are input for the Financial Services Authority (OJK) and Bank Indonesia (BI) as regulators to monitor the performance of Islamic financial institutions in order to protect the public interest as a whole.

Factors Affecting Islamic Social Reporting in the Halal Industry Sector

Islamic social reporting is a measure of Islamic-based social performance reporting in each company. Increased disclosure of Islamic social interpretation will influence investor decisions. This study aims to analyze what factors influence the declaration of Islamic corporate social responsibility. The data used is the annual report of companies registered in the halal industry sector from 2013 to 2018 with 44 selected companies. This study uses a random effect model (REM). The analysis results show that the halal lifestyle, profitability, and leverage are significant in disclosing Islamic corporate social responsibility. Implementation of ISR disclosure as a form of accountability is based on principles and philosophies following Islamic Sharia. Therefore, companies must improve their financial performance to enhance corporate social responsibility disclosure quality, which is very important for stakeholders in investing.

The Role of Shariah Supervisory Board in Legitimizing the Existence of Sudanese Islamic Banks through Social Responsibility Reporting

Purpose -This study empirically investigates the function of Shariah Supervisory Board (SSB) in legitimizing the social and ethical existence of Sudanese banks through the dissemination of data onIslamic social in annual reports.
 Design/methodology/approach -The paper examines a panel dataset covering the period 2006 – 2015 through the use of disclosure index and content analysis from 150annual reports of Sudanese banks. The role of SSB is expressed from the aspects of Corporate Governance mechanisms (i.e. board size, independency, doctoral qualification, cross- directorship, and the overall effect of SSB mechanisms).The current study employs the multiple regression models by using STATA-13 statistical toolin answering the research questions.
 Findings -The empirical results indicate that the board size, doctoral qualification, and cross-directorship of the members were positively correlatedwith the disclosure degree of Islamic Corporate Social Responsibility (ICSR) in the annual reports of Sudanese Islamic banks, which is in favour of legitimacy theory. Meanwhile, results indicate that, in contrary to legitimacytheory’s assumptions,the independence of SSB members is found to negatively correlate with the ICSR level of disclosure of the sampled Sudanese banks’ annual reports. Furthermore, the overall effects of SSB mechanisms are found to positivelyimpact the ICSR disclosure level. The study’sfindings add new empirical evidence to support the view that social information disclosure by companies is influenced by country- cultural context within which the company operates.
 Theoretical implication - In theory, this paper offers an analysis on CSR in Sudan from Islamic point of view. This paper is vital in view that social responsibility is highly regarded by Islam. Therefore, social responsibility must be adopted by all Islamic organizations, particularly the Islamic banks.
 Originality/value – From the researchers’ perspective, this study is the pioneer thatinvestigates the role of SSB on Sudanese Islamic banks through social responsibility reporting using legitimacy theory.

Peran Islamic Corporate Social Responsibility dalam Memoderasi Pengaruh Zakat Terhadap Kinerja Bank Umum Syariah

The aim of this study is to investigate the role of Islamic Corporate Social Responsibility in moderating the effect of zakat on Islamic commercial banks’ financial performance. Out of 13 Islamic commercial bank listed by Otoritas Jasa Keuangan from 2012 to 2017, there were only five banks reporting Statement of Zakat Fund Sources and Disbursements. Hence, the final samples of this study consist of 30 observation data. Secondary data collected from 30 annual reports were gathered through documentation. This study utilizes moderated regression analysis to test three research hypotheses. The results shows several findings. Firstly, the amount of corporate zakat being reported in the Statement of Zakat Fund Sources and Disbursements has positive impact on Islamic banks’ financial performance. Secondly, Islamic CSR as measured by Islamic reporting index developed by Belal et al. (2015) has negative impact on Islamic Banks’ financial performance. Thirdly, the role of Islamic CSR in moderating the effect of zakat on financial performance was confirmed.

Corporate Social Responsibility Management (CSRM) With Islamic Philanthropy Concept For Enhancing Mudarabah Family Takaful Model In Malaysia

The purpose of this study is to explore the opportunities of integrating Islamic Philanthropy and Corporate Social Responsibility Management (CSRM) with Brand Personality concept for enhancing Mudarabah Family Takaful Model. The application of CSRM with the best practice in Islamic Philanthropy has been circulating in recent years. Since Takaful services are only provided to those, who have affordability with a good health condition. But supposedly those have inadequate and suffering from a variety of chronic illnesses, and health problems need more medical and health services. The current practice of this study is to review a practical approach in establishing Islamic Philanthropy and Social Responsibility Concept to Enhance Mudarabah Family Takaful Model in Malaysia. This study is called upon to examine how these marginalized groups can enjoy the same facilities as those who are qualified to get the services and benefits of the Takaful. The CSR Theories refer to the implementation of this model in Malaysian Takaful Industry. It is used to establish the conceptual framework of this study. Theoretically, the current study is perhaps one of the first to explore Islamic Philanthropy and Social Responsibility concept to improve the Mudarabah Family Takaful Model. Practically the study proposes to develop a new model and plan based on the dimensions of the Halal brand personality concept of Purity, Secure, Quality, Beneficial and Religious Compliance for beneficial to all people in Malaysia.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

PurposeThe purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries).Design/methodology/approachIslamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing.FindingsThis study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not.Originality/valueThis study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

Zakah as Intervening Variable in Enhancing Sharia Bank in Indonesia

The purpose of this study aims to reveal confidence in Islamic financial institutions as an institution that operates based on sharia principles to provide public welfare with four disclosure indicators, namely Islamic corporate social responsibility, Islamic corporate governance, zakah funds, and financial performance. This study elaborated path analysis calculations to gain a deep understanding on the provided issues. The population in this study included data on the publication of annual financial reports on Islamic banks in Indonesia which are registered with the Financial Services Authority (OJK) with a total of 14 Islamic banks, while the samples were selected according to the provisions of the purposive sampling method. The findings of this study indicate that partially Islamic, corporate social responsibility, Islamic corporate governance, and zakah funds have a positive and significant effect on financial performance. Also, Islamic corporate social responsibility and Islamic corporate governance have a positive and significant effect on financial performance through zakah funds.

The Mediation Role of Productivity in the Effect of Islamic Corporate Governance on Islamic Corporate Social Responsibility Disclosure

Research aims: This study aims to examine the indirect effect of Islamic Corporate Governance on Islamic Corporate Social Responsibility Disclosure.Design/Methodology/Approach:This study uses secondary data sources from annual reports, corporate governance reports, and financial reports of Islamic banking in Indonesia for the period 2008 to 2019, sharia banks that have not been in existence for 12 years, observations have been made since they were established until 2019. The sampling technique is done by convenience sampling, and obtained 121 observation, and research testing using regression analysis.Research findings:The results found that banking productivity fully mediates the effect of Islamic Corporate Governance on Islamic Corporate Social Responsibilty Disclosure, thus good productivity is an absolute requirement that must be fulfilled in order to carry out a good social function as reflected in the disclosure of the Islamic Corporate Social Responsibility.Theoretical contribution/ Originality: this study is to reaffirm and develop a new model of the relationship between ICG and ICSR disclosure in IBs.Practitioner/Policy implications: This research was conducted based on stakeholder theory which was later developed into stakeholder theory from an Islamic perspective.Research limitation/Implication: first, this study uses the ICG variable and the ICSR disclosure, but the researcher does not discuss the quality of disclosure. Second, this study did not test the reliability of the ICSR disclosure.

ESTABLISHING CONSUMER TRUST IN CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC BANKS

In recent years, corporate social responsibility (CSR) has become a vital component and mainstream approach to business, with much attention devoted to the implications of CSR policies and practices. Yet firms still diffuse CSR initiatives without fully understanding the well-being of their stakeholders and the reactions towards the firm. The success of CSR can be determined by understanding consumer behaviours, thoughts, beliefs, attitudes, and experiences. In the case of Islamic banking, a sceptical attitude and atmosphere of distrust has prevailed because consumers are unable to distinguish between Islamic and conventional banking products and systems, and struggle to find effective CSR outcomes through Islamic banks. In a competitive environment where CSR differentiation and credibility are ongoing challenges, this research poses a fundamental question on what should constitute a CSR strategy of Islamic banks to develop trust. Using a general inductive qualitative approach, pertinent issues related to CSR and Islamic banks were extracted from 75 existing articles, to propose a framework using Quranic terms (ikhlas, istiqama, ta’awaun, tazkiya) to construct a favourable image of Islamic banks and CSR initiatives. The research findings suggest that this framework is capable of tackling consumers’ negative attitude and scepticism of Islamic banks and CSR activities.

Islamic Corporate Social Responsibility (ICSR) disclosure and Islamic Banks (IBs) performance: The application of stakeholder theory from Islamic perspective

This study aims to examine the effect of ICSR disclosure on the performance of IBs in Indonesia. Disclosures are prepared based on AAOIFI standards and previous researches then formed a disclosure index, while the performance of IBs is compiled from financial performances: ROA, ROE, and productivity performances which are formed into variables are formed by factor analysis. The samples of this research are 12 IBs from 2008 until 2019. Several IBs that had not yet been established in 2008 had been observed since the establishment of the banks until 2019, from this, it is obtained 121 observations. The test results show that all indicators of ICSR disclosure consisting of eight indicators: sharia compliance, ethical behavior, management, human resources, environment, social activities, products and services, research and development, and training have a positive effect on the performance of IBs. This provides an understanding that all of the disclosure indicators provide a good image or reputation to the public, thereby generating trust and in the long-term improving the performance of IBs.