Islamic Corporate Social Responsibility Research Articles

Islamic Organizational Culture, Islamic Corporate Social Responsibility, and Corporate Performance: Evidence From Sharia Bank in Indonesia

This paper aims to examine the importance of Islamic organizational culture and Islamic corporate social responsibility in improving corporate performance. The population of this study is all sharia banks in Central Java – Indonesia. By using census sampling method, 327 sharia banks are determined as samples of the study. Partial least squares (PLS) approach is applied to analyze the data. The results reveal that Islamic organizational culture has a significant role in improving Islamic corporate social responsibility, which in turn, increasing corporate performance.

An Empirical Model for Islamic Corporate Social Responsibility Grounded in Theory and Practice

The study identifies unique corporate social responsibility (CSR) dimensions and constructs presented through an empirical framework in order to outline the practice of CSR in a context with strong Islamic beliefs. The framework goes beyond the mere platform of Islamic philanthropy and is based on stakeholders and their related concerns as practices by the interviewed respondents. Based on data collected from representatives of 63 organisations from Saudi Arabia, the United Arab Emirates and Oman and employing Grounded Theory strategy, the study examines the CSR philosophy and approach in the Middle Eastern region. The results suggest that the Middle Eastern understanding is largely grounded in the context of social and altruistic actions. This focus is mainly attributed to the dominant role of religion in the examined region and results in forms of non-structured or semi-structured approach to CSR. Apart of the significant contributions to the CSR literature, the study offers important contributions to business practitioners and managers operating in the Middle East.

THE EFFECT OF ZAKAT AND ISLAMIC CORPORATE SOCIAL RESPONSIBILITY (ICSR) ON COMPANY PERFORMANCE (Empirical Study of Sharia Commercial Banks Listed on the Indonesia Stock Exchange on 2013-2017)

The aims of the Research is to examine the influence of zakat and Islamic Corporate Social Responsibility (ICSR) about effort of the companies in Sharia public banks enrolled on the Indonesia Stock Exchange in 2013-2017The method of the Research are used descriptive analysis techniques and verificative analysis. The population of the Research were 12 Sharia Retail Bank that has been enrolled on the Indonesia Stock Exchange in 2013-2017. The sample of this Research were 8 Islamic Commercial Banks multiplied by 5 years observation into 40 sample data, and the technique were used purposive sampling. The analytical instrument are used multiple regression analysis with the help of SPSS version 21.0The Results are showed that partially zakat had an effect on effort of the company, while ICSR had no effect on it. Simultaneous test shows that zakat and ICSR have an effect on effort of the company.

PENGUNGKAPAN ISLAMIC SOCIAL REPORTING (ISR) DAN FAKTOR-FAKTOR YANG MEMPENGARUHINYA

The implementation of CSR in the context of Islam is seen in Islamic Social Reporting or ISR. However, the reporting of Islamic Social Reporting (ISR) in practice and its disclosure is still voluntary. This is due to the absence of standard syariah standard that regulates the reporting of Islamic CSR. The standards for disclosure of sharia CSR issued by the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) can not be used as a standard of CSR disclosure because it does not mention all CSR related items that a company must disclose. The purpose of this study is to determine the factors that affect the disclosure of Islamic Social Reporting (ISR) on companies listed in the Sharia Indonesia Sharia Index (ISSI) in 2013-2015. Factors used in this study, among others: the size of the company, profitability, and environmental performance. The research population is a company registered in Indonesia Sharia Sharia Index (ISSI) in 2013-2015, with sampling technique using purposive sampling. Analyzer uses multiple linear regression, which previously will be tested classical assumption which include: test of normality, multikolinearitas, heteroskedastisitas, and autokorelasi. The results showed that firm size influenced the disclosure of Islamic Social Reporting (ISR), while profitability and environmental performance had no effect.

ANALISIS PENGARUH PENGETAHUAN, TANGGUNG JAWAB SOSIAL PERUSAHAAN TERHADAP IMBAL HASIL SAHAM SYARIAH DALAM PERSPEKTIP ISLAM DENGAN PENDEKATAN CIRCULAR CAUSATION DI BURSA EFEK INDONESIA

This research aims to identifr and analyze the influence of knowledge, social responsibility towards sharia stock returns in Bursa Efek Indonesia, with the approach of circular causation, further research in the underlying by differences between conventional and Islamic corporate social responsibility, where circular causation is the approach taken by the interaction between Variabels, namely between knowledge, capital structure, and returns islamic stocks. Results of this research are Islamic stocks negatively affected by corporate social responsibility, and positively influenced by knowledge, while knowledge positively influence corporate social responsibility that serves as an intervening, there is a reciprocal relationship between corporate social responsibility with return of Islamic stocks are corporate social responsibility a negative impact on stock returns syariah, and vice versa sharia stock returns negatively impact on corporate social responsibility, corporate social responsibility does not have a significant influence on stock returns sharia.

CSR in Saudi Arabia and Carroll’s Pyramid: what is ‘known’ and ‘unknown’?

ABSTRACT Unquestionably, the positive effects of corporate social responsibility (CSR) on consumer behaviour are well documented in prior literature. However, there have been few academic endeavours to use Carroll’s CSR Pyramid to explore the CSR experience from the perspective of young consumers in the Middle East. This study seeks to gain an in-depth understanding of CSR through qualitative interviews with young Saudi consumers using the conceptual framework of Carroll’s pyramid. This study reveals that young Saudi consumers recognise all four types of responsibility. However, they do not prioritise the types as Carroll does, and disagree with Carroll’s notion that economic responsibility is the foundational building block of CSR. The findings also reveal that Islamic values, expressed through philanthropy, must underpin any CSR practice. A proposed Islamic CSR pyramid has emerged from this study; it signifies that organisations should consider paying the Zakat to be an obligation, should always behave in an ethical manner and should prioritise societal interest over maximising shareholder values. Overall, the study finds that Carroll’s model is useful but inverted in the context of Saudi Arabia. The findings are particularly relevant for advancing the conception of CSR from Islamic perspectives.

ANALISIS ISLAMIC CORPORATE GOVERNANCE DAN ISLAMIC CORPORATE SOCIAL RESPOSIBILITY DALAM DISIPLIN PASAR PERBANKAN SYARIAH DI INDONESIA

The objectives of this study are determine the effect of Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) on market discipline with financial performance as an intervening variable. The ICG and ICSR disclosures is measured from the disclosure score compiled based of IFSB standard, AAOIFI, and relevant previous research. Market discipline measured by the ratio of deposit growth. While financial performance measured by profitability ratios in ROA and ROE. The sample used 11 Islamic banks in Indonesia were selected using purposive sampling method. Empirical testing uses the method of Structural Equation Modeling (SEM) with Partial Least Square (PLS) approach. The results of content analysis on the sharia bank information reports for the period 2013-2015 show that the level of ICG and ICSR disclosure is quite good, namely 62% and 60% respectively. The empirical test was proved that ICG and ICSR disclosures have a positive and significant effect on market discipline. Financial performance is not able to be an ICG and ICSR liaison variable to the market discipline of Islamic banks significant direct effect on the market discipline of Islamic banks. Financial performance has’nt significant on market discipline, and that is’nt being intervening variabels to the market discipline of Islamic banks.

CRS implementation from Western to the Islamic Perspective: Maqasid al-Shari‘ah and Maslahah

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Corporate Social Responsibility in Malaysian Organisations: Community Environmental Dimensions and Islamic Perspective

Islamic organizations have the upmost responsibility to ensure that their business operations comply with Shariah principles. However, their approaches to positive actions through Corporate Social Responsibility (CSR) have been varied because of inadequate guidance on the initiatives based on Islamic principles. Despite that CSR has been widely researched and is considered by most as a compulsory practice to be competitive, the current framework for CSR does not incorporate the Shariah principle to explain corporate involvement in social and environmental activities for Islamic organizations. Therefore, utilizing the Islamic CSR framework (i-CSR), this paper explores the current state of CSR initiatives and the motives for stakeholder engagement specifically from the environmental community dimension within Malaysian Islamic organizations. Semi-structured interviews with ten personnel from five Islamic organizations were conducted face to face at the field site. Data analyzed using NVivo software reveals that these organizations have embraced social responsibility beyond its business purpose. The CSR activities are in line with the Shariah principle and are influenced by multiple motivations. The results suggest the importance of an appropriate CSR framework and if adopted, it can be an important element of the overall governance and accountability framework of an Islamic organization.

Corporate Social Responsibility: An Islamic Approach

Social responsibility has become increasingly important in recent times. The term “corporate social responsibility” (CSR) is also found in the literature, treated by the Islamic economy and finance. Islamic CSR is based on the principles of Shariah. Therefore, the main objective of this paper is to study CSR approaches of Islamic and Conventional Economics. Financial institutions, corporations and enterprises need much more to do CSR practices, to promote CSR that underpinned under the principles of Shariah. The main goal of the paper is to analyse and explore the theoretical and practical aspects of social responsibility from the aspect of Islamic economy and finance. The conducted research showed that there is no significant deviation of the principles of Islamic economy and finances versus the traditional principles of social responsibility. The only difference is that the principles of Islamic economy and finances include a higher degree of application of ethical principles, which should result in moral and ethical economic development of society.

Corporate Social Responsibility in Malaysian Organisations: Community Environmental Dimensions and Islamic Perspective.

Islamic organizations have the upmost responsibility to ensure that their business operations comply with Shariah principles. However, their approaches to positive actions through Corporate Social Responsibility (CSR) have been varied because of inadequate guidance on the initiatives based on Islamic principles. Despite that CSR has been widely researched and is considered by most as a compulsory practice to be competitive, the current framework for CSR does not incorporate the Shariah principle to explain corporate involvement in social and environmental activities for Islamic organizations. Therefore, utilizing the Islamic CSR framework (i-CSR), this paper explores the current state of CSR initiatives and the motives for stakeholder engagement specifically from the environmental community dimension within Malaysian Islamic organizations. Semi-structured interviews with ten personnel from five Islamic organizations were conducted face to face at the field site. Data analyzed using NVivo software reveals that these organizations have embraced social responsibility beyond its business purpose. The CSR activities are in line with the Shariah principle and are influenced by multiple motivations. The results suggest the importance of an appropriate CSR framework and if adopted, it can be an important element of the overall governance and accountability framework of an Islamic organization.

THE INFLUENCE OF FINANCIAL PERFORMANCE AND NON FINANCIAL PERFORMANCE ON ISLAMIC CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE: EVIDENCE FROM THE ISLAMIC BANKS IN INDONESIA

The purpose of this study is to examine the influence of Financial Performance and Non Financial Performance on Islamic Social Responsibility Disclosure of the Islamic Banks in Indonesia. The sample used is 5 banks. The data in this study are secondary data, consists of annual reports of the Islamic banks for the periods of 2010 to 2017. The analysis technique used is panel data regression. The results of fixed effect model state that duties and responsibilities of sharia supervisory board, compliance sharia principles have a significant influence on Islamic Corporate Social Responsibility disclosure, where as financial performance does not influence on  Islamic Corporate Social Responsibility disclosure. Keywords: Corporate Social Responsibility, Social Islamic Reporting, Financial Performance, and Islamic Corporate Social Responsibility Disclosure

A citation analysis of corporate social responsibility (1970-2014): insights from Islamic perspective

PurposeThe purpose of this paper is to analyse the citations of scientific research on the concept of corporate social responsibility (CSR) from 1970 to 2014. In particular, several interconnected research questions were investigated: How did the conceptualisation of CSR change from 1970 to 2014? What is the general direction of the change? How does Islamic CSR emerge?Design/methodology/approachAn in-depth analysis was performed with the use of the data analysis tool available in the Web of Science. The study categorises CSR into four areas: business ethics and corporate governance; management; marketing; and others. The first three categories were based on the Chartered Association of Business Schools’ Academic Journal Guide 2010 and 2015 (UK).FindingsThe findings reveal that 67.19 per cent articles have been published based on the ranked journals of Academic Journal Guide 2010 and 2015. The findings of the study will help to inform future areas of CSR. The top journals which published most articles from Academic Journal Guide 2015 are Journal of Business Ethics and Corporate Social Responsibility and Environmental Management.Practical implicationsThe findings suggest that the remit of sustainability from Islamic perspective is wider. Islamic marketing, as an area, remains largely in need of empirical research. The business communities should successfully integrate Muslim communities into their marketing strategies.Originality/valueTo the best of the knowledge, this is the first study to explore citation analysis of general CSR literature and Islamic CSR. The study finds that there has been an increase in interest in this subject of CSR and Islam in the recent years. Future research is needed on theory and methodological analysis of general CSR field and Islamic CSR field.

Young Saudi consumers and corporate social responsibility: an Islamic “CSR tree” model

PurposeIn response to the scarcity of research on Islamic corporate social responsibility (CSR), the purpose of this paper is to explore how young Saudi consumers perceive CSR from an Islamic perspective. The study is focused on Saudi Arabia, a Muslim country, and the largest exporter of petroleum in the world.Design/methodology/approachThe present study uses a qualitative methodology with 34 in-depth interviews undertaken in two major Saudi cities (Tabouk and Riyadh).FindingsUtilising social contract theory, this study contributes to the literature by developing an Islamic “CSR Tree” model (which consists of three parts: “roots”, “trunk”, and “crown”) to increase the understanding of Islamic CSR (i-CSR) and consumer behaviour. The roots are hidden, while the trunk and crown are visible. In particular, private social responsibility (the roots of the CSR Tree) incorporatingSadaqa, or values and intention, is the fundamental component on which organisations should base their CSR strategy from an Islamic perspective. The study also reveals that internal, external, and private social responsibilities are connected, and all are dependent on each other. The higher the level of private social responsibility exhibited, the higher the level of external social responsibility.Originality/valueAccording to the CSR Tree model presented in this study, an organisation should avoidRiya(showing off) as this would represent shirk or idolatry, which is the opposite ofTawhid. The findings are particularly relevant for advancing the concept of i-CSR and for considering complex perspectives less travelled in the CSR literature. The study suggests that the best strategy for an organisation wishing to pursue an i-CSR agenda would be to balance internal and external responsibilities, and to bear in mind that private responsibility should be the motivation for action, and that CSR should be applied for the benefit of society.

Are Malaysian Islamic banks’ corporate social responsibilities effective? A stakeholders’ view

PurposeThe purpose of this paper is to investigate the effectiveness of Islamic banks’ corporate social responsibility (CSR) using data collected from stakeholders in Malaysia. While Islamic scholars have developed the Islamic CSR from the Qur’anic verses, the Sunnah of the Prophet (SAW) and from the western ideologies, the focus of this paper is to assess the effectiveness of the developed Islamic CSR practices.Design/methodology/approachQuantitative research design was adopted for this study. Exploratory factor analysis, confirmatory factor analysis, and other analyses are performed on the data collected from 193 stakeholders in Malaysia.FindingsBased on the data collected and analyzed, the results show that stakeholders view the Malaysian Islamic banks’ CSRs as effective.Research limitations/implicationsThis study investigates the effectiveness of Malaysian Islamic banks’ CSR based on the survey data collected. However, future studies could explore this in greater depth using mixed methods.Practical implicationsThe research findings have great implications for researchers. Since this study is among the few research studies that investigate the effectiveness of Islamic CSR, the researchers have paved ways for further investigation in this area. In addition, the study encourages the Malaysian Islamic banks and other Islamic financial institutions to contribute more to the society.Originality/valueThe study examines the effectiveness of Islamic banks’ CSR and contributes to the growing discussions on the Islamic CSR. The study has opened up this area for further investigations by other researchers.

Corporate Social Responsibility Measurement Approaches: Narrative Review of Literature on Islamic CSR

Corporate Social Responsibility (CSR) has gained wide attention during the last two decades. Different measurement instruments and approaches have been developed and applied to different sectors to measure CSR. The concept of CSR in Islam is also an important aspect to discuss and measure. Islam highlights all such areas for a business which could affect the life patterns of the related stakeholders. The aim of this study is to review the different available measurement scales that has been developed and used by different researchers in different areas of the world. Secondly, the CSR concept in Islamic perspective is relatively new as compared to conventional CSR, and a few scales have been developed on Islamic Corporate Social Responsibility (ICSR). This study is also an effort to review ICSR approaches as well. Relevant research articles were selected for this purpose. Narrative review methodology has been used and scales and approaches were assessed chronologically to check the limitation of existing scales. As CSR is a contextual concept, it is difficult to decide that which scale is the best one, but through this study future researchers will be in position to select any available scale according to the nature of their study.

Islamic Banking and Corporate Social Responsibility: Growth and Future Potential with Special Reference to Prospects in India

Islamic Banking and Corporate Social Responsibility: Growth and Future Potential with Special Reference to Prospects in India

CORPORATE SOCIAL RESPONSIBILITY PADA INDUSTRI PERBANKAN SYARIAH DI INDONESIA

The paradigm of sustainability development developed by Bank Indonesia is in line with the principles used in corporate social responsibility (CSR). This study aims to map and analyze performance of CSR in Islamic banking industry in Indonesia. The methods of data collection using observation in annual reports with content analysis techniques. To analyze relationship between variables, in this study used data analysis tool with multiple linear regression analysis. The examine result proves that level of profitability of sharia banks significantly affect performance of CSR activities. While the size of the company and corporate governance proxied by the existence of independent commissioners did not give a significant effect on performance of Islamic banking CSR in Indonesia

ISLAMIC CORPORATE SOCIAL RESPONSIBILITy (ICSR); KAjIAN TEORITIS

Abstract.Company social caring issue has become an important record in Islamic Corporate Social Responsibility (ICSR). In Islam, the issue of social welfare and CSR environment is a very serious attention because it is one of the way to attain the goal of Islamic economy which are economic welfare, justice, equitable income distribution and individual freedom in terms of social welfare. In the implementation of CSR, maslahah and maqasid al- Shari’ah is one of the basic for falah fiddunya wal akhirat. This study will examine CSR in the theory of Islamic economy. ICSR required al-dharuriyat as the priority in this study, then al-hajjiyah and al-tahsiniyah. ICSR can be divided into three concept: spirituality concept, Rahmatan Lil’Alamin, and Ukhuwah Islamiyah. Key Words: ICSR, Islam, Social, Islamic Economy

Corporate Social Responsibility of Islamic Banks in Malaysia : Arising Issues

Corporate social responsibility (CSR) term has rapidly developed and is no longer a strange concept among business communities. As part of business entities and concurrently guided by Sharī‘ah principles, Islamic banks face even more expectations in performing CSR as Islamic financial institutions. On top of that, although Malaysia is at the vanguard in the development of Islamic finance especially in Islamic banking industry, there is a lack of discussion on issues pertaining CSR applications of Islamic banks. Using interview data with top management executives and supported by observations and document reviews, this study attempts to disclose arising issues regarding CSR applications of Islamic banks in Malaysia. It was found that there are significant issues that need to be addressed in order to ensure the efficiency of Islamic banks CSR applications especially regarding corporate social responsibility disclosure (CSRD), CSR department and CSR fund.