Islamic Corporate Social Responsibility Research Articles

Profit Quality, Islamic Corporate Social Responsibility And Company Values: Islamic Corporate Governance As Moderation

This study aims to analyze the effect of profit quality and Islamic corporate social responsibility (ICSR) on firm value moderated by Islamic corporate governance (ICG). This study uses a quantitative approach. The population used is all Islamic Commercial Banks (ICB) registered with the Financial Services Authority (FSA) in 2018-2023. The sampling technique used purposive sampling and obtained 11 ICB samples. The data source used is secondary data in the form of documentation of each BUS's financial statements. This study uses multiple linear regression analysis techniques. The results of this study indicate that profit quality negatively affects firm value. ICSR positively affects firm value. ICG is unable to moderate the relationship between profit quality and firm value. ICG is unable to moderate the relationship between ICSR and firm value. This study can complement existing theories and be a reference for future research. This study can also be a reference for ICB in increasing ICB value, especially regarding profit quality and ICSR.

Risk Management Model of the Islamic Ethical Practice Dimension (i-EP)

Adoption of Sharia Compliance (SC) is one of the dimensions of Islamic Ethical Practice (i-EP) or Islamic Corporate Social Responsibility (i-CSR), which can potentially lead companies to obtain several significant capital market benefits, including affecting risk (cost of equity). However, whether and to what extent SC influences the cost of equity is still an issue and has yet to be widely documented at the theoretical and empirical levels, especially in the Indonesian context. Apart from the low level of cash holding, the evidence gap shows that the Indonesian Sharia financial screening criteria are more liberal than the international criteria, which indicates that Indonesian SC leverage contains a higher financial risk premium, thus possibly having implications for estimating the high expected return of investments and in turn the effect of SC on the cost of equity potentially has different empirical significance from international finding. Implications of liquidity and risk premium on the cost of equity indicate that SC's influence on the cost of equity is more complex than simple causality. Therefore, it is necessary to build a more comprehensive system by formulating contingency factors in the relationship between SC and the cost of equity. The finding reveal from 891 observations that the link between SC and cost of equity is fully mediated relationship, which indicates that SC can only affect the cost of equity with good reputation and by improving performance.

Good Corporate Governance, Intellectual Capital, and ICSR in Companies in Jakarta Islamic Index

ABSTRACT Indonesia's sharia economy and finance is increasingly developing and encouragingthe birth of social responsibility based on Islamic norms called Islamic Corporate Social Responsibility (ICSR). The aim of this research is to determine the influence of good corporate governance and intellectual capital on Islamic corporate social responsibility. The GCG components used are the size of the board of directors, audit committee and independent commissioners. The type of approach in this research is quantitative. The companies in the sample are companies listed on the Jakarta Islamic Index (JII) for the 2018-2022 period using purposive sampling technique. The data analysis method used is panel data regression. The results of data testing explain that the size of the board of directors, independent commissioners, and intellectual capital have a significant positive influence on ICSR. Meanwhile, the size of the audit committee does not have a significant influence on ICSR disclosure. Simultaneously, GCG and Intellectual capital have an influence on ICSR disclosure.

Financial Performance, Maqashid Syariah dan Corporate Reputation: Moderasi Islamic Corporate Social Responsibility (ICSR)

Financial Performance, Maqashid Syariah dan Corporate Reputation: Moderasi Islamic Corporate Social Responsibility (ICSR)

Implementasi Tata Kelola dan Tanggung Jawab Sosial dalam Menunjang Kinerja Keuangan Saham Syariah Indonesia

The objective of this study is to examine the correlation between Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) and the financial performance of companies that are listed on the Indonesian Sharia Stock Index (ISSI). The research data were collected from the annual financial reports of 250 companies that satisfied the requirement of being listed in the ISSI for five consecutive years and filing annual reports during that same period. An assessment was carried out on the financial statements to determine the utilization of eight ICG and six ICSR indicators and to gauge economic performance by calculating Return on Assets (RoA) and Return on Equity (RoE). The results suggest that the adoption of ICG positively affects organizations' financial performance, whereas the adoption of ICSR does not substantially impact. These findings indicate that these companies' adoption of ICG and ICSR is limited despite their inclusion in the ISSI. These companies have not utilized many ICG and ICSR indicators. This study offers significant insights demonstrating that augmenting the use of ICG can improve firms' financial performance. However, there is a need to enhance awareness and implementation of ICSR. Furthermore, it emphasizes the significance of corporations prioritizing ICG and ICSR features as integral components of their comprehensive approach to enhancing their financial performance and social responsibility.

Shariah Governance, Leverage, And Their Impact on Islamic Corporate Social Responsibility in Sharia Banking in Indonesia

Shariah Governance, Leverage, And Their Impact on Islamic Corporate Social Responsibility in Sharia Banking in Indonesia

The Influence of Zakat on Financial Performance (SCnP Model) with Islamic Corporate Social Responsibility as a Moderating Variable

Islamic banking is a financial institution that has a noble mission and goals. In addition to seeking profits, Islamic banks also pay attention to social aspects. This study aims to examine the effect of Zakat on Financial Performance (SCnP Model) with Islamic Corporate Social Responsibility as a Moderating Variable. This research uses a type of quantitative research with an associative approach. The population of this study is Islamic Commercial Banks registered with the Financial Services Authority (OJK) for the 2018- 2022 period. The sampling technique used purposive sampling to obtain 7 Islamic Commercial Banks. The data processed is secondary data obtained from annual reports published through the official website of each bank for 2018-2022. The data analysis technique used is multiple regression analysis with the help of the Eviews-10 software program. The results showed that Zakat has a positive and significant effect on Financial Performance (Sharia Conformity), Zakat has a negative and significant effect on Financial Performance (Profitability), Islamic Corporate Social Responsibility can moderate the effect of zakat on Financial Performance (Sharia Conformity) and Islamic Corporate Social Responsibility is not able to moderate the influence of zakat on Financial Performance (Profitability). Keywords: Zakat, Financial Performace (SCnP Model), Islamic Corporate Social Responsibility

The impact of Islamic of corporate social responsibility on social welfare with financial fraud as moderating: study in Indonesia

PurposeThis study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.Design/methodology/approachThe method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.FindingsThe first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.Research limitations/implicationsThe high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.Practical implicationsThe main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.Originality/valueThe main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.

Influence Good Corporate Governance (GCG) And Islamic corporate social responsibility (ICSR) Against Corporate Value With Financial Performance As Variable Intervening at Bank Muamalat Indonesia

Research Aims: Knowing the influence of GCG and ICSR on company value through financial performance. Methodology: The method used in this research is quantitative research with data analysis using PLS and path analysis. Research Findings: From the results of the analysis used in this research, the results showed that the influence of the GCG variable on company value and financial performance was proven to be significant in a positive direction, the influence of the ICSR variable on company value was proven to be insignificant but in a positive direction, the influence of the ICSR variable on financial performance was proven to be significant in a negative direction. , the influence of the GCG variable on company value through financial performance is proven to be mediating and the influence of the ICSR variable on company value through financial performance is proven not to mediate. Theoretical Contribution: The grand theory used in this research includes,legitimacy theory, stakeholder theory, signaling theory and agency theoryby testing four variables consisting of independent variables, dependent variables and mediating variables. Research limitation and implication: The limitations of this research are on the subject of banks that use one bank, namely Bank Muamalat Indonesia.

The effect of financial literacy and social philanthropy functions on Islamic financial inclusion practices

Although financial inclusion practices have been widely applied by Islamic banking institutions, the testing of factors affecting Islamic financial inclusion (IFI) is still limited. This study analyses the connections between financial literacy, social philanthropy functions, and IFI. The study sample includes 56 Islamic banks listed on the Indonesia Stock Exchange (IDX) during the 2015 to 2021 period. This study measures Islamic corporate social responsibility (CSR) as viewed based on two approaches: financial literacy and social philanthropy functions. Multivariate regression analyses are utilised for analysing the data and testing the hypotheses. The results showcase that financial literacy does not positively influence financial inclusion; by contrast, social philanthropy has both a positive and significant effect on financial inclusion. This study contributes to the existing literature by providing insights into the influence of Islamic CSR as a means of encouraging IFI. The managerial implications of these results may guide decision-makers, particularly governments and financial institutions when drafting regulations to consider the overall effectiveness of Islamic CSR in promoting improved Islamic financial literacy and inclusiveness within Indonesia.

Islamic Corporate Social Responsibility: CSR Practices by Islamic Microfinance Institutions in Lampung

Purpose: This article describes the practice of corporate social responsibility (CSR) adopted by Baitul Maal Wa Tamwil (BMT) in Lampung. This study also examines the literature on different views of CSR and how CSR can be rooted in organizational strategy so that it becomes an organizational competitive advantage. Methodology: A descriptive qualitative method was used in this study, in which the researchers conducted in-depth interviews with both BMT employees and beneficiary communities. Findings: This study found that Baitul Maal Wa Tamwil, which became the locus of research, namely BMT Assyafiiyah Berkah Nasional carries out CSR corporate social responsibility in several forms of programs both physical, facilitating and empowering in nature. The physical form is carried out by providing assistance for the construction of places of worship, Islamic boarding schools, the construction of drilled wells and a program to renovate livable houses. The form of facilitation is carried out by providing compensation, giving OTP (Sponsoring Parents), giving TPA incentives, community service cars and productive forms by giving rolling goats and providing business capital with a qordul hasan contract. This study recommends the need to increase the involvement of baitul maal wattamwil in the process of economic development in general, because the practice of corporate social responsibility will contribute not only to increasing the company's competitive advantage but also to increasing community empowerment. For the company, CSR will also ensure the company's sustainable growth due to improved image and increased customers leading to increased profitability.

DOES THE DISCLOSURE OF ISLAMIC CORPORATE SOCIAL RESPONSIBILITY, ISLAMIC CORPORATE GOVERNANCE, PROFITABILITY, AND BANK SIZE AFFECT TAX AVOIDANCE IN ISLAMIC COMMERCIAL BANKS IN INDONESIA?

Abstract— This paper investigates the influence of Islamic Corporate Social Responsibility (ICSR), Islamic Corporate Governance (ICG), profitability, and bank size on tax avoidance in Islamic Commercial Banks in Indonesia. This paper introduces a novel perspective on the factors contributing to tax avoidance within Indonesia's Islamic finance framework. While the general notion of tax management is recognized, this study innovatively explores the intersection of Islamic principles, corporate governance, and tax practices, providing insights that have not been adequately explored in prior research. The study employs a panel data regression analysis, utilizing data from 13 Islamic Commercial Banks spanning 2017-2022, totaling 58 observations. This research approach enables an in-depth investigation into the relationships between ICSR disclosure, ICG, profitability, bank size, and tax avoidance. The empirical findings indicate that ICSR disclosure, the proportion of independent commissioners, and the audit committee positively influence tax avoidance practices. Conversely, the Sharia Supervisory Board and bank size negatively correlate with tax avoidance. Surprisingly, as measured by Return on Assets (ROA), profitability does not significantly impact tax avoidance decisions. This study underscores the intricate connections between Islamic corporate practices, governance structures, and tax avoidance strategies in Islamic Commercial Banks. The research highlights the significance of ICSR disclosure, corporate governance effectiveness, and the presence of religious oversight in shaping transparent and accountable tax practices. Furthermore, the research cautions against overreliance on profitability as a determinant of tax avoidance behaviors.
 Keywords: Bank Size; Islamic Corporate Governance, Profitability; Islamic Corporate Social Responsibility; Tax Avoidance

The Effect of Islamic Corporate Governance and Islamic Corporate Social Responsibility on the Performance of Shariah Commercial Banks in Indonesia

This study aims to investigate and analyze the influence of Islamic corporate governance (ICG) and Islamic corporate social responsibility (ICSR) on the performance of Sharia Commercial Banks in Indonesia during the five-year period from 2014 to 2018. The financial performance of the banks is assessed using the return on assets (ROA) and return on equity (ROE). Employing a purposive sampling method, data was meticulously collected from a sample of 11 Sharia Commercial Banks. Employing a quantitative research approach, the study employs multiple regression analysis to discern the relationships between the variables. The results reveal that Islamic corporate governance (ICG) does not wield a significant effect on the financial performance of Sharia Commercial Banks, as represented by the variables ROA and ROE. However, in contrast, Islamic corporate social responsibility (ICSR) demonstrates a positive and significant impact on the financial performance of Sharia Commercial Banks, as indicated by the proxies ROA and ROE. These findings contribute to the understanding of the complex interplay between governance, social responsibility, and financial performance in the context of Islamic banking, providing insights for both practitioners and scholars.

The Moderating Role of Islamic Corporate Social Responsibility in Shaping Customers’ Intention to Adopt Islamic Home Financing: A Conceptual Framework

The Moderating Role of Islamic Corporate Social Responsibility in Shaping Customers’ Intention to Adopt Islamic Home Financing: A Conceptual Framework

Firm Characteristic, Islamic Corporate Social Responsibility, and Implementation of Environmental Management Accounting (EMA)

Firm Characteristic, Islamic Corporate Social Responsibility, and Implementation of Environmental Management Accounting (EMA)

DETERMINANTS OF FACTORS INFLUENCING SOCIAL RESPONSIBILITY PERFORMANCE IN BUSINESSES OF MARAWI CITY

Along with the rising number of business enterprises, there is also a growing importance of social responsibility among businesses. However, there is a lack of visible CSR (Corporate Social Responsibility) initiative being implemented among the local business enterprises despite the known importance of CSR to a company's reputation and its impact to overall business success. Hence, this research sought to determine the various factors influencing social responsibility in businesses of Marawi City. This particularly includes the business profile, the level of understanding, the drivers and barriers, as well as the significant relationship of these factors with CSR initiatives. For this purpose, this study adopted quantitative-correlational type of research. Data was collected through a questionnaire from a 246 sample of businesses from different sectors in Marawi City. The data gathered was analysed using various statistical tools. The results of the study indicate that CSR activities are prevalent despite the fact that the majority of the firms operating within the city have a low net income. It was found that the firms' ability to participate in more CSR efforts were relevantly limited by lack of financial resources. The findings of this study also suggests that the belief that CSR is a form of charity is the most significant factor that drives the performance of CSR initiatives. The results of this study not only offer a deeper understanding of the factors affecting CSR implementation, but also proposes an Islamic CSR Framework that is in accordance with the practices valued by Muslim Maranao entrepreneurs.

Integrating Good Corporate Governance, Islamic Corporate Social Responsibility, Zakat, Syariah Governance, and Syariah Compliance: Exploring their Interconnected Impact on the Financial Health of Islamic Commercial Banks

The background of this research revolves around the need to understand the complex relationship between Good Corporate Governance (GCG), Islamic Corporate Social Responsibility (ICSR), zakat, Shariah Governance (SG), and Shariah Compliance (SC) in the context of financial institutions, particularly Islamic banks. This study adopts a holistic framework to explore their interconnected impacts on the financial health of Islamic banks. The research utilized a comprehensive literature review with qualitative analysis, aiming to gain a thorough understanding of the subject from 2010 to 2023. The findings indicate that in the face of business complexity and global market dynamics, Islamic banks need to implement concepts such as Good Corporate Governance (GCG), Islamic Corporate Social Responsibility (ICSR), Zakat, Shariah Governance (SG), and Shariah Compliance (SC). The holistic integration of these principles can have a significantly positive impact on the financial health of Islamic banks. GCG provides a robust foundation for risk management and transparency, ICSR enriches the social and environmental dimensions, Zakat plays a crucial role in wealth redistribution and community economic empowerment, while SG and SC ensure adherence to Shariah principles and maintain the integrity of financial institutions. By effectively applying these concepts, Islamic banks can strengthen their position in facing market challenges and enhance their contributions to sustainable economic development.

Islamic Corporate Social Responsibility Disclosure, Profitability, and Visibility of Sharia Commercials Bank in Indonesia

Islamic Corporate Social Responsibility Disclosure, Profitability, and Visibility of Sharia Commercials Bank in Indonesia

Islamic Corporate Social Responsibility Effect on Financial Performance and Reputation In OJK-Listed Banks

Islamic Corporate Social Responsibility Effect on Financial Performance and Reputation In OJK-Listed Banks

Panel Data Regression on Tax Avoidance: Reviewed from Islamic Corporate Social Responsibility and Financial Ratio Analysis

<p><em>Tax</em><em> avoidance becomes unique because it is allowed in the sense that it does not violate the law. However, it is undesirable in practice because it affects the country’s revenue. This study experimentally investigates the relationship between Islamic corporate social responsibility, profitability, leverage, inventory intensity, capital intensity</em><em>, </em><em>and tax avoidance. This research employs a causal methodology and is quantitative. Only businesses listed on the Indonesian Islamic Stock Index (ISSI) </em><em>were</em><em> included in this analysis. The purposive sampling approach was </em><em>employed</em><em> to gather a sample of 15 companies for the 2016–2021 research period. Profitability has a negative impact on tax avoidance, leverage has a negative impact on tax avoidance, inventory intensity has a positive and significant impact on tax avoidance, capital intensity has no discernible impact on </em><em>tax avoidance</em><em>, and Islamic corporate social responsibility has no discernible impact on </em><em>tax avoidance</em><em>.</em></p>