Islamic Social Reporting Index Research Articles

Strategy for Achieving Social Performance of the Kanindo Syariah Cooperative, Dau Malang Branch

For sharia financial institutions that runs their business based on the philosophy of the Qur’an and Sunnah, social performance is the basis for actors in interacting with the environment and each other. One method of reporting social performance for sharia companies is the Islamic Social Reporting Index method (ISR). However, this method is still considered inappropriate to be applied to sharia financial institutions, which requires sharia financial institutions to develop their own social strategies. This research aims to determine the strategy for achieving social performance in the Dau branch of the Kanindo Syariah cooperative and to dig deeper into the reasons why the ISR method is not suitable for application to Sharia Financial Institutions. This research uses descriptive qualitative research methods. The results of the research shows that Kanindo Syariah Dau branch has a strategy consisting of collecting and distributing social funds internally and externally. As for the ISR method, three conclusions were obtained which are the reasons why this method is not appropriate for sharia financial institutions, (1) lack of concern for the environment, (2) lack of understanding regarding maqashid sharia, and (3) lack of suitability for the environmental theme of the institutions which operates in the financial sector.

Determinant of corporate social responsibility in Islamic banking based on the Islamic social reporting index

Purpose - This study aims to determine the level of CSR comparison in sharia-compliant banking based on the Islamic Social Reporting Index indicators and analyze the factors influencing its disclosure.Method - This study is quantitative research using secondary data. Population of this study is 9 Islamic Banks in Indonesia in 2017-2021. The selection of samples in this study used purposive sampling. The data were analyzed using Panel Data regression analysis, Classic Assumption test, F-test, and T-test.Result - The results showed that two of the four variables thought to have an impact on ISR disclosure are found to have a significant impact. In contrast to leverage, which has a negative but considerable impact on ISR disclosure, company age has a positive and significant impact. The other two factors (profitability and company size) had less of an impact on ISR disclosure.Implication - Islamic Commercial Banks in Indonesia suggest to improve the financial performance in Corporate Social Responsibility with Isamic Social Reporting Index.Originality - This is a study to prove the effect of corporate social responsibility disclosure on the annual report of Islamic banks using the Islamic Social Reporting Index indicator.

Quality of Corporate Social Responsibility (CSR) Services at Bank Syariah Indonesia (BSI) in 2021 in the Perspective of Islamic Social Reporting (ISR) Index and Maqashid Syariah Index (MSI)

The government issues regulations through Limited Liability Company Law No. 40 of 2007 articles 66 and 74, which states that companies are required to report on the implementation of social and environmental responsibility which is often referred to as Corporate Social Responsibility (CSR). In carrying out its social responsibility, Bank Syariah Indonesia (BSI) must ensure that its operational system meets the benchmarks in CSR. To measure it, it is necessary to have a measuring instrument, namely using the Islamic Social Reporting (ISR) Index and the Maqashid Syariah Index (MSI), to fulfill CSR services to the community. This study aims to analyze the quality of CSR services at BSI 2021 in the ISR Index and MSI Perspective. This research was conducted using a type of library research (Library Research) using a qualitative approach. The validity of the data using source triangulation and data analysis techniques using data reduction. The results of the study show that the quality of CSR services in the 2021 BSI report has carried out CSR in accordance with seven principles including: ethical principles of ethics, principles of caliph protection, principles of honesty and trustworthiness, principles of halalan tayyiban, principles of fairness, principles of authenticity and credibility, and principles of charity. As for the quality of CSR activities specifically based on ISR items on the classification of funding and investment in zakat points, community classification in sadaqah, waqf, qardh hasan points, school scholarships, young generation development, community quality improvement, concern for children, and support social activities. And environmental classification at the point of environmental conservation and empowerment. Meanwhile, the quality of CSR services at BSI is in accordance with the Maqashid Syariah Index and fulfills the principles of individual education, achievement of justice, and public welfare, which are the foundations of this maqashid syariah not implemented by other Islamic banks.

Comparative Study on Disclosure of Islamic Social Reporting (ISR) Based on the ISR Index between Islamic Banking in Asia and Africa

Comparative Study on Disclosure of Islamic Social Reporting (ISR) Based on the ISR Index between Islamic Banking in Asia and Africa

DETERMINANTS OF GOOD CORPORATE GOVERNANCE, COMPANY CHARACTERISTICS, AND ENVIRONMENTAL PERFORMANCE ON ISLAMIC SOCIAL REPORTING (ISR) DISCLOSURE

The aim of this research is to analysis the influence of Good Corporate Governance, Company Characteristics, and Enviromental Performance on the disclosure of Islamic Social Reporting (ISR). The population of this research is the companies registered in Jakarta Islamic Index (JII) on year period 2015-2019. The sampling technique used was purposive sampling. The number of samples in this study were 45 samples. The data analysis techniques used were multiple linear regression, which were processed through SPSS version 25. The results showed that Good Corporate Governance as measured by Board of Commissioner Size and Public Ownership have a significant positive effect os ISR disclosure. Company Characteristics as measured by age of company had a significant effect while Type of Industry had not significant effect and Enviromental Performance had a significant effect. The result also proves that a company that stands in the community could not be separated from the social contract related to the norms that exist in society. The Legitimacy of the company is not only limited to financial reporting disclosure but ISR disclosure. It is important for the company to have a good relationship by interacting with the environment and the surrounding social which puts forward Islamic principles for their sustainability. This study also examines the Legitimacy and Stakeholder theory which is enhanced by Islamic principles by using the ISR index as a complement to the GRI index for information disclosure.

Islamic Social Reporting Index, Company Performance, and Market Performance

Islamic Social Reporting Index, Company Performance, and Market Performance

Analysis of the Disclosure of Islamic Social Reporting Index At Sharia Banking in Indonesia

The purpose of this study was to determine and analyze the Islamic Social Reporting Index at Islamic banks and the Islamic Social Reporting Index at Bank Syariah Indonesia (BSI). The method used in this study is a qualitative approach through interviews and content analysis. The subject of this research is the Islamic Social Reporting Index. The object used in this research is the publication report of Bank Syariah Indonesia (BSI). The Islamic Social Reporting Index items used in this study amounted to 50 items, covering 6 themes including investment and finance, products and services, employees, social, environment, and organizational governance. The results of the analysis of the Islamic Social Reporting Index in the annual report show that there are 43 items that are in accordance with the Islamic Social Reporting Index. The percentage of Islamic Social Reporting Index obtained by Bank Syariah Indonesia (BSI) is 86%. This shows that Bank Syariah Indonesia (BSI) in the disclosure of social responsibility reports is in accordance with sharia values. From the results of this study, it is expected that the Financial Services Authority will make rules for Islamic banks in presenting their annual reports.

Penerapan Islamic Social Reporting (ISR) Di PT. BPRS Amanah Bangsa Kc. Kisaran

This study aims to determine the transparency in the application of Islamic Social Reporting (ISR) at PT. BPRS Amanah Bangsa Kc. range. The research approach used in this study uses a qualitative approach. Respondents in this study 5 people consisting of company directors and employees. Data collection techniques using interviews. The method used in this research is qualitative method. The results show that the company composes and discloses the Islamic Social Reporting (ISR) every year in accordance with the Islamic Social Reporting index at the Amanah Bangsa BPRS is indeed very good in accordance with the regulations of the Financial Services Authority. Almost all items used as references in this study were disclosed by BPRS Amanah Bangsa Kc Kisaran. BPRS Amanah Bangsa Kc Kisaran revealed 6 themes including: Funding and Investment, Products and Services, Employees, Society, Environment, Corporate Governance.

SOCIAL RESPONSIBILITY DISCLOSURE OF ISLAMIC BANKING IN SOUTHEAST ASIA BASED ON ISLAMIC SOCIAL REPORTING INDEX

The study aims to analyze how the disclosure of Corporate Social Responsibility (CSR) in Islamic banking in southeast Asia based on the Islamic Social Responsibility Index. This study uses secondary data obtained from the annual report of Islamic banking in Southeast Asia which has been published for the period of 2020. The method used in this study is content analysis of the annual reports of Islamic banking. The results of this study indicate that the disclosure of CSR in Islamic banking in Southeast Asia in general has made quite informative disclosed. The disclosure of CSR has not fully implemented the Islamic Social Reporting Index with AAOIFI standards. This is due to the large number of disclosures of social performance in Islamic banking which refers to the Global Reporting Index.

DETERMINAN PENGUNGKAPAN ISLAMIC SOCIAL REPORTING (ISR) PADA PERUSAHAAN DI JAKARTA ISLAMIC INDEX (JII)

This study empirically analyzes the factors affecting Islamic Social Reporting (ISR), including profitability, liquidity, industry type, board of commissioner size, and company size. ISR, based on its category, is measured using ISR Index assessed from the companies’ annual report. The populations are all companies listed in Jakarta Islamic Index (JII) in 2017-2019. The samples include 17 companies selected through purposive sampling method, and are analyzed by multiple regression method. The results of this study indicate that the type of industry and company size have a significant effect on ISR; whilst, the profitability, liquidity, and board of commissioner size have no significant effect on ISR because manufacturing industry tends to be wider in disclosing its social responsibility reports, and this is also the case with large companies. This may be because the larger the size of the company, the larger the stakeholder community that must be served. Furthermore, profitability, liquidity, and the size of the board of commissioners have no significant effect on ISR because the company's orientation may be purely on profit or other financial aspects and the quality of ISR is not determined mainly by the quantity of the board of commissioners but may be caused by the quality or diversity of its members.

DOES EXISTING ISLAMIC SOCIAL REPORTING INDEX BETTERTO ARTICULATE SHARIA VALUE?

Purpose: This study aims to investigate the Islamic Social Reporting index whether it reflects sharia value implementation within companies listed in Jakarta Islamic Index compare to Sustainability Reporting Award winner. Design/methodology/approach: Data was taken from companies listed in Jakarta Islamic Index and those whom awarded as first and second place in Sustainability Reporting Award. This research uses quantitative approach to test the consistency of Sharia index implemented in JII companies compare to Sustainable Reporting Awardee companies. Using content analysis, the hypothesis is test uses one sample t-test. Findings: This study shows that there is ISR disclosure index difference between JII and SRA awardee companies. The SRA awardee outperforms JII companies, which is claimed as sharia holding value in running the business. This paper contributes to stakeholder literature by reshape disclosure index based on the shariah value in relation to social responsibility practices. The findings are noteworthy to the investor that concern with sharia value implementation through concise and consistent sharia rules. This study provides insights to how Islamic organization manage sharia implementation by redesign its indexing using more advanced methodology as well as adapted instead of adopted other guidelines without sufficient methods. There are disclosure items that the company naturally does not want to disclose. So, it cannot be detected through the content of information disclosed by the company. As a result, measurements may become biased. Originality: This paper give additional insight that even sharia based assessment need to reconstruct its sharia methodology to provide fruitful information for investor. We recommend considering assessment method to reflect sharia value.

Pengaruh GCG, Intellectual Capital, dan CAR Terhadap Kinerja Keuangan Dengan Islamic Social Reporting Sebagai Variabel Intervening

This study aims to determine the effect of good corporate governance, intellectual capital, and capital adequacy ratio on financial performance with the Islamic social reporting index as an intervening variable. This research uses quantitative research by using multiple linear regression analysis and path analysis as data analysis. The sampling method used purposive sampling technique by setting several criteria so that there were 11 Islamic Commercial Banks that became the research sample. This study uses secondary data in the form of panel data at Islamic Commercial Banks (BUS) for the 2015-2019 period. The data population in this study is BUS in Indonesia for the 2015-2019 period. Data processing using Eviews 9. The results of this study indicate that the frequency of board of commissioners meetings has a positive effect and the frequency of audit committee meetings has no significant negative effect, while Intellectual Capital, CAR and ISR have a significant positive effect on financial performance (ROA). The frequency of board of commissioners' meetings and CAR has a positive and insignificant effect, the frequency of audit committee meetings has a negative and insignificant effect, while Intellectual Capital has a positive and significant effect on the Islamic Social Reporting Index. The ISR index cannot mediate the effect of the frequency of board of commissioners meetings, the frequency of audit committee meetings, intellectual capital, and CAR on financial performance (ROA).

Board Of Commissioners, Sharia Supervisory Board, ISR: Bank Size Moderation

The growth of Islamic Commercial Banks is not with the contribution of the community to Islamic banking. This study aims to determine whether through the size of the board of commissioners and the size of the sharia supervisory board, the Islamic Social Reporting Index (ISR) can be good for increasing the public's awareness of Islamic Commercial Banks. This study uses quantitative methods with panel data regression analysis. The results show the board of commissioners and the sharia supervisory board have a large size so that the ISR can be wider. The moderating variable of bank size added in the study shows that the bank size cannot state that the bank has a large size of the board of commissioners and the size of the sharia supervisory board. The study concludes that the size of the board of commissioners and the sharia supervisory board can trigger banks to convey ISR properly.

Financial and Social Performance of Indonesia's State-Owned Islamic Banks

The government has started the process of merging three state-owned bank's sharia subsidiaries to accelerate the growth of Islamic banking in Indonesia. This study was conducted to see the effect of financial performance as measured by Return on Assets (ROA) and Firm Size on social performance as measured by Islamic Social Reporting (ISR) index. This study uses data that form of annual reports published by Bank Syariah Mandiri (BSM), Bank Negara Indonesia Syariah (BNIS) and Bank Rakyat Indonesia Syariah (BRIS) in 2010-2019. Islamic Social Reporting (ISR) is the dependent variable with Return on Assets (ROA) and Firm Size as independent variable. Fixed effect model is better than random effect model in this research. ROA have no effect on ISR. Whereas Firm Size have positive effect on ISR. It means thath the larger banking size the better the social performance. The new state-owned Islamic bank with the bigger size also improve social performance.

Islamic Social Reporting Disclosure of Sharia Commercial Banks in Indonesia: A Form of Social Responsibility

Sharia industry development encourages experts to design Corporate Social Responsibility (CSR) disclosure index that is more compatible with the characteristics of sharia-based corporate. However, studies examining CSR disclosure using Islamic Social Reporting (ISR) index that focuses on detailed results of content analysis from time to time still remains a paucity of evidence. Hence, this study aims to examine the practice of Islamic Social Reporting disclosure of sharia commercial banks in Indonesia. Drawing on the data obtained from CSR reports established by sharia banks in Indonesia, the results of content analysis disclosed that the ISR disclosure showed a fluctuating trend. It was also revealed that the six themes of ISR index have not been optimally disclosed. ISR disclosures of sharia banks in Indonesia were categorized as good since the average disclosure reached 50% in 2015 up to 2017, especially the corporate governance disclosure. This study’s results imply that it is necessary to increase the disclosures that can be strengthened by regulations from financial regulators and Islamic banking associations to increase public trust and value-added of sharia commercial banks. This study contributes to the development of sharia banks as fruitful insights on policy recommendations for Islamic banks' top management.

Penerapan Tanggung Jawab Sosial Perbankan Syariah Milik Negara dengan Indeks Islamic Social Reporting

The issue of merging Islamic banking in Indonesia is important as an effort to increase market share and competitiveness, while the social responsibility practice of Islamic banking in Indonesia is in the lowest rank among Southeast Asian Muslim countries. Are two things important for public confidence in the Islamic banking industry in Indonesia, which has a less informative predicate and not implementing social activities performance. Purpose this paper to explaine implementation of social responsibility for state-owned Islamic banking. Qualitative descriptive research method using Ethnographic Content Analysis (ECA) technique from annual reports with purposive sampling technique are BNI Syariah, Bank Syariah Mandiri and BRI Syariah at 2014-2018 using the Islamic Social Reporting (ISR) Index by AAOIFI. The results showed are funding and investment with (68.89%), products and services (91.11%), employees (68.72%), society (75.15%), environment (46.67%), and corporate governance (88.44%), a whole revealed that the social responsibility of state-owned Islamic banking (73.16%). Conclusion predicate of implementing social responsibility is very informative (products and services as well as corporate governance), informative (funding and investment, employees, community) and less informative (environment) so that the implementation of social responsibility in state-owned Islamic banking is informative in the order of BSM, BNI Syariah and BRI Syariah,

Islamic Social Reporting and Financial Distress In List of Sharia Securities

<p>The number of sharia-approved companies in the Indonesia Stock Exchange is growing rapidly. It is important to see how the social performance of these companies, using Islamic Social Reporting Index (ISR Index). Financial Distress as an early sign of a company’s failure is also important to study. This study examines the relation between ISR Index and financial distress in list of sharia securities. The control variables apply in this research are SIZE, ROA, CR, WCTR, DER, and RETA. By using a sample of 129 companies from financial statements and annual reports (2014-2018), three models were built with the Modified Altmans Z-Score, Ohlson O-Score and Zmijewski Zm-Score as a proxy of financial distress. Based on ISR index calculation, the theme of products and services has the highest disclosure score. The lowest disclosure score is corporate governance theme. Panel data regression results show that ISR Index affects financial distress in the Modified Altman’s model. It means the higher the ISR index value, the greater the likelihood of companies run into financial distress. Whereas in Ohlson’s and Zmijewski’s model, ISR Index has no effect on financial distress.</p>

The Islamic Social Reporting Index and Investment Account Holder in Islamic Banks

This research aims to discover the influence of Corporate Social Responsibility (CSR) disclosure based on the Islamic Social Reporting (ISR) index towards Investment Account Holder (IAH) in 11 Islamic banks in Indonesia from 2013-2018. The dependent and independent variables comprise the growth of temporary Syirkah funds representing IAH and prior studies. This is an associative research with secondary data obtained from the annual report. Panel data regression was used as the analysis technique with Fixed Effect Model (FEM) chosen as the best estimation model. The result showed that the ISR index towards IAH negatively influences CSR disclosure. Furthermore, the dominant floating market customers in Indonesia tend to force Islamic banks to focus on reporting related returns, sharia-compliant transactions, and excellent service to customers rather than disclosing social factors. This trend also exists in Islamic banks in several countries, besides the absence of regulations and guidelines for social reporting standards. The social reporting guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are only voluntary to be implemented by Islamic banks

Analisis Pengungkapan Corporate Social Responsibility Bank Syariah di Indonesia Berdasarkan Islamic Sosial Reporting Index

This study aims to analyze the effect of Corporate Social Responsibility (CSR) for IslamicCommercial Banks using the Islamic Social Reporting Index (ISR) method. The research period usedis 2016-2019. This study uses a quantitative approach. The research population includes all IslamicCommercial Banks (BUS) that publish Annual Reports on their respective websites during the 2016-2019 period. The sample was determined by purposive sampling and obtained 13 Islamic CommercialBanks. The results of this study indicate that of the 13 Islamic Commercial Banks disclosed during2016-2019 that each bank has a different level of disclosure. Bank Mumalat Indonesia and BankSyariah Mandiri received the title Very Informative while Bank Panin Dubai Syariah, Bank AcehSyariah, BNI Syariah, BRI Syariah, BCA Syariah, Mega Syariah, BJB Syariah produced Informativepredicate. Meanwhile, BTPN Syariah, Bukopin Syariah, Bank Net Syariah and Bank Victoria Syariahreceived the title of Less Informative.

CORPORATE SOCIAL RESPONSIBILITY OF SHARIA BANKING IN INDONESIA

Sharia banks in Southeast Asia occupy the second position of the largest assets, so that it is very interesting to study and examine their performance. The purpose of this research is to analyze the disclosure of social responsibility of sharia banking in Indonesia based on Islamic Social Reporting Index. This study uses six indicators in measuring the disclosure of social responsibility consisting of investment and finance, products and services, labor, social, environmental and organizational governance. The technique of data analysis in this research use content analysis with the object of research all sharia bank in Indonesia 2015 - 2016. The result of research indicates that disclosure of sharia bank in Indonesia as measured by the index of ISR not only give priority to bank interest and experience increase of disclosure from 60% to 61%.