CSR Contribution to Socio-Economic Development: Evidence from Indonesian Islamic Banks

Aishath Muneeza, Aminudin Ma'ruf, Shahbaz Alam

Abstract


Islamic banks play a significant role in social and environmental responsibility. It is known that Islamic finance is not merely profit-oriented but also looking at the prosperity of the society, as an ethical financial system Islamic finance give a massive contribution towards social responsibility. This exploratory study examines the relations between corporate social responsibility (CSR) practices of Indonesian Islamic banks and socio-economic development. The evidence presented is based on the published annual reports of 13 Islamic commercial banks in 2017. The findings of this research suggests that CSR is a priority of Indonesian Islamic banks and has correlation to the socio-economic development. Furthermore, the findings suggest that the robust guiding principles on CSR need to be developed and it has potential of Islamic banks credibility and profitability.

Keywords


Islam, Corporate Social Responsibility, Socio-economic development, Indonesian Islamic banks, Islamic perspectives

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DOI: https://doi.org/10.12928/ijiefb.v3i1.949

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