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

Authors

  • Aishath Muneeza INCEIF (International Centre for Education in Islamic Finance)
  • Aminudin Ma'ruf INCEIF (International Centre for Education in Islamic Finance)
  • Shahbaz Alam INCEIF (International Centre for Education in Islamic Finance)

DOI:

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

Keywords:

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

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.

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Published

2020-06-22

Issue

Vol. 3 No. 1 (2020)

Section

Articles

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