Disclosing CSR by Islamic banks: does Jaiz Bank Nigeria, Plc adopt the practice of Islami Bank Bangladesh Limited?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umar Habibu Umar ◽  
Sulaiman Musa
Keyword(s):  
Financial Regulation ◽  
Technical Assistance ◽  
Advisory Council ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
The Poor ◽  
Corporate Social ◽  
The Needy ◽  
Practical Implications

Purpose This paper aims to establish whether Jaiz Bank Nigeria, Plc (JBNP) adopts the corporate social responsibility (CSR) practice and disclosure of Islami Bank Bangladesh (IBBL) as the latter provided managerial and technical assistance to the former. Design/methodology/approach The data were extracted from the annual reports and accounts of the banks from 2013 to 2017. Findings The study established that over the period, IBBL had clearly disclosed sector-wise CSR expenditures and the number of beneficiaries, such as humanitarian and disaster relief, education, health and environment, among others, for the welfare of the poor and the needy in the country. However, the CSR practice and disclosure of IBBL have not yet been adopted by JBNP. It only discharges CSR activities through its foundation called Jaiz Foundation, with unlawful income based on the doctrine of necessity, as approved by the Financial Regulation Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN). Further, the total amount to expend for CSR activities is located in the statement of sources and uses of charity funds. Research limitations/implications The study covered only two Islamic Banks. Besides, only CSR aspects for the community service and development over five years were examined. Practical implications It is suggested that JBNP should adopt the CSR practice and disclosure of IBBL for the welfare of the poor and the needy in Nigeria. Social implications Adopting the IBBL CSR practice and disclosure by JBNP would contribute to the minimization of the incidence of poverty in Nigeria. Originality/value This study, to the best knowledge of the researchers, is among the few of its kind that deeply evaluated the CSR expenditure of Islamic banks solely for the welfare of the poor and the needy of the society.

Value- based Islamic banking and reporting in Bahrain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akhtar Ali Saeed Mohammed ◽  
Fadillah Mansor
Keyword(s):  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Reporting Standard ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
Islamic Economic ◽  
Practical Implications ◽  
Specific Contribution

Purpose This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual reports towards achieving their fundamental objectives of human-centred economic development and social justice. Design/methodology/approach Based on Islamic finance, Islamic economic principles and perception of Maqasid al-Shari’ah, this paper examines and assesses the current practices of Islamic financial institutions (IFIs) in Bahrain through content analysis of financial and annual reports of Islamic banks in Bahrain and interviews of Islamic banking experts. Findings The findings reveal that value-based banking (VBB) has not been translated fully into practice by the Islamic banks in Bahrain. Research limitations/implications The data analysis was restricted to Islamic banks in Bahrain. Practical implications This paper identifies the need for reporting standard development to improve the VBB practice in Bahrain in the future. Looking at the objectives of the IFIs, this paper introduces the concept of VBB in Bahrain, which includes ethical banking, responsible banking and social responsibility. The study adds value not only to the current Islamic finance literature but also helps many stakeholders, including prospective academics, who may conduct comparative studies in different jurisdictions throughout the world. Originality/value The specific contribution of this paper is the identification of the VBB practices and related disclosure in the Islamic banking industry in Bahrain. The study is useful to harmonise and standardise the practices of VBIB by the contemporary Islamic banks in Bahrain.

Can Shariah board characteristics influence risk-taking behavior of Islamic banks?

2019 ◽  
Vol 12 (4) ◽  
pp. 469-488 ◽  
Author(s):  
Amal AlAbbad ◽  
M. Kabir Hassan ◽  
Irum Saba
Keyword(s):  
Risk Taking ◽  
Supervisory Board ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Asset Return ◽  
Board Characteristics ◽  
The Relationship ◽  
Risk Taking Behaviors ◽  
Practical Implications

Purpose The purpose of this paper is to study whether the characteristics of the Shariah Supervisory Board (SSB) can influence the risk-taking behaviors of Islamic banks. Design/methodology/approach The data on governance were collected from 70 Islamic banks’ annual reports across 18 countries for the period from 2000 to 2011 to investigate the relationship between SSB’s characteristics including size, busyness and foreign board and the Islamic banks’ risk activities. Findings The size of SSB and the proportion of busy board in SSB positively and significantly influence Islamic banks’ asset return and insolvency risks. Foreign members are more effective in monitoring banks’ Shariah compliance. Further analysis provides some evidence that most of the findings on the associations between the SSB structure and bank risk are derived from countries in the Gulf Cooperation Council where Shariah governance is ruled internally at the bank level. Practical implications There is a need for better Shariah board characteristics in place that complement with other governance mechanisms to well comprehend the main purpose of Islamic banks. Originality/value SSB board busyness and foreign characteristics appear to influence the risk-taking behaviors of Islamic banks.

Social responsibility disclosure in Islamic banks: a comparative study of Indonesia and Malaysia

2017 ◽  
Vol 15 (1) ◽  
pp. 99-115 ◽  
Author(s):  
Azlan Amran ◽  
Hasan Fauzi ◽  
Yadi Purwanto ◽  
Faizah Darus ◽  
Haslinda Yusoff ◽  
...  
Keyword(s):  
Social Responsibility ◽  
Time Frame ◽  
Annual Reports ◽  
Islamic Banks ◽  
Cultural Perspective ◽  
Moral Law ◽  
Content Type ◽  
Environmental Initiatives ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This paper aims to explore social responsibility reporting of full-fledged Islamic banks in two developing countries, namely, Indonesia and Malaysia. Corporate social responsibility (CSR) has become an important aspect of business society. As such, companies have shown a growing interest in reporting their social and environmental initiatives. Design/methodology/approach Content analysis of the annual reports for three full-fledged local Islamic banks in Indonesia and three Islamic banks in Malaysia was carried out for the period of 2007-2011. Findings Results of the study revealed that CSR disclosure of Islamic banks has generally grown both in Malaysia and Indonesia. More specifically, it was found that workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. Research limitations/implications The current study provides a cross-cultural perspective on social responsibility disclosure in Islamic banks across two countries. The study is limited by investigating a five-year time frame. Practical implications By discussing the findings according to the stages of growth model for CSR, the authors suggest that Islamic banks can enhance their responsiveness, and transform their role from being CSR reporters of social responsibility to responders. Originality/value While the tenets of CSR have a lot in common with Islamic moral law (Shariah), little is known about CSR disclosure of Islamic banks.

Social disclosure: compliance of Islamic banks to governance standards No. 7 of AAOIFI (2010)

2020 ◽  
Vol 11 (7) ◽  
pp. 1427-1452 ◽  
Author(s):  
Nouha Ben Brahim ◽  
Mounira Ben Arab
Keyword(s):  
Banking Sector ◽  
Annual Reports ◽  
Insurance Companies ◽  
Future Research ◽  
Islamic Banks ◽  
Content Type ◽  
Western Model ◽  
Cultural Effects ◽  
Islamic Financial Institutions ◽  
Corporate Social

Purpose This paper aims to investigate the compliance of Islamic banks (IBs) with the AAOIFI standard No. 7, in Middle East and North Africa area during the period 2010-2014. The authors seek to identify, among the 15 countries and 72 banks, those which conform more to this standard. The level of compliance is expected to be more stringent in countries where AAOIFI standards are made mandatory. Design/methodology/approach The paper uses the unweighted disclosure method which measures the corporate social report disclosure (CSRD) score of a bank as additive. Each country and bank are assessed according to two obligatory and voluntary CSRDs. Findings The empirical results indicate that even though the global disclosure index has been improved over the observation period, it has remained relatively low. The results also allowed us to see that the global, mandatory and voluntary societal disclosures vary according to the country and banks. Further, it has been seen that banks allow more attention to the mandatory disclosure recommendations of AAOIFI Governance Standard No. 7, in comparison with the voluntary CSRD. Research limitations/implications One limitation of this study is that the sample is restricted to only the Islamic banking sector. Future research could include other Islamic financial institutions (IFIs) such as insurance companies. Second, the study could be extended to other countries to better control the religious system and cultural effects. Because in our modern era, traditional laws in the Muslim world have been widely replaced by statutes inspired by European models, the authors suggest then to apply a new classification that separates, for instance, countries that rely on an Islamic model from those with a western model, and national banks from those allied with western banks. Finally, the paper’s data collection relies solely on annual reports and does not include publications from bank sites. Future research could consider all these limitations. Another possible avenue could examine the determinants of such disclosure level. Practical implications Almost no study has been limited to the text of the AOIFFI. This detail is important for some countries where the AAOIFI standards are mandatory. Social implications The findings may be of interest to shareholders and all those who deal with IBs that have religious expectations. Originality/value Despite the fact that most studies investigated compliance of IB Sharia law, almost no study has been limited to the text of the AOIFFI. This detail is important for some countries where the AAOIFI standards are mandatory. The findings may be of interest to shareholders and all those who deal with IBs that have religious expectations.

scholarly journals CSR disclosure in response to major airline accidents: a legitimacy-based exploration

2016 ◽  
Vol 7 (1) ◽  
pp. 26-43 ◽  
Author(s):  
Petros Vourvachis ◽  
Thérèse Woodward ◽  
David G. Woodward ◽  
Dennis M Patten
Keyword(s):  
Annual Report ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Content Type ◽  
Social Legitimacy ◽  
Airline Accidents ◽  
Major Airlines ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Practical Implications

Purpose – The purpose of this paper is to contribute to the literature investigating disclosure reactions to legitimacy threats by analyzing the corporate social responsibility (CSR) disclosure reactions to catastrophic accidents suffered by major airlines. Design/methodology/approach – The authors use content analysis to examine changes in annual report disclosure in response to four separate airline disasters. The authors adopt two classification schemes and two measurement approaches to explore these changes. Findings – The authors find that for three events the organizations appear to have responded with considerable increases in CSR disclosure that are consistent with attempts of legitimation. For one of the events examined, the authors find no disclosure response and suggest that this could be due to the company’s unwillingness to accept responsibility. Research limitations/implications – The study’s focus on major airlines that have suffered an accident with available annual reports in English meant that other companies had to be excluded from the analysis. Practical implications – The findings demonstrate the use of the annual report as a legitimation tool and further highlight the need for greater transparency and comparability across publications. Originality/value – The paper adds to the scarce literature examining corporate disclosure reactions following threats to their social legitimacy.

Corporate social responsibility practice and corporate financial performance: evidence from Nigeria companies

2015 ◽  
Vol 11 (4) ◽  
pp. 749-763 ◽  
Author(s):  
Aliyu Baba Usman ◽  
Noor Afza Binti Amran
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Financial Data ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to describe the nature and trend of corporate social responsibility (CSR) practices in Nigeria. The second objective of this paper is to examine the relationship between the dimensions of CSR disclosures and corporate financial performance (CFP) among Nigerian listed companies. Design/methodology/approach – To carry out this research, content analysis was conducted to extract CSR and financial data from annual reports of 68 companies listed on the Nigeria Stock Exchange. Financial data were cross-referenced with the NSE Factbook. CSR indexes and financial performance measures were computed for estimation of the regression analysis equation. The percentages were used to describe the nature and trend of CSR practice in Nigeria. This was followed by the hierarchical multiple regression analysis to examine the relationship between CSR and CFP. Findings – The results of the descriptive statistics show that the listed companies used CSR initiatives to communicate social performance to their stakeholders. From the regression analysis, community involvement disclosure, products and customer disclosures and human resource disclosures were found to enhance CFP. The results also reveal a negative relationship between environmental disclosure and CFP, which indicates that disclosure of environmental impact information could be value destroying in Nigeria. Research limitations/implications – The major limitation of this paper is the sample size. Also, failure of corporations to disclose CSR in the annual reports will have a material effect on these findings. Practical implications – The findings of this paper have practical implications on the management of Nigerian companies to re-think and re-strategize their CSR policies that incorporate social and economic performance to improve their CFP. Social implications – This paper has implication on stakeholders in validating the corporate citizenship of corporations based on the level of commitment and participation in CSR initiatives. Also, findings of this paper will alert the enforcement agencies on the status of CSR practices in Nigeria. Government in collaboration with private and public agencies should consider the needs for CSR framework and database to guide social and environmental reporting in the country. Originality/value – The paper has examined the relationship between CSR and CFP based on CSR dimensional approach. Aspect of human resource and products/customers CSR has been neglected in the context of Nigerian CSR research. This paper makes valuable contribution by offering new and fresh insight on these dimensions.

Implementation of the AAOIFI index on CSR disclosure in Indonesian Islamic banks

2019 ◽  
Vol 17 (3) ◽  
pp. 365-382 ◽  
Author(s):  
Peni Nugraheni ◽  
Erlinda Nur Khasanah
Keyword(s):  
Supervisory Board ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
The Government ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Positive Effect ◽  
Practical Implications ◽  
Suitable Measure

Purpose The purpose of this study is to discuss the extent to which Indonesian Islamic banks (IBs) disclose corporate social responsibility (CSR) according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) index. It also empirically examines the determinants of CSR disclosure in Indonesian IBs, based on disclosure from AAOIFI index, which is based on Islamic principles. Design/methodology/approach The determinant used in this paper is the corporate governance (CG) mechanism, which focuses on the board of commissioners (BOC) and Sharia Supervisory Board (SSB) and their characteristics. The paper uses multiple regression analysis to examine the influence of these variables on CSR. Findings The results indicate that the level of CSR disclosure of IBs measured by the AAOIFI index continues to be low. The statistical results reveal that CSR disclosure has an insignificant relationship with BOC size and SSB qualifications, while the other results show a negative association between the composition of independent BOCs and CSR disclosure, and the frequency of BOC and SSB meeting has a positive effect on this. Research limitations/implications The study focuses on Indonesian IBs. The variables of the CG mechanism are limited to the BOC and SSB, while the BOC exists only in countries that adopt two-tier boards. Practical implications IBs should provide a wider range of information to be disclosed. The government should establish specific items that need to be disclosed by IBs, considering there are no specific CSR disclosure regulations for IBs in Indonesia. Originality/value This study uses the AAOIFI index, which may be a suitable measure of CSR in IBs. The study also analyzes why certain items in the index have a high disclosure level and others do not.

scholarly journals Greenhouse gas disclosures by Chinese power companies: trends, content and strategies

2017 ◽  
Vol 13 (3) ◽  
pp. 331-358 ◽  
Author(s):  
Mahmood Ahmed Momin ◽  
Deryl Northcott ◽  
Mohammed Hossain
Keyword(s):  
Greenhouse Gas ◽  
Ghg Emissions ◽  
Reputation Management ◽  
Annual Reports ◽  
Future Research ◽  
Chinese Government ◽  
Content Type ◽  
Management Objectives ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to investigate the greenhouse gas (GHG)-related disclosure trends, content and strategies of the eight most high GHG-emitting Chinese power companies, over a period when government pressure to manage GHG emissions increased. Design/methodology/approach Data were collected from the 2000-2009 annual reports, corporate social and environmental responsibility reports and websites of eight Chinese power companies. Content analysis results were supplemented with excerpts from documents written in English or Chinese. Legitimacy theory informed the interpretation of the findings. Findings GHG-related disclosures increased from 2002 when the Chinese Government ratified the Kyoto Protocol and promulgated stringent environmental regulations. However, some expected types of GHG-related disclosure were absent or rare. Disclosure practices were found to be underpinned by reputation management objectives and reflected a symbolic rather than substantive legitimation strategy. Research limitations/implications This study extends the literature on GHG-related disclosures by carbon-intensive firms and points to the need for future research to examine such disclosures in different countries to appreciate the variety in practice. Practical implications While the Chinese Government appears to have driven the emergence of GHG-related disclosure practices, companies can effect improvement by expanding the scope and content of what they disclose. Also, the growing emphasis on website disclosures may present challenges in ensuring the reliability and assurance of GHG disclosures. Originality/value This is the first study to examine GHG-related disclosure practices by Chinese power-generating companies, a sector crucial to managing the GHG effects of China’s significant economic growth.

scholarly journals The impact of board and hotel characteristics on biodiversity reporting: market diversification as a moderator

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edzuwyn Fathin Binti Haji Mahyuddin ◽  
Mohammad Iranmanesh ◽  
Azlan Amran ◽  
Behzad Foroughi
Keyword(s):  
Design Methodology ◽  
Moderating Effect ◽  
Annual Reports ◽  
Board Members ◽  
Environmental Organizations ◽  
Content Type ◽  
Positive Effects ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to explain how board and hotel characteristics affect biodiversity reporting and to test the moderating effect of market diversification. Design/methodology/approach The annual reports of 105 hotels were examined for the period between 2016 and 2017 to analyse these hotels’ biodiversity reporting using content analysis. The partial least squares technique was used to test the proposed relationships. Findings The results show that the number of board members who are also on the corporate social responsibility committee, number of board members who are in environmental organizations, the star rating of the hotel, hotel size and hotel location have significant positive effects on the extent of biodiversity reporting. In addition, market diversification moderates positively the effects of number of board members with environmental experience and number of board members from environmental organizations on the extent of biodiversity reporting. Practical implications The results of this study will be useful in enabling hotel manager and investors to become knowledgeable about these aspects of boards, which lead to higher biodiversity reporting. This study can also inform policymakers about the types of hotels that are less likely to disclose biodiversity reports and to develop effective enforcement of regulations. Originality/value These findings extend the literature on biodiversity reporting by exploring the importance of board and hotel characteristics on the extent of biodiversity reporting and testing the moderating effect of market diversification.

The application of venture capital strategies to musharakah financing

2020 ◽  
Vol 11 (3) ◽  
pp. 827-844
Author(s):  
Aisyah Abdul Rahman ◽  
Shifa Mohd Nor ◽  
Mohd Fadzli Salmat
Keyword(s):  
Venture Capital ◽  
Initial Step ◽  
Primary Data ◽  
Islamic Banks ◽  
Content Type ◽  
Risk Monitoring ◽  
Country Analysis ◽  
Regulatory Bodies ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to explore the strategies used by venture capital (VC) firms in assisting entrepreneurs who have business potential but lack capital. The study also aims to investigate whether the VC strategy can be adopted by Islamic banks through musharakah financing. Design/methodology/approach Apart from content analysis, primary data were gathered from several interview sessions with the management of three VC firms and two Islamic banks. Findings Islamic banks in Malaysia have great potential to offer musharakah financing and mitigate risk by adopting the following five VC strategies: method of selection, channelling of funds, monitoring, non-capital assistance and period of investment. We propose the channelling of corporate social responsibility funds for musharakah financing as an initial step in applying VC strategy. Research limitations/implications Given the limited number of willing and eligible respondents in Malaysia, the scope of this study can be widened to a cross-country analysis where musharakah financing is widely adopted. Practical implications This study motivates regulatory bodies and Islamic banks to consider musharakah financing using the risk monitoring strategy adopted from the VC industry. Originality/value This study is the first to empirically explore the strategy adopted by VC companies and evaluate whether such a strategy is suitable for the concept of musharakah financing.

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