scholarly journals Corporate social responsibility evaluation by different levels of management of Islamic banks and traditional banks: evidence from banking sector of Bangladesh

2016 ◽  
Vol 14 (3) ◽  
pp. 194-202 ◽  
Author(s):  
Md. Abdul Kaium Masud ◽  
Md. Humayun Kabir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Research Area ◽  
Jel Classification ◽  
Primary Data ◽  
Islamic Banks ◽  
Policy Makers ◽  
Corporate Social ◽  
Different Levels

The research aims to evaluate different levels of management understanding and performance on Corporate Social Responsibility (CSR) of traditional banks and Islamic banks in Bangladesh. Moreover, the paper points out the philosophy of both banks’ policy makers. The study is exclusively analytical in nature where 14 banks were selected on the basis of availability of branches in the research area. The research was based on primary data sources through a structured questionnaire. The research findings revealed that there is a gap between policy makers’ assurance of CSR contribution and its real implementation. The analysis found that Islamic banks are better than traditional banks with regard to the implementation of CSR policies. The result also showed that there are still some controversies on CSR performance of Islamic and traditional banks in general. The study also observed that Islamic, as well as traditional banks’ different levels of management conceive that CSR activities are performed by banks for their own interest rather than for social welfare. Therefore, it must be emphasized that good CSR policy is inevitable for all types of banks in Bangladesh. For the betterment of the society, as well as the banks, all levels of management should harmonize their CSR philosophy. Keywords: corporate social responsibility, management performance, traditional bank, Islamic bank, Bangladesh. JEL Classification: G21, M10, M14

Linkage between corporate governance and corporate social responsibility in banking sector of Bangladesh

2015 ◽  
Vol 02 (04) ◽  
pp. 1550036 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Islamic Banks ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Conventional Banks ◽  
Corporate Social ◽  
Better Than

This paper has been made to analyze the linkage between corporate governance and corporate social responsibility. From analysis, it is found that Eastern Bank Ltd. (EBL) performs better than other selected banks but not enough in practicing corporate social responsibility. While, conventional banks are more imperative than Islamic banks as all the indicators cover its benchmark apart from return on total assets. It has proved that there is a significant relationship among return on equity, earnings per share, corporate governance and corporate social responsibility but corporate social responsibility has shown little impact on corporate performance.

scholarly journals Analisis Faktor-Faktor yang Mempengaruhi Pengukuran Pengungkapan Corporate Social Responsibility (CSR) Perbankan Syariah Berdasarkan Indeks Islamic Social Reporting (ISR)

2019 ◽  
Vol 16 (1) ◽  
Author(s):  
Susi Astuti
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banks ◽  
East Region ◽  
Cost Center ◽  
Corporate Social ◽  
Middle East Region

The Corporate Social Responsibility (CSR) program is an investment for companies for the growth and sustainability of the company and is no longer seen as a cost center but as a means to become a profit center.The implementation of CSR in banking industry has the goal of making CSR as one of the companies to regulate their business not only for the benefit of shareholders but for other stakeholders. In addition, Corporate Social Responsibility (CSR) is also a challenge to maintain the company's reputation in the community.The issue of Corporate Social Responsibility (CSR) sticking out along with the development of a banking sector related to the need for disclosure of social responsibility in Islamic banking today, is widely discussed about the Islamic Social Reporting Index (ISR index). The ISR index contains compilation of standard items of CSR set by AAOIFI which were further developed by researchers regarding CSR items that should be disclosed by an Islamic entity. The Islamic Social Reporting (ISR) index is believed to be the initial benchmark in terms of disclosure standards for Corporate Social Responsibility (CSR) that are in accordance with the Islamic perspective. This research was conducted on Islamic banks in the Middle East region whose annual reports were announced through banking sites using a sample of Islamic bank annual reports published during the period 2015-2017.

scholarly journals Corporate Social Responsibility of Islamic Banks: CSR website visibility, CSR initiatives, CSR strategy

2021 ◽  
Vol 6 (2) ◽  
pp. 166
Author(s):  
Tahreem Noor Khan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Ethical Aspect ◽  
Islamic Banks ◽  
Moral Principles ◽  
Corporate Websites ◽  
Csr Strategy ◽  
Core Elements ◽  
Corporate Social

Purpose: The concept of Corporate Social Responsibility (CSR) has been widely known in the Islamic banking sector yet there is criticism and lack of trust which exists among stakeholdersDesign/Method/Approach: To reduce negative concern and to fill the gap in the literature, this research reinforces the integration of ethical and moral principles in the banking business.Findings: One of the integral and core elements of Islamic economics is ‘falah’; which focuses on wellness and the concept of reward in this world and hereafterOriginality/Values: To fulfil the needs of the ethical aspect of Islamic banks which leads to ‘falah’, this research has extracted the underlying theoretical issues of Islamic bank Corporate Social Responsibility (web visibility, initiatives, strategy).  This research also determines the extent of CSR visibility in twelve leading Islamic banks’ corporate websites.

Corporate Social Responsibility for Sustainable Strategy

2018 ◽  
Vol 9 (3) ◽  
pp. 1-14
Author(s):  
Neeta Baporikar
Keyword(s):  
Corporate Social Responsibility ◽  
Grounded Theory ◽  
Literature Review ◽  
Social Responsibility ◽  
Banking Sector ◽  
Theory Approach ◽  
Policy Makers ◽  
Corporate Social ◽  
Grounded Theory Approach

Growing importance of CSR is making the industry, governments, policy makers and international associations seriously view the issue of corporate social responsibility (CSR) with an aim to link sustainability for the organizations, sector and economy. Hence, more and more of them are entering the arena of setting guidelines on reporting CSR initiatives. Banking is no exception. Through in-depth literature review and grounded theory approach, this article delves into the CSR initiatives by Bank Windhoek, and the multi-pronged approach adopted in developing sustainable strategy in its pursuit and endurance to be a frontrunner in the Namibian banking sector.

scholarly journals The Impact of Financial Performance on Corporate Social Responsibility: An Empirical Analysis of Conventional and Islamic Banks of Pakistan

2018 ◽  
Vol 2 (2) ◽  
pp. 01-18
Author(s):  
Ummara Fatima ◽  
Uzma Bashir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Sector ◽  
Annual Reports ◽  
Islamic Banks ◽  
Conventional Banks ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The study explores how financial performance (FP) affects the corporate social responsibility (CSR) of the banking sector of Pakistan. Further, it also elaborates the comparison between FP and CSR of Islamic and conventional banks of Pakistan. The study is based on the annual reports of banks listed at Pakistan Stock Exchange (PSE) for the years 2010-2016. The study used several panel data diagnostic tests and three regression models to check the relationship between FP and CSR of Islamic and conventional banks of Pakistan, while taking leverage and size as control variables. The results indicate that in case of conventional banks the relationship between ROE and CSR is negative. Here, the results are consistent with the agency theory which states that investment in CSR related activities is a waste of resources. While return on asset (ROA) is depicting negative and insignificant relationship with CSR, which depicts that FP does not have any impact on the investment in CSR initiatives. In the case of Islamic banks, the relationship between return on equity (ROE) and CSR is positive and significant. Here, the results support social contract and stakeholder theories. The research has important practical consequences that will help the banking industry managers to adopt optimal investment strategies about CSR related activities. The study provides guidelines to conventional banks to invest more in CSR in the same way Islamic banks are doing. The findings of the study lay some foundations upon which a more detailed analysis of CSR of banks could be based.

scholarly journals Corporate social responsibility and financial performance: An empirical study on Egyptian banks

2015 ◽  
Vol 12 (2) ◽  
pp. 107-127 ◽  
Author(s):  
Hassan M. Hafez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Sector ◽  
Statistical Significance ◽  
Well Being ◽  
Corporate Image ◽  
Islamic Banks ◽  
Corporate Social ◽  
The Relationship

Due to the significance of the banking sector in the stability and welfare of any economy; it is important to constantly monitor and evaluate its performance. Most banks have incorporated social practices in their business operations regardless of the managers’ real intentions of whether it is for the corporate image that might lead to better performance; or it is for the well being of the environment or society overall. Consequently, the purpose of this study is to check if the concept of the CSR is widely applied to local, international and Islamic banks operating in Egypt over the interim period from 2005 to 2013 and if there is a difference in the application. Moreover does CSR really matters and affect banks’ financial performance. Descriptive statistics will be used. The difference in performance will be tested for statistical significance using one way ANOVA tests. The statistical study conducted on 34 banks categorized under Local commercial, International and Islamic banks are operating in Egypt. The relationship is neutral when it is looked at from the ROA measure. The banks’ Corporate Social Responsibility did not have any impact on the financial performance of the banks. However, the relationship was positive when the financial performance perspective was looked from the estimated ROE and NIM; it implies that banks’ corporate social responsibility practices not act as costs to shareholders as they do not reduce the returns. Whether the relationship is positive or neutral, the coefficient for both models are rather small as well as the model that resulted in Neutral relationship had lower standard of error which indicates that it is a better model compared to the model using ROE and NIM as the dependent variable. Therefore relationship is Neutral

scholarly journals Corporate social responsibility and financial performance: Fact or fiction? A look at Ghanaian banks

2014 ◽  
Vol 14 (1) ◽  
Author(s):  
Daniel F. Ofori ◽  
Richard B. Nyuur ◽  
Mildred D. S-Darko
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Relationship ◽  
Banking Sector ◽  
Primary Data ◽  
Debt Ratio ◽  
Corporate Social ◽  
The Impact ◽  
Structured Questionnaire

Orientation: With banks faced with fulfilling the increasing demands of diverse stakeholders, this study sought to explore the views and motives for corporate social responsibility practices in the Ghanaian banking sector and also to investigate any possible relationship between these practices and financial performance.Research purpose: This article examined the impact of corporate social responsibility on financial performance using empirical evidence from the Ghanaian banking sector.Motivation for the study: Although corporate social responsibility is a hot topic in Ghana and banks do practise it, no detailed study has been conducted to ascertain whether banks derive any benefits therefrom.Research design, approach and method: A sample size of 22 banks was involved. A structured questionnaire was used to obtain primary data whilst archival records were used to gather the secondary data.Main findings: The findings revealed that banks in Ghana view corporate social responsibility practices to be a strategic tool; banks are motivated to practise corporate social responsibility by legitimate reasons as much as they are motivated by profitability and sustainability reasons. Also, although there is a positive relationship between corporate social responsibility practices and financial performance, the financial performance of banks in Ghana does not depend significantly on their corporate social responsibility practices but rather on other control variables, such as growth, origin, debt ratio, and size.Practical implications: Properly adopted and implemented, corporate social responsibility can pay its way by contributing toward firm performance.Contribution: There is a positive but currently insignificant relationship between corporate social responsibility and financial performance amongst Ghanaian banks. However, given the numerous benefits of corporate social responsibility, it is recommended that firms continue to give priority to this practice.

Corporate social responsibility disclosures (CSRDs) in the banking industry: a study of conventional banks and Islamic banks in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tze Kiat Lui ◽  
Mohd Haniff Zainuldin ◽  
Ahmad Nazri Wahidudin ◽  
Chuan Chew Foo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Least Square ◽  
Ownership Concentration ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this study aims to empirically examine the corporate social responsibility disclosure (CSRD) levels of conventional and Islamic banks in Malaysia. Additionally, as Malaysian banks have different shareholding patterns that are more highly concentrated than those in the developed economies, this study also investigates the impact of ownership concentration on CSRD in both types of banks.Design/methodology/approachThis study employs hand-collected corporate social responsibility (CSR) data from the annual and sustainability reports of 21 conventional banks and 16 Islamic banks in Malaysia during 2010–2017. The data are then run using the pooled ordinary least square (OLS) with robust standard errors and robust regressions models together with all possible factors determining CSRD in the banking sector.FindingsThis study discovers that Islamic banks disclose a higher level of total CSRD than their conventional counterparts after controlling a number of important determinants of CSRD. These results remain consistent for four different dimensions of CSRD, i.e. employees, communities, environment and products and services. In relation to the impact of ownership concentration on CSRD level, the results show that high ownership concentration reduces the level of CSRD by Malaysian banks. However, in an additional interaction test, the result exhibits a complementary relationship between Islamic banks and ownership concentration in influencing CSRD level.Research limitations/implicationsThis study finds that the principle of Islamic accountability has been internalised by Islamic banks, and shaped them to put equal emphasis on the disclosure of CSR practices and the financial information disclosure.Practical implicationsIt is recommended for all banks to ensure the integration of a more comprehensive ethical system, such as theological ethical values in every aspect of their business activities. The findings from this study also highlight the necessity for the central bank to increase their monitoring role, especially towards banks with a more concentrated ownership structure by limiting the size of shareholdings by any particular types of owners.Originality/valueOnly a few studies have compared CSR practices between these two types of banks, and most of them are descriptive and qualitative in nature. This study is the first that uses a robust model with a high R-squared value, which control for all possible factors determining CSRD in the banking sector.

Perception of stakeholders on corporate social responsibility of Islamic Banks in Jordan

2016 ◽  
Vol 11 (1) ◽  
pp. 30-56 ◽  
Author(s):  
Venere Di Bella ◽  
Nedal Al-Fayoumi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Service ◽  
Financial Services ◽  
Banking Sector ◽  
Descriptive Analysis ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Corporate Social

Purpose – The purpose of this paper is to explore the various perceptions of stakeholders on corporate social responsibility (CSR) of Islamic Banks in Jordan. Design/methodology/approach – The data are collected from multiple stakeholder groups of two Islamic Banks in particular: Jordan Islamic Bank for Finance and Investment and Islamic International Arab Bank. The methods adopted to examine the data are the descriptive analysis and analysis of variance. With regard to the purpose of this research, the concept of Islamic CSR and its dimensions have been considered as: rooted in the Islamic ethical system, represented through the profit and loss arrangements, embedded within the principles behind financial services provided by Islamic Banks, and benchmarked by the Accounting and Auditing Organization of Islamic Financial Institutions’ (AAOIFI) corporate governance standard. Findings – The results indicate that stakeholders have expressed a positive attitude toward the concept of CSR. Proving that the issue of CSR is an important factor in Islamic banking and to the perception of various stakeholders’ groups, the focus shifted into identifying the dimensions which shape the Islamic CSR. In reference to previous research results, the Islamic banking sector in Jordan has an in-built dimension that promotes social responsibility. Practical implications – The study recommends that Islamic Banks improve CSR activities in order to better exploit this commitment with a cultural identity yet again. This identity has a direct influence on the branding of Islamic finance in local markets. The structure of offered products reflects regional beliefs and provides a suite of services. In terms of services, the services provided are geared toward specific market segments within local communities. This as a result directs a number of strategic decisions made by Islamic Banks, which are based on the structure of their offerings, brand identity and customer service levels. Originality/value – In Jordan, studies about the perception of stakeholders on CSR from an Islamic perspective are almost non-existent. Thus, providing solutions for study questions and presenting empirical evidence regarding CSR issues will certainly add a new dimension to the literature. Moreover, the conclusions and recommendations may help regulators and decision makers in enhancing the competitiveness and the sustainability of the Islamic banking sector in Jordan.

Sign in / Sign up

Export Citation Format

Share Document