Open AccessCSR Contribution to Socio-Economic Development: Evidence from Indonesian Islamic Banks
Author(s) -
Aishath Muneeza,
Aminudin Ma’ruf,
Safeer Alam
Publication year - 2020
Publication title -
ihtifaz
Language(s) - English
Resource type - Journals
eISSN - 2622-4798
pISSN - 2622-4755
DOI - 10.12928/ijiefb.v3i1.949
Subject(s) - islam , indonesian , corporate social responsibility , prosperity , profitability index , credibility , business , accounting , exploratory research , microfinance , islamic banking , social responsibility , islamic finance , economics , political science , finance , economic growth , public relations , social science , law , sociology , philosophy , linguistics , theology
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.