Social responsibility reporting of Islamic banks: evidence from Indonesia

Faizah Darus, Hasan Fauzi, Yadi Purwanto, Haslinda Yusoff, Azlan Amran, Mustaffa Mohamed Zain, Dayang Milianna Abang Naim and Mehran Nejati

International Journal of Business Governance and Ethics, 2014, vol. 9, issue 4, 356-380

Abstract: There is a growing global interest in social responsibility and sustainability across all sectors. Other than economic performance, stakeholders are now also concerned about the social and environmental impacts of corporations. Additionally, stakeholders are obtaining a higher salience level and expect organisations to operate sustainably. The banking sector has not been an exception, as banks can have significant impact on their customers, employees, and society in various ways. Given the intertwined links of Islam and ethical principles, it is expected that Islamic banks will show a high level of commitment towards social responsibility (SR) and ethical practices. The current study investigates this issue by examining the annual reports of three fully-fledged Islamic commercial banks in Indonesia over the period of 2007 to 2011. It was found that only two of the investigated banks had continuous improvement in their SR disclosure. Additionally, it was revealed that the highest disclosures have been for 'corporate vision' and 'board of directors and top management', while the lowest disclosures were evident for 'environment' and 'product, services and fair dealing with supply chain'.

Keywords: social reporting; corporate social responsibility; CSR; Islamic banks; annual reports; Indonesia; Islamic finance; ethics; ethical practices; commercial banks; banking industry; voluntary disclosure. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.inderscience.com/link.php?id=66275 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbget:v:9:y:2014:i:4:p:356-380

Access Statistics for this article

More articles in International Journal of Business Governance and Ethics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().