Corporate Social Responsibility Disclosure and Its Impact on Financial Performance: Evidence From the GCC Islamic Banking Sector (2000–2024)

Fadi Al‐Asfour

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 6, 8295-8315

Abstract: This study investigates the relationship between corporate social responsibility (CSR) disclosure and financial performance among Islamic banks in the Gulf Cooperation Council (GCC) region from 2000 to 2024. Drawing on a unique CSR disclosure index grounded in AAOIFI standards and content analysis of 285 annual reports from 35 fully‐fledged Islamic banks, the study finds a robust positive association between CSR disclosure and both current and future financial performance. While the composite CSR index shows strong positive effects, only two individual dimensions—“mission and vision” and “products and services”—are significantly correlated with improved financial outcomes. The results remain consistent across alternative profitability measures and withstand endogeneity checks. This research extends the stakeholder and good management theories to the context of Islamic finance and highlights the strategic value of CSR in aligning financial performance with Islamic ethical principles.

Date: 2025
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https://doi.org/10.1002/csr.70124

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:6:p:8295-8315

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