Sharia Banking Transformation through Practices Islamic Corporate Social Responsibility (ICSR)

Ceta Indra Lesmana

doi:10.31943/afkarjournal.v7i2.988

Authors

Ceta Indra Lesmana Pesantren Universitas K. H. Abdul Chalim

DOI:

https://doi.org/10.31943/afkarjournal.v7i2.988

Keywords:

Sharia Banking, ICSR, Competitiveness, Customer Trust, Islamic Values

Abstract

The transformation of sharia banking through ICSR practices is an effort to increase competitiveness, customer trust and Islamic values in sharia banking practices. Implementing ICSR can provide significant benefits for sharia banking, customers and society as a whole. The implementation of ICSR practices by sharia banking creates a positive impact in building financial institutions based on Islamic principles. This is not only about building reputation, but also creating strong relationships based on social and moral values, which in turn strengthens integrity and increases customer and community trust. Implementing ICSR can increase the competitiveness of sharia banking by improving product and service quality, positive image and customer trust. Implementing ICSR can also improve customer experience, strengthen relationships between banks and customers, and have a positive impact on society as a whole. Consistent implementation of ICSR can help sharia banking to become more competitive, trusted by customers, and realize Islamic values in banking practices.

Downloads

Download data is not yet available.

References

ALQARAN-ALZIYADAT, N. A. S. E. R. A framework for corporate social responsibility in Islamic financial institutions: theory and evidence from GCC region. Diss. Durham University, 2016.

Budi, Ichsan Setiyo. "Islamic Corporate Social Responsibility (ICSR) disclosure and Islamic Banks (IBs) performance: The application of stakeholder theory from Islamic perspective." Jurnal Akuntansi dan Auditing Indonesia (2021): 76-86.

Burt, R. S. (1976). Interpretational Confounding of Unobserved Variables in Structural Equation Models. Sociological Methods & Research, 5(1), 3–52. https://doi.org/10.1177/004912417600500101

El-Hawary, D. A., Grais, W., & Iqbal, Z. (2004). Regulating Islamic Financial Institutions: The Nature of the Regulated. World Bank Policy Research Working Paper, 3227(April), 49

Fauzi, M., Akbarudin, W. H., Darmasetiawan, I. E., & Darussalam, A. (2020). Penerapan Tanggung Jawab Sosial Perbankan Syariah Milik Negara dengan Indeks Islamic Social Reporting. Jurnal Ilmiah Ekonomi Islam, 6(3), 488-500.

Hameed, T., & Daud, M. M. (2022). Islamic Corporate Social Responsibility (ICSR) and Financial Performance of Islamic Banks in Malaysia. Jurnal Ekonomi dan Bisnis Islam, 16(1), 13-29.

Haniffa, R. (2002). Social Responsibility Disclosure: An Islamic Perspective. Indonesian Management & Accounting Research, 1(2), 128–146.

Kalbuana, N., Sutadipraja, M. W., Purwanti, T., & Santoso, D. (2019). Pengaruh Profitabilitas, Leverage, Kinerja Lingkungan Terhadap Pengungkapan Islamic Social Reporting (Studi Empiris pada Perusahaan yang Terdaftar di JII Tahun 2013-2017). AKTSAR: Jurnal Akuntansi Syariah, 2(2), 233. https://doi.org/10.21043/aktsar.v2i2.6037

Mahmuda, Naila Al, and Dewan Muktadir-Al-Mukit. "Corporate social responsibility disclosures and profitability of Islamic banks: an empirical study." Social Responsibility Journal 19.6 (2023): 1142-1160.

Malik, M. Shoukat, and Muhammad Nadeem. "Impact of corporate social responsibility on the financial performance of banks in Pakistan." International Letters of Social and Humanistic Sciences 10.1 (2014): 9-19.

Marzuki, M. A., & Nurhayati, S. (2021). Pengaruh Islamic Corporate Social Responsibility (ICSR) terhadap Kinerja Keuangan Bank Umum Syariah di Indonesia. Jurnal Ilmiah Ekonomi Islam, 5(3), 438-451.

Muflih, Muhammad. "The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry." Journal of Retailing and Consumer Services 61 (2021): 102558.

Nugraha, E., Nugroho, L., Lindra, C., & Sukiati, W. (2020). Maqashid Sharia Implementation in Indonesia and Bahrain. Etikonomi, 19(1), 155–168. https://doi.org/10.15408/etk.v19i1.14655

Orlitzky, Marc, Frank L. Schmidt, and Sara L. Rynes. "Corporate social and financial performance: A meta-analysis." Organization studies 24.3 (2003): 403-441.

Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic Social Reporting Among Top Shariah-Approved Companies in Bursa Malaysia. Research Journal of Internatıonal Studıes, 12(October), 4–20

Platonova, Elena, et al. "The impact of corporate social responsibility disclosure on financial performance: Evidence from the GCC Islamic banking sector." Journal of Business Ethics 151 (2018): 451-471.

Puspawati, D., Wijayanti, R., & Abas, N. I. (2020). Islamic Social Reporting (ISR) Disclosure: Financial Performance Factor. SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS, 4(3), 229. https://doi.org/10.29259/sijdeb.v4i3.229-240

Putri, N., & Mardian, S. (2020). The Islamic Social Reporting Index and Investment Account Holder in Islamic Banks. Muqtasid: Jurnal Ekonomi Dan Perbankan Syariah, 11(1), 43–54. https://doi.org/10.18326/muqtasid.v11i1.43-54

Sardiyoa, S., & Martini, M. (2021). The Mediation of Islamic Social Reporting to Influence the Islamic Corporate Governance on Firm Value ( Study on Islamic Banking in Southeast Asia 2012-2016 ). Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(2), 139–153