Exploring corporate social responsibility disclosure: the case of Islamic banks

Abstract

Purpose

The purpose of this paper is to explore whether any discrepancy exists between the corporate social activities disclosed in the annual reports of Islamic banks and the corporate social responsibility (CSR) disclosure index which has been developed based on the Islamic business ethics framework.

Design/methodology/approach

This paper reports on a survey of annual reports of seven Islamic banks using the method of content analysis to measure the volume of CSR disclosure.

Findings

The results show the overall mean CSR disclosure index of one Islamic bank out of seven to be above average and the issues of CSR are not of major concern for most Islamic banks.

Research limitations/implications

CSR disclosure in the Islamic banks is experimental and could be explored in greater depth in future studies.

Practical implications

The findings have important implications for academics and researchers, as they pave the ways for further investigation. The results also have important implication for Accounting and Auditing Organisation for Islamic Financial Institutions in developing a CSR reporting standard if Islamic banks are to enhance their image and reputation globally, as well as to remain competitive.

Originality/value

The paper contributes to the growing debate on CSR in ethical perspective and key underlying issues associated with the emergence of new disclosure practices for Islamic financial institutions. Through this paper, new visibilities explored, and competing dilemmas opened up.

Citation

Hassan, A. and Syafri Harahap, S. (2010), "Exploring corporate social responsibility disclosure: the case of Islamic banks", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 3 No. 3, pp. 203-227. https://doi.org/10.1108/17538391011072417