CSR and Sustainability of Islamic Banking: The Bankers View

Shifa Mohd Nor, Noor Azuan Hashim

Abstract


ABSTRACT

Islamic banking (IB) practices have spread throughout the World, not only in Muslim countries but also in the West. To sustain in the very competitive market, Islamic banking must be outstanding and resilience from other conventional banks. Hence sustainable banking theme is deemed to be relevant to its operation by incorporating corporate social responsibility (CSR) and sustainable development concepts. Little that we know about CSR and sustainable development practices of Islamic banking from the managerial views. This paper attempts to explore the social responsibility and sustainability dimension of Islamic banking in Malaysia from the management insights. This is an inductive research employing semi-structured interview survey of 11 important Islamic bankers holding various positions. Thematic analysis approach was used to analyse data. The study reveals that Islamic banks are encouraged to perform various CSR activities however activities leading to significant socioeconomic impact are still lacking. Social banking may provide the answer.

Keywords: CSR; sustainable development; Islamic banking; social banking

ABSTRAK

Amalan perbankan Islam (IB) telah tersebar di seluruh dunia, bukan sahaja di negara-negara Islam tetapi juga di negara-negara Barat. Untuk bertahan dalam pasaran yang sangat kompetitif, perbankan Islam mestilah kukuh dan berdaya tahan daripada bank-bank konvensional yang lain. Oleh itu, tema perbankan mampan dianggap sebagai relevan dengan operasinya dengan menggabungkan tanggungjawab korporat sosial (CSR) dan konsep pembangunan mampan. Amat sedikit yang kita tahu tentang CSR dan amalan pembangunan mampan perbankan Islam daripada pandangan pengurusan. Kertas kerja ini cuba untuk meneroka tanggungjawab sosial dan dimensi kemampanan perbankan Islam di Malaysia daripada pandangan pengurusan. Kajian ini adalah berbentuk induktif dengan menggunakan kajian temu bual separa berstruktur daripada 11 pegawai penting bank Islam yang memegang pelbagai jawatan. Pendekatan analisis tematik digunakan untuk menganalisis data. Kajian ini mendedahkan bahawa bank-bank Islam adalah digalakkan untuk melakukan pelbagai aktiviti CSR, walau bagaimanapun aktiviti yang membawa kepada kesan sosioekonomi yang ketara masih lagi kurang. Perbankan sosial mungkin boleh memberikan jawapannya.
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Kata kunci: CSR; pembangunan mampan; perbankan Islam; perbankan sosial


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