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13). Corporate social responsibility in Islamic perspective is derives itself from core principles in the holy Qur’an. There are three major fundamentals principles for Islamic CSR are; the vicegerency of mankind on earth, divine accountability and the duty on mankind to enjoin and forbid evil. There will be differentiation between Islamic Financial Institutions (IFI’s) and Conventional Financial Institutions (CFI’s) in terms of CSR
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2005) measure the level of CSR disclosure in Shari’a-approved companies in Malaysia. They find that, there is more company in Malaysia disclosed their social activities in the annual reports and the relationship between the levels of CSR disclosure the number of Islamic equity fund holding shares in the companies is parallel to the level of social activities disclosed by the companies. (Maali et al. 2006) state that it fails to reveal the actual differences od CSR disclosure between IFIs and CFIs. But (Gallhofer and Haslam, 2006) state that, in the most of disclosure there were little differences between IFIs and CFIs, suggesting that some common themes and concerns are applicable to all financial institutions, regardless of their business ethic and objectives. The primary objective is to ensure that the organization discharge the Islamic concept of accountability. Under the statutory requirement Accounting and Auditing Organization for Islamic Financial institutions (AAOIFI) standards the disclosure includes zakah, charity donation and free interest loan statement and …show more content…
These sources of the literature and designed to investigate and produce knowledge about the CSR disclosure of business organizations. This paper of study also using analysis approach to examines the influences of Islam on CSR disclosure by looking into the annual reports of 21 conventional financial institutions (CFIs) and 21 Islamic financial institutions (IFIs) operating in the Gulf region. Of the 42 financial institutions that were included in the sample, 21(50 per cent) were fully Shari’a-approved Islamic Financial Institution (IFIs) and the rest were conventional financial institutions (CFIs). Since the aim of this study is to compare CSR disclosure between IFIs and CFIs the entire population of IFIs was obtained from General Council of Islamic Banks and financial institutions. To make a valid comparison the similar years of annual report from 42 companies was obtained. Those firms are randomly selected from companies listed on the stock exchange in the region. Content analyses require the researcher to implement a coding (checklist) scheme. In this study, a checklist instrument describing the themes and sub-themes for CSR disclosure was designed based on Arab Muslim countries. Some checklist is required by the
2005) measure the level of CSR disclosure in Shari’a-approved companies in Malaysia. They find that, there is more company in Malaysia disclosed their social activities in the annual reports and the relationship between the levels of CSR disclosure the number of Islamic equity fund holding shares in the companies is parallel to the level of social activities disclosed by the companies. (Maali et al. 2006) state that it fails to reveal the actual differences od CSR disclosure between IFIs and CFIs. But (Gallhofer and Haslam, 2006) state that, in the most of disclosure there were little differences between IFIs and CFIs, suggesting that some common themes and concerns are applicable to all financial institutions, regardless of their business ethic and objectives. The primary objective is to ensure that the organization discharge the Islamic concept of accountability. Under the statutory requirement Accounting and Auditing Organization for Islamic Financial institutions (AAOIFI) standards the disclosure includes zakah, charity donation and free interest loan statement and …show more content…
These sources of the literature and designed to investigate and produce knowledge about the CSR disclosure of business organizations. This paper of study also using analysis approach to examines the influences of Islam on CSR disclosure by looking into the annual reports of 21 conventional financial institutions (CFIs) and 21 Islamic financial institutions (IFIs) operating in the Gulf region. Of the 42 financial institutions that were included in the sample, 21(50 per cent) were fully Shari’a-approved Islamic Financial Institution (IFIs) and the rest were conventional financial institutions (CFIs). Since the aim of this study is to compare CSR disclosure between IFIs and CFIs the entire population of IFIs was obtained from General Council of Islamic Banks and financial institutions. To make a valid comparison the similar years of annual report from 42 companies was obtained. Those firms are randomly selected from companies listed on the stock exchange in the region. Content analyses require the researcher to implement a coding (checklist) scheme. In this study, a checklist instrument describing the themes and sub-themes for CSR disclosure was designed based on Arab Muslim countries. Some checklist is required by the