Social responsibility disclosure in Islamic banks: a comparative study of Indonesia and Malaysia

Azlan Amran, Hasan Fauzi, Yadi Purwanto, Faizah Darus, Haslinda Yusoff, Mustaffa Mohamed Zain, Dayang Milianna Abang Naim, Mehran Nejati*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

71 Citations (Scopus)


Purpose: This paper aims to explore social responsibility reporting of full-fledged Islamic banks in two developing countries, namely, Indonesia and Malaysia. Corporate social responsibility (CSR) has become an important aspect of business society. As such, companies have shown a growing interest in reporting their social and environmental initiatives. Design/methodology/approach: Content analysis of the annual reports for three full-fledged local Islamic banks in Indonesia and three Islamic banks in Malaysia was carried out for the period of 2007-2011. Findings: Results of the study revealed that CSR disclosure of Islamic banks has generally grown both in Malaysia and Indonesia. More specifically, it was found that workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. Research limitations/implications: The current study provides a cross-cultural perspective on social responsibility disclosure in Islamic banks across two countries. The study is limited by investigating a five-year time frame. Practical implications: By discussing the findings according to the stages of growth model for CSR, the authors suggest that Islamic banks can enhance their responsiveness, and transform their role from being CSR reporters of social responsibility to responders. Originality/value: While the tenets of CSR have a lot in common with Islamic moral law (Shariah), little is known about CSR disclosure of Islamic banks.

Original languageEnglish
Pages (from-to)99-115
Number of pages17
JournalJournal of Financial Reporting and Accounting
Issue number1
Publication statusPublished - Apr 10 2017
Externally publishedYes


  • Content analysis
  • Corporate social responsibility
  • CSR reporting
  • Islamic banks

ASJC Scopus subject areas

  • Management Information Systems
  • Accounting
  • Economics, Econometrics and Finance (miscellaneous)

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