Evaluation of Social Responsibility at the Jordanian Islamic Banks using Balance Scorecard Method (original) (raw)
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2018
It is posited that Islamic Banking is meant to be socially responsible. Relating to this social responsibility, this paper undertakes two objectives. One is to develop an illustration of a corporate social responsibility (CSR) measurement index by allocating differential weights to process-based and outcome-oriented CSR measures. The illustrative index contains nine (9) process-based measurement items, which fall under three (3) dimensions: investment, research and development, and human resources. Outcome-oriented measurement items are eight (8), which represent three (3) dimensions: Shariah Supervisory Board (SSB), social activities and sharing, and environment. The way of deciding different weights for these two categories of measures is explained, and a possible method for validation of assigned weights is proposed. Another objective is to explain why CSR measures relating to core business processes should be given more weight than outcome-oriented CSR measures for Islamic banks...
10.17501/24246700.2020.6204, 2020
This paper attempts to explore the impact of corporate social responsibility activities on organizational performance through focusing on Turkish Islamic banks as a dynamic organization and growing at high rate over past two decades. The paper focused also on Turkish Islamic banks stakeholders' area which reflect the bank performance and CSR activities and how to monitor the impact through many tools, to explore this relationship, CSR activates used as the independent variable and organizational performance as the dependent variable within the theoretical framework and hypotheses addressed by the paper investigation. then depending on narrative approach of data collection through interviews, with different segments of stakeholders and discussions based on direct questions according to each segment type. Paper explained CSR definitions and theories, discussed its relationship with modern global trends and focused on stakeholder approach for explaining the real meaning of CSR. As this approach concerned about stakeholders needs and reflects the corporation interest from them. The paper used the stakeholders' approach in measuring social responsibility, where the impact of social responsibility was known through the direct approach towards the stakeholders. While for organizational performance focused on tools and models that measure performance, using the balanced score cards to apply it on the study through its four major sides (financial, operations, customers and research & development). Major recommendations focused on critical need of CSR deployment, with clear function/department in chars, CRS impact reputation directly, and the high demand on Islamic banking services may decline by time, but it can be maintained through CSR activities.
European Journal of Business and Management, 2013
This study aimed to assess the level of social responsibility in the service sector for the Jordanian companies by test several factors like: EPS, ROA, ROE, Div, NI, LEV, and Size (Z) & product age for the company (G) to determine the level of Social Responsibility. To achieve this study the researchers developed a list of indicators of social responsibility consisted of (25) items that applied to a sample of 58 Jordanian public shareholding service companies which a listed on the Amman Stock Exchange in 2012. The results showed that the service companies shoulder their responsibilities social by level (33.5%), and the index of social responsibility towards to human resources is the most attention by the companies, while their responsibilities towards to the environment are considered weak when compare it with other social indicators. And the results showed that the rate of return on equity is the most influential on social responsibility in service companies, and that there is a negative effect between the net operating profit and company's responsibility towards of society and the environment and the direction of the service, and positive effect of earnings per share and leverage on the direction of the social responsibility of human resources, and a negative effect on the size of the company's social responsibility towards of service.
CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC BANK'S PRACTICES: AN EXPLORATORY STUDY
The purpose of this paper is to explore the corporate social responsibility (CSR) practices of an Islamic bank, which is Bank Islam Malaysia Berhad (BIMB). This research used face-to-face interview technique as a research method in order to get data that are more accurate. The data analysis focuses on four CSR themes namely, zakat, charitable activities, employee and environment. The findings show that BIMB has applied CSR practices in various ways and does not merely focussing on zakat and charitable activities as debated in previous studies in other Islamic banks. This paper contributes to the growing debate on CSR among Islamic financial institutions especially in Islamic banking industry by exploring new visibilities.
This research addressed the issues of Commercial Banks and their roles in incorporating and establishing Social Responsibility (SR) (a case study of Jordan's Arab Bank as a Commercial Bank). It elucidated the concept of the commercial bank, its functions and features as well as explaining the concept of social responsibilities and its significance for the community. It investigated and evaluated the social contributions of Jordan's Arab Bank (JAB) during the year 2015. The main affirmative result of this research showed that there is a positive correlation between the social response, and economic and financial performance of commercial banks. This assures that establishing commercial banks boost (SR) and improve the performance of the bank, financially, economically, and socially. The findings of this study indicated that the AJB paid a considerable attention to consolidating the foundations of the (SR) in the Jordanian community by offering many necessary and vital services such as health and education services, the preservation of environment, fight against poverty and orphans support. These services qualified JAB to win Jordanian agents and community's trust. Finally, the services contributed to JAB expansion and development, together with obtaining the best award for the program of (SR) in 2015 from the EMEA finance magazine.
2015
The present research intends to examine the relationship between social responsibility and financial performance in commercial banks across Kurdistan. The present research has examined dimensions of social responsibility including economic responsibility, legal responsibility, moral responsibility, humanitarian responsibility and financial performance. The statistical population consists of the commercial banks across Kurdistan. Sample size (210) was selected via stratified sampling, that 230 questionnaires have been distributed considering 10% extra. Eventually, 218 questionnaires were received and analyzed. In addition, standard questionnaire has been used to collect data for social responsibility and financial information on revenue and profitability of banks during 2007-2012 has been used to collect information on financial performance. Further, validity of social responsibility questionnaire was confirmed by experts, which Cronbach's Coefficient Alpha was obtained equal to ...
The value of social responsibility, either individually or collectively, has been recognised throughout history. Major organisations throughout the world now realise that corporate social responsibility (CSR) is an important part of a company’s operations. It is not only because of its positive impact on business economic performance but also on society which in turn impacts positively on employees and the society at large. Islamic banks are not excluded from this responsibility. Therefore, the purpose of this study is to review the literature of CSR from an Islamic perspective and CSR of Islamic banks. Through literature review, it was found that there is no detailed study which determines the ruling of CSR from an Islamic perspective. The review also revealed the concern over CSR is significant to Islamic banks, and thus a standard and comprehensive CSR framework should be developed for Islamic banks best practices. KEYWORDS: Corporate Social Responsibility, Islamic Banks, Islamic Perspective.
This study aims to present a suggested framework for Corporate Social Responsibility (hereafter CSR) and to examine if there is a relationship between (CSR), bank size, the level of risk in the bank and Advertising Intensity (hereafter ADINT) on one hand and the Corporate Financial performance (hereafter CFP) on the other hand in the Jordanian banking companies.As such, this study relied on the financial reports from banking companies listed in Jordanian Stock Exchange for the year 2011 and conducted literatures and empirical studies to obtain the results. statistical techniques are used to analyze data. Throughout this study, it is concluded that there is a significant positive relationship between (CSR), bank size, the level of risk in the bank and (ADINT) on one hand and (CFP) on the other hand in the Jordanian banking companies.The study has insisted on the importance of adopting (CSR) in the banking sector and the importance of preparing more researches related to (CSR) field.
Qurtaba University of Science & Information Technology, Peshawar., 2019
The today's dynamic business environment demand organizations to meet expectations about good governance, business ethics and social responsibility. The research study aimed to describe the Islamic and conventional concept of Corporate Social Responsibility (CSR) by establishing their relationship with organization performance and draw comparison between the effectiveness of CSR in their performance. Top 3 Islamic and conventional banks were selected on the basis of superior performance as published in the year 2013. The secondary data were collected from annual reports, web sites and descriptive statistics revealed that conventional banks allocating increase amount on CSR practices, mostly in Education, Sports and Collaboration with Government. On other side, Islamic banks are found more inclined towards Health, Arts and Culture, Water purification, Special person, Relief & Disaster recovery & Social welfare. However both modes of banks are found mostly inclined towards philanthropic perspective. The primary data collected through survey from bank customers and employees and was tested through STATA. The finding of Regression analysis reveals that conventional banks were actively investing in dimensions like Human rights, fair labor practices, ethical conduct and community development initiatives. Almost similar findings were also found in Islamic banks. The results indicated that there is a significant relationship between CSR and organization performance in the context of customer satisfaction and employee performance. However, there is a need to develop a standard and comprehensive CSR framework for both banks regarding CSR practices in Pakistan.
International journal of economics and finance, 2016
This study aims at identifying the commitment of the Islamic banks working in Jordan to social responsibility as well as the indenturing of the accounting standards to the Islamic banks to disclose their social responsibility in their financial statements. The population of the study consisted of the managers and assistants of the Islamic banks’ branches working in Jordan or their deputies as a random sample was chosen from said population. (35) Questionnaires were distributed from which (30) questionnaires were recollected rating at (86%) of the study sample. The most important results of the study were that the Islamic banks perform their social responsibilities towards the local community in which they work in addition to the fact that the Islamic accounting standards care for accounting disclosure for the social dimension in the financial statements of the Jordanian Islamic banks in a periodical and organized manner. The study presented several recommendations such as the necess...