The impact of Shariah supervisory board and Shariah audit committee on CSR adoption at Islamic banks

Journal of Asian Finance, Economics and Business (JAFEB), 8(3), 479–485.

7 Pages Posted: 9 Apr 2021

See all articles by K. M. Anwarul Islam

K. M. Anwarul Islam

The Millenium University

Mohammad Shamsus Sadekin

affiliation not provided to SSRN

Md. Tahidur Rahman

Bangladesh Army International University of Science and Technology (BAIUST) - Department of Business Administration

Md. Ariful Haque Chowdhury

affiliation not provided to SSRN

Date Written: March 31, 2021

Abstract

Although corporate social responsibility (CSR) is an extensively studied topic, its determinants in the field of Islamic banking are scarce. In Bangladesh, CSR plays a vital role in gaining customer loyalty and confidence. Therefore, this research aims to identify and analyze the influence of the Shariah Supervisory Board (SSB) and the Shariah Audit Committee (SAC) on CSR adoption in Islamic banks in Bangladesh. The study population is managers and second managers of 160 Islamic bank branches of different commercial banks in Dhaka, Bangladesh. The sampling technique used is convenience sampling where the first available primary data source was used for the research without additional requirements. The study developed a survey questionnaire from examining previous related studies in Islamic banking and CSR context. The final sample size in this research was n = 309, indicating the survey response rate was about 97%. The study used SPSS 23.0 software to interpret the statistical findings, and the findings revealed that support from the SSB and the presence of a strong and effective SAC has a strong correlation with CSR adoption and significantly influence CSR adoption in Islamic banks in Bangladesh. Finally, the study proposes several significant and crucial policy guidelines for Islamic bank branches to adopt CSR activities.

Keywords: Corporate Social Responsibility Adoption, Islamic Banks, Bangladesh, Shariah Supervisory Board, Shariah Audit Committee

JEL Classification: A13, G21, G28

Suggested Citation

Islam, K. M. Anwarul and Sadekin, Mohammad Shamsus and Rahman, Md. Tahidur and Chowdhury, Md. Ariful Haque, The impact of Shariah supervisory board and Shariah audit committee on CSR adoption at Islamic banks (March 31, 2021). Journal of Asian Finance, Economics and Business (JAFEB), 8(3), 479–485., Available at SSRN: https://ssrn.com/abstract=3822818 or http://dx.doi.org/10.2139/ssrn.3822818

K. M. Anwarul Islam (Contact Author)

The Millenium University ( email )

Dhaka
Bangladesh

Mohammad Shamsus Sadekin

affiliation not provided to SSRN

Md. Tahidur Rahman

Bangladesh Army International University of Science and Technology (BAIUST) - Department of Business Administration ( email )

Comilla Cantonment
Comilla, 3500
Bangladesh

Md. Ariful Haque Chowdhury

affiliation not provided to SSRN

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