Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions

Aribi, Zakaria Ali; Gao, Simon

Abstract

Purpose
The purpose of this paper is to examine the influence of Islam on corporate social responsibility disclosure (CSRD) in Islamic financial institutions (IFIs).
Design/methodology/approach
Using the content analysis approach, the paper examines the influences of Islam on CSRD by looking into the annual reports of 21 conventional financial institutions (CFIs) and 21 IFIs operating in the Gulf region.
Findings
The results show significant differences in the level and the extent of the disclosure between IFIs and CFIs, largely due to the disclosure made by IFIs of religions related themes and information, including Shari'a supervisory board reports, the “Zakah” and charity donation, and free interest loan.
Originality/value
This paper's contribution to the literature is twofold: the paper reveals the actual difference of CSRD between IFIs and non‐IFIs, by comparing the disclosures made by IFIs and non‐IFIs; and the paper identifies the extent of influence of Islam upon the CSRD of IFIs

Citation

Aribi, Z. A., & Gao, S. (2010). Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions. Journal of Financial Reporting and Accounting, 8(2), 72-91. https://doi.org/10.1108/19852511011088352

• Journal Article Type: Article
• Publication Date: Oct 26, 2010
• Deposit Date: Apr 9, 2015
• Journal: Journal of Financial Reporting and Accounting
• Print ISSN: 1985-2517
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 8
• Issue: 2
• Pages: 72-91
• DOI: https://doi.org/10.1108/19852511011088352
• Keywords: Corporate social responsibility; Disclosure; Islam; Financial institutions
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/7734
• Publisher URL: http://dx.doi.org/10.1108/19852511011088352