The Extent of Corporate Social Responsibility Engagement in Malaysian Banks Offering Islamic Banking Services

Abstract

This study explores the extent of corporate social responsibility (CSR) engagement in Malaysian banks offering Islamic banking services. A total of 16 banks (10 local banks and 6 foreign banks) offering Islamic banking services forms the sample for this research study. Only banks offering Islamic banking services and listed on the Kuala Lumpur Stock Exchange were selected for the purpose of this research. Banks websites and annual reports were studied to gather and analyse the data through content analysis. Results obtained indicated that the local and the foreign banks differed significantly in terms of their engagement in CSR-based activities, CSR reporting, CSR communication and CSR board structure. Evidently Malaysian banks offering Islamic banking services need to focus on embedding relevant alternative strategies in order to publicise widely about their engagement in CSR-based activities. This would further enhance the banks brand reputation and strengthen their internal and external communication strategies.