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significant that has been determined, or t-test in t column larger than t-table counting from two tailed α = 5 df = n – k, k is a total
independent variable.
E. Operational Variable
In understanding the research, therefore it must be an understanding in the variable of the research:
1. Independent Variable The independent variable is Islamic value which follows the
benchmark of Haniffa 2002: 101. Haniffa benchmark considers in developmental goals that relate with Islamic value. The independent
variable is variable that will influence the other variable. 2. Dependent variable
Dependent Variable is variable that changes because of the independent variable. The dependent variable is social reporting which
follows the benchmark of Maali et al 2004: 279.
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Table 3.1 Instrument of Independent Variable
Area Items to be disclosed
Zakah Statement of sources and uses of Zakah
The balance of the Zakah fund, and reasons for non-distribution Sharia Board attestation regarding the computation and distribution of
the funds Quard
Hassan The amount and the sources and uses of such Funds qard hasan
The amounts given to beneficiaries The policy of the bank in providing such loans
The policy of dealing with insolvent beneficiaries charity
The amount and the sources and uses of charity funds, separate from the zakah funds.
Employees Employees’ welfare;
Training and development Amount spent on training,
Provision of special training or recruitment schemes Equal opportunity;
Reward to employees Debt
Debt policy and type of debt Amount of debts written off.
Community Involvement
Creating job opportunities; Supporting organisations that benefit society and participating in
government social activities; Sponsoring Islamic educational and social events
Source: Haniffa and Hudaib. Exploring The Ethical Identity of Islamic Bank. 2007. 101.
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Table 4 Instrument of Dependent Variable
category Items to be disclosed
sharia opinion Report of Sharia Supervisory Board Required
unlawful haram transaction
Nature of unlawful transactions Reasons for undertaking such transactions
The Sharia Board view about the necessity of these transactions The amount of revenue or expenses from these transactions
How the bank disposed, or intends to dispose, of such revenues zakah
Statement of sources and uses of Zakah The balance of the Zakah fund, and reasons for non-distribution
Sharia Board attestation regarding the computation and distribution of the funds
Quard hassan Sources of funds allocated to Quard
The amounts given to beneficiaries The social purposes for which the funds were given
The policy of the bank in providing such loans The policy of dealing with insolvent beneficiaries
charitable and social activities
The nature of charitable and social activities financed The amount spent on these activities
The sources of funds used to finance these activities employees
The policy on wages and other remuneration The policy on education and training of employees
The policy of equal opportunities The policy on the working environment
late repayments and insolvent clients
The policy in dealing with insolvent clients The amount charged as late penalty, if any
The Sharia Board’ s opinion regarding the permissibility of imposing additional charges such as late penalties
environment The amount and nature of any donations or activities undertaken
to protect the environment The projects financed by the bank that may lead to harming the
environment other aspects of
community involvement
The bank’s role in economic Development The bank’s role in addressing social problems
Source: Maali et al. Social reporting by Islamic Banks. 2006. 279.
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CHAPTER 1V RESULT AND FINDING
