The analysis of corporate social responsibility of islamic banks in the Indonesia by using islamic social reporting index | Arfan | Proceedings of AICS - Social Sciences 5961 12260 1 SM
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
THE ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC
BANKS IN THE INDONESIA BY USING ISLAMIC SOCIAL REPORTING INDEX
MUHAMMAD ARFAN, FUTRI MULIYATI HISDA
1
Faculty of Economics, Syiah Kuala University, Banda Aceh;
Faculty of Economics, Syiah Kuala University, Banda Aceh.
Correspondingauthor: arfan_was@yahoo.com
2
ABSTRACT
The purpose of this research is to analyze the corporate social responsibility of islamic
bank by using islamic social reporting (ISR) index.The research was conducted on Islamic
banks listed at Bank Indonesia in 2009, 2010, and 2011. The reaserch type used is descriptive
reasearch by using content analysis method.The population of this research are islamic banks
listed at Bank Indonesia in 2009-2010. After being observed, the total population are26 islamic
banks for three years observation.The source of data is secondary data which is obtained from
annual report for the book year ended December 31, 2009, 2010, and 2011.
The results
of this research showthatthe corporate social responsibility of islamic banks in Indonesia is so
variative.Generally, based on themes of ISR index, the corporate social responsibility of 5
islamic banks is low in 2009. While in 2010, the corporate social responsibility of 10 islamic
banks is among medium-high, and also it was happened in 2011. There are six themes in ISR
index i.e. funding/investment, product/service, employee, society, environment,and good
corporate governance.ISR index for product/service andgood corporategovernance are the
highest theme each year. While, funding/investment and environment are stabil. Then,
employee andsociety increase 10% in 2010. It means that the social activity of islamic banks
is organized consistently and going sustainability.
Keywords: Corporate social responsibility, islamic social reporting index, and islamic banks.
Introduction
The study of CSR(Corporate Social Responsibility) measuring methodshas been widely
applied in various countries due to issues of CSR becomes aimportant matter in the past few
decades. Sofyani et al. (2012) stated that the concept of CSR is preferred in Islam. Institutions
that do business based on sharia is essentially based on the fundamental Qur'an and the Sunna
philosophy, which is the basic for good interaction with the environment and each other.
Along with the rapid development of Islamic banking, financial institutions have done
CSR in some publicsectors. The amount of CSR funds from Islamic banking in 2009 was Rp
1.45 trillion. In 2010 a large total of Islamic banking’s CSR funds reached Rp 1.74 trillion. In
this case iB (Islamic Bank) will distribute the CSR funds to tree parts; 50 percent for microeconomic entrepreneurs, 25 percent for education, and 25 percent for natural disaster relief and
other social activities (Vivanews, 2009).
Nowadays, associated with the disclosure requirements of social responsibility in
Islamic banking, prevalent discussed the Islamic Social Reporting Index or ISR index (Sofyani
et al., 2012)). In particular index ISR is an extension of social reporting which includes not
only the public's expectations about the company's role in the economy, but also the company's
role in the spiritual perspective (Haniffa, 2002). Thus, researchers interested in analysis how
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
the social performance of Islamic banking that listed in Bank Indonesia by using the ISR index
during the period 2009-2011. This research aims to determine the social performance of Islamic
Banking by using ISR index.
Literatatures Review
Definition of CSR by WBCSD (World Business Council for Sustainable Development)
in Watts and Holme (1999) is "corporate social responsibility is the continuing commitment
by business to behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community and society
at large". CSR is a company's commitment as a business to behave ethically and contribute to
economic development of the country.
Islam is a complete religion which govern all aspects of human life on the earth. Siwar
and Hossain (2009) stated that the basic foundation of the religion of Islam is belief and faith,
worship, and morality and ethics. One form of accountability in Islamic perspective is the
implementation of social performance and social performance reporting that according to
Islamic principles.
According to Haniffa (2002) that takes a special framework for social accountability
reporting as a social performance measurement of a company in accordance with Islamic
principles. This framework is known as ISR index (Islamic Social Reporting index). Islamic
principles inISR index is generating aspects of the material, moral, and spiritual that became
the main focus of this form of social performance and corporate social responsibility reporting.
There are six themes in ISR index disclosure framework is used in this research refers
to Sofyani et al. (2012) such as financing and investment, products and services, employees,
community, environment, and corporate governance. Each theme consists of several items such
as attached in Appendix 1.
Othman and Thani (2010) in their research of Islamic Social Reporting of the listed
companies in stock exchange of Malaysia concluded that the Islamic Social Reporting in the
annual report index companies listed in stock exchange of Malaysia is still relatively low.
While, Zubairu et al. (2011) in their research of social performance disclosure of Islamic Banks
in Saudi Arabia concluded that Islamic Banks have a lot in common with a conventional bank
located in Saudi Arabia, the Islamic Banks should carry out various forms of activities based
on sharia, but in reality between Islamic Banks and conventional banks have not clearly visible
differences. Sofyani et al. (2012) in their research of Islamic Social Reporting as an index of
social performance measurement model of Islamic banking (comparative study of Bank
Malaysia and Bank Indonesia) concluded that the overall social performance train-average
Islamic banking in Malaysia is higher than in Indonesia. Social performance of Islamic banking
in Indonesia in 2010 has increased significantly, about 10% of the earlier (2009). While social
performance in the Malaysian Islamic banking system is stable because it does not increase or
decrease. However, of all the Islamic banks, both Indonesian and Malaysia banking, none of
which reach very good performance levels.
Research Methodology
This research refers to research design suggested by Sekaran and Bougie (2010:152)
based on the aspects that have to be meet. Nature of the research conducted is a descriptive
research. The level of intervention is minimal. Situation in this research was not set. Time
horizon is cross sectional in 2009-2011. The unit of analysis is the organization that are Islamic
Banks listed in Bank Indonesia. The names of Islamic Banks can be seen in Table 1. The data
used is secondary data. Secondary data required is the annual report of Islamic Banks listed in
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
Bank Indonesia during the period 2009-2011. Data collection techniques in this research are
conducted through library research and field study.
Table 1. Bank Umum syariah listed in Bank of Indonesia
No.
Syariah Public Banks
1.
PT BANK BNI SYARIAH
2.
PT BANK MUAMALAT INDONESIA
3.
PT BANK SYARIAH MANDIRI
4.
PT BANK SYARIAH MEGA INDONESIA
5.
PT BANK BCA SYARIAH
6.
PT BANK BRI SYARIAH
7.
PT BANK JABAR BANTEN SYARIAH
8.
PT BANK PANIN SYARIAH
9.
PT BANK SYARIAH BUKOPIN
10.
PT BANK VICTORIA SYARIAH
11.
PT BANK MAYBANK
Source: www.bi.go.id
In accordance with the purpose of this research, the method of measurement used is the
Islamic Social Reporting (ISR) Index which is obtained from each company every year. The
index value is obtained by using the method of content analysis. Content analysis is a method
of analysis that is often used to identify contents in the annual report (Othman and Thani, 2010).
ISR Index in this research consisted of 38 items that organized into 6 themes. ISR index
items are presented in Appendix 1. The first step is checklist on each item which reveals the
social activity on the financial statements of Islamic banks (Sofyani et al., 2012). The second
step, give a score for each item. If there is one item that disclosed it will get score "1" and if
not then it will get score "0". These values will be summed according to both individual and
overall theme. According to the total value of each theme will show what the main focus of
each company. Thus, the largest value is 38 and the smallest value is 0 for each company every
year.
The third step is to calculate the percentage of the social performance of each Islamic
Banks annually either by theme or as a whole. Then the percentages might be considered a
social performance levels suggested by Othman et al. (2009) (see Table 2).
Table 2. The social value categoriesl
Percentage
Category
0-20%
Very low
21-40%
Low
41-60%
Moderate
61-80%
High
81-100%
Very high
Source: Othman et al. (2009)
Results and Discussion
Funding and Investment
Percentage level of social performance Islamic Banks for funding and investment
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
themes period 2009-2011 are shown in Table 3.
Table 3. The Rate of Islamic Bank’s CSRin Funding and Investment
Syariah Puclic
2009
2010
2011 Rate
Reporting Items
Banks
1.
PT Bank Muamalat
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
Indonesia
value added
statement
2.
PT Bank
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
SyariahMandiri
value added
statement
3.
PT Bank Syariah
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
Mega Indonesia
value added
statement
4.
PT Bank
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
BriSyariah
value added
statement
5.
PTBank
50%
50%
Moderate
3 of 6
Riba, zakat,
BcaSyariah
value added
statement
6.
PT Bank
50%
50%
Moderate
3 of 6
Riba, zakat,
BniSyariah
value added
statement
7.
PT Bank
33,33% 33,33% 33,33% Low
2 of 6
Riba, zakat
SyariahBukopin
8.
PT Bank Victoria
33,33% 33,33% Low
2 of 6
Riba, zakat
Syariah
9.
PT Bank
33,33% Low
2 of 6
Riba, gharar
MaybankSyariah
10. PT Bank
16,67% 16,67% Very low
1 of 6
Riba
JabarBantenSyariah
11. PT Bank
16,67% 16,67% Very low
1 of 6
Riba
PaninSyariah
Source: Data processed(2013)
No
Products and Services
Percentage rate ofIslamic Banks social performance of products and services theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
during 2009-2011 are shown in Table 4.
Table 4. The Rate of Islamic Bank’s CSRin Product and Service Theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
No
Syiah Pyblic
Bank
PT Bank
1. Muamalat
Indonesia
2.
PT Bank
Syariah Mandiri
PT Bank
3. Syariah Mega
Indonesia
2009
2010 2011
Category
Reporting
75%
75%
75%
High
3 of 4
75%
75%
75%
High
3 of 4
75%
75%
75%
High
3 of 4
4.
PT Bank Bri
Syariah
75%
75%
75%
High
3 of 4
5.
PTBank Bca
Syariah
75%
75%
75%
High
3 of 4
6.
PT Bank Bni
Syariah
-
75%
75%
High
3 of 4
7.
PT Bank
Syariah Bukopin
-
75%
75%
High
3 of 4
8.
PT Bank
Victoria Syariah
-
75%
75%
High
3 of 4
-
75%
75%
High
3 of 4
PT Bank
9. Maybank
Syariah
10
PT Bank Jabar
Banten Syariah
-
75%
75%
High
3 of 4
11.
PT Bank Panin
Syariah
-
-
75%
High
3 of 4
Items
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
Employee
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
Percetage rate of Islamic Banks social performance of employees theme during 20092011 are shown in Table 5.
Table 5. The Rate of Islamic Bank’s CSR in Employee Theme
No
Syariah
Public Banks
1
PT BANK
BNI
SYARIAH
2
PT BANK
SYARIAH
MANDIRI
2009
-
2010
2011
Category Reporting Items
85,70% 85,70%
very high
6 of 7
71,40% 85,70% 85,70%
very high
6 of 7
3
PT BANK
MUAMALAT 71,40% 71,40% 71,40%
INDONESIA
High
5 of 7
4
PT BANK
SYARIAH
MEGA
INDONESIA
71,40% 71,40% 71,40%
High
5 of 7
5
PT BANK
BRI
SYARIAH
71,40% 71,40% 71,40%
High
5 of 7
6
PT BANK
SYARIAH
BUKOPIN
71,40% 71,40% 71,40%
High
5 of 7
7
PT BANK
JABAR
BANTEN
SYARIAH
High
5 of 7
-
71,40% 71,40%
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development,
working
environment.
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development,
working
environment.
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
8
PT BANK
PANIN
SYARIAH
-
71,40% 71,40%
High
5 of 7
9
PT BANK
BCA
SYARIAH
-
71,40% 71,40%
High
5 of 7
10
PT BANK
VICTORIA
SYARIAH
-
71,40% 71,40%
High
5 of 7
11
PT BANK
MAYBANK
SYARIAH
-
High
5 of 7
-
71,40%
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
Community
Percentage rate of Islamic Banks social performance ofcommunity theme during 20092011 are shown in Table 6.
Table 6. The Rate of Islamic Bank’s CSRin Community Theme
No
Syariah Public
Bank
2009
2010
2011
Category
Reporting
1
PT BANK
MUAMALAT
INDONESIA
100%
100%
100%
very high
10 of 10
2
PT BANK
SYARIAH
MANDIRI
90%
100%
100%
very high
10 of 10
Items
Sadaqah, waqaf,
qardhasan, employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
Sadaqah, qardhasan,
employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,
Underprivilage
Community, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,
Underprivilage
Community, children
care, sponsoring publiic
health
Sadaqah, qardhasan,
employee volunteerism,
Underprivilage
Community, children care
Sadaqah, qardhasan,
employee volunteerism,
Underprivilage
Community, children care
3
PT BANK BNI
SYARIAH
-
90%
90%
very high
9 of 10
4
PT BANK
SYARIAH
MEGA
INDONESIA
60%
70%
70%
High
7 of 10
5
PT BANK BCA
SYARIAH
-
70%
70%
High
7 of 10
6
PT BANK BRI
SYARIAH
50%
50%
50%
moderate
5 of 10
7
PT BANK
SYARIAH
BUKOPIN
50%
50%
50%
moderate
5 of ten
-
20%
20%
very low
2 of 10
sadaqah, qardhasan
-
20%
20%
very low
2 of 10
sadaqah, qardhasan
-
10%
10%
very low
1 of 10
graduate employment
-
-
0%
very low
none
8
9
10
11
PT BANK
JABAR
BANTEN
SYARIAH
PT BANK
VICTORIA
SYARIAH
PT BANK
PANIN
SYARIAH
PT BANK
MAYBANK
SYARIAH
none
Environment
Percentage rate ofIslamic Banks social performance of environment theme during
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
2009-2011 are shown in Table 7.
No
1
2
3
4
5
6
7
8
9
10
11
Table 7. The Rate of Islamic Bank’s CSRin Environment Theme
Syariah Public
2009
2010
2011
Category Reporting Items
Bank
concervation of
PT BANK
environment,
MUAMALAT 50%
50%
50%
moderate 3 of 6
polution,
INDONESIA
education
PT BANK
concervation of
SYARIAH
environment,
33,33% 33,33% 33,33% low
2 of 6
MANDIRI
polution
concervation of
PT BANK BNI
33,33% 33,33% low
2 of 6
environment,
SYARIAH
polution
PT BANK
SYARIAH
0%
0%
0%
very low none
none
MEGA
INDONESIA
PT BANK
BCA
0%
0%
very low none
none
SYARIAH
PT BANK BRI
0%
0%
0%
very low none
none
SYARIAH
PT BANK
JABAR
0%
0%
very low none
none
BANTEN
SYARIAH
PT BANK
0%
0%
very low none
none
PANIN
SYARIAH
PT BANK
SYARIAH
0%
0%
0%
very low none
none
BUKOPIN
PT BANK
VICTORIA
0%
0%
very low none
none
SYARIAH
PT BANK
MAYBANK
0%
very low none
none
SYARIAH
Corporate Governance
Percentage rate ofIslamic Banks social performance of corporate governance theme
38
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
during 2009-2011 are shown in Table 8.
Table 8. The Rate of Islamic Bank’s CSRin Corporate Governance Theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
No
Syariah Public
Bank
2009
2010
2011 Category
Reporting Items
1
PT BANK BNI
SYARIAH
-
100%
100% very high
5 of 5
2
PT BANK
MUAMALAT
INDONESIA
100%
100%
100% very high
5 of 5
3
PT BANK
SYARIAH
MANDIRI
100%
100%
100% very high
5 of 5
4
PT BANK
SYARIAH
MEGA
INDONESIA
100%
100%
100% very high
5 of 5
5
PT BANK BCA
SYARIAH
-
100%
100%
5 of 5
6
PT BANK BRI
SYARIAH
100%
100%
100%
very high
very high
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
7
8
9
10
11
PT BANK
JABAR
BANTEN
SYARIAH
PT BANK
PANIN
SYARIAH
PT BANK
SYARIAH
BUKOPIN
PT BANK
VICTORIA
SYARIAH
PT BANK
MAYBANK
-
-
100%
-
-
100%
100%
100%
100%
-
100%
100%
100%
100%
100%
very high
very high
very high
very high
very high
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Based on 6 theme of ISR index that has been shown previously, the results of reporting
score on the social performance of Islamic banking by using ISR index models can be seen in
Table 9.
Table 9. Social PerformanceRate ofIslamic Banks By Using ISR Index
No
1
Syariah Public Bank
PT BANK MUAMALAT
2009
76%
2010
76%
2011
76%
41
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
INDONESIA
2
PT BANK SYARIAH MANDIRI 71%
76%
76%
3
PT BANK BNI SYARIAH
71%
71%
4
PT BANK BCA SYARIAH
61%
61%
PT BANK SYARIAH MEGA
5
58%
60%
60%
INDONESIA
6
PT BANK BRI SYARIAH
55%
55%
55%
7
PT BANK SYARIAH BUKOPIN 53%
53%
53%
PT BANK VICTORIA
8
45%
45%
SYARIAH
PT BANK JABAR BANTEN
9
42%
42%
SYARIAH
10
PT BANK PANIN SYARIAH
40%
40%
PT BANK MAYBANK
11
40%
SYARIAH
Table 9 shows that in 2009, Bank Muamalat exists at the level of social performance
by 76% (high), Bank SyariahMandiri amount to 71% (high), Bank Syariah Mega Indonesia by
58% (moderate), Bank Syariah BRI by 55% (moderate ), and Bank SyariahBukopin by 53%
(moderate).
Based on Table 9 it can be seen that in 2010 the Bank Muamalat (76%), Bank
SyariahMandiri (76%), Bank BNI Syariah (71%) and Bank BCA Syariah (61%) with high
social performance, while Islamic Banks with moderate levels of social performance (41-60%)
are Bank Syariah Mega Indonesia (60%), BRI Syariah (55%), SyariahBukopin (53%), Victoria
Syariah (45%), and Bank JabarBantenSyariah (42%). Meanwhile, Islamic Banks with low
social performance (21-40%) are Bank PaninSyariah (40%). During the years 2009-2010, there
were 3 Islamic Banksconsistenlydo social performance with the previous year, such as Bank
Muamalat, BRI Syariah and BukopinSyariah. While two others; Bank SyariahMandiri and
Bank Syariah Mega Indonesia with social performance that increase in 2010.
Table 9 shows that in 2011, all of Islamic Banks have same percentage of social
performance in 2010 and MaybankSyariah as a new object in this year has social performance
by 40% (low). Based on the Table 9, it can be seen that all of Islamic banks have fixed
performance percentage during 2010-2011. It means that social responsibility activities
undertaken by banks wasorganizedconsistently. In addition, it is also an illustration that social
activity by Islamic Banks oriented for long-term (sustainability).
Overall, neither Islamic banks in Indonesia are carrying out social activities completely
(100%) based on the model of index ISR. This is consistent with the results of research
conducted by Sofyani et al. (2012) which states that there are 2 important factors why Islamic
Banks do not have a 100% social performance index based on ISR index. First, because Islamic
banks did not actually carry out social activities that they are able to implement such reporting
ghararactivities and clients who have problems with almost all Islamic banks and Islamic banks
in Indonesia, in this case, do not report it unless MaybankSyariah. Second, influenced by the
presence of measurement items of ISR index models that did not implement as bank's activities,
such as environmental audit and produce natural commodities (Green Product). The existence
of these items because ISR index not only for Islamic banking, but also for other companies
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
either trading company, services company, and manufacturing (Sofyani et al., 2012).
Conclusions
Based on the results of this research, it can be concluded that the corporate social
responsibility of islamic bank in Indonesia by using islamic social reporting (ISR) index for
the year 2009-2011 on average was 58.9% (moderate).This research was conducted with only
one method of measuring the social performance by using ISR indexwhich is
developedbySofyani et al. (2012). This allows the latest indicators are being developed in a
comprehensive manner by subsequent studies. In addition, this study is only conducted to
observe the activities of Islamic banking, while the index of ISR is not only devoted to the
bank, but also for manufacturing, trade, and services company.
Then, the researchers suggest to Islamic Banking which have high social performance
in order to perform consistently over the long term social performance that can be a model for
other Islamic banks.Islamic Banking which have moderate, low, and very low (not reported)
social performance in order to improve their social performance as an accountability to Allah
and the community. And also Islamic banking is supposed to continuing improve their
performance in social aspects such material, moral, and spiritual aspect.
Further, we recommend to add the observation period to identify Islamic Banks that
carrying out long-term social performance, and identify manufacturing, trade and
servicescompany as the objects of observation of social performance by using ISR index.
References
Haniffa, R. 2002. Social Reporting Disclosure-An Islamic Perspective.Indonesian
Management and Accounting Research, Vol. 1: 128-146.
Othman, R., & A. M. Thani. 2010. Islamic Social Reporting Of Listed Companies InMalaysia.
International Business & Economics Research Journal, 12: 135-144.
Othman, R., A. M. Thani, & E. K. Ghani. (2009). Determinants of Islamic Social Reporting
Among Top Shariah Approved Companies in Bursa Malaysia. Research Journal of
International Studies, 9: 4-20.
Sekaran, U., & R. Bougie. 2010. Research Methods for Business Fifth Edition.Chicester: John
Willey & Sons.
Siwar, C., & M. T. Hossain. 2009. An analysis of Islamic CSR concept and the opinions of
Malaysian managers. Management of Environmental Quality: International Journal,
Vol. 20: 290-298.
Sofyani, Hafiez.,IhyaniUlum, Daniel S., Sri Wahyuni L. 2012. Islamic Social Reporting Index
sebagai Model PengukuranKinerjaSosialPerbankanSyariah (Studi Komparasi
Indonesia dan Malaysia).Jurnal Dinamika Akuntansi, Vol. 4, No. 1: 36-46.
Vivanews.
2009.
Bank
SyariahKucurkan
CSR
Rp
1,45Triliun.
Melalui
[7/11/12].
Watts, P, Holme, L. 1999. CSR: Meeting Changing Expectation.WBCSD Publication.Melalui
[10/11/12].
Zubairu, Mustapha Umaru, OlalekanBusra S., &ChetuboKuta D. 2011. Social Reporting
Practices Of Islamic Banks in Saudi Arabia. International Journal of Business and
Social Science, Vol. 2, No. 23: 193-205.
43
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
THE ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC
BANKS IN THE INDONESIA BY USING ISLAMIC SOCIAL REPORTING INDEX
MUHAMMAD ARFAN, FUTRI MULIYATI HISDA
1
Faculty of Economics, Syiah Kuala University, Banda Aceh;
Faculty of Economics, Syiah Kuala University, Banda Aceh.
Correspondingauthor: arfan_was@yahoo.com
2
ABSTRACT
The purpose of this research is to analyze the corporate social responsibility of islamic
bank by using islamic social reporting (ISR) index.The research was conducted on Islamic
banks listed at Bank Indonesia in 2009, 2010, and 2011. The reaserch type used is descriptive
reasearch by using content analysis method.The population of this research are islamic banks
listed at Bank Indonesia in 2009-2010. After being observed, the total population are26 islamic
banks for three years observation.The source of data is secondary data which is obtained from
annual report for the book year ended December 31, 2009, 2010, and 2011.
The results
of this research showthatthe corporate social responsibility of islamic banks in Indonesia is so
variative.Generally, based on themes of ISR index, the corporate social responsibility of 5
islamic banks is low in 2009. While in 2010, the corporate social responsibility of 10 islamic
banks is among medium-high, and also it was happened in 2011. There are six themes in ISR
index i.e. funding/investment, product/service, employee, society, environment,and good
corporate governance.ISR index for product/service andgood corporategovernance are the
highest theme each year. While, funding/investment and environment are stabil. Then,
employee andsociety increase 10% in 2010. It means that the social activity of islamic banks
is organized consistently and going sustainability.
Keywords: Corporate social responsibility, islamic social reporting index, and islamic banks.
Introduction
The study of CSR(Corporate Social Responsibility) measuring methodshas been widely
applied in various countries due to issues of CSR becomes aimportant matter in the past few
decades. Sofyani et al. (2012) stated that the concept of CSR is preferred in Islam. Institutions
that do business based on sharia is essentially based on the fundamental Qur'an and the Sunna
philosophy, which is the basic for good interaction with the environment and each other.
Along with the rapid development of Islamic banking, financial institutions have done
CSR in some publicsectors. The amount of CSR funds from Islamic banking in 2009 was Rp
1.45 trillion. In 2010 a large total of Islamic banking’s CSR funds reached Rp 1.74 trillion. In
this case iB (Islamic Bank) will distribute the CSR funds to tree parts; 50 percent for microeconomic entrepreneurs, 25 percent for education, and 25 percent for natural disaster relief and
other social activities (Vivanews, 2009).
Nowadays, associated with the disclosure requirements of social responsibility in
Islamic banking, prevalent discussed the Islamic Social Reporting Index or ISR index (Sofyani
et al., 2012)). In particular index ISR is an extension of social reporting which includes not
only the public's expectations about the company's role in the economy, but also the company's
role in the spiritual perspective (Haniffa, 2002). Thus, researchers interested in analysis how
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
the social performance of Islamic banking that listed in Bank Indonesia by using the ISR index
during the period 2009-2011. This research aims to determine the social performance of Islamic
Banking by using ISR index.
Literatatures Review
Definition of CSR by WBCSD (World Business Council for Sustainable Development)
in Watts and Holme (1999) is "corporate social responsibility is the continuing commitment
by business to behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community and society
at large". CSR is a company's commitment as a business to behave ethically and contribute to
economic development of the country.
Islam is a complete religion which govern all aspects of human life on the earth. Siwar
and Hossain (2009) stated that the basic foundation of the religion of Islam is belief and faith,
worship, and morality and ethics. One form of accountability in Islamic perspective is the
implementation of social performance and social performance reporting that according to
Islamic principles.
According to Haniffa (2002) that takes a special framework for social accountability
reporting as a social performance measurement of a company in accordance with Islamic
principles. This framework is known as ISR index (Islamic Social Reporting index). Islamic
principles inISR index is generating aspects of the material, moral, and spiritual that became
the main focus of this form of social performance and corporate social responsibility reporting.
There are six themes in ISR index disclosure framework is used in this research refers
to Sofyani et al. (2012) such as financing and investment, products and services, employees,
community, environment, and corporate governance. Each theme consists of several items such
as attached in Appendix 1.
Othman and Thani (2010) in their research of Islamic Social Reporting of the listed
companies in stock exchange of Malaysia concluded that the Islamic Social Reporting in the
annual report index companies listed in stock exchange of Malaysia is still relatively low.
While, Zubairu et al. (2011) in their research of social performance disclosure of Islamic Banks
in Saudi Arabia concluded that Islamic Banks have a lot in common with a conventional bank
located in Saudi Arabia, the Islamic Banks should carry out various forms of activities based
on sharia, but in reality between Islamic Banks and conventional banks have not clearly visible
differences. Sofyani et al. (2012) in their research of Islamic Social Reporting as an index of
social performance measurement model of Islamic banking (comparative study of Bank
Malaysia and Bank Indonesia) concluded that the overall social performance train-average
Islamic banking in Malaysia is higher than in Indonesia. Social performance of Islamic banking
in Indonesia in 2010 has increased significantly, about 10% of the earlier (2009). While social
performance in the Malaysian Islamic banking system is stable because it does not increase or
decrease. However, of all the Islamic banks, both Indonesian and Malaysia banking, none of
which reach very good performance levels.
Research Methodology
This research refers to research design suggested by Sekaran and Bougie (2010:152)
based on the aspects that have to be meet. Nature of the research conducted is a descriptive
research. The level of intervention is minimal. Situation in this research was not set. Time
horizon is cross sectional in 2009-2011. The unit of analysis is the organization that are Islamic
Banks listed in Bank Indonesia. The names of Islamic Banks can be seen in Table 1. The data
used is secondary data. Secondary data required is the annual report of Islamic Banks listed in
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
Bank Indonesia during the period 2009-2011. Data collection techniques in this research are
conducted through library research and field study.
Table 1. Bank Umum syariah listed in Bank of Indonesia
No.
Syariah Public Banks
1.
PT BANK BNI SYARIAH
2.
PT BANK MUAMALAT INDONESIA
3.
PT BANK SYARIAH MANDIRI
4.
PT BANK SYARIAH MEGA INDONESIA
5.
PT BANK BCA SYARIAH
6.
PT BANK BRI SYARIAH
7.
PT BANK JABAR BANTEN SYARIAH
8.
PT BANK PANIN SYARIAH
9.
PT BANK SYARIAH BUKOPIN
10.
PT BANK VICTORIA SYARIAH
11.
PT BANK MAYBANK
Source: www.bi.go.id
In accordance with the purpose of this research, the method of measurement used is the
Islamic Social Reporting (ISR) Index which is obtained from each company every year. The
index value is obtained by using the method of content analysis. Content analysis is a method
of analysis that is often used to identify contents in the annual report (Othman and Thani, 2010).
ISR Index in this research consisted of 38 items that organized into 6 themes. ISR index
items are presented in Appendix 1. The first step is checklist on each item which reveals the
social activity on the financial statements of Islamic banks (Sofyani et al., 2012). The second
step, give a score for each item. If there is one item that disclosed it will get score "1" and if
not then it will get score "0". These values will be summed according to both individual and
overall theme. According to the total value of each theme will show what the main focus of
each company. Thus, the largest value is 38 and the smallest value is 0 for each company every
year.
The third step is to calculate the percentage of the social performance of each Islamic
Banks annually either by theme or as a whole. Then the percentages might be considered a
social performance levels suggested by Othman et al. (2009) (see Table 2).
Table 2. The social value categoriesl
Percentage
Category
0-20%
Very low
21-40%
Low
41-60%
Moderate
61-80%
High
81-100%
Very high
Source: Othman et al. (2009)
Results and Discussion
Funding and Investment
Percentage level of social performance Islamic Banks for funding and investment
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
themes period 2009-2011 are shown in Table 3.
Table 3. The Rate of Islamic Bank’s CSRin Funding and Investment
Syariah Puclic
2009
2010
2011 Rate
Reporting Items
Banks
1.
PT Bank Muamalat
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
Indonesia
value added
statement
2.
PT Bank
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
SyariahMandiri
value added
statement
3.
PT Bank Syariah
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
Mega Indonesia
value added
statement
4.
PT Bank
50%
50%
50%
Moderate
3 of 6
Riba, zakat,
BriSyariah
value added
statement
5.
PTBank
50%
50%
Moderate
3 of 6
Riba, zakat,
BcaSyariah
value added
statement
6.
PT Bank
50%
50%
Moderate
3 of 6
Riba, zakat,
BniSyariah
value added
statement
7.
PT Bank
33,33% 33,33% 33,33% Low
2 of 6
Riba, zakat
SyariahBukopin
8.
PT Bank Victoria
33,33% 33,33% Low
2 of 6
Riba, zakat
Syariah
9.
PT Bank
33,33% Low
2 of 6
Riba, gharar
MaybankSyariah
10. PT Bank
16,67% 16,67% Very low
1 of 6
Riba
JabarBantenSyariah
11. PT Bank
16,67% 16,67% Very low
1 of 6
Riba
PaninSyariah
Source: Data processed(2013)
No
Products and Services
Percentage rate ofIslamic Banks social performance of products and services theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
during 2009-2011 are shown in Table 4.
Table 4. The Rate of Islamic Bank’s CSRin Product and Service Theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
No
Syiah Pyblic
Bank
PT Bank
1. Muamalat
Indonesia
2.
PT Bank
Syariah Mandiri
PT Bank
3. Syariah Mega
Indonesia
2009
2010 2011
Category
Reporting
75%
75%
75%
High
3 of 4
75%
75%
75%
High
3 of 4
75%
75%
75%
High
3 of 4
4.
PT Bank Bri
Syariah
75%
75%
75%
High
3 of 4
5.
PTBank Bca
Syariah
75%
75%
75%
High
3 of 4
6.
PT Bank Bni
Syariah
-
75%
75%
High
3 of 4
7.
PT Bank
Syariah Bukopin
-
75%
75%
High
3 of 4
8.
PT Bank
Victoria Syariah
-
75%
75%
High
3 of 4
-
75%
75%
High
3 of 4
PT Bank
9. Maybank
Syariah
10
PT Bank Jabar
Banten Syariah
-
75%
75%
High
3 of 4
11.
PT Bank Panin
Syariah
-
-
75%
High
3 of 4
Items
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
halal status, safety
and product
quality, and
customer service
Employee
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
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Percetage rate of Islamic Banks social performance of employees theme during 20092011 are shown in Table 5.
Table 5. The Rate of Islamic Bank’s CSR in Employee Theme
No
Syariah
Public Banks
1
PT BANK
BNI
SYARIAH
2
PT BANK
SYARIAH
MANDIRI
2009
-
2010
2011
Category Reporting Items
85,70% 85,70%
very high
6 of 7
71,40% 85,70% 85,70%
very high
6 of 7
3
PT BANK
MUAMALAT 71,40% 71,40% 71,40%
INDONESIA
High
5 of 7
4
PT BANK
SYARIAH
MEGA
INDONESIA
71,40% 71,40% 71,40%
High
5 of 7
5
PT BANK
BRI
SYARIAH
71,40% 71,40% 71,40%
High
5 of 7
6
PT BANK
SYARIAH
BUKOPIN
71,40% 71,40% 71,40%
High
5 of 7
7
PT BANK
JABAR
BANTEN
SYARIAH
High
5 of 7
-
71,40% 71,40%
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development,
working
environment.
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development,
working
environment.
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
8
PT BANK
PANIN
SYARIAH
-
71,40% 71,40%
High
5 of 7
9
PT BANK
BCA
SYARIAH
-
71,40% 71,40%
High
5 of 7
10
PT BANK
VICTORIA
SYARIAH
-
71,40% 71,40%
High
5 of 7
11
PT BANK
MAYBANK
SYARIAH
-
High
5 of 7
-
71,40%
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
education/training,eq
ual opportunities,
health/safety,nature
of work, employee
development
Community
Percentage rate of Islamic Banks social performance ofcommunity theme during 20092011 are shown in Table 6.
Table 6. The Rate of Islamic Bank’s CSRin Community Theme
No
Syariah Public
Bank
2009
2010
2011
Category
Reporting
1
PT BANK
MUAMALAT
INDONESIA
100%
100%
100%
very high
10 of 10
2
PT BANK
SYARIAH
MANDIRI
90%
100%
100%
very high
10 of 10
Items
Sadaqah, waqaf,
qardhasan, employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
Sadaqah, qardhasan,
employee
volunteerism,scholarship,
graduate
employment,Underprivila
ge Community, youth
development, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,
Underprivilage
Community, children
care, sponsoring publiic
health
Sadaqah, waqaf,
qardhasan, employee
volunteerism,
Underprivilage
Community, children
care, sponsoring publiic
health
Sadaqah, qardhasan,
employee volunteerism,
Underprivilage
Community, children care
Sadaqah, qardhasan,
employee volunteerism,
Underprivilage
Community, children care
3
PT BANK BNI
SYARIAH
-
90%
90%
very high
9 of 10
4
PT BANK
SYARIAH
MEGA
INDONESIA
60%
70%
70%
High
7 of 10
5
PT BANK BCA
SYARIAH
-
70%
70%
High
7 of 10
6
PT BANK BRI
SYARIAH
50%
50%
50%
moderate
5 of 10
7
PT BANK
SYARIAH
BUKOPIN
50%
50%
50%
moderate
5 of ten
-
20%
20%
very low
2 of 10
sadaqah, qardhasan
-
20%
20%
very low
2 of 10
sadaqah, qardhasan
-
10%
10%
very low
1 of 10
graduate employment
-
-
0%
very low
none
8
9
10
11
PT BANK
JABAR
BANTEN
SYARIAH
PT BANK
VICTORIA
SYARIAH
PT BANK
PANIN
SYARIAH
PT BANK
MAYBANK
SYARIAH
none
Environment
Percentage rate ofIslamic Banks social performance of environment theme during
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
2009-2011 are shown in Table 7.
No
1
2
3
4
5
6
7
8
9
10
11
Table 7. The Rate of Islamic Bank’s CSRin Environment Theme
Syariah Public
2009
2010
2011
Category Reporting Items
Bank
concervation of
PT BANK
environment,
MUAMALAT 50%
50%
50%
moderate 3 of 6
polution,
INDONESIA
education
PT BANK
concervation of
SYARIAH
environment,
33,33% 33,33% 33,33% low
2 of 6
MANDIRI
polution
concervation of
PT BANK BNI
33,33% 33,33% low
2 of 6
environment,
SYARIAH
polution
PT BANK
SYARIAH
0%
0%
0%
very low none
none
MEGA
INDONESIA
PT BANK
BCA
0%
0%
very low none
none
SYARIAH
PT BANK BRI
0%
0%
0%
very low none
none
SYARIAH
PT BANK
JABAR
0%
0%
very low none
none
BANTEN
SYARIAH
PT BANK
0%
0%
very low none
none
PANIN
SYARIAH
PT BANK
SYARIAH
0%
0%
0%
very low none
none
BUKOPIN
PT BANK
VICTORIA
0%
0%
very low none
none
SYARIAH
PT BANK
MAYBANK
0%
very low none
none
SYARIAH
Corporate Governance
Percentage rate ofIslamic Banks social performance of corporate governance theme
38
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
during 2009-2011 are shown in Table 8.
Table 8. The Rate of Islamic Bank’s CSRin Corporate Governance Theme
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Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
No
Syariah Public
Bank
2009
2010
2011 Category
Reporting Items
1
PT BANK BNI
SYARIAH
-
100%
100% very high
5 of 5
2
PT BANK
MUAMALAT
INDONESIA
100%
100%
100% very high
5 of 5
3
PT BANK
SYARIAH
MANDIRI
100%
100%
100% very high
5 of 5
4
PT BANK
SYARIAH
MEGA
INDONESIA
100%
100%
100% very high
5 of 5
5
PT BANK BCA
SYARIAH
-
100%
100%
5 of 5
6
PT BANK BRI
SYARIAH
100%
100%
100%
very high
very high
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
40
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
7
8
9
10
11
PT BANK
JABAR
BANTEN
SYARIAH
PT BANK
PANIN
SYARIAH
PT BANK
SYARIAH
BUKOPIN
PT BANK
VICTORIA
SYARIAH
PT BANK
MAYBANK
-
-
100%
-
-
100%
100%
100%
100%
-
100%
100%
100%
100%
100%
very high
very high
very high
very high
very high
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
5 of 5
Sharia Compliance,
Ownership Structure,
BOD, Declaration of
Forbidden
Activities,anticorruption policies
Based on 6 theme of ISR index that has been shown previously, the results of reporting
score on the social performance of Islamic banking by using ISR index models can be seen in
Table 9.
Table 9. Social PerformanceRate ofIslamic Banks By Using ISR Index
No
1
Syariah Public Bank
PT BANK MUAMALAT
2009
76%
2010
76%
2011
76%
41
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
INDONESIA
2
PT BANK SYARIAH MANDIRI 71%
76%
76%
3
PT BANK BNI SYARIAH
71%
71%
4
PT BANK BCA SYARIAH
61%
61%
PT BANK SYARIAH MEGA
5
58%
60%
60%
INDONESIA
6
PT BANK BRI SYARIAH
55%
55%
55%
7
PT BANK SYARIAH BUKOPIN 53%
53%
53%
PT BANK VICTORIA
8
45%
45%
SYARIAH
PT BANK JABAR BANTEN
9
42%
42%
SYARIAH
10
PT BANK PANIN SYARIAH
40%
40%
PT BANK MAYBANK
11
40%
SYARIAH
Table 9 shows that in 2009, Bank Muamalat exists at the level of social performance
by 76% (high), Bank SyariahMandiri amount to 71% (high), Bank Syariah Mega Indonesia by
58% (moderate), Bank Syariah BRI by 55% (moderate ), and Bank SyariahBukopin by 53%
(moderate).
Based on Table 9 it can be seen that in 2010 the Bank Muamalat (76%), Bank
SyariahMandiri (76%), Bank BNI Syariah (71%) and Bank BCA Syariah (61%) with high
social performance, while Islamic Banks with moderate levels of social performance (41-60%)
are Bank Syariah Mega Indonesia (60%), BRI Syariah (55%), SyariahBukopin (53%), Victoria
Syariah (45%), and Bank JabarBantenSyariah (42%). Meanwhile, Islamic Banks with low
social performance (21-40%) are Bank PaninSyariah (40%). During the years 2009-2010, there
were 3 Islamic Banksconsistenlydo social performance with the previous year, such as Bank
Muamalat, BRI Syariah and BukopinSyariah. While two others; Bank SyariahMandiri and
Bank Syariah Mega Indonesia with social performance that increase in 2010.
Table 9 shows that in 2011, all of Islamic Banks have same percentage of social
performance in 2010 and MaybankSyariah as a new object in this year has social performance
by 40% (low). Based on the Table 9, it can be seen that all of Islamic banks have fixed
performance percentage during 2010-2011. It means that social responsibility activities
undertaken by banks wasorganizedconsistently. In addition, it is also an illustration that social
activity by Islamic Banks oriented for long-term (sustainability).
Overall, neither Islamic banks in Indonesia are carrying out social activities completely
(100%) based on the model of index ISR. This is consistent with the results of research
conducted by Sofyani et al. (2012) which states that there are 2 important factors why Islamic
Banks do not have a 100% social performance index based on ISR index. First, because Islamic
banks did not actually carry out social activities that they are able to implement such reporting
ghararactivities and clients who have problems with almost all Islamic banks and Islamic banks
in Indonesia, in this case, do not report it unless MaybankSyariah. Second, influenced by the
presence of measurement items of ISR index models that did not implement as bank's activities,
such as environmental audit and produce natural commodities (Green Product). The existence
of these items because ISR index not only for Islamic banking, but also for other companies
42
Proceedings of The 3rd Annual International Conference Syiah Kuala University (AIC Unsyiah) 2013
In conjunction with The 2nd International Conference on Multidisciplinary Research (ICMR) 2013
October 2-4, 2013, Banda Aceh, Indonesia
either trading company, services company, and manufacturing (Sofyani et al., 2012).
Conclusions
Based on the results of this research, it can be concluded that the corporate social
responsibility of islamic bank in Indonesia by using islamic social reporting (ISR) index for
the year 2009-2011 on average was 58.9% (moderate).This research was conducted with only
one method of measuring the social performance by using ISR indexwhich is
developedbySofyani et al. (2012). This allows the latest indicators are being developed in a
comprehensive manner by subsequent studies. In addition, this study is only conducted to
observe the activities of Islamic banking, while the index of ISR is not only devoted to the
bank, but also for manufacturing, trade, and services company.
Then, the researchers suggest to Islamic Banking which have high social performance
in order to perform consistently over the long term social performance that can be a model for
other Islamic banks.Islamic Banking which have moderate, low, and very low (not reported)
social performance in order to improve their social performance as an accountability to Allah
and the community. And also Islamic banking is supposed to continuing improve their
performance in social aspects such material, moral, and spiritual aspect.
Further, we recommend to add the observation period to identify Islamic Banks that
carrying out long-term social performance, and identify manufacturing, trade and
servicescompany as the objects of observation of social performance by using ISR index.
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