Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports

Haniffa, Roszaini; Hudaib, Mohammad

doi:10.1007/s10551-006-9272-5

Cited by 496 publications

(772 citation statements)

References 34 publications

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“…These views supported the argument that embarking on social responsibility from an Islamic perspective is not for financial or any other reward, but rather to gain God's blessing (Rice, 1999;Haniffa and Hudaib, 2007;Mohammed, 2007;William and Zinkin, 2009). In a way, the range of religious convictions has resulted as motivators of CSR (Hemingway and MaclaGan, 2004).…”

Section: Our Activities Derived From Islam Islam Encourages Us Indivmentioning

confidence: 78%

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Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain

Aribi

Arun

2014

J Bus Ethics

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Islamic finance is gaining greater attention in the finance industry, and this paper analyses how Islamic Financial Institutions (IFIs) are responding to the welfare needs of society.Using interview data with managers and content analysis of the disclosures, this study attempts to understand management perceptions of Corporate Social Responsibility (CSR) in IFIs. A thorough understanding of CSR by managers, as evident in the interviews, has not been translated fully into practice. The partial use of IFIs' potential role in social welfare would add further challenges in the era of financialisation.

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Section: Our Activities Derived From Islam Islam Encourages Us Indivmentioning

confidence: 78%

“…This study drew on the literature on social and environmental disclosure from an Islamic perspective (e.g. Rice, 1999, Kamla et al, 2006Maali et al, 2006;Haniffa and Hudaib, 2007;Williams and Zinkin, 2009;Aribi and Gao, 2010;Aribi and Gao, 2012) to design the key themes of CSR in IFIs (see Appendix 1).…”

Section: Content Analysismentioning

confidence: 99%

Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain

Aribi

Arun

2014

J Bus Ethics

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“…In Islamic banking context, Haniffa and Hudaib [1], defined ethical identity disclosure as a set of information deemed vital based on the Islamic ethical business and Shari"ah framework which needs to be disclosed by the Islamic banks, where it comprises of both qualitative and quantitative information. To them, Islamic banks, unlike conventional banks which tend to emphasize on profit disclosure, risk assessment and other non-social aspect, they need to disclose information which is vital in assisting stakeholders in making economic decision as well as assisting the management, Shari"ah Supervisory Boards and external auditors in demonstrating the accountability to the society.…”

Section: Literature Reviewmentioning

confidence: 99%

“…They added; "since one of the aims of Islamic Banks is to promote and develop the application of Islamic principles, law and traditions to transactions of financial, banking and related business affairs, they should exhibit their own ethical identity in setting them apart from other types of organization. But when, Haniffa and Hudaib [1] examined the communicated ethical identity disclosure in Middle East environment through five traits, namely philosophy values; provision of interest-free product and services; restriction to Islamically acceptable deals; developmental and social goals and also Shari"ah Supervisory Board review as a benchmark in assessing the ethical identity disclosure since they are distinctive features that differentiate between Islamic banks and conventional banks, surprisingly they found that the levels of transparency in those banks are quite low, especially on Islamic bank"s philosophical values, developmental and social goals information. Therefore, they concluded that, managements of Islamic banks are not paying attention enough towards their disclosure level in their annual report.…”

Section: Literature Reviewmentioning

confidence: 99%

“…We also takes into account the disclosure requirements by AAOIFI [6] and other previous research in the area of social reporting. Ethical Identity Index model in Equation (1) below, is used to express and measure the disclosure score for each dimension and the scoring approach is essentially dichotomous where "0" is given for non-disclosure items and "1" is given for disclosure items as used by Haniffa and Hudaib [1]; and Zubairu, Sakariyau, and Dauda [7].…”

Section: Literature Reviewmentioning

confidence: 99%

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Corporate Ethical Identity Disclosures: The Perceived, the Publicized and the Applied in Islamic Banks

Rahman¹,

Danbatta²,

Saimi³

2014

IJTEF

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Abstract-The public's perception about Islamic banks is that, they are ethical banks founded on religious precepts hence; they would be more transparent when compared to conventional banks, but our preliminary studies proves that perception to be wrong. This paper examines the levels of expected and actual ethical identity disclosures by Islamic banks using various dimensions of ethical identity disclosures for 21 banks in Bahrain and Malaysia. The main source of data is the annual reports of each bank for five consecutive years, 2007 to 2011. Data collected were analyzed using Ethical Identity Index (EII) model and Descriptive Analysis. Based on EII analysis, we found that, the aggregate actual applied disclosure in both Malaysia and Bahrain is only 51.7% of the expected industry benchmark. We also found that, the most applied disclosure levels in both countries is the debtor's dimension (77.7%) and the least applied disclosure dimension is the environment disclosures (6.6%). Other important dimensions that might impact on Islamic bank's future acceptance, profitability, growth, sustainability and reputation were less disclosed. Hence, we conclude and recommend for a collective effort and commitment by both regulators and Islamic bank's management to ensure increased ethical disclosures to meet the public perception and expectations.Index Terms-Corporate ethical identity disclosures, disclosure dimensions, Islamic banks, content analysis.

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Exploring the nexus between Islamic financial institutions Shariah compliance disclosure and corporate governance: New insights from a cross‐country analysis

Abdulrahman,

Ebrahimi,

Al‐Najjar

2023

Int. J Fin Econ

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We address the scarcity of empirical research on Shariah Compliance Disclosure (hereafter referred to as SCD) by presenting new evidence on the levels and range of SCD, of 807 bank‐year observation of Islamic Financial Institutions (hereafter referred to as IFIs) in 19 countries for the period from 2010 to 2020 and its determinants. Using an unweighted disclosure index measured by manual content analysis categorized into Shariah Supervisory Board (hereafter referred to as SSB) information, audit process, Shariah compliance review and Zakat, several outcomes are documented. In general, the SCD level is above average (57.38%) and hence evidence an overall growth during the sample period. Further, the study examines the relationship between corporate governance (CG) and SCD and the results indicate that foreign investors, institutional investors, board size, board independence, SSB reputation and SSB size are vital and influence the extent of SCD level. The study also conducted several tests to examine the main findings' robustness. The findings deliver valuable in‐depth empirical insights to regulatory bodies on the current SCD practises of IFIs to assist policymakers in modifying reporting frameworks or guidelines accordingly. In addition, this research can support academics, policymakers or standard setters and managers interested in seeking information about SCD and CG.

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Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports

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Cited by 496 publications

References 34 publications

Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain

Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain

Corporate Ethical Identity Disclosures: The Perceived, the Publicized and the Applied in Islamic Banks

Exploring the nexus between Islamic financial institutions Shariah compliance disclosure and corporate governance: New insights from a cross‐country analysis

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