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Religiosity and corporate social responsibility practices: evidence from an emerging economy

Author

Listed:
  • Rashid Zaman
  • Jamal Roudaki
  • Muhammad Nadeem

Abstract

Purpose - The purpose of this study is to present and test a conceptual framework that describes the Islamic religiosity parameters ofriba, zakat and mafsadah and their influence on the adoption of firms’ corporate social responsibility (CSR) practices. Design/methodology/approach - The study applied structural equation modelling to empirically test the proposed model on a sample of 109 Pakistan Stock Exchange (PSX) listed firms. Findings - The study finds that the Islamic religiosity parameters ofribaand mafsadah have a positive influence on the adoption of CSR practices, thus confirming the two study hypotheses. However, the authors did not find any significant influence of the zakat parameter on the adoption of firms’ CSR practices. Research limitations/implications - This study is limited to the Islamic religious concept and only surveyed one stakeholder group, i.e. firms’ managers in the Pakistani context. The authors recommend that future studies should look beyond a single religion with the inclusion of multiple stakeholders in a cross-country setting. Practical implications - The findings possess important policy implication for regulators, stakeholders and practitioners, as the authors demonstrate that different parameters of religiosity are related to CSR practices and these parameters can be used as a substitute for and complement legal institutions in promoting and developing CSR practices. Social implications - The stakeholders’ particular investors and other market participants should be aware of the degree of religiousness and the CSR nexus, as surveyed manger responses in PSX listed firms indicate that better religious firms seem to place more emphasis on social responsibility obligations. Originality/value - This study is among few studies that propose a comprehensive conceptual Islamic religiosity framework to evaluate the influence of a firm’s Islamic religiosity on CSR best practices. It differs from the past studies that were either on Islamic financial institutes or examined the religious influence on a firm’s economic behaviours.

Suggested Citation

  • Rashid Zaman & Jamal Roudaki & Muhammad Nadeem, 2018. "Religiosity and corporate social responsibility practices: evidence from an emerging economy," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 14(2), pages 368-395, June.
  • Handle: RePEc:eme:srjpps:srj-10-2017-0204
    DOI: 10.1108/SRJ-10-2017-0204
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    Citations

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    Cited by:

    1. Inam Ul Haq & Dirk De Clercq & Muhammad Umer Azeem & Aamir Suhail, 2020. "The Interactive Effect of Religiosity and Perceived Organizational Adversity on Change-Oriented Citizenship Behavior," Journal of Business Ethics, Springer, vol. 165(1), pages 161-175, August.
    2. Muhammad Umer Azeem & Inam Ul Haq & Ghulam Murtaza & Hina Jaffery, 2023. "Challenge–Hindrance Stressors, Helping Behavior and Job Performance: Double-Edged Sword of Religiousness," Journal of Business Ethics, Springer, vol. 184(3), pages 687-699, May.
    3. Mehdi Khodakarami & Hassan Yazdifar & Alireza Faraji Khaledi & Saeed Bagheri Kheirabadi & Amin Sarlak, 2024. "The Level of Islamic Religiosity of the Local Community and Corporate Environmental Responsibility Disclosure: Evidence from Iran," Journal of Business Ethics, Springer, vol. 190(2), pages 483-512, March.
    4. Panpan Fu & Seema Wati Narayan & Olaf Weber & Yonggang Tian & Yi-Shuai Ren, 2022. "Does Local Confucian Culture Affect Corporate Environmental, Social, and Governance Ratings? Evidence from China," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    5. Khan, Majid & Lockhart, James & Bathurst, Ralph, 2021. "The institutional analysis of CSR: Learnings from an emerging country," Emerging Markets Review, Elsevier, vol. 46(C).
    6. Chengli Shu & Hammad Bin Azam Hashmi & Zhenxin Xiao & Syed Waqar Haider & Mishal Nasir, 2022. "How Do Islamic Values Influence CSR? A Systematic Literature Review of Studies from 1995–2020," Journal of Business Ethics, Springer, vol. 181(2), pages 471-494, November.
    7. Nebojsa Dimic & Veda Fatmy & Sami Vähämaa, 2024. "Religiosity and corporate social responsibility: A study of firm‐level adherence to Christian values in the United States," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 396-413, January.
    8. Shahidul Islam & Nazlida Muhamad & Wardah Hakimah Sumardi, 2022. "Customer-perceived service wellbeing in a transformative framework: Research propositions in the area of health services," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 19(1), pages 219-245, March.
    9. Simone Terzani & Teresa Turzo, 2021. "Religious social norms and corporate sustainability: The effect of religiosity on environmental, social, and governance disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 485-496, January.
    10. Ahmad Suffian Mohd Zahari & Rosman Mahmood & Zuriyati Ahmad & Azzri Fazril Rosman, 2024. "Religious Practices Position in Firm Performance: A Case of the Malaysian Construction Industry," Information Management and Business Review, AMH International, vol. 16(1), pages 239-251.

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