Corporate Social Responsibility of Islamic Banks in Brunei Darussalam

Despite the fact that Islamic banks are governed in accordance with Shariah law, many of the banks are still using the conventional frameworks of CSR, which based on western cultures, values, beliefs and perspectives. There have been various perspectives regarding Islamic CSR. The conceptual framework of Islamic CSR (i-CSR) introduced by Mohammed (Corporate social responsibility in Islam. (Doctoral dissertation, Auckland University of Technology). Retrieved from http://aut.researchgateway.ac.nz/handle/10292/354 , 2007) integrates Islamic principles of al Qur’an and Hadith, and has become the basic reference to develop further Islamic CSR models. The existing literature generally dealt with the development of Islamic CSR framework and the relationships among CSR dimensions. There have also been several studies that examine the practice of CSR in Islamic banks, but none of the studies is investigated in the context of Islamic banks in Brunei. This study, at its early stage of exploratory research, aims to investigate the Islamic banks’ perspectives on the concept of CSR and their practice of CSR. Data were obtained from informal interviews and secondary sources including journal articles, news and the banks’ reports and official websites. Results revealed that the banks generally have positive views of CSR. It is based on Tawhidiq approach that the banks viewed CSR not merely as a business marketing strategy and charity, but as a responsibility towards God (Allah) and welfare of society. The study also found no major discrepancies in CSR practicalities between Islamic banks in Brunei and other Islamic banks in the region. Commitment to implement CSR effectively in Islamic banks while maintaining long-term sustainable economic system is crucial to the country’s competitiveness.