PurposeThe purpose of this paper is to explore whether any discrepancy exists between the corporate social activities disclosed in the annual reports of Islamic banks and the corporate social responsibility (CSR) disclosure index which has been developed based on the Islamic business ethics framework.Design/methodology/approachThis paper reports on a survey of annual reports of seven Islamic banks using the method of content analysis to measure the volume of CSR disclosure.FindingsThe results show the overall mean CSR disclosure index of one Islamic bank out of seven to be above average and the issues of CSR are not of major concern for most Islamic banks.Research limitations/implicationsCSR disclosure in the Islamic banks is experimental and could be explored in greater depth in future studies.Practical implicationsThe findings have important implications for academics and researchers, as they pave the ways for further investigation. The results also have important implication for Accounting and Auditing Organisation for Islamic Financial Institutions in developing a CSR reporting standard if Islamic banks are to enhance their image and reputation globally, as well as to remain competitive.Originality/valueThe paper contributes to the growing debate on CSR in ethical perspective and key underlying issues associated with the emergence of new disclosure practices for Islamic financial institutions. Through this paper, new visibilities explored, and competing dilemmas opened up.

PurposeThe objective of this paper is to assess the degree to which Islamic banks in Brunei Darussalam use risk management practices (RMPs) and techniques in dealing with different types of risk.Design/methodology/approachThe researcher developed a questionnaire which covers six aspects in the first part: understanding risk and risk management, risk assessment and analysis (RAA), risk identification (RI), risk monitoring, credit risk analysis and RMPs. The second part consists of two questions based on an ordinal scale dealing with two topics: methods of RI and risk facing the sample banks.FindingsThis study found that that the three most important types of risk that the Islamic banks in Brunei Darussalam facing are foreign‐exchange risk, followed by credit risk and then operating risk. It also found that the Islamic banks are somewhat reasonably efficient in managing risk where RI and RAA are the most influencing variables in RMPs.Research limitations/implicationsThe paper's findings are limited to the RMPs of Islamic banks in Brunei Darussalam.Originality/valueThe paper explores the RMPs of the Islamic banks in Brunei Darussalam. The results can be used as a valuable feed back for improvement of RMPs in the Islamic banks in Brunei and will be of value to those people who are interested in the Islamic banking system.

Purpose -The purpose of this paper is to examine the growth of Islamic microfinance (bila sudi-qardh) scheme in Andaman Islands and to see how Islamic microfinance sector and social capital contribute to face the challenge in poverty alleviation. Design/methodology/approach -The researcher developed a questionnaire and conducted non-random survey with the samples of Islamic microfinance group members to examine the Islamic microfinance and cash awqaf effect for the development of the local common resources (LCRs) in general; and financial, physical capital as well as social and human capital effects of the group members in particular.Findings -This study found that collective action through Islamic microfinance groups actually helps to increase environmental awareness, economic betterment of the members and fruitful management of LCRs through Islamic microfinance.Research limitations/implications -The paper's findings are limited to the Islamic microfinance groups' management in Andaman Islands in India. Originality/value -The paper explores social, financial and physical capital effects such as environmental awareness, economic upliftment of the Islamic microfinance groups' members and potential for LCR management through united action of the groups.

PurposeAs per Islamic business ethics, corporate social responsibility (CSR) of the business organizations and Islamic financial institutions (IFIs) should be seen as a benefit rather than a cost. The intense commitment of Islam to justice and brotherhood demands that business organization should take care of some of the needs of the community, Therefore, there is needed that the IFIs should create a congenial atmosphere of strategic linkage between Islamic charity organizations and business companies. The main purpose of this paper is to study the current practices of CSR of the business organizations as well as IFIs and to explore further scope of optimizing charity value.Design/methodology/approachThe study evaluates the CSR of the businesses and IFIs based on secondary sources information and develops a model which creates a strategic link between Islamic charity organizations and business companies.FindingsA collective approach of businesses, IFIs and awqaf/charitable foundations would increase the flow of corporate resources into the social sector.Originality/valueIn order to fulfill the role of CSR and to optimize charity value, the businesses should build up non‐profit infrastructure to achieve their objectives more cost‐effectively. On the other hand, the Islamic charities can also get benefits by using the commercial infrastructure of the business organizations and to make contributions more effectively in the social sector. There is no inherent contradiction between improving competitive context of business and making a sincere commitment to bettering society.

Purpose – The purpose of this paper is to address the issue of environmental development in view of the Islamic ethical responsibilities, and the extent to which businesses should be involved in environment development activities will be addressed. Design/methodology/approach – This study integrates the mainstream and Islamic positions on the subject of the environment and sustainable development based on published literature and argues that whichever definition of environmental development one might subscribe to eventually each arrives at an environmental concern. It takes inspiration from the verses of the Holy Quran and ethics of the sayings of Prophet Muhammad (peace be upon him) in respect of environment and business that indicate a way out of this impasse. Findings – This study shows that the Islamic approach is more agreeable to environmental protection, and the issues associated with environmental and sustainable development have moral, ethical and social responsibilities, and the businesses should have on intense commitment to Islamic ethics in justice and welfare of human beings. Because of environmental ethics in Islam, and the value chain of suppliers through customers, businesses should be aware of the environmental aspects and impacts of their companies. Originality/value – This paper enhances the understanding of Islamic ethical responsibilities in business, environmental and sustainable development and attempts to show attributes of the various levels of behaviour of an organisation.