Integration of Social Responsibility in Financial Communities

Farook, Sayd; Shikoh, Rafi‐Uddin

doi:10.1002/9781119206040.ch3

Cited by 14 publications

(29 citation statements)

References 3 publications

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“…However individual private sector organisations need to be made aware and realise that they as private organisations, potentially, have a greater role to play in fostering and developing social entrepreneurship in the country than either the government, the public sector or international development organisations. Farook and Shikoh (2012) point out that Islamic financial institutions in the private sector – arguably one of the communities most capable of promoting change – are already moving towards supporting ethical investment and social entrepreneurship.…”

Section: Findings and Discussionmentioning

confidence: 99%

An exploratory study on social entrepreneurship in Egypt

Fakoussa¹,

O’Leary

Saleem

2020

JIABR

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Purpose The purpose of this paper is to add to the existing wealth of knowledge on the benefits and challenges of social entrepreneurship in Egypt, a challenging emerging economy. Design/methodology/approach The research combines secondary and primary research with the latter including interviews across the public, private and social entrepreneurship sectors, together with surveys to gather Egyptian and international perspectives. Findings The study addresses several political, cultural and economic themes that significantly influence the emergence and growth of social entrepreneurship organisations in Egypt. Research limitations/implications Egypt is undergoing significant change at present; hence, this research provides a snapshot of what may be considered a very dynamic environment. Practical implications Recommendations are made that have practical implications for each of the public, private, development and non-profit sectors in Egypt. It is suggested that the public sector ought to unite its efforts under one umbrella organisation, the private sector could benefit from growing social awareness across the region, while development groups should continue to focus on education generally. Non-profit entities can seek to collaborate with others, and all organisations can make better use of developing global communications technology. Social implications A base of social entrepreneurship is already established in Egypt, but this research suggests that further encouragement of these initiatives could help develop the economy and foster a more socially aware culture and political landscape. Originality/value Social entrepreneurship in Egypt continues to evolve, and this research identifies a number of economic, cultural and political perspectives that, if addressed, could help accelerate progress.

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Section: Findings and Discussionmentioning

confidence: 99%

An exploratory study on social entrepreneurship in Egypt

Fakoussa¹,

O’Leary

Saleem

2020

JIABR

View full text Add to dashboard Cite

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“…The third principle of ICSR underlies a Muslim faith’s most crucial element and “encompasses all aspects of a Muslim’s life. It comprises a prescription toward positive (permissible and recommended) actions and a prescription against negative (impermissible and not recommended) actions.” The adoption of these three ICSR principles by an organization in all the aspects of its business operations is preferred by Muslim consumers (Alshammary, 2014; Farook, 2007). The differences observed between CSR and ICSR act as the basis for developing a different ideology for an organization’s social responsibility to target Muslim consumers.…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

“…Farook (2007) argues that with mandatory and recommended forms, an IFI should accomplish CSR practices. These required forms, according to Farook (2007), are avoiding earnings that are prohibited by the Shariah, screening of investment, to be responsible while dealing with customers, hiring an excellent workforce and paying zakat. On the other hand, the recommendations comprise qard-hasana; being involved in charitable activities; welfare of employees; investments and social savings; customer service par excellence ; conducting small and medium-sized businesses; screening contractors and clients; minimizing the environmental impact; and implementing Waqf management.…”

Section: Literature Reviewmentioning

confidence: 99%

“…To the supporters and proponents of CSR (Aribi and Arun, 2015; Jaiyeoba and Adewale, 2015; Khurshid et al , 2014; Carroll, 2006; Ararat, 2008; Arthur et al , 2007; Zubairu et al , 2011; Dusuki, 2008; Hamidu et al , 2015; Hassan and Salma Binti Abdul Latiff, 2009; Farook, 2007; Reinhardt et al , 2008; Freeman, 1984; Windsor, 2001; Isa, 2012), Friedman’s ideas are considered as exploitation that deprives most citizens, whereas the corporate elites are to gain enormous wealth. On the contrary, Freeman (1994) argued that a manager’s responsibility is not only limited to wealth maximization of its shareholders, but also to satisfying all stakeholders.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does stakeholder pressure matter in Islamic banks’ corporate social responsibility and financial performance?

Ali

Khan

Puah

et al. 2022

IJOES

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Purpose This study aims to examine the impact of stakeholder pressure on Islamic banks’ corporate social responsibility (CSR) practices and financial performance. Design/methodology/approach A close-ended questionnaire was collected from 282 Islamic bank’s branch managers. Partial least square structural equation modeling was used to test the hypothesized model. Both measurement and structural models were found to be fit for this research. Findings Results indicate that all components of stakeholder pressure (management, client, competitor, Sharia advisory board and community) have a significant positive impact on Islamic CSR. The findings of this study further revealed that Islamic CSR is a significant predictor of bank’s financial performance. Based on the present empirical results, this study suggests that Islamic bank managers should develop the best CSR practices to gain a competitive advantage and sustainable financial performance. Originality/value Overall, this study contributes significantly to the Islamic bank CSR literature. However, to the best of the authors’ knowledge, few studies have been conducted to establish a link between firm performance and CSR in Islamic banks using a comprehensive model of stakeholder pressure.

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Guidelines for developing the shari'ah‐compliant products and shari'ah governance for sustainable banks in Bangladesh

Uddin,

Hosen,

Azad

et al. 2023

Bus Strat Dev

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The industry of Islamic banking and finance (IBF) has undergone rapid expansion over the past forty years. However, it's imperative that this sector continues to evolve—making sure it aligns with contemporary market trends while staying abreast with modern financial practices. With financial offerings becoming more complex than ever before, adhering closely to shari'ah principles certainly poses a newer level of daunting challenges that need urgent attention in this burgeoning field. Moreover, the infamous products and current shari'ah governance of Islamic banks have been widely debated following the publication of an article titled “Terrible November for Islamic banks” in a reputable newspaper, Prothom Alo, 2022. In order to bridge the gap this study investigates drivers, enablers, and inhibitors of shari'ah‐compliant products and the successful implementation of shari'ah governance for sustainable Islamic banks in Bangladesh. The qualitative data have been collected through in‐depth personal interviews and focus group discussions with 41 well‐known scholars. The analysis shows shari'ah board and research division are required to collaborate to develop shari'ah‐compliant products as outlined in the Qur'an and Hadith. Additionally, a strong legislative framework for shari'ah‐compliant product development and shari'ah governance is essential to promote a sustainable Islamic banking industry. Good shari'ah governance and compliance in a banking institution are significantly dependent on the good intentions of its board members and operational managers. The study offers a legal framework and core value‐based banking that develops unique and fully shari'ah‐compliant products to uphold sustainable development goals (SDGs). Important policy implications are discussed.

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Integration of Social Responsibility in Financial Communities

Cited by 14 publications

References 3 publications

An exploratory study on social entrepreneurship in Egypt

An exploratory study on social entrepreneurship in Egypt

Does stakeholder pressure matter in Islamic banks’ corporate social responsibility and financial performance?

Guidelines for developing the shari'ah‐compliant products and shari'ah governance for sustainable banks in Bangladesh

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