Sustainability of Religious-Based Bank: Customer-Centric and Islamic Bank Governance

Abstract

The study tests the correlation of governance on the sustainability performance of Islamic banks. And is there a correlation of customer-centric Corporate Social Responsibility (CSR) strategy with Islamic identity on the sustainability performance of Islamic banks in terms of economy, environment, and social? This study used cross-section data from 10 Islamic commercial banks in Indonesia for 2020. Based on the correlation test, there was no significant positive relationship between sustainability performance and customer-centric CSR within the scope of Islamic ethics, and there was no significant correlation between sustainability performance and corporate governance. Customer-centric CSR in Islamic ethics also has no significant correlation with sustainability performance; several other factors that affect customer-centric CSR strategy in the scope of Islamic ethics have not been discussed in the research.

Islamic Ethics in Business and Finance: Implication for Corporate Governance and Responsibility

“…Furthermore, Islamic work ethics provide guidelines for employees to sustain organizations in a manner consistent with Islamic values and corporate social responsibility (Asha'ari, 2018). The concept of Customer-centric Corporate Social Responsibility (CSR) within Islamic ethics and good corporate governance is being explored to enhance the sustainability performance of Islamic banking institutions (Oktaviana & Miranti, 2023).…”