The Current Status of Corporate Social Responsibility Disclosure of Islamic Shari-based Banking Companies in Bangladesh

Abstract

The purpose of this study is to examine the current extent and any difference (if any) of CSR disclosure of Islamic Sharia-based banking companies in Bangladesh during the period of 2011-2015. Content analysis is adopted to accumulate the data from company’s annual reports. The CSR checklist comprise of sixteen dimensions (including 85 items) of CSR activities i.e., ‘Environment’, Disaster management, ‘Sports, Shelter, Women, Disabled, Liberation war, Health, Education, Energy, Minorities, Employee, Product responsibility, IT, Community and Government. The study reveals that the grand mean disclosure of CSR information in annual report of Islamic banks is 25.89% with a standard deviation of 5.49%. Empirical evidence provides that there is statistically significant difference of CSR disclosure among Islamic Sharia-based banking companies in Bangladesh. But there is no significant difference of CSR disclosure of Islamic banking industry in Bangladesh year to year. Moreover, CSR disclosure of Islamic Shari-based banking companies is not diversified rather concentrated on some specific dimension and items of CSR. The study is mainly based on annual reports for the financial year 2011-2015 of Islamic Sharia-based banking companies in Bangladesh. Hence, the conclusion reached cannot be generalized.

Does Socially Committed Bank Manager Manipulate Earnings Through Dicretionary Accruals? Empirical Evidence From an Emerging Economy

“…Besides, Bangladesh has developed and adopted several rules and regulations. These laws also monitor communal and environmental issues for companies operating in Bangladesh (Hossain & Neogy, 2019). In reality, a weak governance, lack of proper policies and guidelines, as well Journal of Sustainability Science and Management Volume 15 Number 8, December 2020: 136-166 as an absence of resilient political stimulus along with deficiency of skilled workforces and expertise hindered the implementation of these laws (Belal et al, 2015).…”

“…Explicitly, through the procedure of regulatory guidelines of the Bangladesh Bank (BB), inspiration and other initiatives have helped to generate participation in sustainability activities through a more systematic approach since 2008 (Hossain et al, 2019). For instance, intending to start green finance, BB delivered a guideline to confirm that the financial sector has methods to reduce environmental pollution when funding new ventures (BB, 2008;Masud & Kabir, 2016).…”

“…The findings of these studies indicate that to legitimise their actions, businesses generally practise CSR. Moreover, Hossain and Neogy (2019) demonstrated that there is a significant influence of the external stakeholders in CSR development through media coverage and highlights environmental issues that create a positive move on social and ecological awareness.…”

Disclosure Practices Regarding Corporate Social Responsibility (CSR) of Some Listed Companies: Evidence from Chittagong Stock Exchange, Bangladesh

“…Additionally, CSR disclosure practices of the Islamic banking industry depends on some specific dimensions of CSR (Hossain and Neogy, 2019). Another study on the CSR disclosure practices in the banking sector identified that CSR disclosure practices depends on factors like government ownership, age, Islamic compliance and CSR expenditures (Saha, 2019).…”

The Role of Private Commercial Bank in Corporate Social Responsibility with Reference to Islami Bank Bangladesh Limited

“…opposed to the CSR actions associated with core business that are pursued by conventional banks. Hossain & Neogy[33] empirically experimented the statistically significant difference of CSR disclosure among Islamic Sharia-based banking companies in Bangladesh which reveals is no significant difference of CSR disclosure of Islamic banking industry in Bangladesh during the period of 2011-2015 by considering 16 dimensions including Environment, Disaster management, Sports, Shelter, Women, Disabled, Liberation war, Health, Education, Energy, Minorities, Employee, Product responsibility, IT, Community and Government. Overall, so many researches have been conducted only to know the financial performance of banks but few have been researched on understanding the role of CSR in the sustainable development of a country.…”