Islamic banking industry has been established for almost fifty years since 1970s. Although an Islamic bank still makes up only a fraction of the banking assets of Muslims, it has been growing faster than projected. The Shariah based concept, products and services provided have been well accepted worldwide. However, there still lack of discussion on how Islamic banks adopted all the Islamic ethical principles in performing their CSR. The paper aims to discuss the CSR concept from Islamic perspective. It is a conceptual attempt to discuss on how Islamic principles can influence the Islamic banks to the implementation of CSR. The religious characteristics that acted as a foundation for the establishment of Islamic banking are expecting to have an influence on corporate social responsibility. For that reason, the paper examines and analyse the relevant literature on Islamic bank and CSR discussions. The paper finds that, Islamic principle has a strong influence of CSR practice among Islamic banks. Thus, it is expected that the Islamic banks should be more proactive in CSR practice rather than conventional bank in fulfilling its religious obligation and their exemplary as a financial intermediary. Our study offers an original contribution to Islamic banking literature by develops a link between Islamic banking and Islamic ethical principle in CSR practice

This study explores the CSR disclosure practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2016 - 2020 and examines its effects on firm value. Based on Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Governance Standard No. 7 guidelines and using content analysis, the paper develops a comprehensive CSR Disclosure index for GCC Islamic banks. The study applies the ordinary least squares regression analysis for the hypothesis testing and for finding its effect of respective dependent variables. The results show a very low level of CSR disclosure among the sample Islamic banks in GCC countries. For the economic consequences of CSR disclosure, the study documents an inverse performance effect of CSR Disclosure while board size, board composition and CEO duality indicate significant positive effects on firm value. The relatively small sample size of GCC Islamic banks may limit the application of the findings to other Islamic Financial Institutions such as Takaful and the Islamic Unit Trust Company. The findings of this study initiate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSR disclosure practices among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policy makers and Islamic banks in the GCC countries. The results of the study do not support the idea that Islamic banks operating on Islamic principles can meet their social responsibilities through promoting CSR activities and by differentiating themselves from non-Islamic banks. This is the first study to examine the CSR disclosure in GCC Islamic banks using comprehensive CSR disclosure and corporate governance variables and, therefore, adds value to the existing CSR literature in banking

This study explores the CSR disclosure practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2016 - 2020 and examines its effects on firm value. Based on Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Governance Standard No. 7 guidelines and using content analysis, the paper develops a comprehensive CSR Disclosure index for GCC Islamic banks. The study applies the ordinary least squares regression analysis for the hypothesis testing and for finding its effect of respective dependent variables. The results show a very low level of CSR disclosure among the sample Islamic banks in GCC countries. For the economic consequences of CSR disclosure, the study documents an inverse performance effect of CSR Disclosure while board size, board composition and CEO duality indicate significant positive effects on firm value. The relatively small sample size of GCC Islamic banks may limit the application of the findings to other Islamic Financial Institutions such as Takaful and the Islamic Unit Trust Company. The findings of this study initiate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSR disclosure practices among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policy makers and Islamic banks in the GCC countries. The results of the study do not support the idea that Islamic banks operating on Islamic principles can meet their social responsibilities through promoting CSR activities and by differentiating themselves from non-Islamic banks. This is the first study to examine the CSR disclosure in GCC Islamic banks using comprehensive CSR disclosure and corporate governance variables and, therefore, adds value to the existing CSR literature in banking.