Islamic Bank and Corporate Social Responsibility (CSR)

Islamic banking has been in the market for almost fifty years, since its inception during the 1960s. Since that time, Islamic banking has rapidly developed and is no longer a strange concept. The products and services provided have been well accepted, not only among Muslim countries but also non-Muslim countries. However, there is a lack of discussion on how Islamic back perform in term of corporate social responsibility compare than conventional bank. The paper aims to analyze the relationship of Islamic bank and CSR performance. It is a conceptual attempt to discuss on how Islamic principles of Islamic bank can influence 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, the paper examines and analyse the relevant literature and develop the relationship between Islamic bank concept and CSR. The paper found that, the concept of Islamic bank that comply with religious provision should exhibit more proactive CSR activity and policies. Islamic bank performance should superior compare than conventional bank counterpart.