The Effectiveness of Islamic Banks’ Corporate Social Responsibility as Perceived By Gender in Malaysia: An Exploratory Research

Abstract

The main aim of this study is to investigate the effectiveness of Islamic banks’ corporate social responsibility (ICSR) as perceived by gender in Malaysia. Islamic financial institutions have been encouraged to be conversant in discharging both obligatory and recommended forms of Islamic corporate social responsibility. It had also been argued that corporate social responsibility from Islamic perspective is capable of improving standard of living of people if well practice. Based on this, it is highly important to investigate the effectiveness of ICSR as perceived by the people. Hence, this study studied the opinion of Islamic banks stakeholders in Malaysia using questionnaire that comprises of 19 questions. Exploratory Components Factor Analysis (PCA) and Cronbach’s alpha confirmed the construct validity and internal consistency of the measurement scale of these questions. After reducing these questions into four factors, they were renamed as investment development, human development, poverty alleviation and social development in accordance with the kind of the question in each category, and Mann-Whitney U test was applied on them because the data was not normally distributed. The results revealed that both male and female of the Islamic banks’ stakeholders perceived the ICSR of been effective.

+ View Full Abstract