CORPORATE SOCIAL RESPONSIBILITY IN ISLAMIC COMMERCIAL BANKS IN SAUDI ARABIA

Abstract

Corporate social responsibility (CSR) is a universal demand; this is due to its great importance in modern societies. CSR is one of the few roads to economic justice and human well-being in the western countries. However, the concept of CSR is embedded in the Islamic teachings deep within Maqasid Al-Shariah and a prerequisite as seen in the Holy Qur'an and Prophet Mohammed (PBUH). Therefore, this study was an exploratory qualitative research that aimed to identify and explore the perception of social responsibility in Islamic banks from an Islamic perspective. Triple bottom line approach that covered three areas included economic, environmental and social.  Secondly, the study aimed to explore the role of Shariah Supervisory Boards (SSBs) in structuring CSR policies. The results indicated that each bank was implementing CSR according to their perception of the welfare of the community. However, one bank was socially responsible and had both a clear vision and strategic thinking that include the three dimensions. Banks in general and more precise Islamic banks should be more engaged in CSR activities. Regarding the role of SSB, the results showed that SSB has an indirect role. Therefore, SSB should has an active and a direct role in constructing CSR policies to perform Islamic principles by fulfilling the substance of Maqasid Al-Shariah not only its form.