Corporate social responsibility (CSR) management process at Bank Islam Malaysia Berhad

The notion of corporate social responsibility (CSR) from the Islamic perspective has been
viewed by reference to the Tawhid and Shariah paradigms and other concepts such as maqasid Shariah (objectives of Shariah), maslahah ammah (public interest) and masuliyyah (accountability). From this point of view, CSR engagement is a tool to maintain a good relationship to Allah, other human beings and the environment. However, the process of managing CSR engagement in accordance with Shariah principles has been given scarce attention in the academic and practitioner literature. Thus, this study aims to describe and develop a managerial guideline on the CSR
management process in accordance with Shariah principles. Using the case study approach, CSR key players and beneficiaries at Bank Islam Malaysia Berhad were interviewed to determine the relevant concepts, objectives, factors, benefits and challenges of CSR. Several series of in-field observations of CSR events were conducted, and documentation was reviewed in order to better understand and explain the process. The findings of this study indicate that CSR relates to any activity in which the bank engages to discharge religious, social and economic responsibilities and accountabilities
to attain barakah (Allah’s blessings) and to enhance the well-being of the stakeholders and the business. Commitments from all members in the bank, pressure from various stakeholders and the amount of CSR funds are among the factors that influence CSR engagement. This engagement is part of fard-kifayah to fulfill religious obligations, strengthen relationships with various stakeholders, improve the well-being of the recipients and offer positive effects to the bank. In light of the CSR management process, the findings reveal that the process has shifted to a systematic approach and is well planned. Hence, the proposed managerial guideline on the process may offer new insights to the body of knowledge on CSR and may help business entities to manage CSR systematically