Corporate Identity And Corporate Social Responsibility (CSR) Disclosure Practices: Evidence Of Islamic Banks In Dual Banking System

This study analyses how corporate social responsibility (CSR) disclosure practices build corporate identity. Banks use CSR to demonstrate their beliefs and commitment to social well-being, as stakeholders demand for them to be ethical and socially responsible. By determining the most effective CSR component, banks are able to ensure that stakeholder priorities align with their values and mission. A framework for analysing effective corporate communication and content analysis is used to investigate disclosure practices among 16 Islamic and 21 conventional banks. The data used was gathered from financial and sustainability reports published on the banks’ official websites. Results indicated that Islamic banks value their stakeholders and consider them as part of their identity. Both Islamic and conventional banks are seen to have focused their CSR initiatives towards two dimensions of community and customer. This is where in a dual banking system, both banks communicated CSR initiatives to the community and consumers more than they do to employees, while environmental responsibility was found to be the least communicated. This study emphasises the role of stakeholders in building corporate identity and proposes that banks should effectively communicate their CSR initiatives to stakeholders.