The role of Waqf in CSR: models from Indonesia and Malaysia and new proposals

Purpose Corporate social responsibility (CSR) is often implemented as a one-off programme, providing only temporary benefits to society. Sustainable CSR aims to deliver longer-lasting positive impacts. This aligns with the concept of Islamic endowment (waqf), which is designed to generate enduring benefits through proper management. This study aims to explore sustainable CSR practices across countries and examines the potential role of Islamic finance, particularly waqf, in accelerating sustainable CSR initiatives. Design/methodology/approach The study uses systematic literature review (SLR) using the Scopus database for the period 2015–2024 to explore sustainable CSR practices across countries. This SLR follows the PRISMA guidelines, resulting in the identification and analysis of 20 relevant articles. The SLR is further complemented by content analysis of relevant books, documents and articles with a particular focus on exploring the potential role of waqf in accelerating sustainable CSR. Findings The research identifies several key factors enabling sustainable CSR: strong regulations, owners’ values and commitments, CSR integration into core business operations, community involvement and the availability of impact evaluation and monitoring mechanisms. The study highlights Indonesia’s Bank Wakaf Mikro as a notable model of CSR applied to Islamic microfinance and Johor Corporation (JCorp) as a successful example of corporate waqf. Building on these cases, the study proposes a model for integrating waqf with CSR. Originality/value To the best of the authors’ knowledge, this is the first systematic review of the potential of waqf in promoting sustainable CSR. This study enriches the literature by proposing an integrative model that not only aligns the ethical and long-term orientation of waqf with the goals of CSR, but also demonstrates how such synergy can be institutionalised within the framework of Islamic finance. This approach provides practical insights for organisations seeking to enhance the sustainability and social impact of their CSR initiatives. It also offers policy-relevant recommendations for regulators and stakeholders aiming to develop inclusive and purpose-driven Islamic finance ecosystems.