Zakat and Islamic Corporate Social Responsibility: Does It Take Effect to the Performance of Shari’a Banking?

Ichwan Sidik* -  Faculty of Economics and Business, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Indonesia
Reskino Reskino -  Faculty of Economics and Business, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Indonesia
DOI : 10.22515/shirkah.v1i2.23

The less than optimal regulation of zakat companies in sharia banking in Indonesia has been salient to the background of this research. This study aims to examine the influence of zakat and Islamic corporate social responsibility (ICSR) to the reputation and performance of companies. Sample data was selectively gathered from 10 sharia banks in Indonesia from 2011 to 2014. Normality test and logistic regression are used to test the effect of zakat on company reputation, the influence of ICSR on company reputation, the influence of zakat on company performance, and the influence of ICSR on corporate performance. The results show that zakat has a positive influence on and is significant to a company's reputation, that ICSR has a positive influence on and is significant to a company's reputation, that zakat has a positive influence and significant impact on the performance of a company, and that ICSR has a positive relation, but no significant effect on company performance. These findings indicate the importance of paying zakat and ICSR as a business strategy for the sharia banking market in Indonesia today.

 

Keywords: zakat, Islamic corporate social responsibility, company performance

  1. Al Quran and Terjemahnya. Saudi Arabia: Kementerian Urusan Agama Islam, Wakaf, Da’wah, and Irsyad Kerajaan Saudi Arabia.
  2. Amirah and Raharjo TB. 2014. Pengaruh Alokasi Dana Zakat Terhadap Kinerja Keuangan Perbankan Syariah. Paper presented at National Seminar FEB UMS.
  3. Arshad R., Othman S., and Othman R. 2012. Islamic Corporate Social Responsibility, Corporate Reputation and Performance. International Journal of Social, Behavioral, Educational, Economic and Management Engineering. Vol. 6 No. 4, pp. 90-94.
  4. Bank Indonesia. 2007. PBI No. 9/1/PBI/2007 tentang Sistem Penilaian Tingkat Kesehatan Bank Umum Berdasarkan Prinsip Syariah. Accessed from Otoritas Jasa Keuangan: http://www.ojk.go.id/dl.php?i=2654&f=1, on 20-11-2015.
  5. Basah A. and Yusuf M. 2013. Islamic Bank and Corporate Social Responsibility (CSR). Malaysia: Journal Islamic Management and Business, Vol. 5 No. 11.
  6. Carroll A.B. 1979. A Three-dimensional Conceptual Model of Corporate Performance. Academy of Management Review, Vol. 4 No. 4, pp. 497-505.
  7. Drever M., Stanton P., and McGowan S. 2007. Contemporary Issues in Accounting. Australia: John Wiley & Sons.
  8. Fitria S., and Hartanti D. 2010. Islam dan Tanggung Jawab Sosial: Studi Perbandingan Pengungkapan Berdasarkan GRI Indeks dan ISR Indeks. Paper presented at National Accountants’ Symposium XIII, Purwokerto.
  9. Fombrun C., and Shanley M. 1990. What’s in a Name? Reputation Building and Corporate Strategy. Academy of Management Journal. Vol. 33. pp. 233-258.
  10. Ghozali I. 2006. Aplikasi Analisis Multivariate Dengan Program SPSS. Semarang: BP UNDIP.
  11. Hakansson N.H. 1983. Comments on Weick and Ross. The Accounting Review. Vol. 58 No. 2, pp. 381-384.
  12. Haniffa R. 2002. Social Reporting Disclosure: An Islamic Perspective. Indonesian Management & Accounting Research. Vol. 1 No. 2, pp. 128-146.
  13. Harahap S.S. 2001. Menuju Perumusan Teori Akuntansi Islam. Jakarta: Pusaka Quantum.
  14. Harpur O.M. 2002. Corporate Social Responsibility Monitor. London: Gee Publishing.
  15. Hill R.P., Ainscough T., Shank T., and Manullang D. 2007. Corporate Social Responsibility and Socially Responsible Investing: A Global Perspective. Journal Business of Ethics. Vol. 70.
  16. Khursid M.A., Aali A., Soliman A.A., and Amin S.M. 2014. Developing an Islamic Corporate Social Responsibility Model. Competitiveness Review, Vol. 24 No. 4, pp. 258-274.
  17. Louisot JP., dan Rayner J. 2010. Managing Risks to Reputation: From Theory to Practice. www.risk2reputation.com/files/managing_risks_to_reputation_from_theory_to_practice.pdf, accessed 18-11-2015.
  18. Othman R., Thani A.M., and Ghani E.K. 2009. Determinants of Islamic Social Reporting Among Top Shariah-Approved Companies in Bursa Malaysia. Research Journal of International Studies, issue 12.
  19. Otoritas Jasa Keuangan. 2014. POJK No. 8/POJK.03/2014 tentang Penilaian Tingkat Kesehatan Bank Umum Syariah Dan Unit Usaha Syariah. http://www.ojk.go.id/peraturan-otoritas-jasa-keuangan-tentang-penilaian-tingkat-kesehatan-bank-umum-syariah-dan-unit-usaha-syariah, accessed 20-11-2015.
  20. Oxford University Press. 2001. Oxford Student’s Dictionary of English. Malaysia: Oxford University Press.
  21. Qardhawi Y. 1969. Fiqh Al-Zakah: A Comparative Study of Zakah Regulations and Philosophy in the Light of Quran and Sunnah. Translated by Monzer Kahf. Saudi Arabia: Scientific Publishing Centre.
  22. Scholastic Dictionary. 2011. Scholastic Children’s Dictionary Ages 8 and Up. USA: Scholastic Inc.
  23. Sutedi A. 2015. Buku Pintar Hukum Perseroan Terbatas. Jakarta: Raih Asa Sukses.
  24. Triyuwono I. 2007. Mengangkat ‘Sing Liyan’ Untuk Formulasi Nilai Tambah Syariah. Paper preseted at Simposium Nasional Akuntansi X, Makassar.
  25. Williams G., dan Zinkin J. 2010. Islam and CSR: A Study of the Compatibility between the Tenets of Islam and the UN Global Compact. Journal Business of Ethics, Vol. 91 No. 4, pp. 519-533.

Shirkah: Journal of Economics and Business
Published by Faculty of Islamic Economics and Business (FEBI)
Institut Agama Islam Negeri Surakarta, Indonesia
Jln. Pandawa No. 1, Pucangan, Kartasura, Central Java, Indonesia, 57168
Phone: +62271-781516
Website: http://shirkah.or.id/new-ojs/index.php/home
Email: shirkahiainsurakarta@gmail.com

P-ISSN :2503-4235 | E-ISSN : 2503-4243

This ejournal system and it's contents licensed under
a Creative Commons Attribution-NonCommercial 4.0 International License