CSR management process in Bank Islam Malaysia Berhad (BIMB): Managing zakat fund

• Main Authors: Abu Bakar, Fathiyyah, Yusof, Mohd Atef
• Format: Conference or Workshop Item
• Language: English
• Published: 2012
• Subjects: BP Islam. Bahaism. Theosophy, etc; HG Finance
• Online Access: http://repo.uum.edu.my/6185/1/Fat.pdf; http://repo.uum.edu.my/6185/
• Institution: Universiti Utara Malaysia

The notion of CSR from Islamic perspective has been viewed as a comprehensive discourse when it is already embedded the element of spiritual (Iman and Taqwa), economics, ethical and legal. The integration of these elements in Islamic CSR is urged companies to manage it systematically and optimize the value of CSR to become a DNA of the company. However, the process of managing CSR initiatives is scarcely focused on. Thus, by using case study approach, a group of key players in planning, implementing and receiving CSR initiatives has been interviewed in a way to gain better understanding of CSR management process and to gain insights the benefits of engaging and sustaining CSR initiatives.In addition, several series of infield observations on CSR events as well as documentation analysis have been employed to get the whole picture of the process. The results show that CSR initiatives in Bank Islam are highly associated with Zakat and Zakat management due to a big portion of CSR fund is derived from Zakat fund. Most of the respondents demonstrate that CSR is about giving back to society and as a tool to help and develop communities.Then, in light to the CSR management process, the findings suggest that the process has been shifted to systematic approach and well planned.This significance improvement can be demonstrated for the past five years, after rebranding of the bank.Thus, this interesting finding provides an avenue to draw a conceptual framework in managing CSR initiatives.The findings offer a good opportunity to companies and regulatory bodies to enhance the existing framework on managing CSR as part of their commitment to improve the well-being of community and for business sustainability.