Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

ABSTRACT

Purpose: This study aims to investigate the effect of sharia governance to corporate social responsibility disclosure in Indonesia Islamic banks.

Design/methodology/approach: The data in this study are taken from the annual reports of ten Islamic banks in Indonesia in the period 2011–2018. The data analysis method used in this study is multiple linear regression analysis.

Findings: This study finds that the effectiveness of the board of directors plays a vital role in enforcing corporate social responsibility disclosure. Whereas, the audit committee and sharia supervisory board are found to have no significant effect on corporate social responsibility disclosure in Islamic banks.

Research implications: Results of this study reveal that sharia supervisory board in Indonesia Islamic banks only still focuses on the compliance of Islamic banks with the sharia principles regarding the products and operations.

Originality/value: The novelty of this study lies in highlighting the effect of sharia supervisory board as a unique characteristic of sharia governance.

KEYWORDS:

• Shariah governance
• Corporate social responsibility
• Islamic banks

Disclosure statement

No potential conflict of interest was reported by the author(s).