Consumers’ Perspectives on Sustainability Practices of Islamic Banks and Halal Businesses

Abstract

Given the accelerated climate change, economic woes, growing social inequality and social discontent in various communities, Islamic banks and halal businesses can no longer ignore concerns about sustainability practices if they are to remain viable. To this end, this study intends to ascertain consumers’ views on the sustainability practices of Islamic banks and halal businesses. A quantitative research design was adopted, and a survey questionnaire was used to collect data from 302 predominantly young consumers in Klang Valley, Malaysia. Descriptive analyses were performed on the collected data using the Statistical Package for Social Sciences (SPSS) software. The results reveal that respondents strongly agree that goods and services from sustainably operating Islamic banks and halal businesses are worth paying for and patronising, that the ethical reputation of Islamic banks and halal businesses influences their decisions to patronise them, that they will not patronise Islamic banks and halal businesses that engage in unethical practices, and that they are willing to pay more for products that show care for the well-being of society. Additionally, they prefer to patronise Islamic banks and halal businesses with a socially responsible reputation compared to other companies without such a reputation. Based on these findings, it is recommended thatrather than pursuing profitability at all costs, Islamic banks and halal businesses should adopt a comprehensive approach to sustainability practices—specifically economic, environmental, social, and philanthropic sustainability—that truly advances sustainable development if they are to remain viable.