CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY IN ISLAMIC BANKS: A SYSTEMATIC LITERATURE REVIEW

Abstract

The main objectives of this study are two-fold. First, this study aims to review the research development on corporate governance (CG) and corporate social responsibility (CSR) in Islamic banks. Second, this study aims to identify the impact of CG on the CSR of Islamic banks. Several previous studies focused on CG and CSR in Islamic banks with empirical and theoretical approaches. Through a systematic literature review (SLR), 20 papers published in the Scopus database from 1997 to 2021 on the relationship between CG and CSR in Islamic banks were selected for analysis. The findings revealed that most of the research on CG and CSR in Islamic banks uses a quantitative approach to measure the level of CSR disclosure in the banks and the impact of CG on CSR disclosure. In addition, some evidence concludes that aspects of CG, such as the Shari’ah supervisory board (SSB), board of directors (BODs), and audit committee, positively or negatively influence CSR disclosure in Islamic banks. This study suggests that research on CG and CSR in Islamic banks still requires development on variables aspects, issues, and analysis development using other research methods such as qualitative approaches.