The Effect of Islamic Social Responsibility Disclosure on Company Performance in Islamic Commercial Bank
DOI:
https://doi.org/10.32832/neraca.v21i1.23402Keywords:
Islamic Social Reporting, Company Value, Return On Asset, Islamic Commercial BankAbstract
This study aims to determine how Islamic Social Responsibility (ISR) affects business operations at Bank Umum Syariah (BUS) in Indonesia. Return on Assets (ROA) is used to measure how much the social responsibility based on Islamic principles contributes to the business's financial performance. This study uses a quantitative approach with an associative design. All BUS listed at Otoritas Jasa Keuangan (OJK) between 2020 and 2024 were included in the study population, and the sample was selected using the purposive sampling technique to increase the availability of lengthy and auditable sustainability and annual reports. Data analysis is carried out using descriptive statistical analysis, classical assumption analysis, linear regression analysis, t, and F. The study's findings indicate that ISR implementation has a positive impact on business operations, although it is not statistically significant, at least not statistically. The study's findings indicate that ISR has a positive impact on business operations, although it is not statistically significant, either in a parallel or parallel manner. This indicates that ISR is unable to provide a significant impact on the profitability of Islamic banks and that other factors, such as operational efficiency and risk financing, have a greater impact on business operations. This study's implications highlight how important it is to improve quality and implement ISR strategies in order to boost stakeholder trust and reputation as well as increase company productivity in the long run.
References
Awa, H.O., Etim, W., & Ogbonda, E. (2024). Stakeholders, stakeholder theory and Corporate Social Responsibility (CSR). International Journal of Corporate Social Responsibility . https://doi.org/10.1186/s40991-024-00094-y
Barbara, G., Berliyanda, & Lilla, K. (2024). The Effect of Green Accounting, Carbon Emission Disclosure, and Environmental Performance on Firm Value. Indonesian Accounting and Business Review , 8 (1), 33–50. https://doi.org/10.18196/rabin.v8i1.22027
Chairia, C., Br Ginting, JV, Ramles, P., & Ginting, F. (2022). Implementation of Green Accounting (Environmental Accounting) in Indonesia: A Literature Study. Financial: Journal of Accounting , 8 (1), 40–
49. https://doi.org/10.37403/financial.v8i1.368
Dosinta, NF, Dosinta, NF, & Yunita, K. (2024). Corporate Governance and Islamic Social Responsbility: Indonesia Islamic Banking Development Roadmap Era Corporate governance and Islamic social reporting: Indonesia Islamic banking development roadmap era . 6 (1), 27–41. https://doi.org/10.20885/jca.vol6.iss1.art3
Handayani, YI (2017). Implementation of Islamic Social Responsbility in Islamic Banks Malaysia. Journal of Management and Business , 16 (2). https://doi.org/10.24123/jmb.v16i2.335
Khoiriyah, R. (2020). The Effect of Islamic Social Responbility on Firm Value (Case Study on Islamic Banks in Indonesia). Journal of Research in Business, Economics, and Education , 2 (4), 821–830.
Kumala, N., & Priantilianingtiasari, R. (2024). 863 | Volume 5 Number 3 2024. Islamic Economics & Business Studies , 5 (2), 863–882.
Lestari, M. (2023). The Influence of Green Accounting, Green Intellectual Capital, and Corporate Social Responsibility Disclosure on Company Value. Trisakti Journal of Economics , 3 (2), 2955–2968. https://doi.org/10.25105/jet.v3i2.17879
Listyorini, I., Utami, RD, Prasojo, P., & Amanda, AS (2024). The Role of Shariah Supervisory Board in Islamic Social Responbility Disclosure. Journal of Accounting Auditing and Business , 7 (2), 23–35. https://doi.org/10.24198/jaab.v7i2.53207
Maulida Nuzula Firdaus. (2023). The Effect Of Green Accounting Implementation And Corporate Social Responsibility Disclosure On Firm Value With Good Corporate Governance As A Moderating Variable . 2 (4), 31–41.
Nurfhadila, N., & Lenap, IP (2025). The Effect of Islamic Social Responbility (ISR), Bank Risk, and Capital Structure on Firm Value . 4 (3), 1019–1030.
Pahlawan, J., Pekalongan, K., & Tengah, J. (2020). Implementation of Islamic Social Reporting INDEX . 6 (1), 1–25.
Pratomo, J. (2021). The Effect of Islamic Social Responsbility (ISR) Disclosure on Company Value Through the Financial Performance of Islamic Commercial Banks Before and During the Covid-19 Pandemic. Journal of Social Technology , 1 (12), 648–654. https://doi.org/10.36418/jurnalsostech.v1i12.274
Purwanti, N., Dunakhir, S., & Anwar, A. (2024). The Effect of Green Accounting Implementation on Profitability in Basic Industry and Chemical Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period. Indo-Fintech Intellectuals: Journal of Economics and Business , 4 (3), 1221–1234. https://doi.org/10.54373/ifijeb.v4i3.1587
Putri, A., & Kusumasari, S. (2023). Research in Business & Social Science Islamic social responbility mediates the effect of profitability and leverage on firm value . 12 (3), 1–9.
Ramdhani, A., Bintang, & Prijanto, B. (2024). The Effect of Green Accounting Implementation on Company Value with Profitability as a Moderating Variable. Sanskara Accounting and Finance , 3 (01), 33–43. https://doi.org/10.58812/sak.v3i01.262
Sitorus, M., Napitu, R., & Sinurat, A. (2024). The Influence of Corporate Social Responsibility and Customer Satisfaction on the Corporate Image of Perumda Tirta Uli, Pematangsiantar City. Management: Journal of Economics , 6 (2), 401–419. https://doi.org/10.36985/2fvj3e89
Suci, D. (2020). The Effect of Application. Journal of Chemical Information and Modeling , 53 (9), 1689–1699. Suciarti, P., & Wafiroh, NL (2023). Zakat Funds, Non-Halal Funds, Islamic Social Responbility On The Islamic
Commercial Banks . 7 (1), 42–57.
General, B., & Di, S. (2023). The Influence of Islamic Social Responsbility (ISR), Islamic Corporate Governance (ICG), and NPF Disclosure on the Financial Performance of Islamic Commercial Banks in Indonesia (2018-2022).
