Islamic financial institutions are growing faster all around the world. Most in Muslim countries, conventional and Islamic financial institutions exist side by side, interacting with one another. The development of Islamic financial institutions has the potential to play a leading role in serving the Muslim Ummah and contribute towards socio-economic development of Muslim countries in conformity with Islamic sensibilities.
Financial institution primarily sell demand deposits, saving deposits, time deposits, insurance policies, pension funds, commercial papers, and bonds to the surplus units. In general financial institution consists of Profit-oriented institutions such as (bank, saving institutions, insurance company and etc.). By providing finances for both consumptions and investment purposes, financial institutions contribute towards the prosperity of household and economic growth in the economy. Conventional financial institution pay interest on funds procured and charged interest on funds loaned out. But Islamic scholar describes interest as riba which is prohibited in Islam. Hence, the participation of Muslims in interest-based contract is considered illegal by the Islamic Law.
Over the past decades, (CSR) disclosure has been the subject of substantial academic accounting research. There a lot of theory develops to justify why companies disclose or not disclose (CSR) information. The existing theoretical frameworks concerning (CSR) disclosure is to make sure all the organizations disclose social information and also making assessment of organization’s performance in terms of fulfilling their obligation to God, society and eco-system.
Corporate social responsibility disclosure (CSRD) is defined broadly as “including the concern for the impact of all of the corporation’s activities on the total welfare of society” (Bowman and Haire 1976, p. 13). Corporate social responsibility in Islamic perspective is derives itself from core principles in... [continues]
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(2011, 02). Corporate Social Responsibility Disclosure: a Comparison Between Islamic and Conventional Financial Institutions. StudyMode.com. Retrieved 02, 2011, from http://www.studymode.com/essays/Corporate-Social-Responsibility-Disclosure-A-Comparison-600715.html
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