Corporate Social Responsibility of Islamic Banks to Develop the HR That Capable in Islamic Economy: The Case of Indonesia

Maziyah Mazza Basya

Abstract


The efforts to develop Islamic banks to be competitive with conventional banks require a competent human resource (HR) in the field of Islamic economics both from the theoretical as well as practical perspective. Islamic banks should have a role in producing a good quality of HR; of course, it can make some additional costs. Initiated alternative is to use some of the funds of Islamic banks from Corporate Social Responsibility (CSR) to produce qualified HR. This study aims to determine the allocation of CSR for improving the quality of HR at Islamic Banks. During this period, CSR funds are only used for social purposes that are less effective to the growth of Islamic banks, themselves. This study discusses the CSR budget allocation for the empowerment of HR in Islamic banks. The results of this study are showing CSR funds were not optimum for improving the quality of HR in Islamic banking. Suggestions from this study are the allocation of CSR funds is not only limited to social interests but also, can be focused in education in particular human resource development in the field of Islamic economics. This Research contribute an idea of allocating the CSR funds in Islamic Banks for developing and creating many of HR that have a high quality of Islamic economic capability.

Aus. J. Acc. Eco. Fin. Vol 2(1), April 2016, P 19-32


Keywords


CSR; HR; Sustainable Development; Islamic Banking; Annual Report; Financial Statement

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