Ethical Dimensions of Islamic Finance: Lessons from the CSR Model of Indonesian Islamic Banks


  • Aminudin Ma'ruf Universitas Muhammadiyah Surakarta
  • Khairunnisa Nurul Fikri Universitas Muhammadiyah Surakarta



Enviroment, Ethical Values, Islamic Banks, Islamic Finance, Social


The Islamic financial system is regarded as a financial system that bases its operations on the values
of Islam. However, the practice of the Islamic financial industry has been criticized as it deviates from
the theory. This paper aims to explore and analyze the ethical values of Islamic finance and their
implementation in Indonesian Islamic commercial banks. The study employs a qualitative research
method with the literature study approach and assessment of the annual reports of 14 Indonesian
Islamic commercial banks. The literature study explores and analyses Islamic values embedded within
the Islamic financial system. In contrast, the exploration and assessment of Indonesian Islamic
commercial banks’ annual reports provide the study with the practical implementation of the values.
The paper found that Indonesian Islamic commercial banks have contributed to facing the current
social and environmental issues through some initiatives in their CSR implementations. All Indonesian
Islamic commercial banks have been actively participating in CSR programs. However, a number of
Islamic banks need to enhance their CSR practices to tackle the ongoing environmental issues.
Therefore, the paper comes with some limitations and policy recommendations.


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