Disclosure of Corporate Social Responsibility in Islamic Banks and Conventional Banks and their Determinants

Abstract

The banking sector is starting to become a concern for research because it plays a major role in addressing social and environmental challenges and can positively influence society through the implementation of CSR. This study aims to determine the differences in CSR (disclosure) between Islamic banks and conventional banks, the effect of capital structure (capital adequacy ratio / CAR) and leverage (debt to asset ratio / DAR) on CSR, and the effect of CSR on profitability (return on assets). The operationalization of the CSR variable refers to the GRI (Global Reporting Initiative) 4.0 and ISR (Islamic Social Reporting) indicators. Panel data were analyzed using PLS-SEM and SPSS 24 tools. The results showed that there was no difference in CSR disclosure between conventional Islamic banks.