Determinant on Islamic Social Reporting in Islamic Banking ...ukmsyariah.org/.../uploads/2015/10/08-Muhammad-Prakoso-Putra.pdf · International Conference of Global Islamic Studies

International Conference of Global Islamic Studies 2014

89

Determinant on Islamic Social Reporting in Islamic Banking (Case Study in

Indonesia)

MUHAMMAD PRAKOSO PUTRA1

mprakosoputrayahoocom

ERIKA TAKIDAH2

erikatakidahunjacid

M YASSER ARAFAT3

aa71_2001yahoocom

1(student of undergraduated program Accounting Department Faculty of Economics

State University of Jakarta Jakarta Indonesia) 2(Lecturer Economics and Administration Department Faculty of Economics State

University of Jakarta Jakarta Indonesia) 3(Lecturer Accounting Department Faculty of Economics State University of

Jakarta Jakarta Indonesia)

Abstract

Islamic Bank in Indonesia have grown significantly in 2000 indinesia only have two

islamic bank in the 2012 indonesia have eleven islamic bank The growth of islamic

bank in indonesia is because people trust if islamic bank is appropriate with al-quran

and al-hadist Beside of that islamic bank also have grown significantly in revenue

from year to year

Islamic bank in indonesia must report they social reporting as in Undang-Undang

(regulation) number 25 year 2007 But in the aplication they just inform some item

like they only want to fulfil the regulation to avoid the sanctions Whereas in islam

rule islamic bank must to do social balance with their activities to get profit

This research is to find influence of firm characteristic and corporate governance to

disclosure of islamic social reporting This resultant hypotheses are tested on a sample

11 islamic bankrsquos annual report in year 2012

Keywords islamic social reporting disclosure profitablity leverage liquidity firm

size corporate governanve


90

1 Introduction

Natural phenomena that occur such as mudslides forest fires and global warming may

be a natural occurrence that is triggered due to human actions As was written in

Quran Ar-Rum 41 has appeared on the damage land and in the sea due to human

actions that God may feel to them most of (due to) their actions so they return to the

right path Besides to worship in the world humans by nature were created by God

as khalifah on earth human beings have a duty to utilize manage and maintain the

universe for the benefit and welfare of life But greed and ill-treatment against human

nature itself can cause damage to the nature This is reflected by the current natural

conditions This is related to the concept of the government to the company to carry

out its social responsibility

Corporate Social Responsiility (CSR) is a concept that is being developed in various

countries Awareness of the importance of the implementation of CSR (Corporate

Social Responsibility) into a global trend along with the rise of global public

awareness of the products that are environmentally friendly and are produced with

care for the environment and social One purpose of the company revealeds

environmental performance social and financial annual report or in a separate report

is to reflect the level of accountability responsibility and corporate transparency to

investors and other stakeholders The disclosure aims to establish a good relationship

and effective communication between the company and the public and other

stakeholders about how the company has integrated CSR and social environment in

every aspect

These companies utilize social report as a platform to attract investors to look good

records Integration in CSR reports Most of the companies vying to be the best in

carrying out social activities are reported as either their company good records But

On the other hand there is a condition which contrasts with other companies Based

on research conducted by the International Institute of Islamic Thought (IIIT) in 1996

indicated that the Islamic banks are not fully run in accordance with the demands of

social role of Islam A total of 32 Islamic banks in the world to prioritize economic

goals than social goals with an indication that the economic criteria are preferred than

social criteria when evaluating investment opportunities (Maali et al 2003 cite in

Chariri 2012)

Islamic banking have the principles of Islam in all its aspects it means that any

activity undertaken by Islamic banks based on Al-Quran and Al-Hadith So that

became the basis for the actors to interact between people and environments By

doing so the reporting activity must be based on Islamic principles Because

according to AAOIFI (Accounting and Auditing Organization for Islamic Financial

Institutions) Islamic banking as well as Islamic financial institutions must report their

social responsibility

Related to disclosure of social responsibility for Islamic banking recently discussed

the Islamic Social Reporting Index (hereinafter referred to as the index ISR) ISR

Index contains the points that describe corporate social responsibility set by AAOIFI

(Accounting and Auditing Organization for Islamic Financial Institutions) are then

developed further by researchers on CSR items that should be disclosed by an Islamic

entity The CSR Index will become a reference in the Islamic perspective on CSR


91

The lack of research on the implementation of the ISR index sharia banks in

Indonesia Creating interested researchers to examine more deeply Given the Islamic

banking industry in Indonesia is growing quite rapidly plus with the disclosure of

CSR issues are increasing this study tries to look at what are the factors that influence

the disclosure of ISR in Islamic banks

This research was aimed to identify factors affecting the disclosure of ISR of Syariah

banks in Indonesia ISR in the annual report significantly associated with company

size profitability solvency liquidity and good corporate governance Solvency ratio

or commonly referred to leverage research results show that diverse The results

indicate that the variable is not significant leverage on social responsibility (SR)

disclosure expressed by Sembiring (2005) Research Anggraini (2006) find that

leverage does not influence companys SR disclosure Another factor is that used

effects the companys liquidity Research liquidity effect also varied according to

Arthana 2012 Kamil and Herusetya (2012) liquidity does not affect the disclosure of

corporate social responsibility The next factor affecting corporate social disclosure is

the profitability of the company The difference was the result of these factors vary

according to several studies According Sembiring (2005) but did not significantly

affect the profitability of the corporate social responsibility disclosure According

Princess and Christiawan (2014) and Kamil and Herusetya (2012) does not affect the

profitability of corporate social responsibility disclosure Another factor affecting the

disclosure of corporate social responsibility is good corporate governance by Chariri

2012 GCG is represented by commissioners and sharia supervisory board still not can

improve with better oversight mechanisms to encourage CSR is widely Because of

the many research on the influence of corporate social responsibility disclosure with

different results the researchers wanted to clarify the results of research on the factors

that determine the social responsibility disclosure and this study focuses on

profitability solvency liquidity corporate governance and firm size

2 Theoritical Framework And Hypothesis Development

21 Profitability and ISR

According to Donovan and Gibson 2000 cite in (Sembiring 2005) the relationship

between profitability and CSR have negative relationship because the company

(management) felt no need to disclose social responsibility when companies are have

a high level of profitability because the company (management) do not consider the

need to report it things that can interfere with information about the companys

financial success In contrast when a low level of profitability they hope the report

will read the users good news the companys performance for example in the social

scope and thus investors will continue to invest in the company

Relationship with the financial performance of corporate social responsibility by

Belkaoui and Karpik (1989) cite in (Angling 2010) are best expressed with

profitability it is because the view that the social responses requested from the same

management with the ability required to make a firm makes a profit Besides the level

of profitability can indicate how well the management of the companys management

therefore the higher the profitability of a company that tends to be more extensive

Corporate Social Responsibility Disclosure Associated with agency theory the

greater the profit that would make companies disclose social information more


92

widely From the results of research on CSR disclosure affecting profitability before

then researchers hypothesize

H1 Profitability affect the level of islamic social responsibility disclosure in Islamic

banks

22 Solvency and ISR

Belkaoui and Karpik (1989) cite in (Anggraini 2006) states that the higher the level

of solvency (ratio of debt leverage) the more likely the company will violate the

credit agreement so that the company will report higher profits now The company

will reduce costs including costs to disclose social information Associated with

agency theory firms with high leverage have high agency costs so that the company

will reduce the costs associated with Corporate Social Responsibility Disclosure

Based on agency theory supposed to be the higher the solvency of then lower level of

CSR disclosure to avoid the attention of the debtholders if the company is high risk

the research hypothesis is formulated as follows

H2 Solvency influence the level of islamic social reporting disclosure in Islamic

Banks

23 Liquidity and ISR

According Putri and Christiawan (2014) Liquidity is one of the performance that is

often used as a measure of investors in evaluating the company By so when produced

lower liquidity the company will tend to perform its social responsibility disclosure

more and more this is in line with the theory of signal because compared to investors

management companies know more about the companys internal performance while

investors only see the end result (financial ratios ) so that when liquidity is low

investors will tend to give a low value on the company could even pull out the

investment so the company tried to reduce the asymmetry of information one way to

perform its social responsibility disclosure

Liquidity is a condition that indicates a companys ability to fund the companys

operations and pay off the short-term debt This ratio is used to give an idea of the

effect of the availability of funds to the companys disclosure of corporate social

responsibility (CSR) The company is financially healthy would likely reveal more

information than the companys CSR lower liquidity It is based on the financial

strength of a company that will tend to provide more extensive information than

companies that have weak financial condition (Cooke TE 1991 in Arthana 2012)

H3 Liquidity influence the level of islamic social reporting disclosure in Islamic

Banks

24 Firm Size and ISR

Firm size (size) is a scale used to determine the size of a company Large scale

companies usually tend to be much more revealing than corporate social responsibility

which have small scale Associated with agency theory as stated Sembiring (2005)


93

that the bigger a company then agency costs that appear are also getting bigger to

reduce the agency costs companies tend to disclose more extensive information

H4 Firm Size influence the level of islamic social reporting disclosure in Islamic

Banks

25 Good Corporate Governance and ISR

In research Farook and Lanis (2005) tried to analyze the factors that affect the level of

disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14

countries around the world Social conditions Politics and Corporate Governance are

two factors that trying raised in this study Social conditions Political factors consist

of the level of political freedom as well as the proportion of people of Muslim society

while the corporate governance factors consist of Islamic Governance (Islamic

Governance) and the shareholding structure of IAH (Investment Account Holders

Right) The results of this study indicate that there is substantial influence of factors

Corporte Governance and Political Condition of the level of disclosure of Corporate

Social Responsibility

H5 Good Corporate Governance influence the level of islamic social reporting

disclosure in Islamic Banks

Theoritical Framework of this research is illustrated as follows

Figur 1 theoritical framework

3 Methodology

Data collection methods used in this research is the study documentation using the

names of Islamic banks in 2012 next phase a data retrieval company in the form of

the annual report and corporate governance statement contained in the relevant bank

website and financial statements contained in the Bank Indonesia Company data are

then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie

List of islamic bank in 2012

NUM Name Of Islamic bank

PROFITABILITY

GOOD CORPORATE

GOVERNANCE

SOLVENCY

LIQIDITY

FIRM SIZE

ISLAMIC SOCIAL REPORTING


94

1 Bank Muamalat Indonesia (BMI)

2 Bank Syariah Mandiri (BSM)

3 Bank Negara Indonesia Syariah (BNIS)

4 Bank Republik Indonesia Syariah (BRIS)

5 Bank Central Asia Syariah (BCAS)

6 Bank Mega Syariah (MEGS)

7 Bank Bukopin Syariah (BUKS)

8 Panin Bank Syariah (PANS)

9 MayBank Syariah (MAYS)

10 Bank Victoria Syariah (VICS)

11 Bank Jabar Syariah (BJBS)

31 Measurement Of Variable

311 Profitability

profitability in this study were measured using return on assets (ROA) as done by

Putri and Christiawan 2012 With the formula

312 Solvency

Solvency variables measured using an instrument obtained from the book titled

Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to

assets or Debt to Assets Ratio (DAR)

313 Liquidity

Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the

LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)

with the formula

314 Firm Size

Variable size in this study was measured using an instrument obtained from Rizkia

(2012) that is uses total assets This variable is calculated using the natural log in

order to align its objectives in order to reduce the significant difference between the

size of a large company and small company size so that the data can be normally

distributed total assets The formula used to measure the size variable is

Size = natural log (total assets)


95

315 Good Corporate Governance

GCG variables in this study using the existing measures in the companys corporate

governance report in the form of self assessment CGI

316 Islamic Social Reporting Index

ISR Index in this study consisted of 43 items of disclosure that consists of six themes

according peneltian Othman et al (2010) which is the development of research

Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be

given if items contained in the ISR enterprise data and will be given a score of 0 if

otherwise The scores are then summed according to both individual and overall

theme So that the largest value is 43 and the smallest value is 0 for each company in

each year The dependent variable is given the symbol ISR Following formula to

calculate the amount of disclosure index level after scoring on ISR completed

ISRD = item disclose on annual report

Maximum score

32 Multiple Linear Regresion

This research use multiple linear regression analysis for the reason that more than one

independent variable This analysis is used to determine the relationship between the

ISR with the independent variable This study used a multiple linear regression model

with the following equation

Keterangan

ISRD Disclosure Islamic Social Reporting

PRF Profitability ROA

SOL Solvency DAR

LIK Liquidity FDR

SIZE SIZE Total assets (Ln)

α Konstanta

β1-β5 Koefisien Regresi

e Error

4 RESULTS AND DISCUSSION

41 Results

If we look result from normal P-Plot graph kolmogorov-smirnov test (sig

0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research

distributed normal(Ghazali2011) Multikolinierity test showed no correlation was

existed between the independent variables It was indicated by the value of Variance

Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a

problem since in the scatterplots graph the dots were randomly spread above and

below 0 along the Y axis Multiple linear regression analysis then was conducted

resulted R2 of 0841 showed that


96

the regression comply with the goodness of fit The regression was as follows

The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005

thats means firm size significantly affect disclosure of ISR on the other hand

profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p

value of variablegt005) not significantly affected disclosure of ISR

One-Sample Kolmogorov-Smirnov Test

Unstandardized

Residual

N 11

Normal Parametersab Mean 0000000

Std Deviation 02209703

Most Extreme Differences Absolute 221

Positive 180

Negative -221

Kolmogorov-Smirnov Z 732

Asymp Sig (2-tailed) 658

a Test distribution is Normal

b Calculated from data

Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig

Collinearity Statistics

B Std Error Beta Tolerance VIF

1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419

a Dependent Variable ISRD

Model Summaryb

Model R R Square Adjusted R Square

Std Error of the

Estimate

1 960a 921 841 03124992

a Predictors (Constant) CGI ROA FDR LN TA DAR

b Dependent Variable ISRD

ANOVAb

Model Sum of Squares Df Mean Square F Sig

1 Regression 057 5 011 11614 009a

Residual 005 5 001 Total 062 10




98

42 Disscussions

Firm size affected disclosure of ISR It proved that the larger company would be

higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)

that the bigger a company the agency costs that arise are also getting bigger to reduce

the agency costs companies tend to disclose more extensive information

On the other hand profitability solvency liquidity and good corporate governance

had no significant to disclosure of ISR Islamic bank in indonesia not affected with

profitability solvability and liquidity to disclose theirs social responsibility They

dont need opini from investor to make them invest to the company Islamic banks

trust that disclose social responsibility is something that must do in line with the al-

quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks

are not only for trade activities but also social activities

Good Corporate Governance had no affected to disclose of Islamic social reporting

Condition of corporate governance islamic banks in indonesia dont have strong

enough to influence of social responsibility disclosure They think that do social

responsibility it means they can get legitimacy from people around Beside that rule

from UU that make social responsibility as a mandatory be a stronger reason than

their corporate governance

5 Conclusions

This research proved that 1) Firm size is significantly affected level of disclosure ISR

it means greater size of islamic banks can make higher level of ISR disclosure 2)

Profitability had no significantly affected level of ISR disclosureit means higher

profitability not necessarily increase the level of ISR 3) Solvency had no

significantly affected level of ISR disclosureit means lower solvency not necessarily

increase the level of ISR 4) Liquidity had no significantly affected level of ISR

disclosureit means higher liquidity not necessarily increase the level of ISR and 5)

Good corporateg governance had no significantly affected level of ISR disclosureit

means higher quality of corporate governance not necessarily increase the level of

ISR

6 Implications

The implications of this researche are 1) Islamic banks in indonesia should increase

their quality of corporate governance in order to affect their activity such as disclosure

of social responsibility by islamic perspective 2) Standard of disclosure should be

improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to

continuously familiarize compliment of syariah bank especially syariah compliance

in the aspect of syariah compliance in the bussiness operation of the syariah bank in

Indonesia like social responsibility

Refrences

Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang

Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan

Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21


99

Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR

Jakarta Elex Media Komputindo 2011

Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell

Jakarta Prenada Media Group 2007

Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan

Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15

Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate

Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34

Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19

Semarang Badan Penerbit Universitas Diponegoro 2011

Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and

Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp

Accounting 33 pp 1034-1066

Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2

2002 pp 128-146

Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003

Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan

Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN

2088-2106 pp 1-17

Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social

Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal

2 pp 227-232

Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi

Jakarta Penerbit Erlangga 2011

Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks

Case Of Indonesiardquo International Journal of Business and Management Invention 2

PP28-34

Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik

Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor

Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99

Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013

httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-

dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)

Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas

dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social


100

Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek

Indonesiardquo Jurnal Telaah Riset 4 pp 187-201

Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed

Companies In Malaysiardquo International Business amp Economics Research Journal

9 2010 pp 135-144

Peraturan Pemerintah No 47 tahun 2012

Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme

Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di

Jawa Tengahrdquo ISSN 12 2010 pp 27-36

Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan

Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-

34

Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan

Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan

Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78

Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung

Rekayasa Sains 2013

Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social

Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal

Nominal 1 2010 pp 124-140

Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung

Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek

Jakartardquo SNA 8 2005 pp 379-395

Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap

Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal

Ekonomi dan Bisnis September 2012 11 pp 14-28

Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012

UU No 25 Tahun 2007

UU No 40 tahun 2007

Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility

Disclosure and Profitability of Indonesia Firmsrdquo International Annual

Symposium on Sustainability Science and Management 11 2012 pp 373-380

Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In

The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis

Apulensis Series Oeconomica 12 2010 pp 281-290


101

Appendix 1

ISR Index

No islamic social reporting index 2010 2011 2012

A Finance And Investment

1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary

4 late payments and insolvent clientsbad debt write off

5 current value balance sheet

6 value added statement

B Products and Services

7 green product

8 halalsyariah status on the product

9 improve on services

10 product developement

11 costumer complaint

number of customer complaint

handle the compalint

satisfys customer survey

C Employees

12 nature of work

working hours

Holidays

employees clasification

13 education and training human capital development

education and training program for employees

retention strategic for employee

build program and carreers level for employee

percentage of employee who ever get training

14 Equal Opportunities

15 health and safety

16 working environment

17 employment of other special-interest-group

18

higher echelons in th company perform the congregational

prayers with

lower and middle level managers

19

muslim employees are allowed to perform they obligatory

during ramadhan

20 Proper place of worship for the employees


102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan

24 employee volunteerism

25 education

create new school

financial and non-financial helps for school

scholarship

26 graduate employement

27 Youth development

28 Underprivileged community

29 childern care

30 CharitiesGiftsSocial activities

31

Sponsoring public healthrecreational projectsportscultural

events

E Environment

32 Conservation of environment

33 Endangered wildlife

34 Environmental Pollution

35 environmental education

36 environmental products

37 Environmental Audit

38 Environmental Management SystemPolicy

F Corporate Governance

39 Shariah compliance status

40 ownership structure

number of muslim shareholder

41 board structure-muslim vs non-muslim

42 forbidden activities

monopolistic practice

hoarding necessary goods

price manipulation

fraudulent bussiness practice

Gambling

43 anti-corruption policies

Total

Index


90

1 Introduction

Natural phenomena that occur such as mudslides forest fires and global warming may

be a natural occurrence that is triggered due to human actions As was written in

Quran Ar-Rum 41 has appeared on the damage land and in the sea due to human

actions that God may feel to them most of (due to) their actions so they return to the

right path Besides to worship in the world humans by nature were created by God

as khalifah on earth human beings have a duty to utilize manage and maintain the

universe for the benefit and welfare of life But greed and ill-treatment against human

nature itself can cause damage to the nature This is reflected by the current natural

conditions This is related to the concept of the government to the company to carry

out its social responsibility

Corporate Social Responsiility (CSR) is a concept that is being developed in various

countries Awareness of the importance of the implementation of CSR (Corporate

Social Responsibility) into a global trend along with the rise of global public

awareness of the products that are environmentally friendly and are produced with

care for the environment and social One purpose of the company revealeds

environmental performance social and financial annual report or in a separate report

is to reflect the level of accountability responsibility and corporate transparency to

investors and other stakeholders The disclosure aims to establish a good relationship

and effective communication between the company and the public and other

stakeholders about how the company has integrated CSR and social environment in

every aspect

These companies utilize social report as a platform to attract investors to look good

records Integration in CSR reports Most of the companies vying to be the best in

carrying out social activities are reported as either their company good records But

On the other hand there is a condition which contrasts with other companies Based

on research conducted by the International Institute of Islamic Thought (IIIT) in 1996

indicated that the Islamic banks are not fully run in accordance with the demands of

social role of Islam A total of 32 Islamic banks in the world to prioritize economic

goals than social goals with an indication that the economic criteria are preferred than

social criteria when evaluating investment opportunities (Maali et al 2003 cite in

Chariri 2012)

Islamic banking have the principles of Islam in all its aspects it means that any

activity undertaken by Islamic banks based on Al-Quran and Al-Hadith So that

became the basis for the actors to interact between people and environments By

doing so the reporting activity must be based on Islamic principles Because

according to AAOIFI (Accounting and Auditing Organization for Islamic Financial

Institutions) Islamic banking as well as Islamic financial institutions must report their

social responsibility

Related to disclosure of social responsibility for Islamic banking recently discussed

the Islamic Social Reporting Index (hereinafter referred to as the index ISR) ISR

Index contains the points that describe corporate social responsibility set by AAOIFI

(Accounting and Auditing Organization for Islamic Financial Institutions) are then

developed further by researchers on CSR items that should be disclosed by an Islamic

entity The CSR Index will become a reference in the Islamic perspective on CSR


91















































92




banks

22 Solvency and ISR











Banks



















Banks






93




Banks
















3 Methodology








PROFITABILITY

GOOD CORPORATE

GOVERNANCE

SOLVENCY

LIQIDITY

FIRM SIZE



94













311 Profitability



312 Solvency




313 Liquidity



with the formula

314 Firm Size








95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


91















































92




banks

22 Solvency and ISR











Banks



















Banks






93




Banks
















3 Methodology








PROFITABILITY

GOOD CORPORATE

GOVERNANCE

SOLVENCY

LIQIDITY

FIRM SIZE



94













311 Profitability



312 Solvency




313 Liquidity



with the formula

314 Firm Size








95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


92




banks

22 Solvency and ISR











Banks



















Banks






93




Banks
















3 Methodology








PROFITABILITY

GOOD CORPORATE

GOVERNANCE

SOLVENCY

LIQIDITY

FIRM SIZE



94













311 Profitability



312 Solvency




313 Liquidity



with the formula

314 Firm Size








95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


93




Banks
















3 Methodology








PROFITABILITY

GOOD CORPORATE

GOVERNANCE

SOLVENCY

LIQIDITY

FIRM SIZE



94













311 Profitability



312 Solvency




313 Liquidity



with the formula

314 Firm Size








95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


94













311 Profitability



312 Solvency




313 Liquidity



with the formula

314 Firm Size








95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


95














Maximum score






Keterangan



SOL Solvency DAR

LIK Liquidity FDR


α Konstanta


e Error


41 Results










96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


96







Unstandardized

Residual

N 11




Positive 180

Negative -221





Zskewness= -030601

Zkurtosis= -113195

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


97

Coefficientsa

Model


Standardized

Coefficients

T Sig



1 (Constant) -1164 286 -4066 010

ROA -1786 1053 -239 -1696 151 801 1248

DAR -132 266 -197 -496 641 101 9920

FDR -005 075 -023 -069 948 145 6876

LN TA 064 013 1084 4783 005 309 3239

CGI 013 024 080 535 615 705 1419


Model Summaryb


Std Error of the

Estimate

1 960a 921 841 03124992



ANOVAb


1 Regression 057 5 011 11614 009a





98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


98

42 Disscussions


















5 Conclusions










ISR

6 Implications








Refrences





99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


99















2002 pp 128-146




2088-2106 pp 1-17



2 pp 227-232





PP28-34










100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


100





9 2010 pp 135-144







34





Rekayasa Sains 2013



Nominal 1 2010 pp 124-140








UU No 25 Tahun 2007

UU No 40 tahun 2007








101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


101

Appendix 1

ISR Index



1 riba activities

2 Gharar

3 Zakat

method used

zakatable amount

beneficiary





7 green product








C Employees

12 nature of work

working hours

Holidays











18


prayers with


19


during ramadhan



102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index


102

D Society

21 SaddaqaDonation

22 Waqf

23 qardhassan


25 education

create new school


scholarship




29 childern care


31


events

E Environment
















price manipulation


Gambling


Total

Index

Documents

Determinant on Islamic Social Reporting in Islamic Banking ...ukmsyariah.org/.../uploads/2015/10/08-Muhammad-Prakoso-Putra.pdf · International Conference of Global Islamic Studies