Contribution of Islamic Social Reporting toward the Improvement of All-Encompassing Financial Management
Abstract
ISR reports on firms' sharia-based social actions. ISR reports comprehensively on a company's role in society and the environment, based on spiritual concepts and community expectations. This research aimed to determine the role that Islamic social reporting plays in the process of achieving optimal comprehensive financial management. This is a qualitative literature review study. According to this study, social reporting occurs inside social relations. Because accountability, social justice, and ownership are at the center of social connections, the Islamic perspective on social reporting places enterprises that report on social activities in their annual reports at the strategic level of the Islamic responsibility continuum, where corporate reporting in this area shows the company's social responsibility commitments. Altruistic duties such as contributing to the community, providing good salaries for employees, and safeguarding the environment are included in the strategy level. This is done to ensure that long-term expectations can be increased along with the amount of trust held by stakeholders.
Keywords: Islamic social reporting, Islamic financial management, sustainability reporting.
DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.60.1
Full Text:
PDFReferences
ALBAWWAT, A.H., & BASAH, M.Y.A. (2015). The Impact of Shariah Approved Companies on the Relationship between Corporate Governance Structure and Voluntary Disclosure of Interim Financial Reporting in Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 5(2), 66–85. https://doi.org/10.6007/IJARAFMS%2FV5-I2%2F1612
AL-SULAITI, J., OUSAMA, A.A., & HAMAMMI, H. (2018). The compliance of disclosure with AAOIFI financial accounting standards: A comparison between Bahrain and Qatar Islamic banks. Journal of Islamic Accounting and Business Research, 9(4), 549-566. https://doi.org/10.1108/JIABR-10-2017-0144
AMAN, Z. (2016). Corporate Sustainability Reporting from Islamic Perspectives. Proceedings of the 2nd International Conference on Economics & Banking, 24–25 May 2016. Retrieved from http://conference.kuis.edu.my/iceb2016/eproceedings/EB001.pdf
ARIBI, Z.A., ARUN, T.G., & GAO, S. (2019). Accountability in Islamic Financial Institution: the Role of the Shari'ah Supervisory Board Reports. Journal of Islamic Accounting and Business Research, 10(1), 98114. https://doi.org/10.1108/JIABR-10-2015-0049
ASFADILLAH, C., NUR LATIFAH, I., & SUKMANA, R. (2012). The importance of Islamic accounting in modern era. Proceedings of the Cambridge Business & Economics Conference, Cambridge, 27-28 June 2012. Retrieved from https://www.studocu.com/my/document/universiti-sains-malaysia/managerial-accounting/chusnul-asfadillah-ines-nur-latifah-raditya-sukmana/7370790
BRADBURY, M., MAK, Y.T., & TAN, S.M. (2006). Board Characteristics, Audit Committee Characteristics and Abnormal Accruals. Pacific Accounting Review, 18(2), 47–68. https://doi.org/10.1108/01140580610732813
CHEN, S., SHI, Y., & HAN, X. (2015). A Preliminary Study on the Application of Accrual Basis of Government Comprehensive Financial Report Information. Journal of Sub-National Fiscal Research, 9, 15-21.
DJAKFAR, M. (2007). Etika bisnis dalam perspektif Islam. Malang: UIN-Maliki Press.
FAROOK, S., HASSAN, M.K., & LANIS, R. (2011). Determinants of Corporate Social Responsibility Disclosure: The Case of Islamic Banks. Journal of Islamic Accounting and Business Research, 2(2), 114-141. https://doi.org/10.1108/17590811111170539
FREEMAN, R.E., HARRISON, J.S., & ZYGLIDOPOULOS, S. (2018). Stakeholder Theory: Concepts and Strategies. Cambridge: Cambridge University Press.
GOH, B.W. (2009). Audit committees, boards of directors, and remediation of material weaknesses in internal control. Contemporary Accounting Research, 26(2), 549–579. http://dx.doi.org/10.1506/car.26.2.9
HANIFFA, R. (2002). Social reporting disclosure: An Islamic perspective. Indonesian Management & Accounting Research, 1(2), 128-146.
HANIFFA, R., & HUDAIB, M. (2007). Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports. Journal of Business Ethics, 76, 97-116. https://doi.org/10.1007/s10551-006-9272-5
HANIFFA, R.M., & COOKE, T.E. (2005). The Impact of Culture and Governance on Corporate Social Reporting. Journal of Accounting and Public Policy, 24(5), 391-430. http://dx.doi.org/10.1016/j.jaccpubpol.2005.06.001
HESS, D. (2007). Social Reporting and New Governance Regulation: The Prospects of Achieving Corporate Accountability through Transparency. Business Ethics Quarterly, 17(3), 453-476. https://doi.org/10.5840/beq200717348
ISSALIH, F.A., AMRAN, A., DARUS, F., YUSOFF, H., & ZAIN, M.Md. (2015). Islamic
Corporate Social Reporting: Perspective of Makasid Al Shariah. Journal of Islamic
Economics, Banking and Finance, 11(1), 93-121. http://dx.doi.org/10.12816/0026020
JOB, M. (2009). Understanding Islamic Finance. Jakarta: Gramedia Main Library.
JUNIOR, D.B.C.C.V., CAIXE, D.F., & PONTE, V.R.M.R. (2019). Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America. Brazilian Business Review, 16(4), 400-415. http://dx.doi.org/10.15728/bbr.2019.16.4.6
KASIH, A.M. (2018). Factors Influencing Islamic Social Reporting Disclosure in Some Selected Countries. KnE Social Sciences, 3(8), 276-296. https://doi.org/10.18502/kss.v3i8.2514
KRISHNAN, J. (2005). Audit committee quality and internal control: An empirical analysis. The Accounting Review, 80(2), 649-675. https://doi.org/10.2308/ACCR.2005.80.2.649
MAZRI, K.F., ISMAIL, R.F., ARSHAD, R., & KAMARUZAMAN, S.A. (2018). Corporate governance attributes as determinants of the Islamic social reporting of Shariah-compliant companies in Malaysia. International Journal of Economics and Management, 12(S1), 169-180. Retrieved from http://ijem.upm.edu.my/vol12_noS1/12)%20Corporate%20Governance%20Attributes.pdf
MEUTIA, I., & FEBRIANTI, D. (2017). Islamic social reporting in Islamic banking: Stakeholders theory perspective. SHS Web of Conferences, 34, 12001. https://doi.org/10.1051/shsconf/20173412001
NUGRAHENI, P., & WIJAYANTI, R. (2017). Analysis of factors affecting the disclosure of Islamic social reporting (an empirical study on the sharia securities list). Journal of Economics, Business, and Accountancy Ventura, 20(1), 103-112. https://doi.org/10.14414/jebav.v20i1.788
OTHMAN, R., & THANI, A.Md. (2010). Islamic social reporting of listed companies in Malaysia. International Business and Economics Research Journal, 9(4), 135-144. http://dx.doi.org/10.19030/iber.v9i4.561
OTHMAN, R., THANI, A.Md., & GHANI, E.K. (2009). Determinants of Islamic social reporting among top Shariah-approved companies in Bursa Malaysia. Research Journal of International Studies, 12, 4-20. Retrieved from http://lela.stiemj.ac.id/wp-content/uploads/Islamic-social-reporting-Kel6.pdf
OUSAMA, AA., & FATIMA, A.H. (2010). Voluntary disclosure by Shariah approved companies: an exploratory study. Journal of Financial Reporting and Accounting, 8(1), 35–49. http://dx.doi.org/10.1108/19852511011055943
RIANTO, H., OLIVIA, H., & SIREGAR, S. (2019). Islamic Family Financial Management. Proceeding International Seminar on Islamic Studies, 1(1), 975-990. Retrieved from http://jurnal.umsu.ac.id/index.php/insis/article/download/4280/pdf_130
SAEIDI, S.P., SOFIAN, S., SAEIDI, P., SAEIDI, S.P., & SAAEIDI, S.A. (2015). How Does Corporate Social Responsibility Contribute to Firm Financial Performance? The Mediating Role of Competitive Advantage, Reputation, and Customer Satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/J.JBUSRES.2014.06.024
SALMAN, K.R. (2021). Islamic Governance, Maqashid Syariah, and Islamic Social Reporting: The Case of Islamic Banks in Indonesia. European Journal of Islamic Finance, 19, 24-34. https://doi.org/10.13135/2421-2172/6116
SOEKAPDJO, S. (2021). Islamic Social Reporting Determination in the Manufacturing Industry Sector Listed in Indonesia Sharia Stock Index. Integrated Journal of Business and Economics, 5(2), 122-133. http://dx.doi.org/10.33019/ijbe.v5i2.356
SUGIANTO, & HARAPAN, N. (2017). The Integration of Disclosure of Islamic Social Reporting (ISR) in Islamic Bank Financial Statements. SHS Web of Conferences, 36, 00011. http://dx.doi.org/10.1051/shsconf/20173600011
ULLMANN, A.A. (1985). Data in search of a theory: a critical examination of the relationships among social performance, social disclosure, and economic performance of US firms. Academy of Management Review, 10(3), 540-557. https://doi.org/10.5465/amr.1985.4278989
WARDANI, E.P., & NURHAYATI, P. (2021). Influence of Financial Performance on the Value of Companies with Islamic Social Reporting As a Moderation Variable (Case Study on Islamic Banking Companies in Indonesia-Malaysia 2015-2019). International Journal of Economics, Business and Accounting Research, 5(3), 1125-1135. Retrieved from https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/3345
YIN, L. (2020). Construction of Government Comprehensive Financial Report Analysis Index System. International Core Journal of Engineering, 6(7), 39-44. https://doi.org/10.6919/ICJE.202007_6(7).0005
ZAIN, M. (1999). Corporate Social Reporting in Malaysia: The Current State of the Art and Future Prospects. Ph.D. dissertation, University of Sheffield.
ZHENG, X., & CULLINAN, C.P. (2010). Compensation/audit committee overlap and the design of compensation systems. International Journal of Disclosure and Governance, 7(2), 136–152. https://doi.org/10.1057/jdg.2009.23
ZUBAIRU, U.M., & SAKARIYAU, O.B. (2011). Social reporting practices of Islamic banks in Saudi Arabia. International Journal of Business and Social Science, 2(23) [Special Issue], 193-205. Retrieved from http://ijbssnet.com/view.php?u=http://ijbssnet.com/journals/Vol_2_No_23_Special_Issue_December_2011/23.pdf
Refbacks
- There are currently no refbacks.
