Md. Shajedul Islam
Department of Business Studies, North Bengal International University, Rajshahi, Bangladesh. Email: shajedulbd@gmail.com
Abstract: Islamic banks perform their functions according to Shariah rules. In Islamic Shariah, business is guided by social responsibility alongside profit. Therefore, business and corporate social responsibility (CSR) are inextricably linked. In this context, the goal of the article is to examine the CSR initiatives of Islamic Shariah-based banks in Bangladesh. In order to know the status of Islamic banks’ CSR initiatives in Bangladesh, information was collected from secondary sources, such as relevant articles, books, annual reports of the banks, Bangladesh Bank’s publications, and websites. The study’s population consists of all Islamic Shariah-based scheduled commercial banks that are in operation. This study focuses on the CSR initiatives of seven Islamic Shariah-based banks in Bangladesh. The study revealed that during the study period i.e. 2018–2023, Islamic Shariah-based banks spent an amount of BDT 21855.69 million under CSR activities. The survey discovered that Islamic Shariah-based banks participate in CSR activities by making donations to education, disaster management, Islamic cultural welfare, infrastructure development, health care, and income generating activities. Out of these, disaster management, education, and health care received importance, while environment, infrastructure development, income generating activities, and cultural welfare received nominal importance. Therefore, this study recommended increase of CSR spending on education, infrastructural development, income generating activities, environmental protection, and cultural welfare to support the socio-economic development of Bangladesh. Further, Islamic banks are recommended to increase their CSR contribution in green IT sector and environment-friendly projects on a priority basis to promote environmental balance and ensure socio-economic development of Bangladesh.
Keywords: Corporate social responsibility, CSR expenditure, Islamic Shariah-based bank
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