The Influence of CSR Practices on Financial Performance: Evidence From Islamic Financial Institutions in Indonesia

Abstract

The emergence of Islamic Financial Institutions (IFIs) is expected to provide enormous benefits for the Muslims community in Indonesia such as the availability of IFIs based on Sharia law and the implementation of Islamic value in the community. Like Corporate Social Responsibility (CSR) practices in all business organizations, the IFI's CSR becomes one of the important factors in improving organizational performance. The implementation of CSR in IFIs is unique as it is based on Sharia law. Zakat and Qardh are the uniqueness of IFI's CSR practices.