The Islamic Banking Operations and Carroll’s CSR Pyramid. A Systematic Review
The corporate social responsible is not new concept in today’s business life. Which has now turned from literary to more strategic and influences the profits of an organizations. Islamic finance in itself is also considered as more social than conventional one. It is thought that products offered by Islamic banks comply with the concepts of social responsibility. To find out the fact; this study was initiated by making comparison of widely used Carroll’s CSR pyramid with the basics of Islamic finance. For the purpose, readily available literature was reviewed and concluded that Islamic banking products are in parallel with all five components of Carroll’s CSR pyramid. Islamic banks are acting as development institutes rather than loan houses by eliminating interest from the core banking activities. The concepts of Islamic finance are aimed at equal distribution of wealth and equal opportunities available to poor or suppressed sectors of economy for more productivity; hence resulting in foster economic growth. Like conventional banks (those follow Basel committee rules), Islamic banks also follow rules/guidelines formulated by AAOIFI and IFSB to ensure transparency, trustworthiness and sense of responsibility. In overall operations/progress, Islamic banks are acting as good corporate citizen.