Corporate Social Responsibility in Islamic and Conventional View: A Theoretical Approach
Abstract
This article is a literature study on CSR in conventional and Islamic banks, which is the result of research in the field of strategic management. CSR is not a foreign subject for the organization, it is not only related to the law but more than that it is part of the company’s ethics in operation. Islamic banking and conventional banking is inseparable from morals and ethics whose activities relate to the public. CSR has become important for Islamic and conventional banking, but in reality, these two banks differ both in philosophy and in operation. Islamic banking is more emphasis on social orientation without neglecting profit, a banking system that is run based on sharia law to prosper society and reach Falah. While conventional banks are more profit-oriented, CSR in conventional banking emphasizes improving financial performance. Theoretically, CSR in Western concepts can be applied in Islamic organizations, but the content remains different.
Keywords: CSR, Islamic Banking, Conventional banking, Syariah
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