A corporate social responsibility (CSR) in Malaysia and Saudi Arabia with special reference to Bank Islam Malaysia Berhad (BIMB) and Al-Rajhi Bank of Saudi Arabia (Al-Rajhi) : a comparative study

Abstract

Corporate Social Responsibility (CSR) is considered as one of the important concepts that the corporations need to practice, it from the conventional and Shari‘ah perspective. Thus, this research analyses the concept of CSR from both perspectives in detail. It also evaluates the implementation and application of CSR in Malaysia and Saudi Arabia with special reference to the practice of CSR by Bank Islam Malaysia Berhad (BIMB) and Al-Rajhi Bank of Saudi Arabia (Al-Rajhi) accordingly. The research is carried out with the objective to examine and compare the practice of CSR in Malaysia and Saudi Arabia especially on what has been done by BIMB and Al-Rajhi. It is also aimed to propose some recommendations for the improvement of CSR practice in Malaysia and Saudi Arabia in general and BIMB and Al-Rajhi in particular. In order to achieve such objective and aim, the research relies on the published materials such as journals, books, newspapers, government documents, periodicals and magazines, and the semi-structures interviews conducted on various relevant personals of BIMB and Al-Rajhi. From the data collected, the research finds that there are various similarities and differences on conventional and Shari‘ah concept of CSR. Not only that there are also similarities and differences on implementations and practices of CSR in Malaysia and Saudi Arabia, and by BIMB and Al-Rajhi. To improve the implementations and practices of CSR in both countries and institutions, the research has recommended that the practice of CSR should be legally binding in both countries and a proper regulatory framework of CSR be enacted.