Compatibility of the CSR practices of Islamic banks with the United Nations SDGs amidst COVID-19: a documentary evidence

Abstract

Purpose This study aims to establish whether the corporate social responsibilities (CSR) practices of Islamic banks are compatible with the sustainable development goals (SDGs) of the United Nations. Design/methodology/approach A documentary research method was applied by examining the annual reports of selected Islamic banks from Bangladesh, Indonesia, Pakistan, the UAE and Malaysia for 2020, which coincided with the COVID-19 pandemic. Findings The results indicate that Islamic banks discharged various CSR activities and contributed huge funds toward achieving the SDGs of the United Nations. Specifically, the banks prioritized the following CSR sectors: education, health, environmental protection and disaster relief and management. Besides, they provided support to micro and small businesses toward poverty alleviation. Research limitations/implications This study examined only CSR reports of the selected Islamic banks for 2020. Practical implications The findings have practical implications that may enable Islamic banks across the globe to improve their CSR initiatives, activities and reporting toward realizing the SDGs. They are also helpful to policymakers and regulators for the provisions of policies and regulations to motivate or mandate Islamic banks to effectively improve their CSR practices. Social implications CSR practices of Islamic banks can significantly support the SDGs toward mitigating many economic and social problems. Originality/value This study applied a relevant but rarely used method to explore the role of CSR practices of Islamic banks in achieving the SDGs.