The Role of Corporate Social Responsibility from an Islamic Economy Perspective in Times of Crisis: Literature Review Study

In recent years, banks have begun integrating Corporate social responsibility (CSR) into their organizational strategies and operational plans to enhance corporate performance, and reputation and increase customer satisfaction. The banking sector is integral in defining new trends and strategies, delivering essential financial services, reducing financial exclusion, and maintaining the economy’s financial stability. Because of its invaluable role in society, the banking sector should take on more social responsibility. Islamic banking, founded on Islamic laws and Shari’a principles, has recently been considered as a potential ethically superior alternative to conventional banking systems. By investigating CSR impact from an Islamic banking perspective, this review found that Islamic banks will be more profitable with higher CSR transparency and accountability. This is because Islamic-based CSR is more socially conscious and is guided by Islamic ethics and morals, which will help Islamic banks attract more clients and improve their financial performance, especially during crises. This was demonstrated by the findings that Islamic banks were resistant to COVID-19 pandemic shocks, attesting to their resilience compared to conventional banks.