Corporate social responsibility in Islamic banks: to which extent does Abu Dhabi Islamic bank comply with the global reporting initiative standards?

Abstract

Purpose

The purpose of this case study is to explore whether Abu Dhabi Islamic Bank (ADIB) complies with the Global Reporting Initiative Standards in terms of corporate social responsibility (CSR) disclosure practices for the period 2014–2019.

Design/methodology/approach

By analysing both annual and sustainability reports of the bank using content analysis for each Global Reporting Initiative (GRI) category, 100 universal standards, 200 economic standards, 300 environmental standards, 400 social standards. The authors then compute and discuss the degree of compliance of ADIB disclosures by using annual charts and graphs.

Findings

Results show that, although ADIB issues sustainability reports, numerous GRI standards do not appear in the bank’s reports such as general disclosures GRI 102, economic disclosures items such as anti-competitive behaviour GRI 206 and environmental disclosures such as gas emissions GRI 305 due to the nature of bank’s activities. However, the bank focuses mainly on social standards GRI 400 including community services, training and development. Hence, ADIB partially complies with the GRI standards (2016) especially social disclosures.

Research limitations/implications

The study encompasses some limitations: first, due to the discretionary nature of CSR reporting, many items were ignored or missed for the full period. Second, the disclosure of a sustainability report by the company was only available for the year 2017, which, in turn, makes it difficult for comparison.

Practical implications

The findings of this study have important implications for academics and researchers, and practitioners as they pave the way for further investigation regarding CSR compliance of Islamic financial institutions. The results also have important implications for Accounting and Auditing Organization for Islamic Financial Institutions in developing a CSR reporting standard if Islamic banks are to enhance their image globally and to maintain competitive advantages.

Originality/value

This paper contributes to the growing debate on CSR disclosures in the Islamic banking industry by comparing ADIB practices with regard to the GRI standards.

Citation

Abu Al-Haija, E., Kolsi, M.C. and Kolsi, M.C.C. (2021), "Corporate social responsibility in Islamic banks: to which extent does Abu Dhabi Islamic bank comply with the global reporting initiative standards?", Journal of Islamic Accounting and Business Research, Vol. 12 No. 8, pp. 1200-1223. https://doi.org/10.1108/JIABR-11-2020-0346