Social and environmental sustainability challenges have led researchers to concentrate on sustainable banking and corporate social responsibility (CSR) practices. CSR aspects that are used for sustainable banking are explored, evaluated and summarized by limited literature. This study aims at identifying and summarizing the theories and the CSR dimensions used in sustainable banking related studies. The study critically analyzed 30 relevant documents that were systematically extracted from the Web of Science and Scopus databases covering the period of 2012 to 2022. The results show that researchers’ concentration on sustainable banking increased after the declaration of the Paris agreement and sustainable development goals (SDGs) in 2015 and 2016, respectively, where the majority of studies highlight the Asian and European contexts. The study identifies 14 theories and 28 CSR dimensions for sustainable banking. Based on those dimensions, the study proposes a model of sustainable banking. Later, it maps the relevant theories with the CSR dimensions so that future researchers can experiment with those theories and dimensions with sustainable banking in different contexts. Moreover, the study recommends that researchers can focus more on organizational change and risk management theories, and CSR dimensions that integrate social and environmental issues, as well as SDGs.

Purpose — This paper aims to examine the implementation of blockchain technology in zakat management and determine how it will work in the context of Malaysia. Although zakat institutions in Malaysia use technology, confidence in the efficiency of the zakat fund is still an ongoing issue. Therefore, the potential of blockchain technology for improving the zakat management system is examined. Design/Methodology/Approach — An exploratory study involving two informants with expertise in blockchain technology and Islamic finance was conducted to investigate how the application of blockchain in the zakat management system will accelerate the future implementation and potential of zakat management in Malaysia. Findings — This research finds an accord between the features of blockchain technology and the objectives of zakat. The features are transparency, traceability and security, which align closely with the goals of zakat. As such, a new model has been proposed for the zakat management system, one empowered by blockchain technology that harmonises with the existing system and enhances these elements. Originality/Value — This research can motivate zakat institutions in Malaysia to implement blockchain technology in their zakat management systems by using the proposed model. The research shows the synchronisation of blockchain principles with zakat, which would build trust and confidence. Practical Implications — The discussion on how blockchain can be embedded in the existing zakat management system will contribute towards enhancing zakat management in Malaysia and improve the performance of zakat institutions, enabling them to better serve the community. Given the scarce literature on blockchain adoption in zakat management, this study can spur further research and discussion within this area.

CSR and Sustainability of Islamic Banking: The Bankers View

Islamic Social Bank: An Adaptation of Islamic Banking?

Purpose: This paper aims to explore the strategies used by venture capital (VC) firms in assisting entrepreneurs who have business potential but lack capital. The study also aims to investigate whether the VC strategy can be adopted by Islamic banks throughmusharakahfinancing.Design/methodology/approach: Apart from content analysis, primary data were gathered from several interview sessions with the management of three VC firms and two Islamic banks.Findings: Islamic banks in Malaysia have great potential to offermusharakahfinancing and mitigate risk by adopting the following five VC strategies: method of selection, channelling of funds, monitoring, non-capital assistance and period of investment. We propose the channelling of corporate social responsibility funds formusharakahfinancing as an initial step in applying VC strategy.Research limitations/implications: Given the limited number of willing and eligible respondents in Malaysia, the scope of this study can be widened to a cross-country analysis wheremusharakahfinancing is widely adopted.Practical implications: This study motivates regulatory bodies and Islamic banks to considermusharakahfinancing using the risk monitoring strategy adopted from the VC industry.Originality/value: This study is the first to empirically explore the strategy adopted by VC companies and evaluate whether such a strategy is suitable for the concept ofmusharakahfinancing.