Purpose: Currently, one of the most important dilemmas facing mankind is environmental degradation and natural resource shortage. The adoption of Green Banking practices has been identified as a solution to the growing environmental problems all over the world. However, an important issue being faced by both the conventional and Islamic banking industry is the creation of stakeholder engagement in Green Banking practices. The purpose of this paper is to propose the use of Islamic principles in developing an emotional attachment between Green Banking practices and the Muslim consumer market to facilitate Green Banking adoption. Design/methodology/approach: Based on the theory of self-congruity, the authors have proposed a framework to analyze the congruity between Islamic principles and Green Banking. The argument is built on secondary data by identifying the Environmental, Social and Governance (ESG) dimensions of Green Banking and proving its congruence with teachings of the Holy Qur’an and Sunnah. Findings: It is observed that the doctrine of Islam established for mankind 1,400 years ago consists of the same principles that are now being implemented in the shape of Green Banking. The dimensions of Green Banking are in line with Islamic teachings and, thus, can easily be adopted and marketed by banks, especially Islamic banks, targeting the Muslim consumers. The congruence of Green Banking with Islamic principles can play a major role in fostering the growth of this imperative ideology for the Green Muslim consumers. Islamic banks can market green products and services on the basis of religious congruity to the Muslim consumer market and create greater acceptability and loyalty. Research limitations/implications: The proposed model has not been empirically tested. Originality/value: Limited research exists in the area of Green Banking adoption, especially in Muslim countries. Up until now, academic research has not been conducted on the congruity between the principles of Islam and Green Banking dimensions. This paper attempts to add to the unsaturated research area of Green Banking adoption by Islamic banks and how Islamic banks can gain a competitive advantage by building on the congruity between Green Banking and Islam.

This study examines the role of country of origin on the relationship between corporate governance and sustainability practices in Islamic Financial Institutions (IFIs). Different from conventional financial institutions, the IFIs has a group of Shariah Supervisory Board (SSB) to act as the governance decision maker and a gate keeper to the institutions in ensuring that IFIs will comply with the Shariah laws. Thus, the corporate governance dimension in this study includes the size of SSB in addition to the size of board members, the number of independent directors, and the aspects of environmental, social, and profit in the IFIs’ mission and/or vision. A total sample of 82 IFIs in Gulf Council Cooperation (GCC) and Non-GCC countries were examined. The study found that the board size, directors’ independence, and the aspects of environmental, social and profit in the mission and/or vision have positive relationship for IFIs in GCC countries. However, the size of SSB is found to have insignificant relationship with the sustainability practices of IFIs. The country of origin is found to have a moderating role on the relationships between all of the corporate governance dimensions with sustainability practices except for the size of SSB and sustainability practices relationship. This implies that the size of SSB of IFIs in GCC countries does not have a great influence towards sustainability practices as compared to the size of SSB in non-GCC countries

The purpose of this study is to examine the effect of public governance and economic growth on corporate social responsibility (CSR) performance in Egypt, Morocco, Mauritius, Nigeria and South Africa. It also assesses the trend of CSR performance in these countries over time. The study is based on a sample of five countries in Africa for the period 2012-2017. The multivariate regression model was used in testing the research questions/hypotheses. Robustness tests were performed to provide evidence to strengthen the findings of the study. Findings suggest that both good governance and economic growth are significantly positively associated with CSR performance. However, while good governance has a relatively substantial effect size, economic growth has a small effect size. Overall, both variables have a considerably low confidence interval ratio and therefore stand a good chance of holding up in future research. The analysis is limited to within-country effects, thereby forgoing the opportunity to explain between-countries effects. Second, the sample size is relatively small because of the limitation of data availability on CSR in Africa; hence, population generalization is not intended but theory generalization. Findings have implications for studies on CSR performance in Africa that fail to consider the socio-political and socio-economic level of development as contextual variables in the research design. Prior studies on CSR have focused majorly on CSR performance–corporate financial performance relationship. Furthermore, there are several calls in the literature for research for a new direction on CSR in the context of developing countries, especially Africa. This paper responds to these literature gaps.

Green Banking adoption has gained momentum in the past few decades in both the developed and developing economies. The green movement in the banking sector has been triggered due to its potentially adverse role in global natural environmental degradation and natural resource depletion. A number of banking operations have the potential to harm the natural environment, both directly and indirectly. Due to this, many countries have started working on greening their banking sectors. Pakistan is among the top countries threatened by climate change, environmental degradation and resource depletion. The country is currently at the initial stages of Green Banking adoption. This case study follows the Green Banking adoption journey of Pakistan’s banking industry in light of the obstacles faced, milestones achieved and the learning outcomes for the other developing countries struggling from environmental degradation. This case study can serve as a learning tool for the regulatory authorities and other concerned stakeholders of developing economies in need of Green Banking adoption.

Purpose: The purpose of this study is to empirically examine the determinants and outcomes of Islamic corporate social responsibility (ICSR) adoption in Islamic bank branches in Pakistan. The research framework examines the influence of stakeholder’s pressure on ICSR adoption. It also analyses the relationship between ICSR adoption and intangible outcomes achieved by the Islamic bank branch.Design/methodology/approach: A total of 400 questionnaires were distributed through a mail survey to Islamic bank branches in Pakistan. The respondents of the study were the branch manager of Islamic bank branches in Pakistan. A simple random sampling technique was used and resulted in the collection of 293 usable questionnaires. SMART PLS was used to statistically analyse the data using partial least squares structural equation modelling approach. The measurement and structural models were analysed.Findings: The results indicate a significant and positive relationship between Shariah supervisory board pressure, competitor pressure and ICSR adoption in Islamic bank branches. A moderate strength positive relationship was found out between top management pressure and ICSR adoption. Results reveal that customer pressure and community pressure have an insignificant influence on ICSR adoption. Data analysis shows that the adoption of ICSR practices have a significant and positive influence on an Islamic bank branch’s Intangible outcomes.Research limitations/implications: The sample size was relatively small because of the limited time duration.Originality/value: The construct of ICSR has not been extensively researched upon especially through empirical studies. Limited research exists in the area of factors than can influence Islamic bank branches to adopt ICSR practices and currently no empirical research has focussed on the intangible outcomes that can be achieved through ICSR adoption by an Islamic bank branch. The limited study exists in the Pakistan context as well, which is a rapidly growing Islamic banking industry.