Corporate social responsibility practices of Islamic financial institutions

CSR Responsibility

Some of the references have the words "accessed on ..." which is an indication that the reference is an online one, but there is no webpage associated with it, and hence I would be grateful if I can have the full

Some of the references used has a general website, such as

"http://www.proquest.com," but when you go there it is a membership website and not anybody can access it. So my request is what is the possibility of the writer getting me the full link or a PDF or jpg file of the document used, and if there is cost incurred just inform before how much it will cost me to obtain these files.

would be grateful if I can have to enlarge the paper. This can be done by more explanation of the model described on page 3 "Table 1: Proposed IFI CSR

Maturity Model."

If I can have another page added at the extra cost of $18.00. These 300

words + the 400 requested earlier should take the word count in the paper to around 2700 or at least not less than 2500 words. Again more explanation of the model + more general explanation using the papers I sent. It is very important for the writer to use some of the papers I sent him earlier to enlarge the paper.

To do this, I would be grateful if the paper can be with me before 23/4/09.

If there is any difficulty in any of my request or require more clarification, please inform me ASAP.

Thank you again for your help and support.

NOTE: I have added in at least 700 words for you, thank you! The new test is shown in italic bolded font

Research Proposal:

Corporate Social Responsibility Practices of Islamic Banks

Introduction

Assessing and measuring the contribution of Corporate Social Responsibility (CSR) programs of Islamic Financial Institutions (IFI) and their long-term effects on emerging growth businesses is the intent of this research proposal. The investment approaches used IFI to create and sustain CSR-based outreach programs to emerging and entrepreneurial businesses including reliance on Mudarabah for financing and Profit-and-Loss sharing arrangements for small businesses are the basis of this research. The objectives of this research are to evaluate the effectiveness of CSR programs by IFIs to determine their long-term contribution to the creation and formation of new businesses. The role of CSR programs as a form of venture capital including microlending and microfinancing (Djojosugito, 113, 114), in addition to measuring the viability of the profit-and-loss sharing (PLS) scheme longitudinally in terms of its contributory or detrimental roles in the formation of new businesses. The methodology of this study concentrates on interviewing entrepreneurs of small IFI-based firms and the accumulated performance of microlending and microfinancing programs over time. The distribution of type of business, its product or service orientation, the role of IFIs in providing the necessary guidance for creating a successful going concern are also to be analyzed. The practice of capital asset allocation in the creation of new businesses through CSR-based programs including Bai' al-Inah as a means to invest in new plant & equipment, facilities and supplies that would be a capitalized expense from a cost accounting standpoint is also discussed. These results will then be extrapolated across the regions of the world where IFIs operate and then global results of the results of CSR programs assessed. CSR is seen as one of the catalysts of the growth if Islamic banking (Khan, Bhatti, et.al) and an insight gained from this study will evaluate that finding from previous empirical studies of the topic.

Aims and Objectives

The following are the aims and objectives of the proposed research study. Underscoring each of these aims and objectives is the assessment of whether CSR program are actually attaining the desired results or not. This will be determined by interviewing IFI managers to determine their initial goals for Mudarabah-based programs, micro-lending and CSR-based outreach programs in the Islamic nations with low per capita incomes. While IFI-based CSR programs have been critically praised for the contributions to communities and in fact entire regions of nations (Maali, Casson, Napier, 266) they have not intensively been studied purely from their translations of small businesses into going concerns capable of uplifting an entire region based on economic growth. CSR programs are meant to create sustainability while staying consistent with the ethico-legal dimension (Rosly, 31) of the IFI operating principles. The balancing of purely social contribution to the ability to have CSR programs serve as the catalyst of new venture creation and the enrichment of entire regions is the paradox on which this research is to be based. As a result, the following are the key aims and objectives, each specifically defined to provide a clearer glimpse into the paradox of purely using CSR as a means to fuel social change or to accomplish both through the creation of new enterprises that have the ability to deliver a higher standard of living to many more than those just underwritten with the initial investment. This study seeks to measure the long-term gains of CSR programs both from a social as well as new venture perspective. While measuring the total number of lives enriched socially, spiritually and through a standard of living increases due to microfinancing and microlending programs leading to more job creation is not possible given the scope of this study, the long-term growth just of the businesses and social programs financed is. Measuring relative growth of these firms over time and then assigning a relative measure of performance to them, in effect indexing their growth by the extent of CSR support then are given, will lead to the creation of a IFI CSR Maturity Model which is shown in Figure 1.

Table 1: Proposed IFI CSR Maturity Model

The proposed model will show over time the effects of CSR programs on new venture growth and the attainment of specific social responsibility goals over time. CSR's programs dual roles will be measured in the proposed IFI CSR Maturity Model.

Analyzing the Proposed IFI CSR Maturity Model

At the highest levels of maturity, which would be considered best practices in the context of this proposed model, is the level of orchestrating functions across a federation of banks that are necessary for creating intercommunity maturity. On the CSR and microfinance contribution to growth side of the proposed model the ability to define data sharing and funding across financial institutions defined maturity levels of the proposed model. This in turn defines multi-tier, multi-funding visibility and collaboration. From the research completed for this proposal, few Islamic lending institutions have attained this level of transparency with each member of their lending chain; rather the majorities are in the Anticipating phase of the IFI CSR Maturity Model, choosing to focus on a select group of financial institutions that are a significantly high level of orders are fulfilled with the assistance of, and where collaboration is more likely to be instantaneous due to the high level of trust achieved.

Many lending institutions occupying the second highest layer, collaborating, are using portals including Intranet platforms for maximizing information sharing and co-sharing of financial data and CSR best practices that can deliver much value to emerging businesses. Collaborative lending strategies, as they are defined from the research cited in this proposal, are marked by reliance on a high level of cross-lender collaboration as well. While many may see the concept of cross-lender collaboration being improbable and even avoidable in the development of a competitive lending environment, in fact those lending practices that have reached best practices level of performance specifically have this attribute.

The next level of the model, Orchestrating level of performance, the step above that is that the entire lending network becomes a "learning network. Anticipating, the second highest level in the maturity model, is where the majority of lenders are today, which is to say "every lender or financial institution for themselves." The focus on making a strong correlation between making information flow optimized vs. striking a collaborative focus with other Islamic financial vendors throughout the industry's financial services value chain. This level of the maturity model is a transitory one and is focused more on either small, incremental gains from the first level, which is Reacting.

In the Reacting layer of this proposed IFI CSR Maturity Model, the majority of departments within a lending institution have decidedly "every department for itself" approach to process maturity and have information flow that is purely dependent on personal productivity applications only. These include Microsoft Excel, Microsoft Access, and others, and in short the development of longer-range projects and programs is non-existent in this level of the IFI CSR Maturity Model. At this level of the model, lending institutions focus first and foremost on tactical wins at the expense of global victories. This mindset in turn creates an isolated approach to lending programs and CSR initiatives. The isolation that exists at the Reacting layer of this maturity model has implications on the solvency of financial institutions as well, as the need for transparency across financial services value chains is critical if key compliance and audit criteria are to be met, and businesses allowed continuing trading globally.

In an era of terrorism and turbulence in global markets the greater the level of shared risk and transparency, the greater the likelihood financial institutions will be more resilient in the face of greater challenges of operation. This is a critical point that must be kept in mind in the context of the IFI CSR Maturity Model, as globalization forces a higher level of inter-process and cross-functional coordination throughout a value chain. The IFI CSR Maturity Model also brings up the critical point of the best defense against uncertainty is a strong offense that seeks higher levels of performance through greater synchronization of both financial services value chain data and greater levels of cross-financial services provider coordination.

IFI CSR Maturity Model Assumptions

The following are the key assumptions regarding the definition of the IFI CSR Maturity Model:

1. The end result for lenders and financial institutions are pursuing higher levels of maturity on the model's layers translates into greater levels of agility and synchronization with customer demands as well. It could be said that the greater the level of Orchestrating a lending organization can do with its financial partners, the higher the level of market agility in will have in responding to its customers. .

2. The greater the level of systems and processes integration across lenders and between Islamic banks and their intermediaries, the greater the level of collaboration and orchestration. Inherent in the migration of lenders from the Anticipating level of this model to Collaborating and Orchestrating is the corresponding maturity in the shared approaches to managing risk -- namely the adoption of a shared ethical foundation. This is a critical point to keep in mind when evaluating the IFI CSR Maturity Model, that the development of entirely new levels of risk sharing through a common ethical foundational bond is critical to seeing this model as actionable.

In summary, the aims and objectives of this research study are to quantify the long-term effects of CSR programs specifically in the areas of intercommunity maturity and measuring the combined contributory effects of CST and microfinance initiatives to new venture growth. Comparing the relative growth an maturity of these two initiatives over time will in turn serve as the theoretical foundation of the Proposed IFR CSR Maturity Model.

The Rationale for the Research

The factors that support this specific logic and rationale center on the paradigm of Islamic banking as being egalitarian and more focused on the ethics of financing new venture growth vs. treating the actual financing transaction as a means to generate profits (Choudhury, Hussain, et.al). Quantifying the long-term effects of investment in the form of IFI-based CSR, microfinancing and microlending as defined by the contractual agreements made (Siddiqui, 681, 682) is the basis of defining sampling frame. In conjunction with this approach to constructing the research there is also the available of social disclosures by IFIs as well (Abdeldayem, 351, 351). The long-term effects of microlending and microfinance (Hasan, et.al) are also included in the proposed research to measure their combined effects with CSR programs on the extent to which new ventures integrate themselves into their communities. This will be measured through an analysis of supply chains, partner agreements and the reliance on CSR initiatives as a means to create entirely new means of production and service. In summary, the rationale is to first isolate the effectiveness or return on investment in CSR programs by IFI, and then measure their combined effects on new venture growth in conjunction with microfinancing and microlending.

Methodology of the Study

In evaluating the contributory effects of CSR programs as underwritten and sponsored by IFIs, and their long-term effects on microlending and microfinancing, the methodology of this study concentrates on a stratified research design of multiple segments or audiences. A stratification of groups is critical for the primary hypotheses of this study to be either accepted or rejected. Using the specific segments of IFI customers, IFI stakeholders, Legal Advisors, CSR strategists or program managers and firms underwritten by microlending and microfinancing programs, this research study will concentrate on the following hypotheses. These hypotheses will be used to either validate or refute

IFI CSR Maturity Model and its specific constructs, assumptions and scalability as it relates to the combined effects of CSR and microlending and microfinancing.

The hypotheses of the study are as follows:

H1: There is a positive correlation between CSR investments and microlending practices in emergent regions that IFIs play a strategic financial role in resulting in long-term growth of new firms

H2: There are no significant correlations between CSR investment, microlending practices, and the growth of new ventures in communities highly dependent on IFIs for financial viability

Additionally, this study will look at the Network Effect of IFIs and their selective use of CSR programs over time, specifically looking at how stakeholder expectations either contribute or detract from their success. This is the dynamic of how expectations influence the success or failure of CSR programs based on the acceptance or rejection of these programs by communities. Measuring these interactions over time will lead to the definition of the IFI CSR Maturity Model.

Limitations and Difficulties

This study has limitations in sampling frame from the standpoint of how CSR programs combined with microfinancing and microlending lead to new venture creation, in that there are no businesses in existence over twenty years to illustrate this trending. The extrapolation of the strength of these factors is therefore another limitation to the study. Third, the design of the actual research instruments and their delivery to respondents in person, in print and over the Internet will require a phased approach with the last delivery approach needing additional research to ascertain access rates as well.