Resumo

Corporate Social Responsibility (CSR) has become an important integral part of companies’ activities and a hot academic research topic during recent decades. Nowadays, companies conduct CSR activities not only to be compliant with regulatory requirements but also to enhance the companies’ images, clients’ perceptions and financial performance (KLEIN, 2004). Many previous studies have highlighted the economic advantages that a firm might gain through CSR activities.

The paper aims to explore the clients’ awareness and perception of CSR in Islamic and conventional banks across Gulf Council Cooperation (GCC) . The study surveyed 905 clients that 519 from the Islamic banks, and 386 from the conventional banks.

2.1 Islamic Banking (ASUTAY, 2009; HADRAMI; HIDAYAT, 2019) 2.2 Corporate Social Responsibility in Financial Institutions (DUSUKI, 2007; CHAMBERS; DAY, 2009). 2.3 Corporate Social Responsibility in Islamic Banks (DECKER; SALE, 2009; HADRAMI; HIDAYAT, 2019)

Accordingly, the current research uses the same method to collect the required data. The study factors (Perception and awareness of the CSR activities) are latent (unobservable) variables and cannot be measured directly. However, the variable development and the questionnaire were guided by the literature. The questionnaire divided into three sections.

Based on the findings, the study comes out with several recommendations. Both types of banks must make more efforts to improve the clients’ awareness of the banks’ CSR activities. The improvement of this awareness might lead to a better perception of the CSR activities conducted and so might improve the firm’s performance. There is a need to enhance it by improving the methods of communications with the clients through more awareness campaigns. Conducting seminars and workshops, sponsoring events related to different social activities such as cultural events, can do this.

The purpose of this paper was made to conduct a comparison between the clients’ perception and awareness of the Islamic and conventional banks’ CSR in GCC. Nine hundred five clients participated in this study, of which 519 respondents are Islamic banks’ clients, and 386 are clients of conventional banks. Overall, the findings of this study indicated that the clients’ of the Islamic banks have more positive perception and awareness than the conventional banks’ clients. This result indicates that Islamic banks in GCC are more diligent in informing their clients in some cases.

Belal, A. R., & Roberts, R. W. (2010). Stakeholders’ Perceptions of Corporate Social Reporting (CSR) in Bangladesh. Journal of Business Ethics, 97(2), 311–324. Chaudary, S., Zahid, Z., Shahid, S., Khan, S. N., & Azar, S. (2016). Customer perception of CSR initiatives: its antecedents and consequences. Social Responsibility Journal, 12(2). Hadrami, A.; Hidayat, S. E. (2019) Corporate Social Responsibility of Islamic and Conventional Banks: Evidence in Bahrain . Etikonom, 18 (1), 47-62.