The Influence of Corporate Social Responsibility on the Financial Performance of Indonesian Islamic Banking

Abstract

Implementation of Corporate Social Responsibility at 6 Islamic banks in Indonesia is relatively inconsistent. The highest is BRI Syariah that increased significantly in 2010 to 2014 amounted to 39.4%.In other banks; it was followed by BNI Syariah with an average of 17.6%, BJB Syariah with an average of 16.4%, Bank Muamalat with an average of 14.4%, Bank Mandiri Syariah with an average of 8.6%. The lowest bank is Bukopin Syariah with an average of 3.4%. Application of financial performance in six Islamic banks in Indonesia tends to be inconsistent. The highest is BNI Syariah with an average of 20.2% in 2010-2014. The second is BRI Syariah bank with an average of 20%, Bank Muamalat with an average of 20%, Bukopin with an average of 20%, and Mandiri Syariah with an average of 19.8%. The lowest financial performance is BJB Syariah, which is 19.8%. The magnitude of Corporate social responsibility provides a strong influence on the financial performance of Islamic banking 2010-2014 amounted to 50.4%. Corporate Social Responsibility means affect the financial performance where the higher the Corporate Social Responsibility tends to improve financial performance.