Authors : Roshima Said, Shahida Farhan Zakaria, Sharifah Nazura Syed- Noh, Noor Zahirah Mohd Sidek and Abd-Razak Ahmad
Abstract: Corporate social responsibility initiatives refer to the activities and policies undertaken by companies as voluntary contributions to society, employees and the environment. CSR initiatives tend to help companies be more attractive to investors and customers alike. For Islamic Financial Institutions (IFIs), society expects the IFIs to contribute to the society in line with the rules of Shari’ah. The aim of this study is to rank community-centric CSR activities that are Shari’ah compliant according to their relative importance by using a mathematical tool known as analytic hierarchy process. The analysis showed that key activities that are highly important are the act of giving donations, aiding disaster victims and building public infrastructure. Each of these CSR initiatives are accorded a priority value of between 0 and 1 which indicates the relative importance of the initiative compared to the others from the same group. Using these priority values we then rank 11 Takaful companies operating in Malaysia in terms of their contributions to the community that were disclosed in the annual reports. The findings from this study will contribute as a reference point not only for the companies or organizations to highlight their CSR initiatives but also for the reference of policy makers, shareholders as well as stakeholders of Takaful industries.
Roshima Said, Shahida Farhan Zakaria, Sharifah Nazura Syed- Noh, Noor Zahirah Mohd Sidek and Abd-Razak Ahmad, 2016. Community-Centric Corporate Social Responsibility (CSR) Initiatives of Takaful Industries: An Analytic Hierarchy Process (AHP) Approach. The Social Sciences, 11: 4155-4162.