ABSTRACT

This chapter aims to analyze environment-related activities conducted by Islamic commercial banks in Indonesia. It is important to analyze such topic since the Islamic banking industry has grown in Indonesia and most studies focused on its financial sector. The chapter utilizes data from annual reports of four Islamic commercial banks in Indonesia, especially in its corporate social responsibilities activities. From the data, environment-related activities become the main corporate actions because it is believed that social responsibilities should also be emphasized on natural-related awareness. The forms of activities by which Islamic banks perform their corporate activities also reflect the management understanding on the importance of environment from Islamic teaching. Corporate Social Responsibility (CSR) has been integral part within companies in its effort to maximize value creation among shareholders and society. CSR can also be functioned to eliminate the social cost of development especially in the context of industrialization related to local societies.