ABSTRACT
This study evaluates the social outcomes of Islamic banks, focusing on integrating religious and social values into the corporate principles of the Islamic banking sector. The research applies the Reactive Defensive Accommodative Proactive (RDAP) scale and employs content analysis to assess the social performance of Islamic banking practices. The analysis is based on the 2021 annual reports of 12 Islamic banking institutions. Findings reveal that 60% of the sampled Islamic banks demonstrated strong social performance, particularly among banks operating independently of conventional banking systems, such as Bank Muamalat, Bank Aceh Syariah, and Bank NTB. In contrast, four out of eight Islamic banks affiliated with or operating as subsidiaries of conventional banks showed weaker social outcomes. This disparity suggests that operational affiliations influence the effectiveness of social engagement within Islamic banks. By prioritising ethical practices, financial inclusion, and social responsibility, Islamic banks have the potential to significantly contribute to the creation of decent work opportunities and support the achievement of Sustainable Development Goals (SDGs), positioning themselves as key drivers of sustainable development.
