Developing a Corporate Integrity Model Through Islamic Social Reporting (ISR) in Small and Medium-Sized Enterprises (SME) in Indonesia
DOI:
https://doi.org/10.54471/iqtishoduna.v13i2.2636Keywords:
Corporate Integrity, Islamic Social Reporting (ISR), SMEs, Sharia Principles, IndonesiaAbstract
This study proposes a corporate integrity model for Small and Medium Enterprises (SMEs) in Indonesia by applying Islamic Social Reporting (ISR). Rooted in Sharia principles—justice, transparency, and social responsibility—this model aims to enhance integrity in SMEs. The study identifies critical ISR elements suited to the SME context using a Systematic Literature Review (SLR) and bibliometric analysis. Results demonstrate that ISR can improve trustworthiness and public image, contributing to SMEs' sustainability by strengthening stakeholder relationships. Despite its benefits, ISR implementation faces challenges, including resource constraints and limited awareness among SMEs. This study recommends capacity-building and training initiatives to facilitate ISR adoption, supporting a more effective integrity model for Indonesian SMEs.
Downloads
References
Abdul Aris, Nooraslinda, Marziana Madah Marzuki, Rohana Othman, Safawi Abdul Rahman, and Norashikin Hj Ismail. “Designing Indicators for Cooperative Sustainability: The Malaysian Perspective.” Social Responsibility Journal 14, no. 1 (January 1, 2018): 226–48. https://doi.org/10.1108/SRJ-01-2017-0015.
Abu Al-Haija, Elias, Mohamed Chakib Kolsi, and Mohamed Chakib Chakib Kolsi. “Corporate Social Responsibility in Islamic Banks: To Which Extent Does Abu Dhabi Islamic Bank Comply with the Global Reporting Initiative Standards?” Journal of Islamic Accounting and Business Research 12, no. 8 (2021): 1200–1223. https://doi.org/10.1108/JIABR-11-2020-0346.
Amran, Azlan, Hasan Fauzi, Yadi Purwanto, Faizah Darus, Haslinda Yusoff, Mustaffa Mohamed Zain, Dayang Milianna Abang Naim, and Mehran Nejati. “Social Responsibility Disclosure in Islamic Banks: A Comparative Study of Indonesia and Malaysia.” Journal of Financial Reporting and Accounting 15, no. 1 (2017): 99–115. https://doi.org/10.1108/JFRA-01-2015-0016.
Ananda, Chintya Zara, and N R Erinos. “Pengaruh Islamic Corporate Governance Dan Islamic Corporate Social Responsibility Terhadap Kinerja Perbankan Syariah.” Jurnal Eksplorasi Akuntansi 2, no. 1 (2020): 2065–82.
Arruda, Maria Cecilia Coutinho de. “Ethics and Corporate Social Responsibility in Latin American Small and Medium Sized Enterprises: Challenging Development.” African Journal of Business Ethics 4, no. 2 (2009).
Asnawi, Nur, Moch Mahsun, and Nevi Danila. “Industrial Halal Blockchain: The Great Potential of The Digital Economy in Indonesia.” IQTISHODUNA: Jurnal Ekonomi Islam 12, no. 1 (2023): 223–40.
Asnawi, Nur, Badri Munir Sukoco, and Muhammad Asnan Fanani. “Halal Products Consumption in International Chain Restaurants among Global Moslem Consumers.” International Journal of Emerging Markets 13, no. 5 (January 1, 2018): 1273–90. https://doi.org/10.1108/IJoEM-11-2017-0495.
Avianto, Bhakti Nur. Statistik Ekonomi Kreatif 2020. Jakarta: Kementerian Pariwisata Dan Ekonomi Kreatif / Badan Pariwisata Dan Ekonomi Kreatif RI, 2020. https://kemenparekraf.go.id/publikasi-statistik-ekonomi-kreatif/statistik-ekonomi-kreatif-2020.
Aziz, Hartinie Abd, Zuhairah Ariff Abd Ghadas, and Hussin Yusri Zawawi. “Corporate Social Responsibility in Corporate Governance: The Common Law and Shariah Perspective.” Psychology and Education Journal 58, no. 2 (2021): 1557–62. https://doi.org/10.17762/pae.v58i2.2309.
Cahya, B Tri, Umi Hanifah, Muslim Marpaung, and I Suryani Lubis. “The Development of Islamic Social Reporting as a Concept of Social Accountability Based on Sharia.” KnE Social Sciences, 2019, 97–110.
Cappelletti, M, M Bahalou Horeh, J Armstrong, D Alrahmany, J Lozano Hernández, L Peperkamp, A Z Somolinos, et al. “The Bounds between Negligence and Strict Liability.” Criminal Law and Philosophy 14, no. 1 (2021): 1–18. https://doi.org/10.4324/9780203795347.
Chofreh, Abdoulmohammad Gholamzadeh, Feybi Ariani Goni, Masoomeh Zeinalnezhad, Sanaz Navidar, Hamid Shayestehzadeh, Jiří Jaromír Klemeš, David W. Crain, et al. “Ensign2001.Pdf.” Journal of Environmental Management 524, no. 4 (2019): 575–81. https://doi.org/10.1016/j.aquaculture.2020.735149.
Dutta, Sraboni, and Sharmistha Banerjee. “Ethical Practices towards Employees in Small Enterprises: A Quantitative Index.” International Journal of Business Management & Economic Research 2, no. 3 (2011).
East, Middle, and Climate Change Initiative. “The Green Economy and Innovation,” 2022.
Fatmawati, Fatmawati, Azahra Nur Afifah, Chairunnisa Shandy Aulia, Sevira Wulan Septiani, Aditya Aditya, and Wita Ramadhanti. “Analysis of Accountability and Transparency of Waqf Management in Realising the SDGs of Quality Education Points.” Jurnal Akuntansi, Manajemen Dan Ekonomi 26, no. 3 (2024): 1–14.
Ghazali, Faizatul Hasliyanti, Azizi Abu Bakar, and Ridzhal Hasnan. “Integrity Practice in Corporate Social Responsibility by Malaysian Islamic Financial Institutions.” Journal of Advanced Research in Dynamical and Control Systems 11, no. 5 Special Issue (2019): 1065–75. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85072076958&origin=inward.
Gunawan, Muhamad Ali, Khairul Anwar, Muhammad Anggung Manumanoso Prasetyo, and Elce Purwandari. “Study of Leadership Style on Employee Performance (Organizational Motivation and Commitment).” AIP Conference Proceedings, 2023. https://doi.org/10.1063/5.0171021.
Hameedi, Karrar Saleem, Ali Hilal Union, Hassnain Raghib Talab, and Akeel Hamza Almagtome. “Ifrs Adoption, Cost of Equity and Firm Value: Evidence From Iraq.” International Journal of Professional Business Review 7, no. 3 (2022). https://doi.org/10.26668/businessreview/2022.v7i3.602.
Haniffa, Roszaini, and Mohammad Hudaib. “Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports.” Journal of Business Ethics 76 (2007): 97–116.
Herindar, Evania, and Ikha Nur Syamsiyah. “The Measurement of Efficiency and Productivity of Small Banks Comparative Study in Central Java and Yogyakarta.” Journal of Business Management and Islamic Banking, 2023, 47–68.
Herry Wibowo., Sony. A Nulhaqim. Kewirausahaan Sosial (Merevolusi Pola Pikir Menginisiasi Mitra Pembangunan Kontemporer ). Program Manager, 2015.
Himma, Nurrosyida Latifa, and Tiara Juliana Jaya. “The Effect of Macroeconomic and Microeconomic Variables on the Profitability of Sharia Commercial Banks in Indonesia.” Maliki Islamic Economics Journal 4, no. 1 (2024): 16–26.
Indayani, Tri Nofik, Puji Sucia Sukmaningrum, Achsania Hendratmi, and Sylva Alif Rusmita. “The Determinants of Islamic Social Reporting Disclosure in Indonesia.” GATR Accounting and Finance Review 4, no. 1 (2019): 05–14. https://doi.org/10.35609/afr.2019.4.1(2).
Issalih, F M Ahmad, Azlan Amran, Faizah Darus, Haslinda Yusoff, and Mustafa Md Zain. “Islamic Corporate Social Reporting: Perspective of Makasid Al Shariah.” Journal of Islamic Economics, Banking and Finance 11, no. 1 (2015): 93–121.
Jahar, Asep Saepudin, Ayub Mursalin, Imam Subchi, and Maila D H Rahiem. ICIIS and ICESTIIS 2021: Proceedings of the 4th International Colloquium on Interdisciplinary Islamic Studies in Conjunction with the 1st International Conference on Education, Science, Technology, Indonesian and Islamic Studies, ICIIS and ICESTIIS 2021, European Alliance for Innovation, 2022.
Juwaini, Ahmad, Bagus Aryo, Urip Budiarto, Eka Jati Rahayu Firmansyah, Iwan Rudi Saktiawan, Arief Aditya, Amiril Zulhaj, et al. “Untuk Mewujudkan UMKM Naik Kelas,” 2022, 1–220.
Kamaruddin, Muhammad Iqmal Hisham, Mustafa Mohd Hanefah, and Rosnia Masruki. “Challenges and Prospects in Reporting Practices in Malaysia.” Journal of Financial Reporting and Accounting ahead-of-p, no. Ahead-of-print (January 1, 2022). https://doi.org/10.1108/JFRA-01-2022-0018.
Kamla, Rania. “Critical Insights into Contemporary Islamic Accounting.” Critical Perspectives on Accounting 20, no. 8 (2009): 921–32.
Kamla, Rania, and Hussain G. Rammal. “Social Reporting by Islamic Banks: Does Social Justice Matter?” Accounting, Auditing and Accountability Journal 26, no. 6 (2013): 911–45. https://doi.org/10.1108/AAAJ-03-2013-1268.
Karim, Abdul, Amsal Bakhtiar, Jamali Sahrodi, and Paul H. Chang. “Spiritual Leadership Behaviors in Religious Workplace: The Case of Pesantren.” International Journal of Leadership in Education, 2022. https://doi.org/10.1080/13603124.2022.2076285.
Kerns, Edward H, Li Di, Jim Bourassa, Jonathan Gross, Nelson Huang, Hanlan Liu, Teresa Kleintop, Lisa Nogle, Larry Mallis, and Chris Petucci. “Integrity Profiling of High Throughput Screening Hits Using LC-MS and Related Techniques.” Combinatorial Chemistry & High Throughput Screening 8, no. 6 (2005): 459–66.
Khurshid, Adnan, Al-Aali Muhammad, Abdulrahman, Ali Soliman, Mohamad Amin, and Salmiah. “Developing an Islamic Corporate Social Responsibility Model (ICSR).” Competitiveness Review 24, no. 4 (January 1, 2014): 258–74. https://doi.org/10.1108/CR-01-2013-0004.
Lee, Susanna S, Jieun Shin, and Jungyun Won. “Transparency Management of Content Creators on Social Media: Motivation, Tenure, and Status.” Journal of Media Business Studies 20, no. 3 (2023): 264–83.
Limanseto, Haryo. “Dorong UMKM Naik Kelas Dan Go Export, Pemerintah Siapkan Ekosistem Pembiayaan Yang Terintegrasi.” Jakarta Pusat, 2023. https://www.ekon.go.id/publikasi/detail/5318/dorong-umkm-naik-kelas-dan-go-export-pemerintah-siapkan-ekosistem-pembiayaan-yang-terintegrasi.
Maali, Bassam P. “Casson Dan C., Napier. 2006.” Social Reporting by Islamic Banks. Accounting Foundation, n.d.
Mayanja, Jamiah, and Sandra Perks. “Business Practices Influencing Ethical Conduct of Small and Medium-Sized Enterprises in Uganda.” African Journal of Business Ethics 11, no. 1 (2017).
Muhamad, Rosediani, Dell Horey, Pranee Liamputtong, Wah Yun Low, Maryam Mohd Zulkifli, and Hatta Sidi. “Transcripts of Unfulfillment: A Study of Sexual Dysfunction and Dissatisfaction among Malay-Muslim Women in Malaysia.” Religions 12, no. 3 (2021). https://doi.org/10.3390/rel12030205.
Nasyiah, Tsiqatun, Ilyas Masudin, Fien Zulfikarijah, Devika Kannan, Aniek Rumijati, and Rahmad Wijaya. “Explaining Sustainable Performance With SEM-FsQCA: The Role of Traceability Systems, Knowledge Management, Halal SCM Practices, and Spiritual Leadership in Small-Medium Enterprises (SMEs).” IEEE Transactions on Engineering Management 71 (2024): 5691–5705. https://doi.org/10.1109/TEM.2024.3365660.
Nugroho, Lucky, and Erik Nugraha. “The Role of Islamic Banking and E-commerce for the Development of Micro, Small, and Medium Entrepreneur Businesses.” Business Economics and Management Research Journal 3, no. 1 (2020): 11–24.
Oktaviana, Ulfi Kartika, Tiara Juliana Jaya, and Titis Miranti. “The Role of Islamic Social Reporting, Islamic Corporate Governance and Maqashid Syariah Index on Firm Value with Firm Size as Moderation Variable.” In International Conference on Engineering, Technology and Social Science (ICONETOS 2020), 195–201. Atlantis Press, 2021.
Othman, Rohana, and Azlan Md Thani. “Islamic Social Reporting of Listed Companies in Malaysia.” International Business & Economics Research Journal (IBER) 9, no. 4 (2010).
Permatasari, Paulina, and Juniati Gunawan. “Sustainability Policies for Small Medium Enterprises: WHO Are the Actors?” Cleaner and Responsible Consumption 9 (2023): 100122.
Rehman, Zia Ur, Muhammad Zahid, Haseeb Ur Rahman, Muhammad Asif, Majed Alharthi, Muhammad Irfan, and Adam Glowacz. “Do Corporate Social Responsibility Disclosures Improve Financial Performance? A Perspective of the Islamic Banking Industry in Pakistan.” Sustainability (Switzerland) 12, no. 8 (2020). https://doi.org/10.3390/SU12083302.
Saleh, Mohamad Saifudin Mohamad, Ali Mehellou, and Bahiyah Omar. “Islamic Environmental Communication Towards Environmentally Sustainable Lifestyles in Malaysia.” In Multi-Stakeholder Contribution in Asian Environmental Communication, 79–89. Routledge, 2024.
Salman, Kautsar Riza. “Islamic Governance, Maqashid Syariah, and Islamic Social Reporting: The Case of Islamic Banks in Indonesia.” European Journal of Islamic Finance 19 (2021): 24–34.
Sardiyo, Sardiyo, and Martini Martini. “The Mediation of Islamic Social Reporting to Influence the Islamic Corporate Governance on Firm Value (Study on Islamic Banking in Southeast Asia 2012-2016).” Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi 16, no. 2 (2021): 139–53.
Sari, Yeun Arinda Eka, Anita Anita, Dedy Ari Purnomo, and Sugeng Widodo. “Rancang Bangun Sistem Informasi Pendaftaran Dan Pengelolaan Keuangan SAHAMQA Kota Malang.” Jurnal Teknoinfo 18, no. 1 (2024): 277–83.
Setiawan, Romi A. “Risk and Regulation of Islamic Banks: The Indonesian Experience,” 2022.
Setyaningsih, Santi, Rosita Widjojo, and Peter Kelle. “Challenges and Opportunities in Sustainability Reporting: A Focus on Small and Medium Enterprises (SMEs).” Cogent Business & Management 11, no. 1 (2024): 2298215.
Smith, H. “Exploring Remedies for Defective Artificial Intelligence Aids in Clinical Decision-Making in Post-Brexit England and Wales.” Medical Law International 22, no. 1 (2022): 33–51. https://doi.org/10.1177/09685332221076124.
So, Idris Gautama, Hasnah Haron, Anderes Gui, Elfindah Princes, and Synthia Atas Sari. “Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?” Sustainability 13, no. 23 (2021): 13023.
Sofyan, Andi Syathir, Abror Abror, Trisno Wardy Putra, Muslihati Muslihati, Syaakir Sofyan, Sirajuddin Sirajuddin, Muhammad Nasri Katman, et al. “Pengembangan Tradisi Geridhoan Dan Endhog-Endhogan Dalam Meningkatkan Daya Tarik Wisata Syariah Melalui Festival GERIDHOGAN Di Banyuwangi.” Journal of Islamic Marketing 6, no. 2 (January 1, 2022): 123–34. https://doi.org/10.1108/TR-08-2020-0390.
“Statement of Retraction: Financial Reporting Quality in Pandemic Era: Case Analysis of Vietnamese Enterprises(Journal of Sustainable Finance & Investment, (2023), 13, (1), (330-352), 10.1080/20430795.2021.1905411).” Journal of Sustainable Finance and Investment, 2023. https://doi.org/10.1080/20430795.2023.2178603.
Suhendar, Suhendar, Muetia Muetia, Muhamad Taqi, and Imam Hanifah. “Analysis of the Impact of Islamic Corporate Governance and Bank Reputation on Islamic Bank Performance in Indonesia.” In Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Economic Matters, ICOSTELM 2022, 4-5 November 2022, Bandar Lampung, Indonesia, 2023.
Sunarti, Sunarti, and Aris Eddy Sarwono. “Corporate Social Responsibility Disclosure of Indonesian Islamic Banks.” In Proceeding of Conference on Islamic Management, Accounting, and Economics, 77–85, 2018.
Taylor, R K. “Consumerism: A Dead Issue?” Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2015. https://doi.org/10.1007/978-3-319-16973-6_4.
Thaker, Mohamed Asmy Bin Mohd Thas, Ahmad Bin Khaliq, Hassanudin Bin Mohd Thas Thaker, Md Fouad Bin Amin, and Anwar Bin Allah Pitchay. “The Potential Role of Fintech and Digital Currency for Islamic Green Financing: Toward an Integrated Model.” Economics, Law, and Institutions in Asia Pacific, 2022, 287–308. https://doi.org/10.1007/978-981-19-2662-4_14.
Tilt, Carol Ann, and Nurliana Md Rahin. “Building A Holistic Conceptual Framework of Corporate Social Reporting from an Islamic Perspective.” Asian Journal of Accounting Perspectives 8, no. 1 (2015): 46–67.
Turyakira, Peter K. “Ethical Practices of Small and Medium-Sized Enterprises in Developing Countries: Literature Analysis.” South African Journal of Economic and Management Sciences 21, no. 1 (2018): 1–7.
Wijaya, Dwi Indriani Fidiastutik, Agung Budi Sulistyo, and Ahmad Roziq. “Good Corporate Governance, Capital Adequacy, Financing Risk, Profitability and Islamic Social Reporting (ISR) of Sharia Commercial Banks in Indonesia.” Asian Journal of Economics, Business and Accounting 21, no. 3 (2021): 30–42. https://doi.org/10.9734/ajeba/2021/v21i330359.
Wijayanti, Rita, Y. Anni Aryani, Doddy Setiawan, Cahaya Fitriana Dewi Amala, Ely Windarti Hastuti, Muhammad Ridlo Zarkasyi, Kurnia Rahman Abadi, et al. “Islamicity and Reporting Performance on Islamic Banking Financial Performance in Indonesia Post-COVID-19 (Period: 2019–2021).” Banks and Bank Systems 14, no. 3 (2020): 47–55. https://doi.org/10.1108/JIABR-03-2023-0081.
Wijayanti, Rita, and Doddy Setiawan. “Social Reporting by Islamic Banks: The Role of Sharia Supervisory Board and the Effect on Firm Performance.” Sustainability (Switzerland) 14, no. 17 (2022). https://doi.org/10.3390/su141710965.
Wijayanti, Yani Tri. “Komunikasi Pemasaran Wisata Halal Di Banyuwangi Dan Gunungkidul.” Jurnal Komunikasi 16, no. 1 (2021): 63–76.
Yuliaty, Tetty, Weni Hawariyuni, Budi Trianto, Sunday Noya, Stefanus Y Taneo, Melany Melany, Farrel M Rizqi, et al. “Economic Recovery in North Sumatera Province After the Covid-19 Pandemic, Through MSME Development and Increasing Muslim Friendly Tourism.” Journal of International Conference Proceedings 4, no. 1 (2023): 109–19. https://doi.org/10.32535/jicp.v4i3.1417.
Zhao, Fengyu, and Vesarach Aumeboonsuke. “The Relationship between Corporate Culture of SMEs and Crisis Response Ability under the Cross-Cultural Background.” Journal of Infrastructure, Policy and Development 8, no. 10 (2024): 6684.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Nina Dwi Setyaningsih, Wahidmurni Wahidmurni, Nanik Wahyuni, Mahamadaree Waeno
This work is licensed under a Creative Commons Attribution 4.0 International License.
The journal can be accessed publicly, which means that all content is provided freely accessible without charge to either the user or the institution. Users are allowed to read, download, copy, distribute, print, search, or cite to the full text of the article did not have to ask permission from the publisher or author.