Social Responsibility and Islamic Financial Institutions - The Role of Central Bank of Malaysia

Transcription

1. Social Responsibility and Islamic Financial Institutions –The role of Central Bank of Malaysia. Syed Abdul Hamid al-Junid “The Global University in Islamic Finance”
2. Relevant Issues •  Nature and evolution of C.S.R. •  Criteria for evaluation C.S.R. initiatives •  Overlap between Social-Spiritual and Market realms •  Values in tensions •  Revisiting ethics, governance and social responsibility “The Global University in Islamic Finance”
3. Developing a Framework of C .S.R. •  Dimensions of C.S.R. •  Driving forces to C.S.R. •  Relationship between C.S.R. cosmetics and C.S.R. strategies •  Developing sustainable development framework “The Global University in Islamic Finance”
4. Promoting C .S.R •  •  •  •  •  •  •  Societal vision and goals Societal governance structure Market value depends on values Laws and regulations Standards and best practices Individual and collective ethics From compliance to culture “The Global University in Islamic Finance”
5. Implementing C .S.R. •  Role of Government, Central Banks, Securities Commissions and relevant authorities in: •  Promoting disclosure and stakeholder interests. •  Establishing efficient and competitive markets. •  Promoting C.S.R. as part of governance. “The Global University in Islamic Finance”
6. Islamic Perspective to C .S.R. •  Issues and opinions – convergence and divergence. •  Voluntary sector and social objectives •  Challenge of multiple objectives •  C.S.R. efforts vs C.S.R. outcomes. •  Reactive vs strategic C.S.R, aping the west instead of enhancing existing Islamic institutions. “The Global University in Islamic Finance”
7. Promoting C .S.R. for IFIs •  •  •  •  •  Shariah compliance as C.S.R. criterion. Instituting shariah compliance. Ethical Investments. Promoting Investment account holders. Ethics with efficiency “The Global University in Islamic Finance”
8. Bank Negara – C.S.R as part of Governance •  Balancing regulatory discipline, market discipline and self discipline. •  Eliminating information asymmetry. •  Managing shariah risk and reputational risk •  Importance of disclosure and corporate reporting. •  Recognizes different capacities for governance and C.S.R. •  Promoting education in Islamic Finance. “The Global University in Islamic Finance”
9. Education and Human Capital in Islamic Finance •  International center for Education in Islamic Finance (INCEIF) •  Role of INCEIF in developing holistic training of professionals. •  Role of Associate of Chartered Islamic Finance Professionals. •  International center for leadership in Islamic Finance (ICLIF) “The Global University in Islamic Finance”
10. Instituting Integrity and Ethics •  Understanding Islamic worldview and leadership. •  Internalizing values of honesty, transparency and accountability. •  Ability to recognize, anticipate and handle ethical problems. •  Professional and contextual competencies, eg cash waqf, zakah. •  Developing statistical database. •  Quality consciousness, monitoring and measuring improvements. “The Global University in Islamic Finance”
11. Q &A “The Global University in Islamic Finance”