Educational background of the sharia supervisory board and corporate social responsibility disclosure: evidence from indonesian islamic banks

Abstract

This research aims to evaluate the influence of the educational background of the Sharia Supervisory Board (SSB) on the level of Corporate Social Responsibility (CSR) disclosure in Islami banks in Indonesia during the period 2018-2022. Using a quantitative approach and panel data analysis, this study examines data from 14 Islamic banks to identify the relationship between the educational background of the SSB—categorized as sharia and finance education—and CSR disclosure. The findings indicate that SSB members with a sharia education background have a significant negative influence on the level of CSR disclosure, while a financial education background shows no significant effect. These results suggest that SSB members with a sharia education may prioritize adherence to religious law over broader CSR aspects. The study also includes control variables such as SSB size, Return on Assets (ROA), Return on Equity (ROE), bank age, and total assets. The implications of these findings highlight the importance of balanced SSB composition to enhance CSR disclosure transparency and strengthen the legitimacy of Islamic banks. The limitations of this research include the restricted observation period and the use of quantitative data, with recommendations for future studies to consider broader variables and additional methods.