The Islamic Reporting Initiative (IRI) has been featured in the 2015 Islamic Finance Development Indicator Report produced by Thomson Reuters, the world’s leading provider of intelligent information for businesses and professionals, and the Islamic Cooperation for the Development of the Private Sector (ICD) – the private sector development arm of the Islamic Development Bank (IDB).
The report was launched at the World Islamic Banking conference (WIBC) held in Bahrain under the patronage of His Royal Highness Prince Khalifa bin Salman bin Hamad Al Khalifa, Prime Minister of the Kingdom of Bahrain. The report examines key statistics and trends across five indicators significant for measuring the development of the US$1.8 trillion Islamic finance industry, and the role of Corporate Social Responsibility features strongly.
The 2015 Islamic Finance Development Indicator Report finds the practice of CSR and dispersal of zakat to be extensive across the Islamic world, but rates of disclosure low for many countries. Disclosing of CSR practice has many business advantages, providing insight and empowering decision-makers to accelerate sustainable business growth. The IRI, the first, mainstream CSR reporting framework based on Islamic principles, aspires to make CSR disclosure standard practice, to facilitate the growth of responsible business, inclusive and prosperous communities, and healthy and thriving natural environments.
Last week, the IRI received endorsement from the Organisation of Islamic Cooperation (OIC). OIC: “The OIC commends the IRI in its efforts in promoting economic, social and environmental prosperity in a manner that is not only impact-oriented and sustainable, but culturally relevant and responsive”.
“The standardization of disclosure mechanisms
for CSR funds may be limiting and
complex due to the integrated nature of
good CSR and business practice. Disclosing
CSR as a silo investment negates the
effort of a company to integrate CSR into
their business operations, as intended by
the concept of triple bottom line. While
standardization may provide a benchmark
for organizations seeking to invest in CSR,
driving the agenda forward, the separation
of CSR from wider business practices
may result in missed opportunities.”