Hasan Fauzi

Sebelas Maret University, Accounting, Faculty Member

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Director, Indonesian Center for Social and Environmental Accounting Research and
Development (ICSEARD)
Editor-in chief, Issues in Social and Environmental Accounting
Member of Editorial Board, International Journal of Accounting and Finance
Member of Editorial Bard, Journal of Financial Reporting and Accounting
Member of American Accounting Association
Member of Association of Certified Fraud Examiner
Member of Center for Social and Environmental Accounting Research (CSEAR)
Member of Social Responsibility Research Network (SRRNet)
Member of Asia Pacific Environmental Management Accounting
Member of Europe Environmental Management Accounting
Member of Indonesian Accounting Association (IAI)
Address: Indonesian Center for Social and Environmental Accounting Research and Development (ICSEARD)
Faculty of Economics and Business
Sebalas Maret University
Jl. Ir. Sutami 36A
Surakarta

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Papers by Hasan Fauzi

Social Responsibility Disclosure in Islamic Banks: A Comparative Study of Indonesia and Malaysia

Corporate social responsibility has become an important aspect of business society and there is a... more Corporate social responsibility has become an important aspect of business society and there is a growing interest in companies to report their social and environmental initiatives. While the tenets of CSR have a lot in common with Islamic moral law (Shari’ah), little is known about the CSR disclosure of Islamic banks. To address this gap, the current study provides a cross-cultural perspective on the social responsibility disclosure in Islamic banks across two countries, namely Indonesia and Malaysia. Using the content analysis of the annual reports for three full-fledged local Islamic banks in Indonesia and three Islamic banks in Malaysia for
the period of 2007 to 2011, this study revealed that an overall growth in the corporate social responsibility disclosure of Islamic banks both in Malaysia and Indonesia. More specifically, it was found that the workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. By discussing the findings according to the stages of growth model for corporate social responsibility, we suggest the Islamic banks to enhance their responsiveness and transform from CSR reporters of social responsibility responders.

Islamic Corporate Social Responsibilities (i-CSR) Framework for Islamic Banks: Application of Maqasid al- Syariah and Maslahah Principles

The rationale behind the establishment of Islamic banks globally is based on the precept that Isl... more The rationale behind the establishment of Islamic banks globally is based on the precept that Islamic banking practices are conducted in accordance with the strict values and principles of
Syariah. In line with this premise the Corporate Social Responsibilities (CSR) policies and practices of Islamic banks should be underpinned by the Islamic laws and principles as
revealed in the Qur’an and the Sunnah. Drawing on the doctrine of Maqasid al-Syariah and the concept of Maslahah, this study proposes an Islamic CSR (i-CSR) conceptual framework
that will align the CSR policies and practices of Islamic banks with the principles and values of Islam. The doctrine of Maqasid al-Syariah provides guidance on the preservation of the
protected elements of faith, life intellect, posterity and wealth while the concept of Maslahah specifies the levels of protection: essential, complementary and embellishment. The two
conceptions are integrated into six thematic CSR dimensions comprising of strategy, governance, community, workplace, environment and marketplace resulting in the
prioritization of CSR practices based on Syariah principles. This study provides a structured approach to CSR policies and practices for Islamic banks to ensure full compliance with
Islamic principles. Such a conceptual framework would be of interest to Islamic Financial Institutions worldwide and regulatory authorities in countries that are hosts to viable Islamic
banking systems to improve CSR policies, practices and disclosure on the part of Islamic banks. The findings from this study offer initial insights into an Islamic framework in respect
of CSR policies and practices specific to Islamic banks.

THE APPLICABILITY of i-CGA FRAMEWORK IN ISLAMIC BANKS

The objectives of the study is to examine the current CSR practices of Islamic banks operating in... more The objectives of the study is to examine the current CSR practices of Islamic banks operating in Malaysia and Indonesia, to draw inferences from the results on the current CSR practices of Islamic banks in Malaysia and Indonesia, to develop an i-CGA framework, and to empirically test the applicability of the framework on Islamic banks in Malaysia and Indonesia. The process of data collection for the study were carried in 4 Phases as follows: Phase 1- Preliminary investigation to identify gaps in the CSR practices as viewed from Islamic perspectives, Phase 2 - The development of i-CSR General Practice Framework based on Maqasid al-Shariah principles, Phase 3 - Operationalisation of i-CSR general practice framework (development of i-CSR general practice index), and phase 4 - Finalizing the development of i-CSR General Practice Framework. The current CSR practice in Indonesia Islamic banks and Malaysian Islamic bank has little bit different focus. An i-CSR General Practice Framework for Islamic banks has been developed named i-CGA framework. In terms of the contents, the framework has got confirmed by shariah expert and Shariah officers. This issue is not different from the two countries. The applicability of the formulated i-CGA framework is little bit different between Indonesia and Malaysia. The difference of the applicability in two countries is caused by structural factors: state constitutional, ulema council position, and policy of Stock Exchange toward social and environmental issue in formal company reporting. The applicability of i-CGA framework in Indonesia is lower than the one in Malaysia. In general, the practice of CSR in Indonesia can be implicitly said to be lower than the one in Malaysia.

The Current Practice of Climate Change issue Disclosure in Indonesian State Owned Companies

The objective of this paper is to investigate the current practices of climate change issue in In... more The objective of this paper is to investigate the current practices of climate change issue in Indonesian state-owned companies. Of the state-owned companies, the ones with the sensitiveness to climate change issue and with the availability annual and sustainability report were sampled for the investigation. Given the companies, content analysis using unit analysis of the number of disclosure (coded 1 or ) and the classification of disclosure set by GRI was applied to their corporate report. The findings of this study are that of the 41 climate change issues, 59% are disclosed in the annual reports and 63% in sustainability reports by companies under mining and manufacturing industry. The disclosures categories commonly practiced by the companies include: (1) environmental profile, (2) green house gas, and (3) environment initiative. The practical implication of the finding is that authorized bodies like Bapepam and BUMN ministry can use them to improve the disclosure index on climate change issues for the companies by issuing appropriate policy. The novelty of this paper comes from the fact that issue discussed is still rare in the literature, especially, given the common content analysis method, its application to Indonesian state-owned companies with specific uniqueness of the two Laws constraint.

Corporate Ownership and Company Performance: A Study of Malaysian Listed Companies

Using a panel data from companies that are listed on Malaysian Stock Exchange during the period o... more Using a panel data from companies that are listed on Malaysian Stock Exchange during the period of 2000 to 2009, this study examines the effects of corporate ownership (Government-Linked Investment Companies (GLICs) and board ownership on market performance. This paper uses Weighted Least Square (WLS) models. The results of WLS models show that while GLICs ownership has an inverted U-shaped relationship with company performance, board ownership has a U-shaped relationship with company performance. These findings suggest that when ownership concentrated, while board ownership destroys company performance, GLICs ownership improves company performance.

The Stages of CSR Development: A Comparison Between Developing Countries (Indonesia and Malasia and Developed Contry-UK

The objective of this multiyear-based research is to identify the stages of the CSR development ... more The objective of this multiyear-based research is to identify the stages of the CSR development and factors affecting such cultural and firm size and compare them between developing countries and developed country. we base our analysis on the model of development of stages of maturity of CSR activities (Crowther, 2006). We will look at a 5 year period. And the data we will collect will be comparable in the 3 countries. We will base our analysis upon a combination of a literature review, published accounts and interviews with both senior managers and key stakeholders. this will enable us to arrive at conclusions as to whether the model of development works similarly in developed and developing countries and to identify such things as cultural differences which act as an intervening variable

Redefining CSR concept in Indonesia

Despite objections from various business associations, the Constitutional Court ruled in April th... more Despite objections from various business associations, the Constitutional Court ruled in April this year that corporate social responsibility (CSR) remains mandatory for Indonesian firms as stipulated in Article 74 of Law No. 40/2007 on limited liability companies.

In their petition filed with the court, the business organizations argued that CSR should be voluntary rather than compulsory. They believed that Article 74 of the law, which obligates firms to allocate funds for CSR programs, would add unnecessary costs to businesses.

What is wrong with CSR, the corporate sector, and the law?

Hasan Fauzi

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