Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

The purpose of the current study is to examine the disclosure practices of Islamic banks in Egypt and Kuwait in order to investigate Corporate Social Responsibility disclosure in Islamic banking (CSRDIB). This study tests the factors that may influence CSRDIB practices and constructs a framework for assessing them.  Using a sample of Islamic banks in Kuwait and Egypt from 2014 to 2022, the framework is constructed by using six dimensions: "social responsibility towards governance", "social responsibility towards employees", "social responsibility towards environment", "social responsibility towards operations", "social responsibility towards clients",  and "social responsibility towards community".
The investigation discovered that 56% of Islamic banks in both countries have appropriate corporate social responsibility disclosure. Although social responsibility disclosure levels in Egypt were higher than those in Kuwait in 2014, disclosure development in Kuwait was faster than that in Egypt. Islamic banks in both countries provide more information about social responsibility towards Governance, Employees, Operations, and Community but less information about Clients. Kuwaiti Islamic banks provide more information about social responsibility towards Environment than Egyptian banks especially for the last three years during the analysis period.
Based on statistical analysis, the most significant factors influencing the level of corporate social responsibility disclosure in the Islamic banking sector are bank size and financial leverage. The study's findings indicated that there is no significant relationship between Islamic banks' profitability and the CSRDIB, indicating that all Islamic banks, regardless of profitability level, need to publish enough information regarding their social responsibility. In a similar way, the researcher discovered no correlation between CSRDIB and Islamic bank credit rating.