Corporate social reporting has, since the early seventies, attracted the interest of various user groups. As a result, a long history of research into corporate social disclosure practice is observable in developed countries particularly the United States and Western Europe. However, very little attention has been focused on developing countries. This research investigates the extent of corporate social disclosure in Malaysia, the type of disclosure made and the relationship between disclosure practice and company characteristics. The study also seeks to understand why corporations in Malaysia are disclosing social information. A content analysis is presented, centring on 100 1993 annual reports of major Malaysian companies, to find the extent of disclosure and personal interviews are conducted to find out the reasons for disclosure. Content analysis demonstrates that Malaysian companies are actively disclosing social information with size of company being a major determinant factor. Human resource information is the main social theme disclosed. Personal interviews reveal that most companies are disclosing social information due to top management awareness together with a desire to comply with the government's social policy and enhance corporate image. The study highlights the communication gap that exists between Providers and users of social information and the dilemma faced by companies in seeking a balance between transparency and Islamic teachings. The research provides further insights towards an understanding of the reasons for social disclosure in developing countries where the culture, values and religious beliefs are different from those of western countries.

The doctrine of Corporate Social Responsibility (CSR) has emerged and developed rapidly as a field of study. It is a framework for the role of business in society, setting standards of behaviour to which a company must subscribe to impact society in a positive and a productive manner at the same time as abiding by values which exclude profit seeking at any cost. The emergence of ethical investment, social enterprise, business ethics, environmental practices, a human rights approach to recruitment and employment conditions, and investment in the community are examples of such impacts. This research examines the Islamic perspectives of CSR, and argues that, CSR is not a subject alien to Islam, as it is deeply inscribed in Shari'ah. In particular, the thesis has showed the relevance of CSR as a globally accepted practice to Islamic banks. The Islamic banking system has an in-built dimension that promotes social responsibility, as it resides within a financial trajectory underpinned by the forces of Shari'ah injunctions. These Shari'ah injunctions interweave Islamic financial transactions with genuine concern for ethically and socially responsible activities at the same time as prohibiting involvement in illegal activities or those which are detrimental to social and environmental well-being. To further investigate whether the stakeholders of Islamic banks truly subscribe to the idea of CSR, this study provides empirical evidence based on a survey which was conducted on seven stakeholder groups (customers, depositors, local communities, managers, employees, regulators and Shari'ah advisors) of Islamic banks in Malaysia. The findings of this study reveal that stakeholders of Islamic banks in Malaysia have generally positive views of CSR. One of the most important reflections of their positive attitude is that CSR factors are evidenced as one of the important criteria in their banking selection decisions. Overall the study provides a clear justification and indication from a theoretical point of view and empirical evidence from stakeholder perspectives about the relevance and significance of CSR to Islamic banks in Malaysia.