Indonesia Conference Directory

This study aims to determine whether ICSR management influences the zakat performance ratio (ZPR), at Islamic Commercial Banks in Indonesia. ZPR is one indicator of financial performance used in Islamic banking, the Islamicity Performance Index, which is a comparison between the amount of zakat and net assets owned by Islamic Commercial Banks (BUS). Based on Al Quran and Hadiths ICSR management must be able to reach all aspects of the company and benefit for the entire community, including the recipient of zakat. Based on Sharia Enterprise Theory, the management of ICSR will affect ZPR which is the highest responsibility of an Islamic-based company is to Allah SWT and paying zakat is responsibilities that must be carried out by the company. However, in reality, some of BUSs may be do not carry out these obligations so it will affect the performance of the BUS. The method in this study is linear regression use Eviews statistical analysis. The data obtained from annual reports of Indonesia Islamic banks at 2013-2017. The results of this study stated that the disclosure of CSR funds negatively affected the Zakat Performance Ratio.