The impact of islamic banks’ corporate social responsibility on its customers’ loyalty

The purpose of this research is twofold, firstly is to make the mapping of the CSR activities or CSR sectors of the six Islamic Banks in Surabaya, Indonesia (study 1) using the descriptive method of content analysis of six Islamic banks’ annual report of 2015. Secondly to investigate the effects of CSR activities of the Islamic banks toward the customers’ loyalty (study 2).The second study is causal research using simple linear regression using SPSS 17.0. Data were collected using questionnaires and the respondents are those having bank account in Islamic banks that were taken using accidental sampling technique. The sample size is 118. The result of the first study are 1) based on the Category classification, the banks’ CSR programs mostly were delivered to the following sectors successively showing the more dominant order namely staff development (33%), donation (25%), education (24%), health (8%), Helping disaster (6%) and bank product development (4%); 2) Based on the benefits or impacts of CSR activities, the result showed successively from the more dominant to the least one namely promotion (34%), business impact (23%), philanthropy (23%), and mindset change (15%). The result of the second study is that Corporate Social Responsibility (CSR) of Islamic banks has significantly effects towards the loyalty of the customers