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Nurul Anissa 2020461442 BANK Islam PRO 541

this is a report on Bank Islam annual CSR event and the analysis of th...

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Universiti Teknologi MARA

Academic year: 2021/2022

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NURUL ANISSA HAROMING

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UNIVERSITI TEKNOLOGI MARA (UiTM) CAWANGAN MELAKA

KAMPUS ALOR GAJAH

FACULTY OF COMMUNICATION AND MEDIA STUDIES

(FKPM)

PRO 541

CORPORATE PUBLIC RELATIONS

ASSIGNMENT:

INDIVIDUAL TERM PAPER

TOPIC:

BANK ISLAM MALAYSIA BERHAD

PREPARED BY:

NURUL ANISSA BINTI HAROMING

CLASS:

MC2423A

PREPARED FOR:

MADAM ANISAFINA MAIDIN

INTRODUCTION

On 1 July 1983, YAB Tun Dr Mahathir Mohamad, commerated an official launch for the operation of Bank Islam under the enactment of the Islamic Banking Act 1983 for the first time. The one and only first full-fledged Islamic bank in Malaysia is marking a major milestone of Islamic Financial system in Malaysia, not only that, Bank Islam was also given the honour to entrust with the responsibility to capitalise and manage the Malaysian’s government’s motive to fixed Malaysia’s name as an international Islamic financing centre (Wan Azmi & Madden, 2014). Adherence to Shari’a (Islamic Law) requirements, known as Islamic banking was introduced to the world in early 1960s with the first Islamic Bank was founded in Dubai with an extremely cautious research and joint effort by the professional Islamic economist, financiers and officers from Islamic Organisations all across the world ( Our History – Bank Islam Malaysia Berhad , n.). With a humble start, Bank Islam ran their service in 1983 with just 30 pioneering staffs, however it manage to grow bigger with 272 employees just by the end of its first financial year. Since the date, Bank Islam has been growing and topping the banking chart in Malaysia for decades.

Being the pioneer in the financial sector, Bank Islam emphasize the significance of innovation and digital banking by launching their own first application, Bank Islam GO parallel with the current technology. Not only that, according to Bank Islam Malaysia Berhad (n.) This Corporate company built up with a strong advocate of ethical and responsible financing, continues to be a catalyst for positive impact growth, the bank always devoted themselves to corporate social responsibility, by not only giving back to the community that they are responsible to, but also to the Islamic Finance sector as a whole through changing knowledge, joining hands and being the source of the reference to the industry.

Bank Islam once suffered a huge loss in 2005 and 2006 according to Wan Azmi and Madden (2014), its suffer RM 2 billion after being mired by financial loss. However, the huge blow does not shake Bank Islam’s performance, moreover, they came back stronger a year after the financial crisis and built an impressive recovery and return the profit. This prove that Bank Islam manage to stand up on their feet again with building its image and reputation back, gaining the stakeholder’s trust and public favour on their side again. Nearing the fifth decades of service, Bank Islam steadily make history and always lift the standards of Islamic Banking to the new level.

ZAKAT FUND OF BANK ISLAM

Zakat is known as one of the Islamic financing system where the Bank collect the fund from someone who fulfil the requirement to give out Zakat. It is often given out to asnaf (hardcore poor), orphans, students and disabled person. As instance for CSR activities with Zakat fund is Amal Ilmu in 2019 with 115 Bank Islam Volunteers and over than RM 218, zakat fund collected. In this event, Bank Islam targeted to improve educational opportunities for those who are underprivileged communities through donations, sponsorship and contribution of resources. 50 sets of braille reference books was channelled to 500 primary schools children through the Yayasan Orang Buta Malaysia with an objective to promote blind people’s welfare, other than that, a sponsorship of an international University of Malaysia-Wales’ event is also part of the Zakat fund under the banner of Women’s empowerment. In conjunction with Maulidur Rasul (Rasul Birthday Celebration), Bank Islam also gives out sponsorship for Ministry of Education’s event to gives out Zakat funds as much as RM 15,749 for Anugerah Surau Imarah Sekolah-Sekolah (ASISS). Holding the title nation’s leading Islamic bank, Bank islam continue to nurture love and values within the messages in Holy Quran by sponsoring the prize for the national level of Majlis Tilawah Al- Quran competition (Banking of Shared Success, 2019).

SOCIAL FUND

According to Abdul Aziz (2020) Bank Islam has set up a few social funds to contribute to the society as well as their stakeholders. One of the social funds named ‘Sadaqa House’ is one of the strategic agenda which was funded by the public through a public fund digital platform to realize social fund project that helps a few sector that was underrated such as medical, education and business. Joining hand with selected Majlis Agama Negeri (State Religious Council) such as Majlis Agama Islam Wilayah Persekutuan (MAIWP) and business partner, SME Corporation Malaysia (SME Corp), iTekad programme was launched to help generate income and resiliency of the small business owners that was affected by Covid-19 with the social fund that was hosted by Bank Islam.

As an addition, Corporate Social Responsibility was generously fulfilled by Bank Islam by donating RM 1 million to support medical expenses and humanity to handle the pandemic of Covid-19, also by giving out direct help to those who are underprivileged and needy by giving out foods supplies and necessary things to universities, orphanage, nursing home, and disabled people as well as basic medical needs to district hospitals and health clinics (Zainuddin, 2020). Being the prestigious bank, and number one Islamic Financing Bank in Malaysia, Bank Islam has always proven its word and action by pursuing numerous CSR Activities annually that gives profit to thousands of people across the country.

SUCCESSFUL LEADERSHIP ROLES

Being in the business company, Bank Islam has reach its six feet under in 2005 when they suffer a big loss of financial. However, Dato’ Sri Zukri Samat’s mandate was clear and straight to reverse the situation and makes a better fortune for the bank. According to Madden (2014), Zukri was determined to put Bank islam on its feet back when he realised that the financial situation in Bank Islam is at the cliff-edge, however under his leadership he manage to save Bank Islam from failing to be a prestigious bank until the present time. Zukri’s immediate task is creating a strong team around him to face the challenges ahead. Together with Hizamuddin Jamalluddin, head of strategic planning, Zukri starts his first step of rescue by identifying the root problems and prioritising financial repair through recapitalisation and balance sheet clean up to clear Bank Islam financial debt. With all of the efforts made by Zukri Samat’s Team under his leadership, Bank Islam manage to survive the crisis and being the leading Islamic Financial System until this day Madden (2014). Regardless of the accomplishments Islamic Bank enjoys these day, it has not been a piece of cake for them to climb towards their present status. With the great leadership of Dato’ Sri Zukri Samat, who has been making a dynamic progression and restructure the bank’s operation to suit the customer’s needs. With his excellent leadership, the reinvention of Bank Islam’s has been flourished for better in the public and stakeholder’s eyes. He has been recognized and awarded with an exemplary leadership for the extensive growth and success of Bank Islam in Financial Field (Mohamad Daud et al., 2017).

NEW MEDIA OR SOCIAL MEDIA APPEAL OF CSR ACRIVITIES

Living in the present generation, where majority of the homosapiens are using Telephone and Internet as the medium for communications. Social Media are playing a big role to make a CSR Projects appealing to the stakeholders. Dato’ Sri Zukri Samat always stressed on trending and up-to-date customer’s and stakeholders request and needs. In this topic, Bank Islam has always been appealing in the Social Media by updating frequently about their CSR Activities in various platforms such as Instagram, Twitter, Facebook and many more. Though personally, Bank Islam is still left behind in engaging with the social media platforms, however, the Public does still aware with the CSR projects that was held by Bank Islam as it always appear on the news websites and reports (Realising Values: INTEGRATED ANNUAL REPORT 2017, 2017).

GARNERING STAKEHOLDERS SUPPORT

For Bank Islam, stakeholders are vital as they are the pillar for its existence and purpose of banking institution today. Bank Islam has been maintain the relationships with their stakeholders through a regular basis and various channels. Holding the image of

plays a big role to deliver the word to the Public to gain support. Without the communication, funding would be hard to gain because people are not aware of the projects. Besides that, customers and stakeholders hold a lot of scepticism towards companies CSR engagement and communication. Plus, it is critical for company to receive a feedback from the stakeholders as the measurement was made from the feedback to know how well does one company succeed with their communication for the CSR Events (Marklund & Ostergren, 2015). However, Bank Islam was considered as successful in using the communication role to advertise their CSR Programmes. For example, Bank Islam has been releasing annually report online to make sure that their bank activities and financial status was known to their stakeholders, besides that, every CSR Project made by Bank Islam has always made it into the report in newspapers, news and social media to spread the word about the Projects Thus, I think communication is very important for every corporate company as the Marklund and Ostergren (2015) says research found that awareness of the CSR projects is fundamental as it affects the purchase intentions which makes it as an important part in running a business.

CONCLUSION

Leadership Role, New Media and Social Media Landscape and CSR Strategies always been a backbone for Corporate Company to stand high in their position. Bank Islam has always been climbing the ladder to match with the international banking, however, the impressiveness of this company has always been mesmerized and adorable to the Public. Engaging with hundreds of CSR events, bank Islam has always been responsible and committed to the public since day one it was launched by Tun Dr Mahthir. Thus, many of the locals are proud with the local company’s achievements and leadership throughout the decades it has been serving the Malaysians.

References

Abdul Aziz, M. (2020, May 18). Bank Islam komited laksana kewangan sosial. Retrieved January 5, 2022, from Berita Harian: bharian.com/bisnes/korporat/2020/05/690403/bank-islam-komited-

laksana-kewangan-sosial

Abdul Rahman, A., Abu Bakar, F., & Md Hashim, M. (2015, August 30). Corporate Social Reporting: A preliminary Study of Bank Islam Malaysia Berhad (BIMB). Issues in Social and Enviromental Accounting, 4 (1), 19. doi:dx.doi/10.22164/isea.v8i1.

Abu Bakar, F., & Md Yusof, M. (2016, August 26). Managing CSR Initiatives from the Islamic Perspective: The Case of Bank Islam Malaysia Berhad (BIMB). Jurnal Pengurusan, 46 (1), 67- 76. Retrieved January 10, 2022, from journalarticle.ukm/10798/1/10035- 43004 -1- PB

Bank Islam Malaysia Berhad. (n.). Retrieved January 4, 2022, from Malaysia International Islamic Financial Centre (MIFC): mifc/index.php?ch=ch_contents_directory&pg=pg_dir_provider&ac= &sec=

(2019). Banking of Shared Success. Kuala Lumpur: Bank Islam Malaysia Berhad. Retrieved January 4, 2022, from bankislam/wp-content/uploads/bi_ar19_corp_0.pdf

Madden, R. (2014). Dare to Lead: Transformation of Bank Islam Malaysia Berhad. Asian Institute of Finance, 1 (1), 4-6. Retrieved January 4, 2022, from Asian Institute of Finance: researchgate/publication/355927212_CASE_STUDY_Dare_to_Lead_Transf ormation_of_Bank_Islam_Malaysia_Berhad

Marklund, E., & Ostergren, M. (2015, May 22). The effects of CSR initiatives and CSR communication on customers’ responses and Satisfactions. Umea University , 4-6. Retrieved January 11, 2022, from diva-portal/smash/get/diva2:826841/FULLTEXT01

Mohamad Daud, S., Li, J., Mohd Ali, E., & Siddiq, M. (2017). TRANSFORMATION OF BANK ISLAM MALAYSIA BERHAD: LEADING & MANAGING STRATEGICALLY. Banking Financial Services & Insurance Research, 7 (1), 20-22. doi:2231-

Our History – Bank Islam Malaysia Berhad. (n.). Retrieved January 4, 2022, from Bank Islam Malaysia Berhad: bankislam/corporate-info/resources/our-history/

(2017). Realising Values: INTEGRATED ANNUAL REPORT 2017. Bank Islam. Retrieved January 11, 2022, from bankislam.com/home/assets/uploads/bi_iar17_eng_corp.pdf

Wan Azmi, W., & Madden, R. (2014). Dare to Lead: Transformation of Bank Islam Malaysia Berhad. Retrieved from Asian Institute of Finance: researchgate/publication/355927212_CASE_STUDY_Dare_to_Lead_Transf ormation_of_Bank_Islam_Malaysia_Berhad/citations

Zainuddin, M. (2021, April 4). COVID-19: BIMB, Bank Islam sumbang RM1 juta. Retrieved from Berita Harian: bharian.com/bisnes/korporat/2020/04/673194/covid- 19 - bimb-bank-islam-sumbang-rm16-juta

APPENDICES

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