Disclosure of Ethical Identity and Performance : A Study on Islamic Banks in Indonesia

Abstract

The Islamic banking system is the key to achieving inclusive growth that can be achieved through the application of good ethics and performance. The purpose of this study is to determine the disclosure of ethical identity using the ethical identity index and to determine the effect of ethics on the performance of 8 Islamic banks in Indonesia from 2014 to 2019. The results obtained indicate that 8 Islamic banks are not good at expressing ethical identity. While the regression results show that the dimensions of Vision and Mission, Top Management, Products and Services, Zakat, Charity, Virtue, Commitment to Empolyee and Debtors and bad credit have a negative relationship with performance. While the dimension of commitment to society, the Sharia Supervisory Board has a positive relationship with performance. Therefore, it is important for regulators to implement an intensive, reward and punishment system, and an obligation to reveal ethical identity.