Beyond the triple bottom line: Prosperity, People, Planet, and Prophet in Islamic banking

Abstract

Purpose: This paper aims to extend the existing triple bottom line framework (Prosperity, People and Planet [so-called 3Ps]) with a new dimension, namely, Prophet, to reflect Islamic values (the now 4Ps) for banks seeking compliance with Islamic religious principles. Design/methodology/approach: This study conducts a survey of 504 Islamic bank stakeholders across six provinces in Indonesia and use regression analysis to test the applicability of the 4Ps. This paper further examines their application in two large Islamic banks in Indonesia and Malaysia. Findings: The models are all highly significant and well reflect a broad stakeholder perspective on bank performance. Of the four elements, this study finds stakeholders rank Prosperity first, followed by Prophet and then Planet. The case studies strengthen the application of the new Prophet dimension as a way for Islamic banks to improve their financial, social and economic performance, particularly during periods of financial distress. Research limitations/implications: This study only uses survey data from a single country, and this may limit the generalizability of the findings. Practical implications: Practitioners will find the quadruple bottom line useful in assessing organizational performance, as will regulators seeking to improve the social and economic outcomes of the Islamic banking sector. Originality/value: This paper internalises maqasid al-syari’ah (the most basic goal of Islamic law) as a simple but essential approach to organizational performance using empirical evidence from a real-world banking setting.