1Correspondent Author 1, 3State Islamic University of Sulthan Thaha Saifuddin, Jambi 2State Islamic University of Syarif Hidayatullah, Jakarta 4Informatique et Mathematiques INSA de Lyon, France E-mail: 1nengsih@uinjambi.ac.id, 2nofrianto@uinjkt.ac.id, 3elyantirosmanidar@uinjambi.ac.id, 4wisnu.uriawan@insa-lyon.fr Titin Agustin Nengsih1, Nofrianto2, Elyanti Rosmanidar3, Wisnu Uriawan4 Abstract. The implementation of the Corporate Social Responsibility (CSR) program will have a positive impact not only on banking operations but on the continued existence in the future. With the implementation of CSR, Islamic banks not only gain economic benefits in terms of profit and growth but also enhance the public image and public trust. The results of this CSR program bring Islamic Banks closer to the people for better social change. Structural Equation Modelling results show that CSR variables significantly influence the image and trust of Bank Syariah Mandiri Jambi. Keywords: Corporate Social Responsibility; Image; Trust; Structural Equation Modelling Abstrak. Implementasi program Tanggung Jawab Sosial Perusahaan akan memiliki dampak positif tidak hanya pada operasi perbankan tetapi pada keberlanjutan keberadaan di masa depan. Dengan penerapan Tanggung Jawab Sosial Perusahaan, bank syariah tidak hanya mendapatkan manfaat ekonomi dalam hal laba dan pertumbuhan tetapi juga meningkatkan citra dan kepercayaan masyarakat. Hasil dari program Tanggung Jawab Sosial Perusahaan ini membawa bank-bank Islam lebih dekat kepada masyarakat untuk perubahan sosial yang lebih baik. Hasil Structural Equation Modeling menunjukkan bahwa variabel Tanggung Jawab Sosial Perusahaan berpengaruh signifikan terhadap citra dan kepercayaan Bank Syariah Mandiri Jambi. Kata kunci: Tanggung jawab sosial perusahaan; Citra; Kepercayaan; Pemodelan Persamaan Struktural Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Volume 13 (1), Jan-Jun 2021 P-ISSN: 2087-135X; E-ISSN: 2407-8654 Page 151 - 170 152 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 Introduction Islamic financial institutions, one of which is Islamic banking, in the past decade has experienced rapid development. The purpose is to direct the economic activities for Muslims following Islamic law by avoiding the practices of usury (riba), speculation (maysir) or uncertainties (gharar). These types of businesses are prohibited in Islam and have also harmed the people's economic life (Dusuki, 2008) Currently, many banks apply the Shariah system. Based on its activities, Islamic banking is divided into Sharia Commercial Banks, Sharia Business Units and Sharia Rural Banks (Bank Perkreditan Rakyat). In early 2020, The Financial Services Authority (OJK) noted that Jambi had 6 Islamic Banks. They are Bank Muamalat Indonesia, Bank Syariah Mandiri (BSM), Bank Nasional Indonesia Syariah (BNIS), Islamic Bank 9 Jambi. Overall, the latest data shows that banking conditions in Jambi have obtained exemplary achievements. This can be seen from the growth in total assets, the opening of the office network, the performance of commercial banks and rural banks. Business activities of Islamic banking are expected to hold onto the social consciousness that contributes and forms a genuine concern for the prosperity of society and maintains natural sustainability. These are implemented through the concept of Corporate Social Responsibility (CSR) (Antonio et al., 2012; Julia & Kassim, 2019; Maali et al., 2006; Oh et al., 2017). Indonesia includes CSR in the law of limited liability company (PT-Perseroan Terbatas)) in law No. 40/2007 Article 74 Paragraph 1. This law states that is running its business activities, a company has to consider environmental and social responsibilities. Article 74 Paragraph 3 explains that the violation of that provision results in sanctions. Capital Investment Law number 25 of 2007 Article 15(b) states that each investor shall be obliged to carry out Corporate Social Responsibility. Further, Article 34 provides a provision related to administrative sanctions and other sanctions for the violators. These sanctions include written warnings, restrictions, termination, and revocation of business activities. Promulgation of Law No. 40 of 2007 on Limited Liability Company and Law No. 25 of 2007 on Capital Investment do not explicitly control the amount that a company should donate. The concept of CSR is at the core of a company's business ethics and has become increasingly important in recent years. CSR is an essential process in managing costs and profits. This variable is not only limited to the concept of granting something like charity but broader than that. So, with CSR implementation, Islamic banks benefit in the form of profits and growth and obtain trust from society and play a role in creating social changes (Abubakar, 2016; Al-Shuaibi, 2016). Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 153 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 The concept of CSR turns out to be supported and aligned with Islamic values. Islam teaches Muslims to maintain responsibility. The concept of responsibility in Islam has binary properties focused on the micro (individual) and macro (social) levels. CSR programs incorporate various beneficial activities for society, including those that improve the economy, education, health, community development, and the preservation of the environment (Ali & Isa, 2018). Thus, the normative foundation of CSR axioms, which includes the compulsion (liabilities) mentioned in the laws and the Islamic concept of charity, are inseparable from the sharia business principles (Muchlis et al., 2016). The CSR must be implemented according to applicable regulations and based on the goodwill of Sharia banks under Islamic concepts. The increasing number of sharia banks lead to tighter business competition. However, the commitment of CSR implementation will create a better relationship between the banks and society and, in turn, positively affects the banks' development. Indirectly, the CSR will form a positive image of the banks and enable them to gain trust from their customers (Lombart & Louis, 2014; Mohammed & Rashid, 2018). This study only focuses on the influence of CSR on the image of Bank Syariah Mandiri Jambi and people's trust in the bank. This paper is organized as follows: Section two presents a literature study, presenting a brief description of CSR, image, trust, and their influence on CSR. Section three presents the research method and data, while section four presents the results and implications of this paper. The last, section five, is the conclusion. Literature Review Corporate Social Responsibility (CSR) The World Business Council for Sustainable Development defines CSR as the continuing commitment by businesses to act ethically and contribute to economic development while improving the lives of the employees and their families as parts of society. Another meaning is the commitment to continuously act ethically, operate legally, and contribute to the improvement of the economy and the lives of employees and their families while contributing to the improvement of the local community and society, contribute to the improvement of the economy, and increase Social responsibility is a concern of a business organization to serve the interests of public organizations. Companies integrate their corporate social responsibility into their business operations and interaction with stakeholders based on voluntary principles and partnerships. 154 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 In general, CSR aims to improve human capabilities as individual members of society to respond to social and environmental issues. In other words, CSR is a necessary process in the setting of costs and profits involving stakeholders both internally (employees, shareholders, and investor) and externally (public settings, institutional members of the public, civil society groups and other companies) (Kotler & Lee, 2008; Rahman & Deti, 2009). In Indonesian context, Juniawati & Hidayah (2020) found that CSR has played a significant role in increasing the performance of Islamic banking. Image The image was a total perception against an object formed by processing information from different sources. Meanwhile, perception is the process where people select, organize, and interpret information to form an idea about the meaning of the world. "The image" is beliefs, ideas, or the values of a person regarding an object. A person's mental construction is acquired from his or her association, experience, interpretation, reaction, perception or feeling about something. For more details about the image, experts define the image. Image is convictions, figures, and impressions of someone about an object (Irwin, 2003; Van Heerden & Puth, 1995). The object in question can be a person, organization, group of people or others. Meanwhile, according to Katz, "image is a way of how others view a company, an individual, a committee or an activity"(Katz, 1988). Trust Morgan and Hunt (1994) argue that trust will occur if a person has trust in an exchange with a partner who has integrity and can be trusted. Trust is also customers' beliefs, knowledge, and conclusions about objects, attributes, and benefits (Morgan & Hunt, 1994). Those objects can be any companies, persons, products, and everything that a person put his or her trust in. Attributes are the characteristics or features that may or may not be owned by an object. Attributes are differentiated into intrinsic attributes, i.e. everything related to the actual nature of a product and extrinsic attributes. i.e. everything that is retrieved from the external aspects of a product. Benefits, on the other hand, are the result of positive attributes to customers. Thus, indicators of trust are the object. The trust attributes and benefits trust (Islam et al., 2021). Trust in Islam is known as amanah. The principle of the mandate in this business venture has been exemplified by the Prophet Muhammad. He kept Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 155 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 mandates given by the customers. This resulted in the customers' sympathies and willingness to do a transaction voluntarily. Trustworthy business actors will always present the best for all stakeholders. Relationship between Image and Trust towards CSR The image and trust are abstract matters. They cannot be described physically as they only exist in the mind. However, image and trust can be known, measured and modified. To obtain a positive image and impression from their clients, the Islamic banks must seek concrete actions (Amin et al., 2013). One of the concrete actions is the implementation of CSR. With high-quality and comprehensive CSR programs, customers will get a good experience about the company (Islamic banks), and a good experience will form a good (positive) image(Lombart & Louis, 2014). Beekum reveals that CSR can form a positive image of a company (Beekum, 2004). The trust will form an image that is very profitable for the company. CSR is very important as it will lead to the company's long-term success. because CSR can produce a positive public image. The long-term benefits of social engagement and responsibility will create a positive image in the public eyes because the socio-political climate will create a conducive business environment. Similarly, the benefits obtained from CSR is the company's increasing reputation and strong future so the company can play roles in solving social problems. Islamic banking is a form of an enterprise engaging in services as it brings together community funds and redistributes the funds to the community (lending). Because of such focus, trust becomes a sensitive issue. Clients need to have considerable trust to collaborate and transact with Islamic banks. The value of trust is customers' mandate that should be maintained by Islamic banks (Amin et al., 2013; Ashraf et al., 2015). To establish trust, customers must be realized that CSR is Islamic banks' manifestation to fulfill the wishes and needs of the community. Customers' trust will be formed if Islamic banks are able to implement in correct, earnest, good- quality, continuous (long-term), and comprehensive manners. This can be done by maintaining a good relationship with society and considering need assessments by the stakeholders. Banks need to consider their image and reputation when customers use their products or services. Reputations and images are essential factors in shaping customers' trust in a company. With trust, the customers can comfortably use the services and products(Martínez & Del Bosque, 2013). 156 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 Methods As mentioned before, this study explores the influence of Corporate Social Responsibility on the image of Sharia banks in Jambi, and people trust toward the Banks. The primary data of this research obtained from 100 respondents chosen from Bank Syariah Mandiri customers in Jambi through purposive sampling technique. The amount is determined based on the SEM model, with Maximum Likelihood (ML) is100 samples at the minimum. Two variables in this research are CSR as the exogenous variables and image and customers' trust as the endogenous variables. The CSR variable consists of several indicators, i.e., economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. The image variable consists of several indicators, i.e., values, experience, and functional and technical qualities. The trust variable consists of the following indicators: trust object attributes and trust in the benefits. Data is analyzed using Structural Equation Modeling (SEM). The SEM analysis technique incorporates the following steps (Ghozali, 2011, 2012): • Developing a hypothesis (theory) based on latent variables and other indicators. The SEM is a confirmatory technique used to examine a causal relationship. • Transforming the theoretical framework model into a path diagram describes the causal relationship between the exogenous and endogenous relationship. • Compiling the Structural Equation. • Selecting the Input Matrix and Estimation Models. In the SEM, data input uses a covariance or correlation matrix. At this stage, a covariance matrix is based on the model that corresponds to the actual covariance. The significance test is conducted by determining whether the resulting parameters are significantly different from zero. • Assessing the Structural Model Identification In the analysis of the structural model, problems exist in the process of parameter prediction. Some of the symptoms that often appear due to the inaccuracy of identification include: o there are too large standard errors; o matrix information presented did not match expectations; o matrix obtained is not a definitive positive, o there is a negative variant error; o there is a high correlation between the alleged results to efficiency (> 0.9). • Judging criteria of goodness of fit Test of conformity between theoretical models and empirical data can be Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 157 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 viewed on the level of Goodness-of-fit statistic. This model is considered fit when the covariance matrix of a model is the same as the covariance matrix of the data (observed). A variety of index tests can assess this. In this test, various fit indicators obtained based on the SEM evaluation (assuming normality, an outlier, multicollinearity and singularity), models measurement, and the entire structural equation models and criteria of goodness fit. • Interpretation and modification of the model The last step of the SEM is interpreting the accepted resulting model. The model modification is necessary because it is not following the results obtained in the sixth stage. However, any modification should pay attention to or based on the supporting theory. Results and Discussions The underlying assumption is whether or not the analysis of factors in the correlation matrix sufficient (sufficient correlation). The test tool used to measure the level of inter-correlation between variables and factors analysis is Kaiser-Meyer- Olkin Measure Sampling Adequacy (KMO MSA). The desired value of KMO must reach 0.50 > analysis factors. Reliability test results are presented in the table above can be explained that the value of KMO CSR = 0723, KMO from image = 0790, and KMO = 0666. So, trust can be the analyzed factor. The analysis of the factor for CSR 1,088-3,941 with% cumulative 59,323%, the image of the 1,003- with% cumulative 54,481 3.647 percent, and trust with 1.014-2.943% cumulative 67,512%. The test results demonstrate the value factor analysis of Kaiser-Meyer- Olkin Measure Sampling Adequacy (KMO MSA) > 0.50 means that the validity of each variable either. Table 1: Reliability Test Results Variable Reliability Coefficients Alpha Cronbach's Note CSR 17 items 0.789 Reliable Image 13 items 0.782 Reliable Trust 12 items 0.677 Reliable Reliability test results presented in the table above indicate that the level of accuracy is good. The Table above explains that in the internal; consistency reliability test of Cronbach's Alpha coefficient indicates each variable the variable CSR is 0.789, the image variable is 0.782, and trust variable is 0.677. The result 158 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 of Cronbach's Alpha no coefficients are less than the value of the limit of at least 0.60. So, the CSR, image and trust variables are reliable. The assumption of SEM 1. Data Normality Assumption Data Normality Assumption is a test to see if the data used has a normal distribution. Using the critical value criteria (critical ratio), the skewness value of ± 2.58 is at 0.10 significance levels. If the critical ratio generated in each dimension table variable is less than or equal to the significance level at 2.58 ± 0.10, it can be inferred as Gaussian data (Ghozali, 2011). The result of the normality data retrieved as follows: Table 2: Evaluation of Data Normality Full Model Assessment of Normality Variable min Max skew c.r. kurtosis c.r. X8 8.000 15.000 -.142 -.578 -.696 -1.420 X9 12.000 20.000 .134 .547 -.491 -1.001 X10 12.000 20.000 -.101 -.411 -.237 -.484 X1 6.000 15.000 -.575 -2.348 .994 2.029 X2 10.000 20.000 .022 .089 .304 .620 X3 12.000 20.000 .291 1.187 .304 .620 X4 10.000 20.000 -.381 -1.555 .805 1.643 X7 13.000 25.000 -.405 -1.655 1.944 3.969 X6 10.000 20.000 -.149 -.606 .251 .513 X5 12.000 20.000 -.209 -.854 -.287 -.585 Multivariate 5.243 1.692 It can be seen from the table above that the value of the critical ratio skewness value shows a normal distribution at X1 (Economic Responsibilities), X2 (Legal Responsibilities), X3 (Ethical Responsibilities), X4 (Philanthropic Responsibilities), X5 (value), X6 ( Experience), X8 (the trust object), X9 (the trust attributes) and X10 (Benefit Trust) because of the value of c. r. ± 2.58, except X7 (technical and functional quality). Meanwhile, the multivariate normality test by looking at some of the above values ± 2.58, as seen in the table, is not normal in a multivariate Gaussian. Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 159 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 2. Assuming an Outlier An outlier is an observation of a condition showing a unique characteristic of data that looks very different from other observations, comes in the form of extreme values in either a single variable or a combination of variables. Multivariate outlier detection is against the champion and considers the value of the Mahalanobis distance. This test aims to assess the reasonableness of (extreme) data. Multivariate outlier detection is against using criteria based on the value of the Chi-Squares on the degrees of freedom = 10, i.e. the number of variables on the level indicators of significance p < 0.005. The value of the Mahalanobis distance X2 (10, 0,005) = 25.1882 (based on the table of the distribution of X). This means that cases with the Mahalanobis distance > 25.1882 are the multivariate outlier. Following are the results of the multivariate outlier test: Table 3: Multivariate Outlier Test Results Observation number Mahalanobis d-squared p1 p2 2 27.923 .002 .170 97 27.649 .002 .018 36 20.177 .028 .524 1 18.338 .050 .735 96 17.740 .060 .716 34 16.981 .075 .767 26 15.970 .101 .886 100 15.757 .107 .850 80 15.725 .108 .763 41 15.486 .115 .730 11 15.451 .116 .626 24 15.059 .130 .660 By looking at the output of the Mahalanobis distance, it can be seen that the value of the Mahalanobis distance output is only two respondents 2 and 97 more than 25.1882. In contrast, other respondents show (98) show nothing > 25.1882. Then it can be inferred that outlier observation is still under 5 percent of the observed number in its entirety so as not to be said there are multivariate outlier data. 160 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 3. Assuming Multicollinearities Further data is tested to see if there is multicollinearities or singularity. The multicollinearities or singularity indications are shown in the determinant value of the covariance matrix that is very small or close to zero (Ghozali, 2011). So, if the data has multicollinearities or singularity, it cannot be used for this research. From the data processing results, the value of a determinant of the sample covariance matrix is 2,163. The value of the determinant of the sample covariance matrix is far from zero. In short, there is no problem of multicollinearities or singularity at the data analyzed. Measurement Model with a Confirmatory Factor Analysis In the Measurement Model, the indicator variables used need to confirm whether they can define an invalid construct. Confirmatory analysis was done for exogenous (CSR) and endogenous variables (image and trust). 1. Confirmatory Factor Analysis of Exogenous Variables Analysis of confirmatory against exogenous variables in this study is CSR and indicators of economic responsibilities (X1), legal responsibilities (X2), ethical responsibilities (X3) and philanthropic responsibilities (X4). Test results processing confirmatory for variables exogenous CSR are: Figure 1: Confirmatory Factor Analysis of Variables In CSR CSR X1 X2 X3 X4 e1 e2 e3 e4 1.38 1.00 1.28 0.72 0.82 1.11 0.96 1.59 2.07 1.00 1.00 1.00 1.00 To find out if a statistically built model can be supported and under the model set outfit, the following is the summary of the comparison of models built with the requirements of the Goodness-of-fit Indices. The results of the data processing linked Goodness-of-fit against exogenous variables are as follows: Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 161 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Table 4: Goodness-of-fit Indices Exogenous Variables Goodness-of- Fit- Index Cut off Value The results of the model The evaluation model Chi-Square Expected small 1.458 Perfect DF Positive (+) 2 Perfect Probability > 0,05 0.182 Perfect CMIN/DF < 2,00 1.458 Perfect GFI > 0,90 0,993 Perfect RMSEA < 0,08 0.000 Perfect AGFI > 0,90 0.963 Perfect TLI > 0,90 1.016 Perfect NFI > 0,90 0.986 Perfect CFI > 0,90 1.000 Perfect The Table above explains that the Goodness-of-Fit-Index (Chi-Square, DF, Probability of significance, CMIN/DF, GFI, AGFI, RMSEA, TLI) NFI, CFI) invalid. The exogenous constructs show perfect results because they have an appropriate cut-off of the recommended value. Thus, the exogenous variable on the research model can be accepted as a shaper of models that fit. All indicators also provide value loading > 0.50, so they meet convergent validity, which indicated that statistically models built from the four variables are perfectly described and define invalid constructs exogenous. The results of the economic responsibilities of loading values (X1) = 1.00, legal responsibilities (X2) = 1.28, ethical responsibilities (X3) = 0.72 and philanthropic responsibilities (X4) = 0.82. This data indicates that CSR in the form of legal responsibilities with a value of loading is the most influential 1.28 against the shaper variable model of CSR. 2. Confirmatory Factor Analysis of Endogenous Variables Analysis of confirmatory against exogenous variables in this study is the image and the trust. The indicators of image is value, experience, and technical and functional quality. In contrast, the indicators of rrust are trust, the trust object attributes, and the trust benefits. Test processing results confirmatory for variables exogenous imagery shown in Figure 2. 162 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 Figure 2: Confirmatory Factor Analysis of The Variable Image Image X5 X6 X7 e5 e6 e7 0.79 1.00 1.32 1.97 2.41 2.31 1.58 1.00 1.00 1.00 From the results of the image analysis of confirmatory above, all indicators provide value loading > 0.50. This meets convergent validity, indicating that the statistic model built from the third variable indicator in perfect describes and defines invalid constructs the endogenous images. The loading indicator value result are (X5) = 0.74, an indicator of experience (X6) = 0.70 and technical and functional quality indicator (X7) = 0.79. This data indicates that, according to the respondents, the quality of the technical and functional value of loading the highest 0.79 in a model of variable images. Test results of Confirmatory Factor Analysis (CFA) for exogenous trust variable are shown in Figure 3. Figure 3: Confirmatory Factor Analysis of The Trust Variable Trust X8 X9 X10 e8 e9 e10 1.61 1.09 0.99 1.00 1.86 0.85 2.05 1.00 1.00 1.00 The Confirmatory Factor Analysis (CFA) above shows that two indicators provide value loading > 050, whereas X9 provides value loading < 0.50. The result value of the loading indicator trust object (X8) = 0.69, the trust indicator attributes (X9) = 0.40 and benefit trust indicator (X7) = 0.56. This data indicates that, according to the respondents, belief is the highest object in shaping the model of variable reliability. On the other hand, trust is insignificant in shaping the model attribute variables of belief. The confirmatory test of the endogenous variables (image and trust) are as follows: from the results of image analysis of confirmatory above, it can be noted that the two indicators provide value loading > 050 whereas the trust indicator attributes (X9) provide value loading < 0.50., result value loading indicator trust object (X8) = 0.69, the trust indicator attributes (X9) = 0.40 and benefit trust indicator (X7) = 0.56. This indicates that, according to the Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 163 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 respondents, belief is the highest object in shaping a model of variable reliability. In comparison, trust is less significant in shaping the model attribute variables of belief. The results of the endogenous variables test (image and trust) are as follows: Figure 4: Confirmatory Factor Analysis of Endogenous Variables Image X5 X6 X7 e5 e6 e7 1.37 1.00 0.87 1.29 2.76 1.73 2.39 1.00 1.00 1.00 Trust X8 X9 X10 e5 e6 e7 1.56 1.00 1.01 1.13 1.86 1.19 1.66 1.00 1.00 1.00 1.14 To find out if the set outfit model can support a statistically built model, the following is the summary of the comparison of models built with the requirements of the Goodness-of-fit Indices. The results of the data processing linked Goodness- of-fit against endogenous variables as follows: Table 5: Goodness-of-fit Indices of endogenous Variables Goodness-of- Fit-Index Cut off Value The results of the model The evaluation model Chi-Square expected small 26.571 Perfect DF Positive (+) 8 Perfect Probability > 0,05 0.001 No perfect CMIN/DF < 2,00 26.571 No perfect GFI > 0,90 0.914 Perfect RMSEA < 0,08 0.153 No perfect AGFI > 0,90 0.774 No perfect TLI > 0,90 0.794 No perfect NFI > 0,90 0.855 No perfect CFI > 0,90 0.890 No perfect 164 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 Full SEM Analysis Further analysis is the complete model SEM analysis. After the measurement model tested by Confirmatory Factor Analysis and the assumptions in modelling, SEM is filled. The next step is to analyze the structural equation model to look at the model's suitability with the causal relationship built in the tested mode. The results of the data processing for analysis of structural model full shown in Figure 5. Figure 5: Full Structural Equation Model Analysis Image X5 X6 X7 e5 e6 e7 0.79 1.00 1.03 1.49 2.58 1.95 2.10 1.00 1.00 1.00 Trust X8 X9 X10 e8 e9 e10 0.79 0.86 0.89 1.00 1.27 0.96 1.08 1.00 1.00 1.00 CSR X1 X2 X3 X4 e1 e2 e3 e4 1.32 0.98 1.22 0.72 1.00 1.00 1.00 1.00 1.00 1.00 1.00 z2 z1 0.59 0.49 1.40 1.06 1.62 1.68 0.42 0.65 0.77 To find out if a statistically built model can be supported and per the model set outfit, the following is a summary of the comparison between the models built with the requirements of the Goodness-of-fit Indices. The results of the data processing linked Goodness-of-fit against the full structural model is as follows: Table 6: Goodness-of-fit Indices Variables Full Structural Equation Model Goodness-of- Fit-Index Cut off Value The results of the model The evaluation model Chi-Square Expected small 62.238 Perfect DF Positive (+) 32 Perfect Probability > 0,05 0.001 No perfect CMIN/DF < 2,00 1.945 Perfect GFI > 0,90 0.886 Perfect RMSEA < 0,08 0.098 No perfect AGFI > 0,90 0.805 Perfect Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 165 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Goodness-of- Fit-Index Cut off Value The results of the model The evaluation model TLI > 0,90 0.874 Perfect NFI > 0,90 0.838 Perfect CFI > 0,90 0.911 Perfect The Test of Hypothesis The hypothesis testing can be seen from the results of component regression coefficients in the regression weight value, exactly shown in columns CR and P (Probability of significance). The value of the specified column in the CR should be compared with critical values, i.e. ± 1.96, on the level of significance of 5%. If the value of the CR is more significant than critical value ± 1.96 on the level of significance p < 0.05, then the hypothesis proposed is acceptable, and if the value of the CR is the critical value of 1.96 ± on the level of significance p > 0.05 then hypothesis submitted is rejected. The results of the regression output weight in test a hypothesis can be seen in Table 7. Table 7: Regression Weights Estimate SE. CR. P Image <--- CSR .654 .167 3.911 *** Trust <--- CSR .769 .237 3.248 .001 Trust <--- Image .423 .260 1.625 .104 X5 <--- Image 1.000 X6 <--- Image 1.029 .273 3.770 *** X7 <--- Image 1.494 .352 4.238 *** X4 <--- CSR 1.000 X3 <--- CSR .722 .158 4.569 *** X2 <--- CSR 1.224 .221 5.545 *** X1 <--- CSR .984 .179 5.483 *** X10 <--- Trust 1.000 X9 <--- Trust .887 .150 5.895 *** X8 <--- Trust .860 .133 6.459 *** The calculations can produce the regression weights to figure out the significance of the hypothesis between endogenous and exogenous variables. CSR 166 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 variable against the image in the Table has obtained a C grade with 3,911 and p < 0.05. Because the probability significance in the table is less than 0.05 (0000 < 0.05), then Ho is denied, and Ha is accepted. Thus, there is a significant influence between CSR and image. CSR variable against the trust acquired values in Table 7 with 3,248 and p-value > 0.05. Because the significance of probability in the Table is less than 0.05 (0.001 < 0.05), then Ho is denied, and Ha is accepted. This means that there is a significant influence between CSR and trust. Variable image against the trust acquired value in Table with 1,625 and p-value > 0.05. Because the significance probability is more than 0.05 (0104 > 0.05), then thus Ho received. So, it can be said there is no significant influence between the image and the trust. Analysis of CSR Implementation in BSM Jambi In the current development context, Islamic banks' success is measured by their profit and concern for the social and environmental aspects. This can be realized through CSR. Essentially, CSR is not a partial entity upheld to achieve a positive image in the eyes of stakeholders. CSR is a crucial entity in the operation of Islamic banks. It is unethical to put CSR into practise but ignore its welfare, taxes, and corruption. Thus, CSR must be manifested in the internal and external aspects of Islamic banks. In addition to the above aspects of implementation, the seriousness of Islamic banks in implementing CSR can be measured by the CSR indicator pyramid that includes economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. The goal is to determine the type of CSR implemented by Islamic banks, whether it only focuses on the economic responsibility or the highest type of CSR, i.e. philanthropic responsibility. CSR implementation in Bank Syariah Mandiri Jambi is no longer views the public as the burden of cost. CSR is seen as a form of the bank's gratitude. Therefore, the bank uses "management of gratitude" as its tagline. The management considers what is owned by the bank as a gift from God, and they should be grateful for it. The Islamic values on this are the Qur'an, Sura Ar-Rum, verse 46. Furthermore, the CSR implementation in BSM Jambi also still focuses on education-related programs. The public is keen to have broader CSR programs, including poverty alleviation, unemployment, abandoned children, and other environmental problems. Titin Agustin Nengsih. Corporate Social Responsibility on Image and Trust of Bank Syariah Mandiri 167 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 The hypothesis testing shows that CSR affects the image of Islamic banks significantly. Regression test results or test weights show the value of the hypothesis CSR influence against the image of 6,563 at the level of significance 0.05 (P < 0.05). So, because the significance probability variable CSR against image is 0.05 <, it can be said that CSR significantly affects the image of Islamic banks. So, the notion that CSR affects the image of Islamic banks significantly is acceptable. The conclusion, showing that CSR significantly affects the image, is aligned with the theory stating that CSR can form a positive image of the company. This explains that the advantage obtained by the company from the CSR is the increase of the company's reputation, the strengthening of the company's future due to its good image in the public's eyes, and the settlement of social issues in the community. A comprehensive implementation of CSR by Islamic banks will form a good impression and make them have more valueand a high prestige than those that only have profit-oriented businesses. The assessment of customers' experience, their good impression, and the corresponding values become the Islamic banks' positive image indicators. Islam always suggests that the reward obtained is appropriate and balanced with what has been done. This is mentioned in the Qur'an. Sura An-Nisa verse 85. If Islamic banks have a high commitment to a comprehensive implementation of CSR, they will get a reward in the form of a positive image. On the other hand, if the CSR implementation only gradually becomes utopian and mere lip service activities, then the desired Image will not be obtained. The CSR commitment will result in a direct imaging scale growth of Islamic banks. The regression test weights show that the value of CSR influences against trust amounted to 3,248 at the significance level of significance of 0.01 (p > 0.05). Because the significance probability variables against CS is 0.05, then < it can be said that CSR significantly affects the clients' trust. Thus, the notion that CSR affects the trust significantly to Bank Syariah Mandiri Jambi is acceptable. The significant influence of CSR on trust is in contrast to the study by Rahman (2009), revealing that when CSR is implemented, stakeholders will obtain criticism associated with the implementation of CSR. These include: First, CSR is simply a marketing strategy that aims to boost corporate profit. Second, take cover behind the CSR programs is to cover the shortage or gaffe. Third, corporates only fulfill CSR because of the demands of regulation. Fourth, CSR is simply a set of lip service activities. The criticism consequently makes Islamic banks fail to develop trust through CSR. Even though the Islamic banks have 168 http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v13i1.18347 Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 13 (1), Jan-Jun 2021 implemented CSR, the customers' negative thoughts affect their trust in Islamic banks. Customers' trust will be formed if Islamic banks implement correct, earnest, good quality, and continuous CSR programs. Also, this needs to be supported by two-way communication with society and a good assessment of society's needs. Trust in the Islamic banks can also manifest when the customers can differentiate between 'marketing' and 'true' CSR. The true one incorporates a form of goodwill, appropriate and proven accountability. In the marketing CSR, as executor is the marketing department, the purpose of the CSR to improve profits, follow trends, and is carried out without proper two-way communication with the community. Ideally, CSR aims to build a positive reputation or image by maintaining the mutual relationship between stakeholders, continuous nature, and two-way communication with the community. Conclusions This study empirically explored the relationship between CSR and the image of Bank Syariah Mandiri Jambi, between CSR and people trust in the bank, and between the image and the trust. The study indicates that CSR in BSM Jambi has been implemented as it is in the vision and mission of the organization. CSR is implemented by considering the concept of community development with various effective measures and two-way communication. The regression weights for CSR significantly affect the image and the trust of Bank Syariah Mandiri. However, the image of Bank Syariah Mandiri does not significantly affect clients' trust in the Bank. References Abubakar, Y. S. (2016). Corporate Social Responsibility of Islamic Financial Institutions: A Look from the Maqasid Al-Shariah (Purpose of Shariah) Approach. Business and Economics Journal. 07(04). https://doi. org/10.4172/2151-6219.1000255 Ali, S. M., & Isa, M. A. (2018). 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