PART 1 Article: Islam and Accounting by Mervyn K. Lewis 1. What is the approach used? Is it deductive or inductive?

Deductive: developing a theory from basic prepositions, premises and assumptions which results in accounting principles that are logical conclusions about the subject. Inductive: start with observing phenomena and move towards a more generalized conclusion, it is tested by determining whether its results are acceptable in practice. The approach used is more towards inductive as the writer start with observing the phenomena of Islamic accounting and lastly she came out with a more generalized conclusion. 2. What is the difference between conventional accounting and Islamic accounting? The first difference would be about the method of accounting reporting. The conventional account reporting is derived in the method of secularism where the practitioner will ignores the important element which consists with the religion. Besides that, under conventional accounting, it does not integrate religion with the accounting practices. Unlike the Islamic accounting, which integrate not only the accounting itself, but almost everything in a Muslims life. Under the sharia law, Islam has set guidance on how business should be carried out, how the accounting should be done, and how the banking and finance is to be arranged. And the most important is, the Islam emphasize on serving Allah, The Almighty which then bring good advantage to the community as Islam concerned with the silaturahim, the relationship between human and with Allah SWT. Everything that a Muslim done will be questioned in the hereafter and this included the wrongdoings being made in accounting. Therefore, somehow Islamic accounting is much better if it is practiced by the human. 3. Based on the article, summarize the basic understanding presented in the article? The article is about a wholly and brief explanation on not only Islamic accounting field but also on the whole Islamic taught as it says that Islam is applying totality, therefore the writer, try to summarize from the a to the z. From the 25-pages article, what I can say is that, the writer, who is a non-muslim, has a vast understanding on Islam. While Im reading the article, I felt like Im reading an article that written by a Muslim. He starts the article by narrating the Islamic law, the sharia. Starting from the definition of sharia, moving to the five pillars of Islam until the fiqh(code of conduct) and faraid(the division of inheritance) part. Then, he move on to Islamic business ethic, in where I really attracted by the sentence Individual are expected to feel socialy responsible; one cannot enjoy life while others not. In here, it can be clearly seen that, Islam really emphasizing on the silaturrahim or relationship between Muslims until it said that if one of the Muslim is not in good state, then it is the other Muslim responsible to help. The writer also touch on the property rights, the contract law, the riba/interest, type of business organisation (more to type of partnership), and last but not least, the Islamic accounting. Under the topic of Islamic accounting, the writer touches on the social accountability of accounting, the accounting principles and highlighted some hot issues such as the full disclosure, and the payment of zakat.

PART 2 1. What is Corporate Social Reporting (CSR) Corporate social reporting is referred as the process of communicating the social and environmental effects of economic organisations'. The reporting is also a form of corporate self-regulation integrated into a business model. Its policy functions as a self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law ethical standards and international norms. 2. What is the difference between CSR and sustainability reporting?
1. Vision Corporate Social Responsibility (CSR) looks backwards, reporting on what a business has done, typically in the last 12 months, to make a contribution to society. Sustainability looks forward, planning the changes a business might make to secure its future (reducing waste, assuring supply chains, developing new markets, building its brand). 2. Targets CSR tends to target opinion formers politicians, pressure groups, media. Sustainability targets the whole value chain from suppliers to operations to partners to end-consumers. 3. Business CSR is becoming about compliance. Sustainability is about business. 4. Management CSR gets managed by communications teams. Sustainability by operations and marketing. 5. Reward CSR investment is rewarded by politicians. Sustainability investment is rewarded by the City (Finally, we provide evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market and accounting performance). 6. Drive CSR is driven by the need to protect reputations in developed markets. Sustainability is driven by the need to create opportunities in emerging markets.

3. Why stakeholders and community is important in CSR? It is because the stakeholders and the community are the key people that have impact on organisation or can be affected by the organisation. In corporate social reporting, they also play a significant role as they might be the one who prepare the report and they also might be the on who are receiving the good deed done by the organisation in order to build its reputation.