Question

Emerald Bank Limited (EBL) is one of the established Islamic banks in Malaysia. In early
this year, EBL has been awarded “The Best Performance Institution in Shari’ah-
Compliant” and “The Top Customer Service Bank”.
Its employees are well-trained, not only in Shari’ah and operational aspects, but also in
business ethics and customer service.
Other than registering excellence performance in its core banking business activities, EBL
is also well-known with its involvement in corporate social responsibility (CSR) activities.
a) Brands vary in the amount of power and value they have in the marketplace. What is
the brand equity?
b) By upholding and practicing truthfulness, honesty, transparency and professionalism
in marketing as what has been committed by EBL; an Islamic Financial Institution (IFI)
will be able to develop a favorable brand. Discuss TWO (2) positive outcomes that a
strong brand can secure economic sustainability not only for the institution but also for
the ummah. Give relevant examples for each outcome on its impact to the welfare of
the ummah.
c) Based on the four types of Corporate Social Responsibility (CSR), suggest by giving
examples how EBL can integrate its CSR activities in its marketing strategies.

Answer 1

a) Brand Equity in the business world jargon refers to the fine Propagating the uses of the products (also including Financial Products) by using its Reputation in the Market. It also states the Original Features, Feasibility, Utility and Sustainability of the Products by creating the awareness of the Products in such a way that the option of choosing the particular product will not delete in the mind of the Prospective Buyers. In the business world All Competitive Producers are striving very hard to promote their business value in the long-run. In order to boost the Profit Margin, The Marketing Research Units of the respective business ventures follows the Brand Equity as the important Business Strategy as Strong Weapon to attract the Customers. So that Customers will love and feel to buy the products as a Prestigious One and also as the Traditional Value based One. If Brand Equity strategy is properly handled by the Traders, The  Customers will ready to buy the products amidst its high Price value when compared to other Products which are less branded in nature.

b) The Economic Sustainability of EBL towards Muslims Instituion including Ummah Community are decribed by the way of two means they are

1) Islamic Financial Institution framed the rule in a such a way that any sharing of Profit or Loss through any business should have equal liability for both Lender and the Beneficiary. But in other Financial Instituion Beneficiary need to pay full amount with interest if he/she met loss in the business. So Islam people are so advantageous and more privileged to apply for the loan in the EBL. For example from the sources for Economic Time Journal, It is proved that the 12% of the Assets worth were kept as the Security Reserve in the Bank. EBL safeguards the Appreciation Value of the Assets of the Muslims in the Malaysia. And also both the bank and the borrower can be shared equally the appreciation of the Asset.

2) EBL invests the funds in the business ventures which earns high profit in World Market. According to Increase in the Stock Price, EBL fixed the high rate to the depositors who invested their funds. But other Banks will not fix the high rate for the deposits though it earns high Dividends in the Stock Market. EBL invests its funds in the Capital Market in Arabia, Dubai and other rich countries in Middle Asia. It is evident 60% of the pepole among the Muslim People are Economically Strong. Through making the Tie-up with those People EBL earns windfull of profits.

c) EBL restricts the Depositors of its Bank from investing in Gambling, Betting Activities and other Illegal Form of Business. EBL follows the Enhanced Due Diligence to monitor the Transanctions of the Customers in the Wrong means of way. It also safeguard the interest of Depositors. It will channelise the funds from Bad source into Good Source of money if any guilty found in customers transanctions.