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Beyond Good Practices and Standards: An Islamic Framework of Sustainable Business Practices for Corporate Organisation

Author

Listed:
  • FAHM, ABDULGAFAR OLAWALE

    (Department of Religions, University of Ilorin,)

Abstract

The aim of this paper is to explore why, how and when a business organisation may choose to go beyond good business practices and standards. In writing this article, the researcher sought to engage with modern secular insights about sustainable business practices for corporate organisations and to be in critical dialogue with those insights. The study addresses the questions of how can corporations develop into responsible moral agents and what effective framework can be used for sustainable business practices within an Islamic setting? It proposes to incorporate Islamic ethical principles such as ikhlāṣ (sincerity), ‘ilm (knowledge), ḥikmah (wisdom), hilm (forbearance) and rifq (gentleness), sabr (patience), tawaadu’ (humility), qudwah (good example), husnul-Istimaa’ (good listening), shajaa’ah (courage), karam (generosity) into corporate business practices. This study is an effort to bring religion into our economic lives, which invariably means bringing religious ethics into what is supposed to be free of such values “Corporate governance is one of the most important failures behind the present financial crisis.” de Larosière Group (2009)

Suggested Citation

  • Fahm, Abdulgafar Olawale, 2018. "Beyond Good Practices and Standards: An Islamic Framework of Sustainable Business Practices for Corporate Organisation," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 25, pages 1-18.
    • Handle: RePEc:ris:isecst:0168
    as

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    References listed on IDEAS

    as
    1. Mohamed Ariff & Munawar Iqbal, 2011. "Introduction to Islamic Financial Institutions," Chapters, in: Mohamed Ariff & Munawar Iqbal (ed.), The Foundations of Islamic Banking, chapter 1, Edward Elgar Publishing.
    2. Roland Bénabou & Jean Tirole, 2010. "Individual and Corporate Social Responsibility," Economica, London School of Economics and Political Science, vol. 77(305), pages 1-19, January.
    3. Grais, Wafik & Pellegrini, Matteo, 2006. "Corporate governance and Shariah compliance in institutions offering Islamic financial services," Policy Research Working Paper Series 4054, The World Bank.
    4. Sikka, Prem, 2010. "Smoke and mirrors: Corporate social responsibility and tax avoidance," Accounting forum, Elsevier, vol. 34(3), pages 153-168.
    5. Ahmed, Habib & Chapra, Mohammad Umar, 2002. "Corporate Governance in Islamic Financial Institution (Occasional Paper)," Occasional Papers 93, The Islamic Research and Teaching Institute (IRTI).
    6. Prem Sikka, 2010. "Smoke and mirrors: Corporate social responsibility and tax avoidance," Accounting Forum, Taylor & Francis Journals, vol. 34(3-4), pages 153-168, September.
    7. Grais, Wafik & Pellegrini, Matteo, 2006. "Corporate governance and stakeholders'financial interests in institutions offering Islamic financial services," Policy Research Working Paper Series 4053, The World Bank.
    8. Grais, Wafik & Pellegrini, Matteo, 2006. "Corporate governance in institutions offering Islamic financial services : issues and options," Policy Research Working Paper Series 4052, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic Economics; Corporate Morals; Ethics;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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