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Islamic Perspectives on Profit Maximization

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  • Abbas Ali
  • Abdulrahman Al-Aali
  • Abdullah Al-Owaihan

Abstract

Ethical considerations, especially those religiously driven, play a significant role in shaping business conduct and priorities. Profit levels and earnings constitute an integral part of business considerations and are relevant and closely linked to prevailing ethics. In this paper, Islamic prescriptions on profit maximization are introduced. Islamic business ethics are outlined as well. It is suggested that while Islamic teaching treats profits as reward for engaging in vital activities necessary for serving societal interests, profit maximization is not sanctioned and therefore should not be the goal of ethically guided business ventures. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Abbas Ali & Abdulrahman Al-Aali & Abdullah Al-Owaihan, 2013. "Islamic Perspectives on Profit Maximization," Journal of Business Ethics, Springer, vol. 117(3), pages 467-475, October.
    • Handle: RePEc:kap:jbuset:v:117:y:2013:i:3:p:467-475
    DOI: 10.1007/s10551-012-1530-0
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    References listed on IDEAS

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    1. Dierker, Egbert & Grodal, Birgit, 1996. "Profit Maximization Mitigates Competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(1), pages 139-160, January.
    2. Riham Ragab Rizk, 2008. "Back to basics: an Islamic perspective on business and work ethics," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 4(1/2), pages 246-254, March.
    3. Johan Graafland & Muel Kaptein & Corrie Mazereeuw-van der Duijn Schouten, 2006. "Business Dilemmas and Religious Belief: An Explorative Study among Dutch Executives," Journal of Business Ethics, Springer, vol. 66(1), pages 53-70, June.
    4. H. T. Kopltn, 1963. "The Profit Maximization Assumption," Oxford Economic Papers, Oxford University Press, vol. 15(2), pages 130-139.
    5. Abbas J. Ali, 2005. "Islamic PerspectivEs on Management and Organization," Books, Edward Elgar Publishing, number 3364.
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    Cited by:

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    2. Ataur Belal & Omneya Abdelsalam & Sardar Nizamee, 2015. "Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010)," Journal of Business Ethics, Springer, vol. 129(4), pages 769-784, July.
    3. Safiullah, Md, 2020. "Bank governance and crisis-period efficiency: A multinational study on Islamic and conventional banks," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).
    4. Ateeq A. Rauf & Ajnesh Prasad, 2020. "Temporal Spaces of Egalitarianism: The Ethical Negation of Economic Inequality in an Ephemeral Religious Organization," Journal of Business Ethics, Springer, vol. 162(3), pages 699-718, March.
    5. Dulce Redín & Reyes Calderón & Ignacio Ferrero, 2014. "Exploring the Ethical Dimension of Hawala," Journal of Business Ethics, Springer, vol. 124(2), pages 327-337, October.
    6. Safiullah, Md & Shamsuddin, Abul, 2019. "Risk-adjusted efficiency and corporate governance: Evidence from Islamic and conventional banks," Journal of Corporate Finance, Elsevier, vol. 55(C), pages 105-140.
    7. Faisal Alshehri & Marianna Fotaki & Saleema Kauser, 2021. "The Effects of Spirituality and Religiosity on the Ethical Judgment in Organizations," Journal of Business Ethics, Springer, vol. 174(3), pages 567-593, December.
    8. Christopher Chan & Subramaniam Ananthram, 2019. "Religion-Based Decision Making in Indian Multinationals: A Multi-faith Study of Ethical Virtues and Mindsets," Journal of Business Ethics, Springer, vol. 156(3), pages 651-677, May.

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