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Ethical Crisis in Capitalism: Filling the Ethical Void with Islamic Economic Teachings in Economic Practices

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  • Shaikh, Salman

Abstract

This paper discusses the ethical void in Capitalism which does not look prominent in welfare societies and states. But, its effects become more eminent in tough economic conditions and more so in developed regions where economic relationships by themselves will not result in win-win situation for all parties concerned in a Capitalist economy. Unbridled pursuit of self interest, moral relativism, inventive-led economic choices and apathy to communal responsibilities would lead to a society where economic interests become the sole basis of maintaining and sustaining relationships. This inner void of identity and purpose at individual level and social void in the form of a stratified society bound together only for economic interests can be better filled with incorporating religion. Humans are much more than utility driven species, they are capable of using both instrumental and critical reasons to differentiate right from wrong and need reinforcement to adopt virtues influenced by an inner urge other than material interests as in Capitalism. This inner urge can be rekindled by looking beyond utility maximization to re-acknowledge the fundamental identity that humans are moral being than just an instrument for material advancement.

Suggested Citation

  • Shaikh, Salman, 2010. "Ethical Crisis in Capitalism: Filling the Ethical Void with Islamic Economic Teachings in Economic Practices," MPRA Paper 19699, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19699
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    File URL: https://mpra.ub.uni-muenchen.de/19699/1/MPRA_paper_19699.pdf
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    References listed on IDEAS

    as
    1. Abbas Mirakhor & Mohsin S. Khan, 1991. "Islamic Banking," IMF Working Papers 91/88, International Monetary Fund.
    2. Shaikh, Salman Ahmed, 2010. "Proposal for a New Economic Framework Based On Islamic Principles," MPRA Paper 23000, University Library of Munich, Germany.
    3. Abdel-Fattah A.A. Khalil & Colin Rickwood & Victor Murinde, 2002. "Evidence on agency-contractual problems in mudarabah financing operations by Islamic banks," Chapters,in: Islamic Banking and Finance, chapter 4 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Interest free economy; Interest free finance; Capitalism; Business Ethics; Islamic Ethics; Morality; Idealism; Moral Relativism.;

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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