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Ethics in Relation to Islamic Finance Activities

Author

Listed:
  • Ismail, Abdul Ghafar

    (The Islamic Research and Teaching Institute (IRTI))

  • Zali, Nor Azmidah

    (Universiti Kebangsaan Malaysia)

Abstract

Ethics has been fundamental in organizations and in specific, Islamic financial institutions have selected ethics as their core competencies. Islam accepts ethics as a good value in enhancing company performance since ethics is grounded by Shariah rules. The ethical issues have been raised steadily in business and they do not seem to settle as a lot of companies have not been aware of its importance. There are a lot of theories of ethics that have been introduced but the number of unethical business activities does not seem to be reduced. This paper seeks to explain the conventional ethical theory and how Islamic ethical philosophy generates the ethical business activities. Later on, the study will produce an ethical model which is in accordance to the Islamic intellectual discourse , that will explain the relationship between ethics and Islamic finance activities and also discuss the screening criteria of financial activities . This study has the intention to contribute to the current knowledge of the business ethic’s field and to contribute its findings for further research in business ethics. This study will also bridge the gaps about how ethics can be a corporate identity to the Islamic financial institutions.

Suggested Citation

  • Ismail, Abdul Ghafar & Zali, Nor Azmidah, 2015. "Ethics in Relation to Islamic Finance Activities," Working Papers 1435-7, The Islamic Research and Teaching Institute (IRTI).
    • Handle: RePEc:ris:irtiwp:1435_007
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ethics; Philosophy of Ethics; Ethical Theory; Business Ethics; Islamic Ethics;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

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