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Ethics in Relation to Islamic Finance Activities

Author

Listed:
  • Abdul Ghafar Ismail

    (The Islamic Research and Teaching Institute (IRTI))

  • Nor Azmidah Zali

    (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

  • Abdul Ghafar Ismail & Nor Azmidah Zali, 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
    as

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    References listed on IDEAS

    as
    1. Roszaini Haniffa & Mohammad Hudaib, 2007. "Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports," Journal of Business Ethics, Springer, vol. 76(1), pages 97-116, November.
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    3. Abeng, Tanri, 1997. "Business Ethics in Islamic Context: Perspectives of a Muslim Business Leader," Business Ethics Quarterly, Cambridge University Press, vol. 7(3), pages 47-54, July.
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    5. Bayu Possumah & Abdul Ismail & Shahida Shahimi, 2013. "Bringing Work Back in Islamic Ethics," Journal of Business Ethics, Springer, vol. 112(2), pages 257-270, January.
    6. Argandoña, Antonio, 2009. "The common good of the company and the theory of organization," IESE Research Papers D/777, IESE Business School.
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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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