Ethical and social responsibility models for Islamic finance

Author

Dasuqi, Ashraf Wajdi

Source

التمويل الإسلامي و الواقع الاقتصادي الجديد المؤتمر الأول للمال الإسلامي المنعقد بالدوحة في الفترة 20-21/10/2010

Publisher

Bait al-Mashura Finance Consultations

Publication Date

2010-10-31

Country of Publication

Qatar

No. of Pages

30

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Islam
• Social responsibility
• Financing
• Conferences
• Corporations
• Religious aspects
• Banking
• Religious values

English Abstract

As institutions that are governed by the principles of Shariah, Islamic financial institutions should depart significantly from their conventional counterparts.

The intense commitment of Islam to brotherhood, morality and justice makes the well-being of all human beings the principal goal of Islamic financial institutions.

This well-being includes both physical and spiritual satisfaction encompassing the consideration of the present world and the hereafter.

Thus, while ordinary business institutions are likely to place profit as their primary epitome and objectives, Islamic banks have to incorporate both profit and social responsibility into their objectives.Nevertheless Islam strives for a balance between profit and social objectives.

Notwithstanding to this, scholars have noted that constructing a model to devise a principle for making trade-offs among diverse stakeholders is the toughest problem of ethics that usually emerged.

For Islamic financial institutions, this issue becomes more acute especially when their business objectives would include reassuring stakeholders that they are likely to receive a fair return on their investments while at the same time they are in conformity with Shariah.

This paper, therefore attempts to address this issue by providing Shariah prescription that provides a framework for managers to resolve problems arising from potential conflicting responsibilities towards various stakeholders.

In particular, the pyramid of maslahah may serve as a viable and effective model to devise a decision framework for managing conflicts and interest of various stakeholder groups.-

Data Type

Conference Papers

Record ID

BIM-439538

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