Murdoch University Research Repository

Welcome to the Murdoch University Research Repository

The Murdoch University Research Repository is an open access digital collection of research
created by Murdoch University staff, researchers and postgraduate students.

Learn more

Ethical decision-making in Islamic financial institutions in light of Maqasid Al-Sharia: A conceptual framework

Alziyadat, N.ORCID: 0000-0003-2950-6155 and Ahmed, H. (2018) Ethical decision-making in Islamic financial institutions in light of Maqasid Al-Sharia: A conceptual framework. Thunderbird International Business Review, 61 (5). pp. 707-718.

Link to Published Version: https://doi.org/10.1002/tie.22025
*Subscription may be required

Abstract

This article develops a conceptual framework for ethical decision-making in Islamic financial institution based on the Islamic methodological approaches on ethics. While making use of the similarities between the scientific method and the Islamic jurisprudence method, a framework is developed by means of argumentation and reasoning to integrate Sharia doctrines with the "plan, do, check and act" (PDCA) cycle as a managerial tool. Using Al-Raysuni's analysis of Al-Shatibi's work on maqasid al-sharia, this article develops a framework to assess the ethical aspects of Islamic financial operations, which is then applied to hypothetical cases. This approach can help overcome the methodological deficiencies in measuring ethical performance in Islamic finance by focusing on the process of ethical decision-making that leads to the outcomes of organizational behavior beyond legality of contracts. The framework outlines the conditions under which an activity that is considered legal and permissible contractually could lead to outcomes that can make it ethical or unethical.

Item Type: Journal Article
Murdoch Affiliation: Centre for Responsible Citizenship and Sustainability
School Of Business and Governance
Publisher: Wiley
Copyright: © 2018 Wiley Periodicals, Inc.
URI: http://researchrepository.murdoch.edu.au/id/eprint/42239
Item Control Page Item Control Page