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Ethical decision‐making in Islamic financial institutions in light of Maqasid Al‐Sharia : A conceptual framework
Author(s) -
Alziyadat Naser,
Ahmed Habib
Publication year - 2018
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.22025
Subject(s) - islam , sharia , accounting , financial institution , jurisprudence , argumentation theory , conceptual framework , process (computing) , business , constraint (computer aided design) , sociology , political science , law , finance , social science , computer science , epistemology , engineering , philosophy , theology , operating system , mechanical engineering
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.