Ethical Decision-Making in Islamic Financial Institutions in Light of Maqasid Al-Sharia: A Conceptual Framework

Alziyadat, N.; Ahmed, H.

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.

Citation

Alziyadat, N., & Ahmed, H. (2019). Ethical Decision-Making in Islamic Financial Institutions in Light of Maqasid Al-Sharia: A Conceptual Framework. Thunderbird International Business Review, 61(5), 707-718. https://doi.org/10.1002/tie.22025

• Journal Article Type: Article
• Acceptance Date: Aug 23, 2018
• Online Publication Date: Sep 19, 2018
• Publication Date: Sep 30, 2019
• Deposit Date: Aug 28, 2018
• Publicly Available Date: Sep 19, 2020
• Journal: Thunderbird International Business Review
• Print ISSN: 1096-4762
• Electronic ISSN: 1520-6874
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 61
• Issue: 5
• Pages: 707-718
• DOI: https://doi.org/10.1002/tie.22025
• Public URL: https://durham-repository.worktribe.com/output/1321396