Abstract
The current global economic meltdown is a clear revelation of the shortcomings of the conventional financial set-up and the weakness of self-designed system devoid of spiritual and divine guidance, hence the yearning and desire for a socially just financial system by conscious individuals and corporate bodies. The recent adoption and establishment of Islam based financial institutions in many parts of the world has exposed the system to serious studies by scholars and economists. Also, the adoption and integration of the Sarbanes – Oxley Act of 2002 into the America system of business to introduce ethical principles to the United States corporate environment through the application of many rules, could be seen as a leaf borrowed from Islamic ethical principle. This further strengthens the importance of the ethical principles of Islamic financial institutions. The assertion that Islamic financial system is only distinguished from other economic systems in its emphasis on interest free and other usurious transactions coupled with the fact that many concepts are springing up contending with the Islamic financial system inform the need to study the system within the context of Islamic ethical principles.
Article Details
- Year: 2013
- Volume: 34
- Issue: 2
- Pages: 63 - 90
- Accepted: 19.06.2013
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DOI:
https://doi.org/10.5281/zenodo.21074661 -
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How to Cite?
M. Kabir Hassan, R. Ibrahim Adebayo (2013). Ethical Principles of Islamic Financial Institutions. Journal of Economic Cooperation and Development, 34(2), 63-90. https://doi.org/10.5281/zenodo.21074661
