Sharīʿah-Based Ethical Performance Measurement Framework and Relevant Data to Measure Development in Light of Maqāṣid al-Sharīʿah

Bedoui, Houssem Eddine

doi:10.1007/978-3-030-12793-0_3

Cited by 8 publications

(13 citation statements)

References 11 publications

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“…After reviewing the available literature, we can divide the models of the Islamic approach to CSR into several groupings that will be discussed shortly. These groupings are based on: four ethical axioms approach: Unity, equilibrium, free will and responsibility (Hanić, 2020); the objectives of the Shariah ( Maqasid al-Shariah ) and public interest ( maslahah ) approach (Asutay and Harningtyas, 2015; Bedoui, 2012; Darrag and E‐Bassiouny, 2013; Darus et al , 2013; Dusuki and Abdullah, 2007; Mergaliyev et al , 2021; Mohd Nor, 2012); mandatory and recommended forms of Islamic CSR approach (Farook, 2007); social welfare paradigms approach (Muhamad et al , 2008); taqwa paradigms approach (Dusuki, 2008b); application of public interest and importance of social capital approach (Yusuf and Bahari, 2015); extended Carroll model (Carroll, 1991) from an Islamic perspective approach (Khurshid et al , 2014); paradigms of Tawhid and Shariah approach (Abu Bakar and Yusof, 2015); the Islamic model of CSR based on four types of responsibility approaches (Turker, 2016); and the Islamic corporate governance approach (Abu-Tapanjeh, 2009; Murphy and Smolarski, 2020). …”

Section: Literature Reviewmentioning

confidence: 99%

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Islamic approach to corporate social responsibility: an international model for Islamic banks

Hanić

Smolo

2022

IMEFM

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Purpose This study aims to present a corporate social responsibility (CSR) model that would apply to Islamic banks, considering the international aspect of social responsibility because CSR is not applicable in the same way in all types of societies. Design/methodology/approach Based on the extensive review of the existing literature, the authors aim to present an Islamic CSR model applicable to Islamic banks. This study is based on the international approach to CSR developed by Masoud (2017). Each responsibility has an equal share but with specific changes regarding the order of priorities between them and the type of responsibility. Findings The findings show that the existing literature provides several Islamic CSR models. Most of these models are general and offer guidelines to Islamic financial institutions, but no model applies exclusively to Islamic banks. Using these models for Islamic banks is challenging because of their specific business activities, especially in non-Muslim countries. This study proposes a model that could act as the main guideline for Islamic banks with enough flexibility to meet different market and stakeholders’ requirements. Practical implications The model was not tested on a sample, and not all Islamic principles were considered. However, it is applicable for Islamic banks, especially considering internationalization in their businesses and the further development of Islamic banking. At the same time, this model puts ethical norms in the spotlight. This is particularly emphasized in the case of non-Muslim countries or in societies where a particular law does not regulate Islamic bank activities. Originality/value Although there is a growing literature on this topic, existing studies primarily discuss the Islamic approach to CSR from the overall perspective, not in a specific industry. While some authors developed their own Islamic CSR models relying on the primary Shariah sources, others base their proposals on other classical CSR ideas. To the best of the authors’ knowledge, this is the first study based on the CSR model developed by Masoud (2017), considering the relationship between economics and religion and the implications of the Islamic moral economy.

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Section: Literature Reviewmentioning

confidence: 99%

“…the objectives of the Shariah ( Maqasid al-Shariah ) and public interest ( maslahah ) approach (Asutay and Harningtyas, 2015; Bedoui, 2012; Darrag and E‐Bassiouny, 2013; Darus et al , 2013; Dusuki and Abdullah, 2007; Mergaliyev et al , 2021; Mohd Nor, 2012);…”

Section: Literature Reviewmentioning

confidence: 99%

Islamic approach to corporate social responsibility: an international model for Islamic banks

Hanić

Smolo

2022

IMEFM

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“…The sharia-based financial industry is also in great demand, not only Muslim customers but also non-Muslim customers. The sharia financial industry, in its implementation, is based on Islamic sharia principles and must follow the rules applied in sharia [2]. The Islamic finance and banking industry has gained strong trust and support, especially after the success of Islamic banking survived the 2008 economic crisis.…”

Section: Introductionmentioning

confidence: 99%

Simple Additive Weighting Method for The Assessment of Sharia Banking Performance

Suhartanto¹,

Zulkarnain

Yuda

2020

intensif

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The interest in Sharia-based financial industry products has increased rapidly, as evidenced by a large number of conventional Bank customers migrating to Islamic Commercial Banks (BUS). With this phenomenon, it is necessary to measure BUS financial performance in Indonesia by using the analysis of the Shariah Maqashid Index (SMI) concept as control and reference for the public to choose and utilize Islamic financial products in Indonesia with an empirical study approach. The object of this study is Islamic banks in Indonesia using purposive sampling techniques with the condition that only the category of Islamic Commercial Banks. The results of this study are indicators of all mashed shariah index variables with measurements using the SAW (Simple Additive Weighting) method as decision support. Eight BUS in Indonesia have different calculation results; each Islamic bank has advantages in SMI elements. That Bank Mualamah Syariah has the highest IK1 (Performance Indicator) for two years in a row. Bank Panin Syariah has the highest IK2 in 5 consecutive years. BCAS and Bank Syariah Bukopin have the highest IK3. In general, all BUS that has implemented maqashid syariah with the category 'good' because they have an average value of 3.00.

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“…Despite the theoretical assumption that IFIs are ethical, criticisms of their lack of contribution to the aspirations of Sharia and Islamic socioeconomic objectives have been increasingly noticed in recent literature. When trying to diagnose this issue, researchers usually subscribe to the claim that IFIs do not work to achieve broader Sharia objectives (e.g., Asutay, ; Badr El Din & Ibrahim, ; Bedoui, ; Bedoui & Mansour, ; Mohammed, Abdul Razak, & Taib, ; Sairally, 2008; Antonio, Sanrego & Taufiq, 2012; Zaman & Asutay, 2009). Studies addressing this issue vary from subjective arguments to empirical evidence based on models developed to operationalize Sharia objectives and accordingly gauge the ethical performance of IFIs.…”

Section: Introductionmentioning

confidence: 99%

“…The common denominator for empirical studies is that they tend to measure Sharia objectives through proxies denoting the achievement of specific ethical aspects of performance (e.g., Antonio, Sanrego, & Taufiq, ; Bedoui, ; Bedoui & Mansour, Mohammed et al, ; Mohammed & Taib, , ; Sairally, 2008). However, such methods for gauging ethical aspects usually ignore key methodological issues including the intention of the management and shareholders, the context dependence of moral actions, the control of companies over their actions, and the level of disclosure of good deeds (Graafland, Eijffinger, & SmidJohan, ).…”

Section: Introductionmentioning

confidence: 99%

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

Alziyadat

Ahmed

2018

Thunderbird Intl Bus Rev

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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.

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Sharīʿah-Based Ethical Performance Measurement Framework and Relevant Data to Measure Development in Light of Maqāṣid al-Sharīʿah

Cited by 8 publications

References 11 publications

Islamic approach to corporate social responsibility: an international model for Islamic banks

Islamic approach to corporate social responsibility: an international model for Islamic banks

Simple Additive Weighting Method for The Assessment of Sharia Banking Performance

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

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