Measuring ethical judgement on ethical choice in an ethical system: a confirmatory study on Islamic banks in UAE
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 10 November 2020
Issue publication date: 6 April 2021
Abstract
Purpose
This paper aims to examine the influence of ethical judgement on decision-making behaviour related to ethical issues of Islamic banking practitioners in the United Arab Emirates (UAE).
Design/methodology/approach
The study adopted a confirmatory approach in which validated/established “normative ethical standards” are taken into the consideration as theoretical underpinning. In total, 262 samples are collected from Islamic banking practitioners in the UAE and data analysis is conducted using structural equation modelling.
Findings
The empirical findings indicate that the decision-making behaviour related to ethical issues of Islamic banking practitioners in UAE does not adhere to any set of normative ethical standards and respondents are pragmatic in nature when it comes to the decision-making behaviour related to ethical matters.
Practical implications
The study elucidates to what extent Islamic banking practitioners have encountered themselves with situations that demand the proper attention to the ethical aspects, which affecting decision-making behaviour related to ethical issues. According to the findings, those situations considerably demand the attention of ethical judgement in the decision-making behaviour of Islamic banking practitioners. Hence, it is recommended for Islamic banks in UAE to contain or intensify the training on the importance of ethics, Islamic thought and worldview to enhance corporate decision-making and banking profitability within the purview of Islamic principles.
Originality/value
While ample emphasis has been given to the juristic (fiqh) aspects of Sharīʿah-compliant in Islamic banking and finance, relatively little has been attempted to explore its ethical dimensions (akhlaq) in the compliance parameters. Further, Sharīʿah-compliant has been product-centric rather than people-centric. While there is numerous literature documented that links ethics and Islamic banking and finance, ethical framework and practice in Islamic finance institutions, studies focusing on the “people” and their “ethical decision-making behaviour” in Islamic financial institutions found missing in the literature. These gaps serve as justification for undertaking this research.
Keywords
Acknowledgements
The authors are thankful to the Islamic banking practitioners in the United Arab Emirates who devoted their valuable time for responding to the survey questionnaire of this study.
Citation
Shamsudheen, S.V. and Rosly, S.A. (2021), "Measuring ethical judgement on ethical choice in an ethical system: a confirmatory study on Islamic banks in UAE", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 14 No. 2, pp. 301-316. https://doi.org/10.1108/IMEFM-03-2018-0112
Publisher
:Emerald Publishing Limited
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