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Islamic financial institutions offer a different paradigm from conventional institutions. From corporate governance (CG) viewpoint, it embodies a number of interesting features since equity participation and profit-and-loss sharing arrangements form the basis of Islamic financing. These financial arrangements imply different stakeholder relationships and governance structures, and distinct from the conventional model since depositors have a direct financial stake in the bank's investment and equity participations. On top of that, the Islamic bank is subject to an additional layer of governance since the suitability of its investment and financing must be in strict conformity with Islamic law and the expectations of the Muslim community. Other form of governance such as accounting standards have also been an issue whether they have met the reporting requirement of Islamic financial institutions that carry title as “Islamic” as there is no uniformity. Therefore, there should be concerted efforts to revisit the existing good CG and accounting standards for Islamic financial institutions.

This chapter explores the concept of corporate social responsibility (CSR) from an Islamic Shari'ah-compliant perspective. It provides a comprehensive literature review on CSR with an explicit focus on the Islamic perspective of CSR, Islamic models of CSR, CSR practices in conventional and Islamic banks, and the consequences of CSR to Islamic banks. This chapter's main contribution lies in considering the current CSR literature from a Shari'ah perspective. Likewise, it identifies gaps in the current literature and suggests potential areas for future research. This chapter attempts to improve the understanding of how Islamic banks integrate social responsibility into their operations. The insights from this chapter are helpful to practitioners and academic scholars in Islamic finance, accounting, and CSR. This chapter emphasizes the importance of incorporating Islamic values and principles into CSR practices and encourages further research and investigation in this area.

Purpose – This chapter shows that Islamic finance does not aim at substituting the conventional financial system, rather it can be used to reform it. It can thus indirectly contribute to its survival.

Methodology/Approach – We first present the peculiarities of the Islamic financial model. We then investigate its prospects: coexistence, integration, substitution? It is the investigation of the strategy and activities of the Islamic banks that allows to address this issue.

Findings – We find that the deliberate strategy is essentially to compete with conventional banks. Consequently, there is a willingness to be part of the conventional system. The study of the Islamic financial system allows to conclude that their emergence serves a purpose. The Islamic financial principles provide a benchmark for improving and reforming the conventional system.

Originality/Value of Paper – The main contribution is to provide a clear answer to the future of Islamic finance, and to present the contribution of Islamic finance to renewal of financial and economic thought.

This chapter uses Islamic finance to question the universality of contemporary finance leading principles. It establishes the existence of different financial paradigms and attempts to determine the form that might take operations in a non-profit maximising context.

This chapter uses Thomas Kuhn’s notion of paradigm to demonstrate that Islamic finance has its own dominant logic and, hence, cannot be reduced to a subset of contemporary finance. It describes how the former has been infused by the leading principles of the latter following the adoption by the Islamic financial field of an accounting system using a conventional referential as a point of reference. Finally, the chapter elaborates on the form that might take financing if profit maximisation is not the operation’s main purpose.

If the condition of profit maximisation is relaxed, the utilisation of Islamic finance instruments might lead to the creation of economical microcycles able to enlarge the socio-economic reach of financing operation.

The notion of economic intermediation is introduced to describe the operations of Islamic banks using their instruments in a non-maximising context. This approach should not be restricted to Islamic finance but viewed as the result of a case study advocating for an alternative view of finance favouring socio-economic development.

An Islamic social finance ecosystem has its specific instruments in terms of funding and investment that are in line with Shariah (Islamic law) principles. These include waqf (Islamic endowment), zakat (compulsory alms), ṣadaqah (donation), qarḍ ḥasan (benevolent loan) and others. In this context, the Islamic financial institutions can be considered as Islamic social finance institutions since it has the elements of Islamic social finance concepts. The uniqueness of these two types of institutions is that they operate with the absence of riba, maysir, gharar and thus the requirement of Shariah governance comes into existence. The practice of Shariah governance in Islamic financial institutions needs to be extensively examined by using a comprehensive measurement. Therefore, this chapter attempts to discuss on the needs of Shariah Governance Practices Index (SGPi) as a comprehensive measurement to measure the Shariah governance practices. In conclusion, it is proposed to have a comprehensive index to measure the Shariah governance practices which consider few components of Shariah governance such as the board of directors, the management, Shariah Committee and Shariah compliance functions.

This chapter’s goal is to define the kind of seeds to be planted for moving forward in the safe and stable drive toward a leading central banking role directed at achieving a sustained Islamic banking and finance development within the global financial system. The system witnessed the input of Islamic banking with its fruitful contribution as a feasible banking structure in both implementing agreed reforms and shaping the next steps directed toward crisis prevention and crisis resolution.

The adopted approach is based upon scientific conceptual basis as well as the practical experience related to the central banking role and Islamic banking evolution. This chapter will define the strategic role of Central Banks and highlight the conceptual basis governing the leading role of central banks as well as the practical basis derived from our central banking and Islamic banking experience.

In light of the conceptual and practical basis for enabling an efficient and effective role of Central Banks as a regulatory body in shaping the future of the Islamic Financial System. Legal, institutional and managerial strategic determinants for this role have been defined.

The analytical work of this chapter crystallises in a pioneering initiative the main determining factors governing the role of central banks as the main regulatory body for Islamic banking, and how this role could be effective in affecting the future role to be played by the Islamic banks in the global financial system. Also, to this end, the integrated required role by central banks, public policies, multilateral institutions and Islamic banks are illustrated.

Energy and cooperative hard work and commitment from all players, including the regulators of Islamic banks supported by public policies, international and multilateral institutions and members of the Islamic banking family is thought to be the main determining factor for transforming the Islamic banking family into one that will make the Islamic people and all humanity – through the global financial system – live with more stability, welfare and happiness.

This study aims to explore the presumed relationship between religion and purchase behavior of consumers in the context of Bangladesh.

This research is divided into two main parts. In the first one, the authors reviewed some of the most important studies relative to religion and marketing and those specifically relative to Islamic marketing. In the second part, this research shows the findings of a structured questionnaire administered to a sample of Muslim consumers currently residing in the capital city of Bangladesh – Dhaka. The questionnaire also sought to find out the respondents’ attitude towards the modern marketing tactics, in terms of the physical and visual appearance of local products, their perception of religious principles in the purchase decision and their attitude towards imported products of non-Muslim countries.

Results of this study highlight that religion often represents an essential reference point in influencing the perception and purchase behavior of consumers in the context of Bangladesh. This implies that marketing strategies based on Islamic ethics is going to be quite instrumental in order to reach out to the consumers in Muslim countries. As such, there is largely a strong positive relationship between religion and the purchase behavior of Muslim consumers.

The lack of research on Islamic marketing limits the intensity of arguments in this study. For this reason, the literature review is not completely exhaustive. A small sample size has also been used due to time and resource constraints. Future research can be done on a bigger sample size of Bangladesh or other Islamic countries across the world. Other research avenues may include the study of Islamic marketing mix and exploring the factors that can influence non-Muslim consumers to select products and services based on Islamic ethics.

It is very important for businesses to introduce healthy practices in countries like Bangladesh and this can be rightly achieved through the use of Islamic marketing. Furthermore, the use of Islamic ethics in marketing strategies can eventually influence the religious perception of consumers and make them loyal towards any brands, products, and services in the context of Bangladesh.

The chapter draws attention to Bangladesh as one of the potential markets where the concept of Islamic market mechanism can be established. It also highlights the challenges that global marketers can face with Islamic marketing in Muslim countries like Bangladesh. Besides, it is the only study to date that focuses upon the relationship of religion, marketing, and consumer behavior for consumer products of the manufacturing industry.