Ethical Banking and Islamic Banking : A Comparison of Triodos Bank and Islami Bank Bangladesh Limited

Khan, Tariqullah

doi:10.12816/0050979

Cited by 11 publications

(13 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…There are some studies conducted in the area of Islamic banking and finance that examine the ethical practice of Islamic banking and finance. Khan and Mohomed (2017) conducted a comparative study that examined the ethical practices between "Islamic bank" (i.e. Islamic Bank Bangladesh Limited [IBBL]) and a bank that claims to be a pioneer in "Ethical bank" (i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of situational factors on ethical choice

Shamsudheen

Rosly

2020

JIABR

View full text Add to dashboard Cite

Purpose The purpose of this paper is to use Ferrell and Gresham (1985) contingency model to examine the impact of situational factors on decision-making behaviour related to ethical issues of Islamic banking practitioners. Design/methodology/approach A total of 262 samples are collected from Islamic banking practitioners in the United Arab Emirates (UAE) and data analysis is conducted using structural equation modelling (SEM) with a confirmatory approach. Findings The empirical findings indicate that decision-making behaviour related to ethical issues of Islamic banking practitioners is significantly influenced in the process of interacting with persons who are part of the organisation, and these influences are determined by the intra-organisational distance and legitimate authority between the individuals and the focal person. Further, it is also empirically verified that decision-making behaviour related to ethical issues of Islamic banking practitioners is significantly influenced by the presence and/or absence of the opportunity factors such as corporate policies, professional codes of ethics and rewards/punishment system that prevails in the organisation. Research limitations/implications Coverage of respondents in this study limited to single country, and the scope is limited to the model that adopted in the study. Practical implications It is recommended that respective authorities should have proper control over situational factors (i.e. significant others and opportunity factors) in organisations by encouraging ethical actions so that individuals are learned and influenced by each other and reviewing and improving existing corporate policies, professional codes of ethics and rewards/punishment system that limit the barrier and provide recompenses to the individuals in the organisation. Originality/value While the literature has presented the connection between ethics and Islamic banking, they failed to address ethical decision-making in Islamic financial institutions (IFIs). Hence, the empirical findings provide insights towards understanding organisational decision-making behaviour that to enhance governance.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The impact of situational factors on ethical choice

Shamsudheen

Rosly

2020

JIABR

View full text Add to dashboard Cite

show abstract

“…it has a significant influence on the environment in terms of increased energy usage, such as lighting, air conditioning, and paper consumption (Khan, T., & Mohomed, A. B. R. N. (2017) [30]). As a result, incorporating CSR concepts into company operations is critical to ensuring the economy's long-term viability.…”

Section: Green Corporate Social Responsibility (Gcsr) Activitiesmentioning

confidence: 99%

A Review-Based Research Agenda on Green Banking Service Practices through Green CSR Activities

Prabhu

Aithal

2021

IJMTS

View full text Add to dashboard Cite

Purpose: The modern banking activities are submerged with green loans, green credit cards, green checking accounts, and also green mortgage along with online banking aspects. The purpose of this study is to identify the research gap and possible research agendas of connecting green banking practices and corporate social responsibility (CSR) activities of some chosen private and public sector banks in India. Design/Methodology: This study reviews the current status of various green banking practices of the banks and their corporate social responsibility activities of selected private and public banks of India. The data is collected from scholarly literature and internet sources. Findings: Through this review-based study, the current status of green banking practices and corporate social responsibility activities are identified. The green initiatives of public and private banks such as internet banking, mobile banking, green debit, and credit card loan are analyzed. Based on the current status and the ideal strategy of using CSR funds for such green activities, the research gap is determined. Based on the research gap, various research agendas to connect green banking practices and corporate social responsibility activities are developed and analyzed. Originality: This review-based research paper identifies the current status, research gap and analyses the research agendas related to strategies of utilizing CSR funds on green banking practices to fulfill the dual objectives of social responsibility and intensifying the brand value to retain existing and attract new customers. Paper Type: Review-based research analysis

show abstract

“…Hassan (2013) articulated the ethical principles of financial institutions as enshrined in the Qur’an and the Sunnah of the Prophet with special reference to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) code of ethics. Khan and Mohomed (2017) conducted a comparative study that examined the ethical practices between “Islamic bank” [8] and a bank that claims [9] to be a pioneer in “ethical bank” [10] based on the non-profit motivation indicators such as financial inclusion, microfinance, gender balance, SME financing and green banking. The study indicated that “ethical bank” understudy is far ahead of Islamic bank in such comparison.…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring ethical judgement on ethical choice in an ethical system: a confirmatory study on Islamic banks in UAE

Shamsudheen

Rosly

2020

IMEFM

View full text Add to dashboard Cite

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.

show abstract

Ethical Banking and Islamic Banking : A Comparison of Triodos Bank and Islami Bank Bangladesh Limited

Cited by 11 publications

References 0 publications

The impact of situational factors on ethical choice

The impact of situational factors on ethical choice

A Review-Based Research Agenda on Green Banking Service Practices through Green CSR Activities

Measuring ethical judgement on ethical choice in an ethical system: a confirmatory study on Islamic banks in UAE

Contact Info

Product

Resources

About