Ethical framework for directors – learning from the prophet

Abstract

Purpose This paper aims to explore the director’s work ethics with particular attention given to the Islamic perspectives and prophetic character toward sustaining the performance of the business organizations. As at now, there is a limited code of ethics that can be a guidance for the business organizations and its leaders specifically. Design/methodology/approach This paper examines and reviews the foundation and prior studies on directors’ work ethics and Islamic work ethics. Then, briefly discuss and present a conceptual review of the directors’ work ethics based on prophetic characters, as well as its application in modern business activities. Findings Based on Quran and Hadith, this paper proposes that four fundamental moral characters of directors are siddiq (truthfulness), fatanah (intelligent), tabligh (deliver) and amanah (trust). Research limitations/implications This paper is conceptual in nature, thus further research needed to empirically test all the characters in actual practices. Practical implications The outcome of this paper contributes in way of it can be used and applied by the firm and policymakers to construct a comprehensive code of ethics that based on the Islamic values. Originality/value This paper is original as it attempts to suggest the appropriate constructs of directors’ work ethics from the religious studies in the ethics and management literature. These constructs able to increase the integrity and moral behaviors of the directors, which eventually preventing them from a commit in various unethical and malpractices that may obstruct the progress of the country’s economic development and growth.

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