Ethics in Islamic economics: microfoundations for an ethical endogeneity

Hafas Furqani, Gunawan Adnan and Ratna Mulyany

International Journal of Ethics and Systems, 2020, vol. 36, issue 3, 449-463

Abstract: Purpose - This paper aims to explore ethics in Islamic economics by establishing the micro-foundations of Islamic economics. This is done by conceptualizing the behavioural assumptions of the individual in an Islamic framework. It also argues that ethical positions that attached endogenously in individual behaviour would have implications in the macro-socio realm influencing society, institution and organization in an Islamic economic system. Design/methodology/approach - The study is qualitative-based research. It explores the literature on ethics in Islamic economics to understand and analyse the concept of individual behaviour in the Islamic perspective that will be the micro-foundations of Islamic economic analysis. Findings - It is found that the ethical commitment of individuals (as envisaged in the micro-foundations of Islamic economics) would bring socio-macro implications in the practical realm. The micro-foundations of Islamic economics would function as the basis of the economic explanation of the aggregate relationship of individual, state and society. It also serves as the basis in explaining socio-macro dynamics influencing individuals, society, as well as organizations and institutions. Research limitations/implications - The paper limits its analysis of developing the concept of ethical endogeneity in Islamic man behaviour to be the micro-foundations of Islamic economics and its macro-implications. Originality/value - This study attempts to show that ethics should not only be inseparable in an economic framework but also an endogenous dimension in individual behaviour. The micro-foundations of Islamic economics are developed based on Islamic values on the characteristics and behaviour of an individual that would not only describe the true nature of man but also support his well-being.

Keywords: Ethics; Micro-foundations; Islamic economics; Ethical endogeneity; Behaviour; Macroimplications (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoesp:ijoes-03-2020-0032

DOI: 10.1108/IJOES-03-2020-0032

Access Statistics for this article

International Journal of Ethics and Systems is currently edited by Prof Jacob Dahl Rendtorff

More articles in International Journal of Ethics and Systems from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().