Ethics of Iqtiṣād

Nabil El Maghrebi (), Abbas Mirakhor (), Tarık Akın and Zamir Iqbal ()
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Nabil El Maghrebi: Wakayama University
Zamir Iqbal: Islamic Development Bank

Chapter Chapter 4 in Revisiting Islamic Economics, 2023, pp 151-182 from Palgrave Macmillan

Abstract: Abstract Based on the moral philosophy of Islam aimed at promoting economic and social justice, the internalization of rules and virtues of Islam determine all facets of an economy ranging from the rules of market conduct, production, consumption, distribution, and redistribution. Ethics embedded in the prescribed rules and principles guarantee ethical outcomes in economic activities. Risk-sharing in financial transactions and other forms of risk-sharing as advocated by Islam have a rich ethical dimension that fills the gaps observed in prevailing economic systems. Risk-sharing minimizes the exploitation inherent to interest-based or risk-transfer systems, leads to the efficient allocation of resources, reduces typical information asymmetry and agency problems in economic dealings, enhances cooperation and solidarity in societies, and promotes financial and social inclusion. A rich framework of business ethics provides strong governance, transparency, and prudent leadership.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-3-031-41134-2_4

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DOI: 10.1007/978-3-031-41134-2_4

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