This Article Volume 4 Issue 2
First published December 2014, doi : 10.7187/GJAT622014.04.01
Publisher Kolej Universiti Islam Sultan Azlan Shah, Perak, Malaysia.
Measuring Islamic Business Ethics Within Indonesia Islamic Banks
Gusti Ngurah Oka Widana, Sudarso Kaderi Wiryono, Mustika Sufiati Purwanegara, Mohamad Toha
The business characteristic of Islamic banks is the implementation of Islamic business ethics. Parallel with the trend of increasing preference to ethical institution, Islamic banks should put this as its competitive edge toward its competitor conventional competitor banks. However, only few previous studies discussed about the implementation of Islamic business ethics within Islamic banks and none suggested how to measure such implementation. This paper is a study of the literature on ethics and Islamic business ethics as the first step in developing a measurement tool of Islamic business ethics implementation within Islamic banks. This paper synthesizes the dimensions of Islamic business ethics that is excavated from the Quran and Sunna, being proposed by previous studies. There are seven dimensions, namely unity of God, benevolence, justice and equity, sincere, equilibrium, trusteeship and responsibility. Subsequently, this paper outlines these dimensions into 21 items. The opportunity of future empirical study is recommended at the end of this paper.
Keywords: Ethics; Measurement of ethics; Islamic business ethics; Islamic bank; Unity of God
Abeng, T. (1997). Business ethics in Islamic context: Perspective of a muslim business leader. Business Ethics Quarterly, 7, 47-54.
Adebayo, I., & Hassan M. K. (2013). Ethical principles of Islamic financial institutions. Journal of Economic Cooperation and Development, 34, 63-90.
Al-Aidaros, A., Shamsudin, F.M., & Idris K.M. (2013). Ethics and ethical theories from an Islamic perspective, International Journal of Islamic Thought, 4, 1-13
Ali, A.J. (2011). Islamic ethics and marketing. In Ozlem, S & Rice, G. (Eds.) Handbook of Islamic Marketing. UK.: Edward Elgar Publishing Limited.
Arslan, Z. (2009). Islamic business ethics and its impact on strategic business decision making process of Muslims. MBA Thesis, Simon Fraser University, Retrieved from http://summit.sfu.ca/item/770
Asutay, M. (2007). A political economy approach to Islamic economics: Systemic understanding for an alternative economic system. Kyoto Bulletin of Islamic Area Studies, 1, 3-18.
Azmi, R.A. (2006). Business ethics as competitive advantage for companies in the globalization era. Retrieved from http://dx.doi.org/10.2139/ssrn.1010073.
Badawi, J.A (2001). Islamic Business Ethics. Retrieved from http://www.fiqhcouncil.org/node/17.
Bandura, A. (2002). Selective moral disengagement in the exercise of moral agency. Journal of Moral Education, 31, 101-119.
Bandura, A., Barbaranelli, C., Caprara, G.V., & Concetta. P. (1996). Mechanisms of moral disengagement in the exercise of moral agency. Journal of Personality and Social Psychology, 71, 364-374.
Beu, D.S., Buckley, M.R., & Harvey, M.G (2003). Ethical decision-making: A multidimensional construct. Business Ethics: A European Review, 12, 88-107
Carrasco, I. (2006). Ethics and banking. International Advances in Economic Research, 12, 43-50.
Christie, R. (1970). Scale Construction. In Christie, R.; Geis, F.L.; Festinger, L & Schachter, S. (Eds). Studies in Machiavellianism (pp. 10-34). New York, NY: Academic Press.
Forsyth, D.R. (1980). A taxonomy of ethical ideologies. Journal of Personality and Social Psychology, 39, 175-184.Gait, A. H., & Worthington, A. C (2007). A Primer on Islamic finance: Definitions, sources, principles and methods. Retrieved from http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1359&context=commpapers.
Green, C.F. (1989). Business ethics in banking. Journal of Business Ethics, 8, 631-634Hashi, A.A. (2011). Islamic ethics: An outline of its principles and scope. Revelation and Science, 1, 122-130.
Hussnain, S. A. (2011). What is Islamic marketing. Retrieved from https://globaljournals.org/GJMBR_Volume11/10.What-Is-Islamic-Marketing.pdf.Indonesia Banker Association. (2005). Kode etik bankir. Retrieved from http://ikatanbankir.com/ibi/content.php?id=1&top=2.
Is’haq, A.Y. (2012). Does ethics matter in corporate business management from view point of Islam? Kuwait Chapter of Arabian Journal of Business and Management Review, 2, 1-9.
Ishida, C. (2006). How do scores of DIT and MJT differ? A critical assessment of the use of alternative moral development scales in studies of business ethics. Journal of Business Ethics, 67, 63-74.
Jalil, M.A, Azwan, F., & Rahman M.K (2010). Implementation mechanism of ethics in business organizations. International Business Research, 3, 145-155.
Khan, A.A., & Thaut, L. (2008). An Islamic perspective on fair trade. Retrieved from http://www.islamic-relief.com/indepth/downloads/Islam_and_Fairtrade.pdf.
Kohlberg, L. (1975). The Cognitive–developmental approach to eoral Education. Phi Delta Kappan, 56, 670-677
Lind, G. (1978). The Moral Judgment Test: Comments on Villegas’ Critique. Retrieved from http://www.uni-konstanz.de/ag-moral/pdf/Lind-2006_The-moral-judgment-test_Villegas.pdf.
Muhammad, M.Z., Ilias, A., Ghazali, F.M., Abdullah, R.C., & Amin, H. (2008) An analysis of Islamic ethics in small and medium enterprises (SMEs), Unitar E-Journal, 4, 48-58.
Nasution, M.E. (2009). Islamic spirit and morale in economics. Journal of International Development and Cooperation, 15, 113-24.
Reidenbach, R. E., & & Robin. D.P. (1993). A Comment on a multidimensional scale for measuring business ethics: A purification and refinement. Journal of Business Ethics, 12, 663-664
Reidenbach, R. E., & and Robin. D.P. (1990). Toward the development of a multidimensional scale for improving evaluations of business ethics. Journal of Business Ethics, 9, 639-653.
Rest, J.R., Narvaez, D., Thomas,S.J., & Bebeau. M.J. (1999). DIT2: devising and testing a revised instrument of moral judgment. Journal of Educational Psychology, 91, 644-659
Rice, G. (1999). Islamic ethics and the implications for business. Journal of Business Ethics, 18: 345–358.
Shawver, T.J & Sennetti, J.T (2009). Measuring ethical sensitivity and evaluation, Journal of Business Ethics, 88(4): 663-678.
Saeed, M., Ahmed, A.U., & Mukhtar, S.M. (2001). International marketing ethics from an Islamic perspective: a value-maximization approach. Journal of Business Ethics, 32, 127-142.
Saidi, T.A. (2009). Relationship between ethical and islamic banking systems and its business management implications. South African journal of Business Management, 40, 23-49.
The Banks Association of Turkey (2010). Code of banking ethics. Retrieved from http://www.tbb.org.tr/en/Content/Upload/Dokuman/3/Etik_Ilkeler_Eng_.pdf.
Van Schaik, D. (2001). Islamic banking. The Arab Bank Review, 3(1).
Weber, J., & McGivern, E. (2010) A new methodological approach for studying moral reasoning among managers in business settings, Journal of Business Ethics, 92(1): 149-166
Wilson, R. (2005) Parallels between Islamic and ethical banking, Journal of Islamic Banking and Finance, 22 (3).Wilson, R. (2006). Islam and business. Thunderbird International Business Review, 48(1): 109–123.