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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).

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.

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.

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.

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.

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.

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.

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.

Coverage of respondents in this study limited to single country, and the scope is limited to the model that adopted in the study.

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.

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.

This paper aims to seek to develop and validate the scale for organizational decision-making behaviour related to ethical issues, which addresses the issue of framing the dependent variable in a dichotomous way in organizational ethical decision-making (EDM) models and complementing the inter-variable circular causality model within the purview of Islamic banking with Quranic orientations.

This study adopted both exploratory and confirmatory approaches. A total of 362 responses were collected from banking practitioners in the United Arab Emirates using a self-administered questionnaire. Content validity test (CVT) and factor analysis were used to refine measurement items and define as well as validate the scale, respectively. Further, the validated factors/scales were tested using the theoretical underpinning of the inter-variable circular causality model with Quranic orientations.

CVT refined the measurement items, and it enhanced the qualitative aspect of the proposed scale. Total three dimensions extracted, i.e. “awareness,” “attitude” and “standards” through exploratory factor analysis and evidence of validation of measurement scale/construct reported through confirmatory factor analysis. Further, a significant inter-variable circular causal relationship was found among the validated dimensions and analysed with an Islamic perspective.

Study constraints the population into a single industry and a single country. Future studies are suggested to use the newly developed scale/construct in decision-making models and obtain the overall model fit by considering population from diversified organizations and multi countries.

Comprehensibility of organizational behaviour has always been critical for the efficient functioning of organizations, especially where the situation involves ethical concerns. The proposed scale can be used as a tool to assess the organizational decision-making behaviour related to ethical issues, particularly where the studies intended to examine the determinants of organizational decision-making behaviour related to ethical issues through decision-making models.

While there is ample literature attempted to examine the organizational EDM, particularly on evaluating determinants of EDM, the majority of the studies have failed to frame the dependent variable of the EDM models adopted for the study in such a manner that is in line with the objective of the study. Although some of the literature suggest the theoretical aspects to address this issue, to date, no work has been done that attempted to develop and validate the scale for the theoretical aspects recommended and confirm with the inter-variable circular causality model. These serve as justification for undertaking this study.

This paper aims to develop and validate scale for ethical decision-making model in marketing that confirms religious–humanistic approach with special reference to ethical philosophy in Islam. Synthesized model of Ferrell and Gresham contingency framework for ethical decision-making in marketing and Al-Ghazali’s ethical philosophy are considered as theoretical background of this study.

“Content validity test” and “factor analysis” are used to refine measurement items and define as well as validate the scale, respectively. A total of 362 samples were collected from Islamic banking practitioners in the United Arab Emirates.

Item scale of the constructs comprised in the conceptual model defined and validated by using content validity test (CVT). Underlying theoretical dimensions of the constructs were extracted through exploratory factor analysis (EFA), and evidence of validation of scale/construct reported through CFA.

The scope of this paper is limited to development and validation of scale. Future studies are suggested to use the newly validated scale/construct in descriptive model, and examine the hypotheses prescribed in the model. Further, explanations on theoretical background of this paper is limited as the main objective of this paper is to statistically validate the conceptual model adopted.

Proper application of validated scale of ethical decision-making model in marketing should enable concerned authorities of marketing department to gauge and understand the ethical aspects of individuals in the organizations. Apparently, apprehension of ethical perception of workforces in organizations should benefit in enhancing competence and minimize the costs from unethical behaviour, and, thus, better governance in whole level of management.

To the best of the authors’ knowledge, this is an initial attempt to develop and validate the scale of ethical decision-making model in marketing that accommodates both religious and humanistic aspects into a single model to examine the decision-making behaviour related to ethical issues of individuals in organizations.

This study aims to examine the decision-making behaviour of Islamic banking practitioners of the United Arab Emirates with special reference to the operational line heterogeneity by employing factors that are religious in nature such as intellect, satanic force and divine knowledge as encapsulated in al-Ghazali’s ethical philosophy.

A total of 337 samples were collected from the Islamic banking practitioners in the United Arab Emirates using a purposive sampling technique, and the empirical analysis was conducted with the measures of model fit and bootstrapping technique using Partial least square Structural equation modelling and multi-group analysis.

The empirical findings reveal that the dedicated use of intellect in making decisions related to ethical issues where desires and emotions tend to overwhelm reason and human choices. While divine knowledge is found ineffective guidance of the intellect, the element of satanic force is found significantly impacting decision-making. As the lack of religious consciousness is evident among respondents, higher exposure to operational risk is expected. These findings were found identical across the Islamic banking practitioners in different lines of operations.

The span of the study is limited to a single country. Future studies are recommended to replicate the study to more markets where the share of Islamic finance is significant.

Findings of the study highly suggest respective authorities of Islamic financial institutions to intensify the capacity-building programs on the foundation of faith which includes Islamic thought and worldview, to enhance the corporate ethical decision-making. Moreover, equal importance should be given to all the banking practitioners regardless of line of business operations.

With undue emphasis is given to the juristic (fiqh) aspects of Shariah compliance in the Islamic banking and finance industry, less has been attempted to explore its ethical dimension (akhlaq) in the compliance parameters that leave a relatively large gap to address prevailing unethical practices in Islamic finance institutions. Findings from this study can be useful as a warning to the Islamic banking firms to enhance the sense of God-fearing and improve existing measures in the organisation in mitigating operational risks that may arise from people or system and consequently ensure the smooth governance of the Islamic banks.

This study aims to portray the ethical disposition of Islamic financial institutions (IFIs) globally by investigating the ethical gap identified in the empirical literature to date.

Two methods of analysis used in this study are content analysis and ratio analysis. While the former was conducted to identify the main themes of empirical studies and to gauge the gap between theory and practice of ethical principles and business practice in the Islamic banking and financial industry, the latter quantified the intensity of the gap identified.

The findings indicate that global ethical practices were found to be above medial, and the South East Asian region stood out with a relatively better performance along with the subpar performance of the African region. Among the ethical parameters, the praxis of marketing ethics was found to be distinctly aligned with the principles, and the organizational ethical decision-making behaviour was held to be least harmonized with the norms.

The findings of this study help researchers and regulators to better understand the issues and provide practical solutions to address the shortfalls of ethics in Islamic finance in practice.

In spite of the vast literature, comprehension of the overarching ethical standing of IFIs is still equivocal. This study contributes to the growing literature of ethical and/or Islamic finance primarily in two ways. Firstly, it provides a comprehensive depiction of the ethical standings of the IFIs all around the globe, which can be treated as a guiding document for regulators and industry practitioners to better understand the issues and provide practical solutions to address the shortfalls of ethics in Islamic finance in practice. Secondly, it helps researchers identify research gaps and provides a systematic direction for future studies in the area of ethics in Islamic finance.

This paper aims to present a synthesized conceptual model for ethical decision-making in marketing that accommodates both humanistic and religious aspects.

A religious–humanistic approach is adopted on synthesizing. “Ferrell and Gresham’s (1985) contingency framework for ethical decision-making in marketing” and “Al-Ghazali’s ethical philosophy” are considered to be the theoretical base for the synthesized model.

Al-Ghazali’s ethical philosophy that stands for the religious dimension in this study was found appropriate for incorporating into the Ferrell and Gresham contingency framework for ethical decision-making in marketing. The approach (religious-humanistic) adopted for synthesizing the two aspects into one model was justified accordingly.

A newly synthesized model is only conceptually validated. Statistical validity is required based on the variables included in the conceptual model. Future studies are recommended to attain the model fit.

The scale and model developed in the study should help the marketing-department authorities to assess and evaluate ethical aspects of existing individuals in the organization and potential candidates under the selection stage for employment. The research output derived by way of using the newly synthesized conceptual model should be able to pave the way for more in-depth research on actual ethical practices of “marketing practitioners” in the organization. To some extent, understanding of ethical standing of employees should help in improving efficiency and reduce costs from unethical behaviour. This should be able to improve governance from the top- to the lower-level management.

To the best of the authors’ knowledge, no literature has conceptualized a model that accommodates both materialistic and religious aspects into a single model to explain ethical decision-making of individuals in organizations. This is an initial and a humble attempt to conceptualize a model that incorporates ethical philosophy in Islam, with special reference to Al-Ghazali’s ethical philosophy.

The purpose of this paper is to examine the meaning, nature and measurement of Shariah non-compliant risk faced by Islamic banks.

Al-bai-bithaman ajil (BBA) contract documentation is analyzed in the light of the legal environment in Malaysia and measurement of Shariah non-compliant risk based on constructed or hypothetical cases.

Shariah non-compliant risk will adversely affect bank’s earnings when BBA contracts are deemed invalid in the court of law, either in a foreclosure or ruling via court declaration.

The paper is written based on content analysis, Malaysian legal cases with hypothetical examples for better understanding.

Islamic banking should be able to use the findings to estimate potential loss from Shariah non-compliant risk and make the necessary provisions.

This paper provides new insights of risks faced by credit-intensive Islamic banks, that when relinquishing critical requirement of Islamic contract such as ownership risk will suffer loss.

This paper aims to develop and validate a scale for Islamic conception of psychological nature of man. Al-Ghazali’s model of psychological nature of man considered as the theoretical background of the study.

Content validity test and factor analysis are used to refine measurement items and define and validate the scale. In total, 362 samples were collected from Islamic banking practitioners in UAE.

Item statements are refined through content validation test. Three dimensions are extracted, i.e. “Intellect,” “Satanic element” “Divine Knowledge,” through exploratory factor analysis and evidence of validation of scale/construct is reported through confirmatory factor analysis.

As a caveat, it is critical to emphasize that Al-Ghazali’s model is based on religion (Islam). It should be noted that the scope of the theoretical aspects of the study is limited to the beliefs based on the Islamic tradition.

It is believed that the scope of the developed and validated measurement scale is broad as the nature of the scale is universal and can be applied in any kind of organization in which the study requires capturing Islamic religious aspects with special reference to understanding the psychological nature of individuals associated with the organization and better understanding of their decision-making pattern.

Understanding or examining the psychological nature of human beings is always been an interesting area to study as they are the pillars of the society. Required policies can be formulated or adjusted according to the empirical evidence indicated in the study in respective field of the society.

To the best of author’s knowledge, this is an initial attempt that developed and validated a scale based on the Islamic philosophy, with focus on psychological nature man. Further, the application of the methodology used in the study supports the statistical robustness to the findings, which is relatively rigorous and novel approach in the area of study.

The purpose of this study is to explore potential fund-raising option that can be developed to attract investment in affordable housing initiatives in Malaysia. In doing so, the study undertakes to discuss the viability of the property trust fund structure as an investment vehicle.

The study uses a qualitative design that involves the use of semi-structured questionnaires as a data collection strategy. A total number of ten experts were selected for the interview using critical case sampling scheme based on the purposive sampling strategy.

The study discovers that a dynamic fund structure – one that allows for the fund to evolve with changing circumstances and needs – can be adopted. This fund structure comprises a fund that can be initially established as a closed-ended fund. Then, with sufficient track record, the fund can be transformed into a public real estate investment trust, with the prospect of tapping into capital market via issuance of sukuk in the future. The fund can also adopt mezzanine structure of funding, which may reduce investors’ risks with minimal government intervention.

The findings of this study illustrate the potential of fund-raising options from the perspective of institutional investors and regulators. Future research could explore government’s view and focus on the policy options.

The findings may provide valuable insight into alternative fund-raising options for affordable housing projects for policymakers and investment banks.

The fund-raising options incorporate minimal government participation yet pose low risks to investors, creating a low-risk asset suitable for social investment.

This study outlines the mechanism to increase affordable housing supply in the market, by attracting institutional investors to invest in this dynamic fund structure initiative. As there are limited discussions on attracting funding for affordable housing developments, it is hoped that this paper will spark further debate and discussion among the academicians and policymakers.