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Acquirement of consumer perception on the ethicality and Islamicness of Islamic finance products and services

Musa, Muhammad Adli and Ahmad, Nadzrah (2018) Acquirement of consumer perception on the ethicality and Islamicness of Islamic finance products and services. Project Report. IIUM Press, International Islamic University Malaysia, Kuala Lumpur. (Unpublished)

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Abstract

Islamic financial institutions (IFI) that are governed by sharī‘ah principles are expected to have inherently strong ethical roots such as promoting justice and avoiding any illegal and unethical elements. Hence, ethics has become a vital component in order to provide “value” for consumers. Indeed, there are numerous Qur’Énic injunctions and Prophetic traditions concerning ethical principles pertaining to Islamic finance, particularly those related to the ethics of business transactions. This research emphasises Islamic revealed guidance by compiling the Qur’Énic verses related to financial transactions using selected exegeses (tafasÊr). Furthermore, this research also focuses on how consumers perceive the ethicality of products and services offered by IFIs. It delineates the importance of ethical finance and the need for Islamic banking to align with ethical banking. Meanwhile, a quantitative research methodological approach was adopted in this study by utilising a structured questionnaire comprised of close-ended questions. The questionnaire was distributed among IIUM academic and administrative staff. The research findings show that the majority of respondents had a positive perception of the ethicality of Islamic finance products and services. This study also found that Islamic banking should formulate strategies to educate and offer unique products and services differentiated by underlying ethical values to increase its appeal to customers. The findings also suggest that ethics could be considered as a factor that encourages patronage of IFIs. Thus, this research is expected to assist IFIs to demonstrate their commitment and efforts in providing added value to customers.

Item Type: Monograph (Project Report)
Additional Information: 7412/69774
Uncontrolled Keywords: Islamic banking, Islamic finance, ethical banking, financial ethics
Subjects: B Philosophy. Psychology. Religion > BJ Ethics > BJ1725 Ethics of social groups, classes, etc. Professional ethics
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Qur’an and Sunnah
Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User: DR NADZRAH AHMAD
Date Deposited: 17 Jan 2019 14:31
Last Modified: 17 Jan 2019 14:31
URI: http://irep.iium.edu.my/id/eprint/69774

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