Exploring re-introduction of equity-based ethical modes of business: an Islamic approach

Sadique, Muhammad Abdurrahman (2020) Exploring re-introduction of equity-based ethical modes of business: an Islamic approach. Journal of Research in Business and Management, 8 (12). pp. 8-13. E-ISSN 2347-3002

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Abstract

Ethical business and commerce modes have suffered an erosion ever since conventional modes based on Western business models had overtaken the fields of banking and commerce. The conventional system of business, sourced from debt based financing with the interest based loan as its primary foundation, does not welcome ethical and mutually rewarding business financing models based on equity. Due to the risk accompanying equity, it has given preference to business financing through lending, for securing interest income without sharing in the risk of the venture in any way. Ethical modes of business and commerce abhor interest, and have kept the door open for wide spread equity participation in business ventures for those interested in financial gain. The current research attempts to consider the modes available for business financing based on equity that conform to the principles of Islamic ethical principles especially, and to analyse the possibility of their application in various situations mainly by Islamic financial institutions.

Item Type:	Article (Journal)
Additional Information:	5640/86081
Uncontrolled Keywords:	ethical, business, equity, financing, Islamic, debt
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Dr Muhammad Abdurrahman Sadique
Date Deposited:	14 Dec 2020 16:36
Last Modified:	14 Dec 2020 16:36
URI:	http://irep.iium.edu.my/id/eprint/86081

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