Skip to main content
Log in

Balancing Ethical Responsibility among Multiple Organizational Stakeholders: The Islamic Perspective

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

In spite of a renewed interest in the relationship between spirituality and managerial thinking, the literature covering the link between Islam and management has been sparse – especially in the area of ethics. One potential reason may be the cultural diversity of nearly 1.3 billion Muslims globally. Yet, one common element binding Muslim individuals and countries is normative Islam. Using all four sources of this religion’s teachings, we outline the parameters of an Islamic model of normative business ethics. We explain how this ethics model seeks to balance the needs of multiple stakeholders, and discuss its enforcement mechanisms. This Islamic approach to business ethics is centered around criteria that are in common with stakeholder theory such as justice and balance, and includes unique additional criteria such as trust and benevolence.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • M. Ahmad (1995) Business Ethics in Islam International Institute of Islamic Thought Islamabad

    Google Scholar 

  • I. R. Al-Faruqi (1992) Al Tawhid: Its Implications for Thought and Life Internatinoal Institute of Islamic Thought Herndon VA

    Google Scholar 

  • Al-Qaradawi, Yusuf: n.d., Al Halal wa al Haram fi al Islam (American Trust Publication, Indianapolis).

  • Al-Qaradawi, Yusuf: 1995, Dawr Al-Qiyam Wal-Akhlaaq Fi Al-Iqtisaad Al-Islaami (Maktabat Wahbah).

  • Al-Ansari Al-QurtubiAbi Abdullah (1966) Al-Jaami’ Le-Ahkaam al-Qur’an Daar Ihyaa’ Al-Turaath Al-Arabi Beirut

    Google Scholar 

  • D. M. Al-Ukhuwa (1983) The Ma’alim al-Qurba fi ahkam al-Hisbah. Reuben Levy Luzak London

    Google Scholar 

  • David Baron (1999) Moses on Management Pocket Books New York, NY

    Google Scholar 

  • Rafik Beekun (1997) Islamic Business Ethics IIIT Publications Herdon, VA

    Google Scholar 

  • T. L Beauchamp N. E. Bowie (Eds) (2001) Ethical Theory and Business Prentice Hall Upper Saddle River, NJ

    Google Scholar 

  • Denny, F. M.: 2004, ‘Islam and Ecology: A Bestowed Trust, Inviting Balanced Stewardship’ (http://environment.harvard.edu/religion/religion/islam/).

  • T. Donaldson L. E. Preston (1995) ArticleTitle‘The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications’ Academy of Management Review 20 IssueID1 65–91

    Google Scholar 

  • O. C. Ferrell (2004) ArticleTitle‘Business Ethics and Customer Stakeholders’ Academy of Management Executive 18 IssueID2 126–129

    Google Scholar 

  • Fink, R.: 2002, ‘The Fear of All Sums: CFO Survey’, CFO Magazine, August.

  • E. R. Freeman (1984) Strategic Management: A Stakeholder Approach Pitman Boston, MA

    Google Scholar 

  • E. R. Freeman (1994) ArticleTitle‘The Politics of Stakeholder Theory: Some Future Directions’ Business Ethics Quarterly 4 IssueID4 409–422

    Google Scholar 

  • E. R. Freeman (2001) A Stakeholder Theory of the Modern Corporation T. L. Beauchamp N. E. Bowie (Eds) Ethical Theory and Business prentice Hall Upper Saddle River, NJ 56–65

    Google Scholar 

  • R. A. Giacalone C. L. Jurkiewicz (2003) ArticleTitle‘Right from Wrong: The Influence of Spirituality on Perceptions of Unethical Business Activities’ Journal of Business Ethics 46 85–97 Occurrence Handle10.1023/A:1024767511458

    Article  Google Scholar 

  • J. L. Gibson J. M. Ivancevich J. H. Donnelly (2001) Organizations: Behavior, Structure and Processes Irwin Burr Ridge, IL

    Google Scholar 

  • Goodpaster, K.: 1991, ‘Business Ethics and Stakeholder Analysis’, Business Ethics Quarterly1(1).

  • International Institute of Islamic Thought: 2004, ‘Shari’ate Perspective on Organization and Accounting’, Unpublished manuscript.

  • M. Iqbal (1998) Distributive Justice and Need Fulfillment in an Islamic Economy Islamic Foundation Leicester, UK

    Google Scholar 

  • L. B. Jones (1995) Jesus CEO: Using Ancient Wisdom for Visionary Leadership Hyperion New York, NY

    Google Scholar 

  • L. Julian (2001) God is my CEO Adams Media Corporation Holbrook, MA

    Google Scholar 

  • C. L. Jurkiewicz R. A. Giacalone (2004) ArticleTitle‘A Values Framework for Measuring the Impact of Workplace Spirituality on Organizational Performance’ Journal of Business Ethics 49 129–142 Occurrence Handle10.1023/B:BUSI.0000015843.22195.b9

    Article  Google Scholar 

  • K. Lee D. P. McCann M. Ching (2003) ArticleTitle‘Christ and Business Culture: A Study of Christian Executives in Hong Kong’ Journal of Business Ethics 43 103–110 Occurrence Handle10.1023/A:1022967300183

    Article  Google Scholar 

  • Life Magazine:1996, June, p. 39.

  • A. Marcoux (2003) ArticleTitle‘A Fiduciary Argument Against Stakeholder Theory’ Business Ethics Quarterly 13 IssueID1 1–24

    Google Scholar 

  • R. K. Mitchell B. R. Agle D. J. Wood (1997) ArticleTitle‘Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts’ Academy of Management Review 22 853–886

    Google Scholar 

  • Osman, B.: 1999, ‘The Experience of the Sudanese Islamic Bank in Partnership (Musharakah) Financing as a Tool for Rural Development among Small Farmers in Sudan’, Arab Law Quarterly221–230.

  • M. Pava (1997) Business Ethics: A Jewish Perspective Ktav Publishing Hoboken, NJ

    Google Scholar 

  • M. Pava (1998) ArticleTitle‘The Substance of Jewish Business Ethics’ Journal of Business Ethics 17 603–617 Occurrence Handle10.1023/A:1006023619939

    Article  Google Scholar 

  • J. Pfeffer (1982) Organizations and Organization Theory Pitman Boston

    Google Scholar 

  • R. Phillips (2003) Stakeholder Theory and Organizational Ethics Berrett-Koehler San Francisco, CA

    Google Scholar 

  • Scholar Professional – Guide to Business:2000 (par Excellence Computing, Durban, South Africa).

  • C. Rice (1999) ArticleTitle‘Islamic ethics and its implications for business’ Journal of Business Ethics 18 IssueID4 345–358 Occurrence Handle10.1023/A:1005711414306

    Article  Google Scholar 

  • M. Saeed Z. U. Ahmed S. Mukhtar (2001) ArticleTitle‘International Marketing Ethics from an Islamic Perspective: A Value-maximization Approach’ Journal of Business Ethics 32 127–142 Occurrence Handle10.1023/A:1010718817155

    Article  Google Scholar 

  • Siddiqui, A.: 1997, ‘Ethics in Islam: Key Concepts and Contemporary Challenges’, Journal of Moral Education26(4).

  • Siddiqui, M.: 2002, ‘Khutbah at ISOC,’ Unpublished public speech.

  • D. Spar (2000) Hitting the Wall: Nike and International Labor Practices Harvard Business School Case Cambridge, MA

    Google Scholar 

  • I. Taymiyya (1966) Al Siyasatus Shariah Fi Islaahir Raaie war Raiiyyha or On Public and Private Law in Islam Beirut Khayats

    Google Scholar 

  • Uddin, S. J.: 2003, ‘Understanding the Framework of Business in Islam in an Era of Globalization: A Review’, Business Ethics: A European Review12(1).

  • M. Umar-ud-din (1991) The Ethical Philosophy of Al-Ghazzali Sh. Muhammad Ashraf Lahore, Pakistan

    Google Scholar 

  • InstitutionalAuthorNameUnited Nations Development Programme (2002) Arab Human Development Report 2002 United Nations Publications New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rafik I. Beekun.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Beekun, R.I., Badawi, J.A. Balancing Ethical Responsibility among Multiple Organizational Stakeholders: The Islamic Perspective. J Bus Ethics 60, 131–145 (2005). https://doi.org/10.1007/s10551-004-8204-5

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-004-8204-5

Keywords

Navigation