Ethical Dimensions of Islamic Finance: Theory and Practice (Palgrave Studies in Islamic Banking, Finance, and Economics)

This book provides an introductory theoretical foundation of the ethics embedded in Islamic economics and finance, and it shows how this ethical framework could pave the way to economic and social justice. It demonstrates how Islamic finance -- a risk-sharing and asset-backed finance -- has embedded universal values, ethical rules, and virtues, and how these qualities may be applied to a supposedly value-neutral social science to influence policy-making. This book argues that ethical and responsible finance, such as Islamic finance, could lead the efforts to achieve sustainable economic development. Iqbal and Mirakhor then conduct a comparative analysis of Islamic and conventional financial systems and present Islamic finance as an alternative that can address today's growing problems of inequality, social injustice, financial repression, unethical leadership, and lack of opportunity to share prosperity Front Matter ....Pages i-xv Ethics and Finance (Zamir Iqbal, Abbas Mirakhor)....Pages 1-24 Moral Sense and Ethics in Economics and Finance (Zamir Iqbal, Abbas Mirakhor)....Pages 25-59 Key Virtues of Business Ethics in Islam (Zamir Iqbal, Abbas Mirakhor)....Pages 61-80 Business Ethics in Islam (Zamir Iqbal, Abbas Mirakhor)....Pages 81-102 Ethical Dimensions of Islamic Economics and Finance (Zamir Iqbal, Abbas Mirakhor)....Pages 103-134 Sacralizing Finance: Risk-Sharing Islamic Finance (Zamir Iqbal, Abbas Mirakhor)....Pages 135-162 Ethical and Responsible Finance for Development (Zamir Iqbal, Abbas Mirakhor)....Pages 163-187 Back Matter ....Pages 189-192