Ethics in Islamic Finance

Which is the correct definition of ethics?

• a set of moral principles that distinguish what is “right from what is wrong”.

• a set of moral principles that distinguish what is “wrong from what is right”.

• a set of immoral principles that distinguish what is “right from what is wrong”.

• •a set of immoral principles that distinguish what is “wrong from what is right”.

Ethical norms include the following EXCEPT

• LAW

• MORAL

• ETHICS

• ACTION

There are three (3) broad factors that will affect the way the individuals carry themselves in their business lives EXCEPT: 

• Individual factors

• Legal interpretations

• Organisations

• Monetory

Ethics are important in financial sectors

• Maintaining good corporate governance such as good Board practice, disclosure and transparency and maintaining shareholders' rights.

• If the company’s reputation is perceived to be less ethical, investors are interested to buy or hold shares in the company

• Ethical behaviour is crucial to maintaining a positive corporate image in the public's eyes, in turn, will attract new investors.

Related Concepts of Akhlaq

• Relationship between Outer Self (Physical Body) and Inner Self (Soul)

• Relationship between Outer Self (Physical Body) and Other people

• Relationship between Outer Self (Physical Body) and Action

Which of the following statements best explained Ihsan

• Ihsan denotes doing things sincerely, completely, in a tasteful manner and correctly.

• Ihsan denotes doing things easily, completely, in a tasteful manner and correctly.

• Ihsan denotes doing things sincerely, completely, in a tasteful manner and based on owns thought.

Akhlaq Guidelines In Business 

• Fraud and deceit

• Monopoly

• Keep the promise

• No False Promises / Claims

Among the key issues in corporate governance are EXCEPT

• the roles and responsibilities of the Board of Directors

• the effectiveness of the company’s systems of internal control and risk management

• Transparency and provision of information to stakeholders

• the structure and composition of the stakeholders

Bank Negara Malaysia (BNM) Guidelines on Corporate Governance mentioned that

• Directors should abstain from any discussions or decision making by the Board, where a conflict of interest or potential conflict of interest arises

• Directors should involve in the discussions or decision making by the Board, where a conflict of interest or potential conflict of interest arises

Fair debt collection practices are

• resorting to intimidation or violence

• giving their borrowers written notice

• not adhering to relevant information and secrecy provisions

• ensuring that customer information provided to debt collectors is clear and accurate