1. Avoiding riba (interest): Islamic finance prohibits the charging or paying of interest on loans, as it goes against the principles of fairness and equality. Financial persons working in Islamic finance should be aware of this prohibition and ensure that all transactions are conducted in accordance with Islamic principles.
2. Promoting social responsibility: Islamic finance places a strong emphasis on social responsibility and helping those in need. Financial persons working in Islamic finance should strive to promote social responsibility through their work, such as by investing in projects that benefit the community or supporting charitable initiatives.
3. Ensuring transparency and honesty: Islamic finance values honesty and transparency in all financial transactions. Financial persons working in Islamic finance should ensure that all dealings are carried out in an honest and transparent manner, and maintain high ethical standards in their work.
4. Avoiding haram (forbidden) investments: Islamic finance prohibits investing in activities that are considered haram, such as gambling, alcohol, and pork products. Financial persons working in Islamic finance must be mindful of these prohibitions and ensure that all investments comply with Islamic principles.
5. Upholding ethical conduct: Financial persons working in Islamic finance should uphold high ethical standards in all aspects of their work. This includes treating customers, colleagues, and partners with respect and dignity, maintaining confidentiality, and avoiding conflicts of interest. By upholding ethical conduct, financial persons can earn the trust and confidence of their clients and contribute to the overall integrity of the Islamic finance industry.
Ethical banking involves consciousness of how banking practices affect society and the
environment. Financial institutions that emphasize ethical practices seek profit like any other
financial institution. However, they strive to generate earnings without sacrificing principles
or causing harm.
Discuss any FIVE (5) best ethics that should be performed by the financial person who works in Islamic financial system. List 5 best ethics
1 answer