Abstract

Purpose: This research study aims at the identification of loopholes in the business ethical framework of Islamic Financial Institutions (IFIs) in Pakistan. Design/Methodology/Approach: The researchers analysed the business ethics of IFIs in Pakistan with the help of Global Reporting Initiative (GRI) Sustainability Reporting Standards and Islamic Business Ethics. Findings: Our analysis indicates that IFIs do not seem to follow the ethical principles of Islam in true spirit for their business ethical framework. Among all IFIs in Pakistan, Takaful companies are overall best performers in GRI Sustainability Reporting Standards. Similarly, full-fledged Islamic banks and Islamic banking windows of conventional banks are the best performers in applying or disclosing Islamic Business Ethics in their annual reports. Originality/Significance: This may be perhaps the first paper which explores the business ethics of IFIs in Pakistan w.r.t to GRI standards and Islamic Business Ethics. Research Limitations/Implications: The paper focuses only on annual reports of IFIs for five years. Practical and Social Implications: This paper can provide food for thought to rethink the process of the current business ethical framework of IFIs in Pakistan. Furthermore, it suggests some practical ways for achieving higher levels of sustainable social, economic and environmental development of the country.

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Keywords

Business Ethics, Islamic Financial Institutions, Pakistan, Sustainable Economic, Social and Environmental Development, Islam