Corporate Governance in Islamic Financial Institutions: An Ethical Perspective

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The concept of unity refers to vertical dimension of Islam whereby man’s life on earth in its entirety relates eternally to God (Naqvi, 1981: 48). While unity depicts the vertical dimension, equilibrium denotes the horizontal dimension of Islam by which it is a binding moral commitment of every individual, institution, corporation or any kind of entities to uphold a delicate balance in all aspects of lives (Naqvi, 1981: 51). The axiom of free will then propagates the concept of natural freedom within certain limitation whereby it emphasizes on the element of balancing between the ‘individual freedom’ and ‘collective freedom’ (Naqvi, 1981: 52). Finally, the concept of ‘amanah’ _{or responsibility complements the Islamic}

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Islam insists on obligation to observe good character and behavior as the Prophet himself is sent to us for purpose of perfecting the best of character.

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