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The Importance of Ethics and Corporate Social Responsibility in Financial Markets: A Literature Review and Recommendations for Ethical and Islamic Banking
Abstract
This chapter mainly focuses on the literature about the relationship between ethics, corporate social responsibility, and financial markets, which is broad and diverse as well as multi-disciplined. Some are concerned only with ethical banking, while others seek to establish a financial system based on social responsibility to society and people. The studies essentially bring attention to the question of how banks should act in the face of the moral-economic dilemma. In fact, ethical aspect is much more valuable than economic profitability and includes a social responsibility approach. In the concept of ethical concerns and corporate social responposibility, the literature has been reviewed and problematic areas discussed for ethical and Islamic banking. Islamic finance and specifically Islamic banking can be seen as a new practice to bring corporate ethical responsibility and social justice into the financial and economic spheres.
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