Is Islamic Banking Ethical: An Inquiry Based on SLO Framework (A Case of Meezan Bank)

Abstract

This research revolves around the question “is Islamic Banking ethical?” To describe what is ethical SLO framework has been used. SLO refers to the ongoing acceptance of a company or industry's standard business practices and operating procedures by its stakeholders. For this study HR practices are considered as in the SLO framework context. In this study, the objective was to find out whether Islamic Banking is ethical or not by looking deeper into its HR practices. To conduct the research Meezan Bank was chosen. The employees of Meezan Bank were interviewed. The results showed that Meezan Bank is working ethically as an Islamic Bank. People associated with Meezan Bank believed that Islamic Banking is ethical; as they are fulfilling all the obligations towards Islam. It is not harming any personnel or hurting their sentiments. Although Islamic Banking is a newer concept and need some improvement on the whole but still the organization socially accepted and is ethical.

Keywords: Islamic Banking, Social License to Operate, Ethics, Human Resources, Meezan Bank, Qualitative Research, Organizational Practices