Assessing Islamic Business Ethical Practices Through Clients’ Perception

Abstract

This study evaluates the Islamic business ethics practices in Khyber Pakhtunkhwa (KP) province of Pakistan from the clients’ perspective and how they perceive it. The study focuses on three Shariah values i.e. obligatory values (Faraid), the prophet’s traditions (Sunnah) and the voluntary rectitude (Nawafil) and checks their impact of merchants’ business ethical practices. The Shariah values are further divided into nineteen Islamic business ethical values adopted from well-established prior studies. In addition to this, the study is also focused to assess the most ethical business sector among ten selected business sectors. The study was conducted in Khyber Pakhtunkhwa, which is a relatively conservative/religious province of the country. To achieve the objectives of the study, a quantitative method was adopted. The data was gathered through a well-designed structured questionnaire in various universities of Khyber Pakhtunkhwa, The data were analyzed through descriptive statistics and regression analysis. This research concluded that Islam has a significantly positive impact on individuals’ business ethical practices as perceived by the clients. Among other independent variables, the voluntary rectitude effect was found to be more significant in individuals’ business ethical practices. It is further concluded that most ethical practices are found in the communication and transport sectors while the least ethical sectors are hospitals, doctors, and solicitors. The study contributes to the established Islamic business ethics literature.