Grameen Model and its ethical inclinations to Islamic Microfinance System: A Narrative-Textual Case Study

Abstract

This study focuses on an in-depth literature review to understand the Islamic microfinance as a system and grameen model as a concept all embedded in ethical concern for shared values. The concept of Grameen model and its ethical behavior have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing. The paper addresses the Grameen model and its ethical relevance to the benefits and success of Islamic microfinance in modern economy. the Grameen model has always offered the concept of social microfinance and such a model results in a more fulfilling work life and career. It is a radically different approach to doing business that emphasizes making money as its main goal, but not for the sake of wealth alone. In the same sense, Islamic microfinance aimed to focus on profit/loss sharing by using the funds on economic generating, investing and trading activities to make a profit and share that profit with all the depositors and shareholders, whilst protecting the fabric of our society without engaging in activities prohibited and harmful to the society. With this in mind, the entire money-making process can be sanctified so that it becomes a holy and noble pursuits. To achieve the above, this research paper draw lessons from the activities of an impeccable vision and salvaging activities of illustrious personage and veteran of many years standing from Bangladesh in his quest for promoting economic development and eradication of poverty among rural dwellers. This paper considered Islamic microfinance as a tool that could be used to achieve the necessary economic and social security that a country would need today leading to the overall development of humanity. As the western culture offers classic microfinance as the way to do business and in recent years, postmodernism has nominated a new model-microcredit to supersede the statuesque. This study, in general, recommended for the revitalization of Islamic civilization that would geared towards a paradigm shift to now novel concept of spiritual microfinance as a way to stimulate business and get closer to God simultaneously and as well stimulates social entrepreneurs who must focus on the goal of having a healthy income statement and simultaneously championing some sort of social healing enterprise. Keywords: Ethical finance, Investment, Islamic microfinance, microcredit, Shari’ah.