Robert King Merton’s article published in Science popularized the Matthew Effect: “For to everyone who has, more will be given and he will grow rich; but from the one who has not, even what he has will be taken away”. The Matthew Effect prevails at the individual, organization-industry, and country-global levels. This interdisciplinary review connects the Holy Bible with agency theory, tournament theory, corporate social responsibility, prospect theory, behavioral economics, the psychology of money, and business ethics in the literature. I (...) expand the Matthew Effect, incorporate prospect theory and the love of money, and develop a multi-level theory of the Matthew Effect in Monetary Wisdoms: Individual decision-makers apply their deep-rooted values as a lens, frame the critical concerns in the immediate and omnibus contexts, and maximize expected utility and ultimate serenity-happiness across people, context, and time at the individual, organization-industry, and country-global levels. The rich serve God, enjoying the ultimate joy and happiness. The poor serve mammon, destroying their lives. The rich get richer. The poor get poorer. Scholars of business ethics and CSR must explore this phenomenon in future studies. (shrink)

Organizations of all types are vulnerable to frauds. Banks contribute to a significant extent in a country’s economic development by generating a large part of revenue in the service sector. Deterrence of fraud is impossible without understanding it. The present study attempts to extract themes by highlighting the major areas of the bank fraud literature within a specific time frame of 2000–2019 and finding the research gaps citing the future scope for research. Post the review of existing literature, using thematic (...) analysis, two major themes were observed by the author, namely, “regulatory and compliance”–based studies and studies related to the “socio psychological” aspect of the literature. An examination of themes indicated that the popularity of the research areas shifted from accounting frauds or balance sheet frauds in early 2000s to areas such as cyber frauds and identity theft at the later decade. The present study paves way forward for future research on the bank customer’s vigilance, experiences and perspectives on frauds. Other significant areas of research include coping mechanisms with the various challenges faced by banks in marketing themselves after any major fraud occurrence. (shrink)

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

While the link between servant leadership and organizational citizenship behavior has been established, the individual-level mechanisms underlying this relationship and its boundary conditions remain poorly understood. In this study, we investigate the salience of the mediating mechanisms of leader–member exchange and psychological empowerment in explaining the process by which servant leaders elicit discretionary OCB among followers. We also examine the role of followers’ proactive personality in moderating the indirect effects of servant leadership on OCB through LMX and psychological empowerment. Analysis (...) of survey data collected from 446 supervisor–subordinate dyads in a large Chinese state-owned enterprise suggests that while servant leadership is positively related to subordinate OCB through LMX, psychological empowerment does not explain any additional variance in OCB above that accounted for by LMX. Moderated mediation tests confirm the moderating effect of proactive personality through LMX. By providing a nuanced understanding of how and when servant leadership leads followers to go above and beyond their job role, our study assists organizations in deciding how to develop and utilize servant leaders in their organizations. (shrink)

This article examines the role of Islamic ethics in the marketing field. It presents Islamic contributions to the field by referencing original sources and concepts that are often not easily available to researchers and practitioners alike. In foundational texts, Islamic ethics have their own marketing practice prescriptions, practices that are driven by a discipline which shuns any dichotomy between organizational and societal interests. The paper underscores the role of marketers in improving the well-being of individuals and the community and presents (...) a framework for analyzing the link between Islamic ethics and societal welfare vis-a-vis marketing. Several marketing issues are identified and the contributions of Islamic teachings are presented. This paper, too, identifies emerging ethical dilemmas and the necessity to tackle them in a way that strengthens the role of marketing in societal affairs and ensures morally driven conduct. (shrink)

Using a time-lagged design, we tested the main effects of Islamic Work Ethic (IWE) and perceived organizational justice on turnover intentions, job satisfaction, and job involvement. We also investigated the moderating influence of IWE in justice–outcomes relationship. Analyses using data collected from 182 employees revealed that IWE was positively related to satisfaction and involvement and negatively related to turnover intentions. Distributive fairness was negatively related to turnover intentions, whereas procedural justice was positively related to satisfaction. In addition, procedural justice was (...) positively related to involvement and satisfaction for individuals high on IWE however it was negatively related to both outcomes for individuals low on IWE. For low IWE, procedural justice was positively related to turnover intentions, however it was negatively related to turnover intentions for high IWE. In contrast, distributive justice was negatively related to turnover intentions for low IWE and it was positively related to turnover intentions for high IWE. (shrink)

Substantial literature has investigated the relationship between religiosity and ethical decision-making (the what), while lesser consideration has been given to exploring why decisions are made. As part of a larger study, this paper aims to delve beyond the descriptive relationship between religiosity and ethical decision-making of Muslim employees in Malaysia. We analyse the qualitative data received from 160 employees by using thematic analysis. Our results reveal that, while religious values are important for Muslims in Malaysia, there are other factors that (...) are also pertinent when making decisions at work, namely the organization’s interest and the context of the decision. We also found that individuals’ reasoning based on Islamic teachings is embedded in rules and regulations, which suggests lower levels of ethical reasoning. This study extends the current understanding of the processes of ethical reasoning in highly religious contexts by individuals at their workplace. Implications and suggestions for future research are discussed. (shrink)

This study utilises higher objectives postulated in Islamic moral economy or themaqasid al-Shari’ahtheoretical framework’s novel approach in evaluating the ethical, social, environmental and financial performance of Islamic banks.Maqasid al-Shari’ahis interpreted as achieving social good as a consequence in addition to well-being and, hence, it goes beyond traditional (voluntary) social responsibility. This study also explores the major determinants that affectmaqasidperformance as expressed through disclosure analysis. By expanding the traditionalmaqasid al-Shari’ah,, we develop a comprehensive evaluation framework in the form of amaqasidindex, which (...) is subjected to a rigorous disclosure analysis. Furthermore, in identifying the main determinants of themaqasiddisclosure performance, panel data analysis is used by including several key variables alongside political and socio-economic environment, ownership structures, and corporate andShari’ahgovernance-related factors. The sample includes 33 full-fledged Islamic banks from 12 countries for the period of 2008–2016. The findings show that although during the nine-year period the disclosure ofmaqasidperformance of the sampled Islamic banks has improved, this is still short of ‘best practices’. Through panel data analysis, this study finds that the Muslim population indicator, CEO duality,Shari’ahgovernance, and leverage variables positively impact the disclosure ofmaqasidperformance. However, the effect of GDP, financial development and human development index of the country, its political and civil rights, institutional ownership, and a higher share of independent directors have an overall negative impact on themaqasidperformance. The findings reported in this study identify complex and multi-faceted relations between external market realities, corporate andShari’ahgovernance mechanisms, andmaqasidperformance. (shrink)

In the present research, we examine the relation between leader mindfulness and employee performance through the lenses of organizational justice and leader-member relations. We hypothesize that employees of more mindful leaders view their relations as being of higher leader-member exchange quality. We further hypothesize two mediating mechanisms of this relation: increased interpersonal justice and reduced employee stress. In other words, we posit that employees of more mindful leaders feel treated with greater respect and experience less stress. Finally, we predict that (...) LMX quality serves as a mediator linking leader mindfulness to employee performance—defined in terms of both in-role and extra-role performance. Across two field studies of triadic leader-employee-peer data and dyadic leader–employee data, we find support for this sequential mediation model. We discuss implications for theorizing on leadership, organizational justice, business ethics, LMX, and mindfulness, as well as practical implications. (shrink)

A new research area linked to ethics, virtues, and morality is servant leadership. Scholars are currently seeking publication outlets as critics debate whether this new leadership theory is significantly distinct, viable, and valuable for organizational success. The aim of this study was to identify empirical studies that explored servant leadership theory by engaging a sample population in order to assess and synthesize the mechanisms, outcomes, and impacts of servant leadership. Thus, we sought to provide an evidence-informed answer to how does (...) servant leadership work, and how can we apply it? We conducted a systematic literature review (SLR), a methodology adopted from the medical sciences to synthesize research in a systematic, transparent, and reproducible manner. A disciplined screening process resulted in a final sample population of 39 appropriate studies. The synthesis of these empirical studies revealed: (a) there is no consensus on the definition of servant leadership; (b) servant leadership theory is being investigated across a variety of contexts, cultures, and themes; (c) researchers are using multiple measures to explore servant leadership; and (d) servant leadership is a viable leadership theory that helps organizations and improves the well-being of followers. This study contributes to the development of servant leadership theory and practice. In addition, this study contributes to the methodology for conducting SLRs in the field of management, highlighting an effective method for mapping out thematically, and viewing holistically, new research topics. We conclude by offering suggestions for future research. (shrink)

Contemporary Islamic management scholars have agreed that values are embedded in quality management. Their agreement is grounded on the famous prophetic tradition encouraging diligence in work, uttered more than 1400 years ago, which has been narrated authentically. However, little studies have specifically indicated its application in quality management activities. As quality management is initiated in the West, little attention has been given to Islamic perspective of the discipline. However, as the Japanese had successfully implemented quality management in their cultural value (...) perspective, many parties come to acknowledge the significance of values. In the literature, various Islamic values have been linked to quality management practice. While studies analyzing and categorizing them is limited, several values are redundant or being termed differently, though they are similar in crux. This article compiles the values and categorizes them depending on similar bases of Quranic verses or Prophetic traditions. The categorization proposes a set of Islamic values related to quality management practice, based on a simple frequency analysis matrix. Finally, this article concludes with prospects for future research. (shrink)

The main aim of this study is to undertake a critical examination of the ethical and developmental performance of an Islamic bank as communicated in its annual reports over a period of 28 years. Islami Bank Bangladesh Limited’s ethical performance and disclosures are further analyzed through interviews conducted with the bank’s senior management. The key findings include an overall increase in ethical disclosures during the study period. However, the focus on various stakeholders’ needs has varied over time reflecting the evolving (...) nature of the Islamic finance industry over the last three decades. Based on a secular economy, IBBL focused in the first two decades on the “Particular” Shariah compliance disclosure as a way of establishing its reputation and differentiating itself from conventional banks in a dual banking system. Post 2005, the ethical performance and disclosure shifted to more “Universal” disclosures such as sustainability, charity, employees, and community related disclosures signaling responsible conduct and the bank’s adoption of a “wider stakeholder approach.” However the bank is still failing to provide full disclosure on certain significant categories such as sources and uses of disposable income, thereby contradicting the principles of full and comprehensive disclosure and accountability. In addition, the structure of IBBL’s investment portfolio reveals an overreliance on debt-based financial instruments and a shortcoming in fulfilling the developmental and social objectives of Islamic finance. This is evidenced by the “qualified” Shariah Supervisory Board reports that the bank consistently received. This research provides further evidence that Islamic banking and Finance in its current practices reflect the “global” and the “local” influences in an era dominated by global conventional finance. (shrink)

The dominant approach to understanding Islamic Business Ethics has been based almost exclusively on either interpretations of the Qur’an and Sunna or influenced by Western understanding of Islam and ethics. However, there is a rich—largely ignored-tradition of ethical analysis conducted by Muslim philosophers which would broaden our understanding of Islamic ethics and hence IBE. We seek to correct this imbalance by examining works of Al-Ghazali, an early Muslim philosopher, scholar, and mystic. His approach to Sufism, combining an interpretation of revelation (...) with reason, can contribute to new developments in business ethics scholarship and practice especially in Muslim communities. His thought portrays a vibrant work ethic that, while based in Sufism, has important practical implications for business. We argue that including such historically and contextually recognized perspectives in our understanding of BE, both in theory and in practice, would work well with an audience that looks to Islam as a source of justice and proper moral conduct. (shrink)

Drawing from conservation of resources theory, this study investigates the interactive effect of employees’ family-to-work conflict and Islamic work ethic on their helping behavior, theorizing that the negative relationship between family-to-work conflict and helping behavior is buffered by Islamic ethical values. Data from Pakistan reveal empirical support for this effect. Organizations whose employees suffer resource depletion at work because of family obligations can still enjoy productive helping behaviors within their ranks, to the extent that they support relevant work ethics.

This study examines the influences of individual behaviour and organizational commitment towards the enhancement of Islamic Work Ethics at the Royal Malaysian Air Force. It involved 312 respondents of different backgrounds and the data were analysed using descriptive analysis and structural equation modelling analysis. The results show that both individual behaviour and organizational commitment have significantly correlated with the enhancement of IWE. The findings could help managers especially of multinational corporations operating in Muslim countries to enhance the company performances by (...) instituting elements of IWE in their organizations. This can be done by promoting the understanding of IWE and providing a conducive environment to practice it. (shrink)

Learning and development are often linked in the organization studies literature. To understand the dynamics of organizational moral development, this paper utilizes the notion of organizational moral learning (OML). It is explored using three perspectives: organizational learning, Islamic and critical realist perspectives. The perspectives are then synthesized together to form a single framework, called the OML by ‘spiritual hearts’ framework. At the centre of the framework is the spiritual heart, the seat of profound understanding and moral consciousness. The heart plays (...) a central role in organizational moral development, especially with regard to its potential to be ‘purified’ and corrupted. Two extreme parameters then are created: on one side is the ‘purified hearts’ with high moral consciousness contributing towards OML, and on the other is the ‘corrupted hearts’ with high immoral consciousness contributing towards organizational immoral learning. Between the two extremes are the ‘diseased hearts’, possessing a mixture of moral and immoral consciousness to various degrees, and have the potentials to contribute to both moral and immoral developments. The paper further suggests strategies to facilitate OML and simultaneously inhibits organizational immoral learning. (shrink)

Entrepreneurs with social goals face various challenges; insights into how these entrepreneurs experience and appreciate their work remain a black box though. Drawing on identity, conservation of resources, and person–organization fit theories, this study examines how entrepreneurs’ social value creation beliefs relate to their work-related well-being (job satisfaction, work engagement, and lack of work burnout), as well as how this process might be influenced by social concerns with respect to the common good. Using data from the German Public Value Atlas (...) 2015 and 2019 and the Swiss Public Value Atlas 2017, a three-study design analyzes three samples of entrepreneurs in Germany and Switzerland. Study 1 reveals that entrepreneurs report higher job satisfaction when they believe their organization creates social value. Study 2 indicates that these beliefs relate negatively to work burnout; entrepreneurs’ perceptions of having meaningful work mediate this relationship. Study 3 affirms and extends these results by showing that a sense of work meaningfulness mediates the relationship between social value creation beliefs and work engagement and that this mediating role is more prominent among entrepreneurs with strong social concerns. This investigation thus identifies a critical pathway—the extent to which entrepreneurs experience their work activities as important and personally meaningful—that connects social value creation beliefs with enhanced work-related well-being, as well as how this process might vary with a personal orientation that embraces the common good. (shrink)

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

This study was conducted to investigate the effect of Islamic work ethic on work outcomes . The study used a sample of 49 employees from 10 institutions of Islamic microfinance in Demak regency, Central Java Indonesia. The empirical testing indicates that Islamic work ethic has positive effects on both job satisfaction and organizational commitment; whereas there is no significant evidence of the effect of Islamic work ethic on turnover intention. Implication, limitation and suggestion for future research are discussed.