General Information

Course Description

The primary aim of this course is to explore the role of ethics and governance within Islamic economics and financial institutions. The course begins with a discussion on the meaning and foundations of ethics, before moving into real-life ethical dilemmas—cases where the distinction between right and wrong is not always clear-cut. Students will be encouraged to critically analyze such conundrums, debate alternative perspectives, and reflect on how ethical reasoning shapes individual and institutional behavior.

In addition to ethics, the course examines the structures of governance in Islamic financial institutions, with a focus on Shariah compliance, regulatory frameworks, best practices, and strategic alignment with long-term stakeholder value. By linking ethical principles with governance mechanisms, students will gain an integrated understanding of how policies, decisions, and behaviors influence the credibility and sustainability of Islamic institutions.

Expectations and Goals

By the end of the course, students should be able to:

• Demonstrate a solid understanding of ethical concepts and theories, particularly as they relate to Islamic economics.
• Analyze complex ethical dilemmas where the “right” choice may not be obvious, and defend their reasoning with clarity and evidence.
• Identify and assess the consequences of ethical and governance breaches within Islamic financial institutions.
• Apply governance frameworks and best practices to promote integrity, transparency, and accountability in organizational contexts.
• Develop the ability to link ethical reflection with practical decision-making in Islamic economic and financial settings.

Course Materials

Required Materials

• Foundations of Shari'ah Governance of Islamic Banks, Ginena, Karim ,Hamid , Azhar. Wiley, 2015.
• IFSB Standard 30: Islamic Financial Services Board (2023). Revised Guiding Principles on Corporate Governance for Institutions Offering Islamic Financial Services (Banking Segment) – Exposure Draft ED-30. Kuala Lumpur: Islamic Financial Services Board. Retrieved from https://www.ifsb.org

Additional Materials

• Tricker, B. (2008). Corporate governance: Principles, policies and practices. Oxford University Press.
• Iqbal, Z., & Lewis, M. K. (2009). An Islamic perspective on corporate governance. Elgar Publishing.
• Coyle, B. (2007). Essence of corporate governance. ICSA Publishing.
• Islamic Financial Services Board (IFSB), & The World Bank. (2017). Corporate governance practices in Islamic banks 2017. IFSB and World Bank.
• IFSB Standard 10: Islamic Financial Services Board (2009). Guiding Principles on Shari`ah Governance Systems for Institutions Offering Islamic Financial Services (IFSB-10). Kuala Lumpur: Islamic Financial Services Board.

Grading Scheme

Additional Information and Resources

Attendance: Students are expected to adhere to the attendance requirements. Students who fail to meet the minimum 70% attendance rate will be barred from taking the final exam.

Academic Integrity: Students are expected to adhere to the ethical code of Istanbul Sabahattin Zaim University, and you commit to these principles by enrolling in this class. Academic dishonesty in any form is unacceptable, and penalties range from failing the exam to being dismissed from the university. We consider any violation of academic integrity to be a very serious matter.

Classroom Behavior:

• Everyone is strongly encouraged to ask questions and make comments during the class.
• Please turn off cell phones and other devices unless required by the lecturer.
• Please arrive on-time and expect to leave at the end of class.