Business ethics and corporate social responsibility comparative approach between capitalism, socialism and Islamic economy

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Abstract

The purpose of this study is to present contemporary trends in the field of business law through comparative analysis by presenting the similarities and differences regarding issues related to business ethics and corporate social responsibility (CSR) within the three economic systems, capitalism, socialism, and Islamic economics. The concept of the capitalist economy is based on capital and has the welfare of large corporations as a priority. Socialist economics prioritizes the interests of the state, while Islamic economics is human-centered and it prioritizes the well-being of the individual (Migdad, 2022). Business ethics is a very important factor that should be present in all segments of society. The importance of business ethics is particularly evident in modern society, which is burdened by numerous crises and contradictions, both globally and locally. The need for good corporate governance is important as it helps companies to meet their capital needs beyond traditional sources of financing, in order to expand and be internationally competitive. In a globalized economy, as we live today, companies in countries with weak corporate governance systems are less competitive in the market. Good corporate governance serves as a defense mechanism against corporate scandals and potential corporate tortious and criminal liability (Aziri, 2020).

Keywords: Islam, Capitalism, Socialism, Business, Interest, Ethics, Corporate Social Responsibility

Authors’ individual contribution: Conceptualization — B.N. and R.M.; Methodology — B.N. and R.M.; Data Curation — B.N. and R.M.; Investigation — B.N. and R.M.; Writing — Original Draft — B.N. and R.M.; Writing — Review & Editing — B.N. and R.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K200, M14, G33, G34

Received: 12.06.2022
Accepted: 22.11.2022
Published online: 24.11.2022

How to cite this paper: Nuredini, B., & Matoshi, R. (2022). Business ethics and corporate social responsibility comparative approach between capitalism, socialism and Islamic economy [Special issue]. Corporate Governance and Organizational Behavior Review, 6(4), 208–220. https://doi.org/10.22495/cgobrv6i4sip2