David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 117 (3):601-613 (2013)
We argue that although halal certification could potentially reduce the high transaction costs related to buying Islamic financial products, in practice these costs are just replaced by transaction costs relating to the certification itself. It takes considerable time (2–3 months) and money (USD 122.000) to obtain a halal certification. Partially, this is because the market is highly concentrated and non-contestable. About 20 individual Sharia scholars control more than half the market, with the top 3 earning an estimated USD 4.5 million in fees per year. Moreover, this market seems plagued with problems, most notably a strong incentive for excessively lenient certification, lack of consensus on what is considered halal and sub-standard governance practices. We discuss solutions to these problems and conclude that a neutral non-profit government entity should assume the role of halal certifiers
|Keywords||Islamic finance Certification Transaction costs|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Geoffrey Williams & John Zinkin (2010). Islam and Csr: A Study of the Compatibility Between the Tenets of Islam and the Un Global Compact. [REVIEW] Journal of Business Ethics 91 (4):519 - 533.
Rafik I. Beekun & Jamal A. Badawi (2005). Balancing Ethical Responsibility Among Multiple Organizational Stakeholders: The Islamic Perspective. [REVIEW] Journal of Business Ethics 60 (2):131 - 145.
Daylian M. Cain, George Loewenstein & Don A. Moore (2007). The Dirt on Coming Clean: Perverse Effects of Disclosing Conflicts of Interest. International Corporate Responsibility Series 3:81-99.
Citations of this work BETA
Albert D. Spalding & Eun-Jung Katherine Kim (2015). Should Western Corporations Ban the Use of Shari’a Arbitration Clauses in Their Commercial Contracts? Journal of Business Ethics 132 (3):613-626.
Similar books and articles
Bryan W. Husted (1994). Honor Among Thieves. Business Ethics Quarterly 4 (1):17-27.
Sandra L. Christensen & Brian Grinder (2001). Justice and Financial Market Allocation of the Social Costs of Business. Journal of Business Ethics 29 (1-2):105-112.
Oliver E. Williamson (2009). Pragmatic Methodology: A Sketch, with Applications to Transaction Cost Economics. Journal of Economic Methodology 16 (2):145-157.
Colin Fisher & Shishir Malde (2011). Moral Imagination or Heuristic Toolbox? Events and the Risk Assessment of Structured Financial Products in the Financial Bubble. Business Ethics 20 (2):148-158.
I. I. I. Session, Transaction Costs and Informational Cascades in Financial Markets: Theory and Experimental Evidence.
Donald H. Schepers (2010). Challenges to Legitimacy at the Forest Stewardship Council. Journal of Business Ethics 92 (2):279 - 290.
Daniel G. Campos (2002). Assessing the Value of Nature: A Transactional Approach. Environmental Ethics 24 (1):57-74.
Lukasz Hardt (2011). An Inquiry Into the Explanatory Virtues of Transaction Cost Economics. Journal of Philosophical Economics 5 (1):120-147.
Shaheen Borna (1989). Illegal Products and the Question of Consumer Redress. Journal of Business Ethics 8 (6):499 - 505.
Kais Bouslah, Bouchra M’Zali, Marie-France Turcotte & Maher Kooli (2010). The Impact of Forest Certification on Firm Financial Performance in Canada and the U.S. Journal of Business Ethics 96 (4):551 - 572.
Pieter Jong, Antony Paulraj & Constantin Blome (2014). The Financial Impact of ISO 14001 Certification: Top-Line, Bottom-Line, or Both? Journal of Business Ethics 119 (1):131-149.
Thomas F. Cosimano (2004). Financial Institutions and Trustworthy Behavior in Business Transactions. Journal of Business Ethics 52 (2):179-188.
D. Bruce Johnsen (2009). The Ethics of "Commercial Bribery": Integrative Social Contract Theory Meets Transaction Cost Economics. [REVIEW] Journal of Business Ethics 88 (S4):791 - 803.
Kenneth S. Bigel (2000). The Ethical Orientation of Financial Planners Who Are Engaged in Investment Activities: A Comparison of United States Practitioners Based on Professionalization and Compensation Sources. [REVIEW] Journal of Business Ethics 28 (4):323 - 337.
Added to index2012-11-16
Total downloads5 ( #525,003 of 1,911,742 )
Recent downloads (6 months)1 ( #458,113 of 1,911,742 )
How can I increase my downloads?