3. a Shariah and professional perspective in situations

3. THE FRAMEWORK OF THE ETHICAL CODE

The ethical values consist of three major parts which are

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

·        
Shariah foundations
of financial services marketing ethics.

·        
Principles of ethics
for financial services marketing.

·        
Rules of ethical
conduct for financial services marketing.

The first part states Shariah foundations and principles of faith on
which the ethical principles for financial services marketing.

The second part comprises the general ethical principles de from Shariah
foundations and those contained in available codes of professional provided the
latter do not contravene the Shariah rules principle.

The third part, a procedural section includes the rules of ethi conduct
derived from the general ethical principles laid down in the second section.

These rules meant to provide guidance for the
financial services to what is and what is not behaviour from a Shariah and
professional perspective in situations that involve ethical issues which in the
course of performing professional duties or services.

 

3.1 Shariah Foundations of Financial Services
Marketing

 

Ethics are integral
part of Islamic Shariah. Islam accords them high value and considers them one
of the objectives of as by the Prophetic tradition: “I have been sent to
complement the most noble morals” (narrated by Ahmad). It is known
that some of fundamentals of ethics which are exhorted by Islam are also human
thought, while others are unique to revealed faiths, particularly Islam, which
was their culmination. The major faiths, foundation of financial services
marketing ethics are the following:

 

3.1.1 Integrity

 

Islam is a religion that highly values integrity
and makes it govern all acts. Islam also values the capability to perform
duties, which requires the financial planner and others who are in charge be
competent and adequately qualified.

This is confirmed in the Holy Qur’an: “truly
the best of men for thee to employ is the (man) who is strong and trusty”
(al-Qasas, 28:26) and also in the saying of the Prophet (saw): “Every one
of you is a shepherd and every one of you is responsible for his flock”
(narrated by al-Bukhari and Muslim); and “Give back the trust to whoever
has entrusted you with it (narrated by al-Tabrani in his Mujam).

The great importance accorded to may be fact that
Islam itself is considered a trust for those who are following it. This
requires them to be true to Allah, themselves and to their societies. This is
established in Allah’s saying: “We did indeed offer the trust to the
Heavens and the Earth and the Mountains; but they refused to undertake it,
bring afraid thereof but man undertook it: he was indeed unjust and
foolish” (al-Ahzab, 33:72)

 

3.1.2 The Principle
of Vicegerency of Humanity on Earth

 

Allah expressed the
principle of vicegerency in the Holy Qur’an: I will create a vicegerent on
earth” (al-Baqarah 9:30); and “It is He who hath made you the
inheritors of the earth” (al-an’am 6:165) and “It is He who hath produced you
from the earth and settled you therein” (Hud, 11:61)

 

Meaning He you with
the task of developing the earth. This vicegerency is based on the principle
that the supreme of property that of the Allah the Almighty, and that man’s
ownership of property is not an end in itself, but a means to provide a decent
life for him and for his family and society. Man should also observe commandments
and prohibitions of Allah the mighty in owning property and the disposing of
it, because he is responsible for it property and will be held accountable for
the way he has acquired it and how he used it, as recorded in the hadith narrated
by al-Tabrani in his mu’jam al-Kabir.

 

Shariah has pervasive
objectives, one of which being the preservation of property. That is, property
and funds should not be squandered and wasted uselessly or used in prohibited
matters (e.g. usurious transactions) or traded unjustly or by denying the
rights established in it for Allah the Almighty and for His servants. Anything
that is prohibited in Shariah should not be given neither verbal nor with
documentary support in any way whatsoever. Allah, the Almighty, says: “Help ye
one another in righteousness and piety, but help ye not one another in sin and
rancor” (al-Ma’idah, 5:2),

The accountant,
therefore, has to comply with this principle in performing his professional
duty

3.1.3 Sincerity

 

This means that the person who perform financial services marketing
should seek to obey Allah in performing his work, and not to seek hypocrisy,
fame, flattery boasting or ostentation. The sincerity entails that the financial
services marketing does not subject himself to external influences or pressures
but applies himself to his work as a religious commitment as a performance of
his professional duty. Thus, his ordinary occupational
and professional duty turns into a form of worship, because one of the
established Shariah fundamentals is that good intention turns a habit into
worship. Hence, the financial services marketing becomes worthy of reward from
Allah the Almighty, apart from the material gain, and the usual praise he receives
for hiss efforts without making such gains and praise his sole objective.

 

3.1.4 Piety

 

Piety is fearing
Allah in secret and in public as a way of protecting one’s self from adverse
consequences as a result of departure from the Shariah, particularly when
property is involved, which diverts man’s attention and leads him into transgression.
Piety is realized by observing Allah’s commandments and respecting His
prohibitions. One of the prerequisites of this is the righteous deed, enjoining
good evil, and that man guards himself against being led astray. Allah the Almighty
says: “O ye who believe Fear Allah as He should be feared” (Al-‘Imran,
3:102). He also says: “For those who fear Allah, He ever prepares a way out; He
provides for him from could expect” (al Talaq, 65:2-3) Another verse,
Allah says: “By the time, verily man is in loss, except such as have faith
and do righteous deeds, and (join together) in the mutual enjoining of truth,
and of patience and constancy” (al- Asr, 103:1-1); and He also says:
“Let there arise out of you a band of people inviting to all that is good,
enjoining what is right and forbidding what is wrong: They are the ones to attain
felicity” (Al-Imran). The financial services marketer, therefore, has to fear
Allah in performing his professional duty

 

3.1.5 Righteousness and Making One’s Work Perfect

 

The financial
services marketer should not only confine himself to performing his
occupational and professional duties, but should also strive to attain the
degree of righteousness and perfection in his work by performing the duties
assigned to him in the best manner possible. This cannot be realized except
through academic qualifications, practical experience and acquisition of
religious knowledge, which is a religious duty in accounting work.

 

3.2 Principles of ethics for financial services
marketing

 

The Shariah foundations of the ethical principles
for financial and the principles contained in the current codes of professional
ethics for financial services marketing provided that these principles do not
contravene the Shariah rules and principles. The following principles for
financial services marketing are derived:

 

3.2.1 Trustworthiness

 

The financial services marketing should be trustworthy
and honest in performing his professional duties or services. Trustworthiness
also entails that the financial services marketer should have a high degree of truthfulness,
honesty and probity, and that he should respect the confidentiality of information
acquired in the course of performing professional services to his organization
or his client. Further, the financial services marketer should not deliberately
present or promote facts untruthfully.

 

3.2.2 Legitimacy

 

The financial services marketer should make certain
of the legitimacy of everything relating to his performing professional duties
or services according to Shariah rules and principles.

 

3.2.3 Objectivity

 

The institution of financial services marketing
should be fair, impartial and unbiased, free from conflicts of interest and
independent in fact as well as in appearance. Objectivity also entails that
financial services to not subordinate professional judgement and duties to suggesstions
of others.

 

 

 

 

3.2.4 Professional Competence and Diligence

 

The financial services marketer should be
professionally competent and well equipped for carrying out tasks required in
the course of performing professional duties or services so that he can perform
such tasks diligently and properly, saving no effort in order to discharge and responsibilities
towards Allah the Almighty and towards his society, profession, superiors,
client, and himself.

 

3.2.5 Faith-Driven Conduct

 

The financial services marketer behaviour and
conduct should be consistent with faith values derived from Shariah rules and
principles.

 

3.2.6 Professional Conduct and Technical Standards

 

In the course of performing his duties, the
financial services marketer should observe the rules of professional conduct
presented in part 3 and comply with the financial services. Some of the ethical
principles contained in this code have common bases from both Shariah and the
financial planner profession, such as trustworthiness, objectivity and
professional competence and diligence. Other principles are based entirely on a
Shariah foundation, such as religious legitimacy and faith driven conduct.
Finally, some of the ethical principles are based solely on a professional
basis which does not violate the Shariah rules and principles, such as the
principle of professional conduct and technical standards.

 

3.3 Rules of Ethical Conduct for Financial Planner

 

Rules of ethical conduct for the financial services
marketing are derived from the ethical principles presented in part 2. These
should be considered as minimum requirements of ethical conduct that must be
profession duties or services.

The following paragraphs detail some of the basic
rules of ethical conduct, grouped by the ethical principle underlying them.

 

 

 

3.3.1 Rules of Ethical Conduct Based on the
Principle of Trustworthiness

 

The financial services marketer should perform
professional duties or services at the highest level of trustworthiness,
integrity, truthfulness, honesty and probity. In particular, the financial
services marketer has a responsibility to:

·        
Present and
communicate favourable as well as unfavourable information and professional in
promote and opinions honestly truthfully, and with adequate transparency.

·        
Refrain from
disclosing confidential information acquired in the course of performing
professional duties or services, unless obligated to do so according to
disclosure requirements

·        
Refrain from using
confidential information acquired in the course of performing his professional
duties or services for unethical personal advantage or for the advantage of
third parties

·        
Refrain from either
actively or passively engaging in any behaviour or activity t would jeopardise the
attainment of the institution’s religious and ethical objective

 

3.3.2 Rules of Ethical Conduct Based on the
Principle of Religious Legitimacy

 

The financial services marketer is responsible for
verifying the religious legitimacy of everything relating to him performing
duties or services. In this respect the financial services should always
remember his responsibilities towards Allah the Almighty and towards his
society, profession, superiors, client and himself. The following rules of
conduct originate from the principle of religious legitimacy:

 

·        
The financial
services marketer should discharge his responsibility toward Allah the Almighty
in the best way possible, giving precedence to such responsibility over any
other the Almighty in the responsibility towards Allah the Almighty is
conducive to discharging other responsibilities.

·        
The financial
services marketing is responsible for being aware of Shariah of financial and
principles of marketing should receive transactions. Hence, the financial
services should receive formal, adequate training in jurispundence of financial
dealings.

·        
The financial
services marketing is responsible for adhering to Shariah rules and principles
when ascertaining the legitimacy of dealings, actions and in general, relating
to the performance of professional duties or services.

·        
Anything that is not
in conformity with Shariah should be considered illegitimate even though it may
otherwise agree with laws or established traditions of the profession.

 

3.3.3 Rules of Ethical Conduct Based on the
objectivity Principle

 

The financial services marketing is responsible for
protecting his independence in fact and in appearance. Thus, he should avoid
situations involving conflicts of interest which might threaten his neutrality
and fairness. The financial services marketing should also avoid subjecting
himself to the influence of others in order ensure the objectivity of his professional
judgements and should refrain from presenting information untruthfully.

Based on the objectivity principle, the financial
services marketing has a responsibility to:

·        
Refuse any gift, favour
or hospitality that would threaten the objectiviry of his professional
judgement.

·        
Avoid actual or
apparent conflict of interest with those to whom he provides services, such as
having personal or family relationships with the client that would threaten his
objectivity and professional independence.

·        
Avoid contingent
fees because it has detrimental effect on the financial services marketing
independence and objectivity while performing professional duties and services.

 

 

x

Hi!
I'm Rita!

Would you like to get a custom essay? How about receiving a customized one?

Check it out