This study aims to present insights for the preparation of ethical practices in the banking industry of gulf cooperation council (GCC) countries for profit maximization. This study presented information regarding ethical banking practices to determine to which extent banks in GCC countries practiced ethics.
This study followed a mixed-method approach, including both qualitative and quantitative data. For quantitative, data were collected from senior managers employed in 52 leading Islamic and conventional banks across the GCC countries, including the banks in the Kingdom of Bahrain and also from the banks in Kuwait. However, for qualitative analysis, an interview with an Islamic banking specialist was conducted.
The findings of both, qualitative and results from answer of respondents and quantitative results, that is, 91% of respondents strongly agreed that Islamic banks are more committed to ethical investments of projects, revealed that Islamic banks follow more ethical practices than conventional banks. Therefore, the mean score for EBP4 is 4.55 with moderate SD of 1.267. This statistical evidence is in favor that Islamic banks follow more ethical principles.
Respondents were recruited randomly, and the samples consisted of only senior executives and not customers. Because of time and resource limitations, these executives were a sample of conventional and Islamic banks in the GCC only and not from other regions.
The results of this study provided valuable insights to conventional financial institutions, enabling them to enhance their operations as Islamic banks align with more ethical standards.
The research originality lies in its contribution for GCC countries by presenting a comparative view. This study defined and compared similarities and differences of Islamic and conventional banks to indicate how Islamic banks particularly implement more ethical standards than conventional banks.
