Handbook of Ethics of Islamic Economics and Finance by Abbas Mirakhor Zamir Iqbal Seyed Kazem Sadr

Author:Abbas Mirakhor, Zamir Iqbal, Seyed Kazem Sadr
Language: eng
Format: epub
Publisher: De Gruyter
Published: 2020-04-04T16:44:52.957000+00:00

How capital is spent

How capital is saved and/or invested

How capital is donated

How capital is inherited and/or delivered as a legacy to next generation

Trust intrudes into each facet. Yet the influence of trust rather dominates in areas 2, 3, and 5. A person applies himself to his job throughout the month without weekly salary payment, due to a trust engendered with an employer that the payroll will be distributed at the end of every month. As is apparent, the level of Sincerity and Integrity of an employer is central to each employee’s willingness to work for deferred wages.

On the other hand, typically every person is highly cautious in spending capital for personal consumption to assure that their Expectations are satisfied at the moment of purchase and, indeed, in after-sales performance of the purchased item. Gaps in fulfillment or unsatisfactory experiences with purchased items inevitably lead on to erosion of trust with the brand and eventually to switching to a new product or alternative brand.

Likewise, saving and investing financial assets requires an assessment over time to ascertain the efficacy of the service or product and the degree to which the sales’ promises can be trusted. A mutual fund or pension scheme might require +10 or 20 years of patience to finally conclude that a trusted relationship during a lifetime is justified with an anticipated financial outcome finally being fulfilled.

Conversely, capital distributed through inheritance laws, trusts and estates requires a kind of “blind trust” because the ultimate disposition of that capital occurs after the demise of the person. In substitution, we place our trust in an Executor or Trustee appointed to execute our will at the appropriate time. One exception is a Living Will Trust or Legacy whereby the capital is deployed into whatever charity or activity as desired by the person who is still living to witness that the intended outcomes do in fact happen.

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