A Culture of Honesty (Shiddiq) and Shame (Haya’) in Organisational Financial Management and Accounting Practices: An Empirical Qualitative Approach

Ira Hasti Priyadi; Moh Muhlis Anwar

doi:10.17977/jabe.v9i2.55560

A Culture of Honesty (Shiddiq) and Shame (Haya’) in Organisational Financial Management and Accounting Practices: An Empirical Qualitative Approach

Ira Hasti Priyadi, Moh Muhlis Anwar

Abstract

This study explores the impact of the Islamic values of honesty (siddiq) and shame (haya’) on organizational financial management through a descriptive qualitative approach. Financial management is pivotal to an organization’s operations, and incorporating Islamic values can enhance integrity and transparency in financial practices. This paper investigates how these values influence financial management by analyzing in-depth interviews with organizational board members responsible for finance. Findings reveal that honesty is integral to financial transparency and accuracy, aligning with the concept of integrity in organizational culture. Shame serves as an ethical mechanism to prevent fraudulent behavior, driven by a strong sense of moral and spiritual accountability. The study underscores that a culture of honesty and shame fosters responsible financial management, though challenges such as external pressures and lack of oversight may undermine these values. The research contributes to understanding how Islamic ethical principles can reinforce positive financial practices within organizations

Keywords

Islamic values, honesty, shame, financial management, organizational culture, qualitative research, ethical behavior

Full Text:

PDF

References

Abraham, J., Kurniadi, M. A., Andangsari, E. W., Ali, M. M., Manurung, R. H., & Warnars, H. L. H. S. (2020). Prediction of guilt and shame proneness based on disruption to psychological contract: A new light for corruption prevention. Heliyon, 6(6).

Akhter, N. (2020). The Role of Honesty in the Establishment of Peaceful Society (In the Light of Islamic Tradition). Hazaraislamicus, 9(02), 1–10.

Aldouri, J. (2019). The Meaning of Honesty and its Impact on the Biography of Prophet Mohammed and the Islamic Call. Journal of Tikrit University for Humanities-مجلة جامعة تكريت للعلوم الانسانية, 26(11), 300–314.

Anning-Dorson, T. (2021). Organizational culture and leadership as antecedents to organizational flexibility: implications for SME competitiveness. Journal of Entrepreneurship in Emerging Economies, 13(5), 1309–1325.

Anwar, M. M. (2022). Marketing Mix dalam Dual Persepektif (Konvensional dan Syariah). Ad-Deenar: Jurnal Ekonomi Dan Bisnis Islam, 6(01), 177–186.

Anwar, M. M. (2023a). Analysis of CAPM and SAPM Models in Predicting Return of Islamic Stock (Case Study of Islamic Stocks in the Jakarta Islamic Index) for the 2017-2021 Period. Mabny Journal of Sharia Management and Business, 3(02), 62–72. https://doi.org/10.19105/mabny.v3i02.10344

Anwar, M. M. (2023b). The Impact of Islamic Financial Deepening on Economic Growth in Indonesia.

Anwar, M. M. (2024). How does TAM affect impulsive buying on halal fashion products via shopping mobile apps? Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-03-2023-0096

Anwar, M. M., & Sudoto, S. (2023). The Role of Religious Figures (Kyai) in Enhancing Sharia Economics: A Sociological Marketing Perspective Review. Al-Tijary, 8(2), 113–125.

Ayodeji, I. O., Emmanuel, O. O., & Olajiire, E. O. (2021). Impact of total quality management on organisational performance. International Journal of Research in Commerce and Management Studies, 3(3), 21–32.

Bisogno, M., & Donatella, P. (2022). Earnings management in public-sector organizations: a structured literature review. Journal of Public Budgeting, Accounting & Financial Management, 34(6), 1–25.

Chairani, L., Cucuani, H., & Priyadi, S. (2021). Al-Haya’instrument construction: shame measurement based on the Islamic concept. Jurnal Psikologi Islam Dan Budaya, 4(1), 1–14.

Chofreh, A. G., Goni, F. A., Klemeš, J. J., Malik, M. N., & Khan, H. H. (2020). Development of guidelines for the implementation of sustainable enterprise resource planning systems. Journal of Cleaner Production, 244, 118655.

Denny, E., & Weckesser, A. (2022). How to do qualitative research?: qualitative research methods. Bjog, 129(7), 1166.

Firestone, S., & Firestone, S. (2020). Importance of organizational culture to crisis leadership. Biblical Principles of Crisis Leadership: The Role of Spirituality in Organizational Response, 23–34.

Ghlamallah, E., Alexakis, C., Dowling, M., & Piepenbrink, A. (2021). The topics of Islamic economics and finance research. International Review of Economics & Finance, 75, 145–160.

Grundy, T., Johnson, G., & Scholes, K. (2022). Strategic Financial Management. Bachelor of Business Administration Programme Code: BBA Duration–3 Years Full Time, 2(1), 1–575.

Hennink, M., Hutter, I., & Bailey, A. (2020). Qualitative research methods. Sage.

Hertwig, R., & Mazar, N. (2022). Toward a taxonomy and review of honesty interventions. Current Opinion in Psychology, 47, 101410.

Isensee, C., Teuteberg, F., Griese, K.-M., & Topi, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. Journal of Cleaner Production, 275, 122944.

Jan, A. A., Lai, F.-W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099.

Kamaruddin, M. I. H., & Auzair, S. M. (2023). The impact of financial management practices on accountability of Islamic social enterprise (ISE). International Journal of Islamic and Middle Eastern Finance and Management, 16(4), 669–686. https://doi.org/10.1108/IMEFM-05-2021-0184

Karpoff, J. M. (2021). The future of financial fraud. Journal of Corporate Finance, 66, 101694.

Katz, M. H. (2014). Shame (Ḥayāʾ) as an Affective Disposition in Islamic Legal Thought. Journal of Law, Religion and State, 3(2), 139–169.

Kembauw, E., Munawar, A., Purwanto, M. R., Budiasih, Y., & Utami, Y. (2020). Strategies of financial management quality control in business. TEST Engineering & Management, 82, 16256–16266.

Klius, Y., Ivchenko, Y., Izhboldina, A., & Ivchenko, Y. (2020). International approaches to organizing an internal control system at an enterprise in the digital era. Economic Annals-XXI, 185.

Ladewi, Y. (2014). The role of Islam values (ethics) in accounting practice and impact of accounting information quality: A library study. International Journal of Economics, Commerce and Management, 2(12), 1–12.

Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66.

Liamputtong, P. (2020). Qualitative research methods.

Lima, E. S., McMahon, P., & Costa, A. P. C. S. (2021). Establishing the relationship between asset management and business performance. International Journal of Production Economics, 232, 107937.

Maulida, W. Y., & Bayunitri, B. I. (2021). The influence of whistleblowing system toward fraud prevention. International Journal of Financial, Accounting, and Management, 2(4), 275–294.

Monazzam, A., & Crawford, J. (2024). The role of enterprise risk management in enabling organisational resilience: a case study of the Swedish mining industry. Journal of Management Control, 1–50.

Murphy, P. R., Wynes, M., Hahn, T., & Devine, P. G. (2020). Why are people honest? Internal and external motivations to report honestly. Contemporary Accounting Research, 37(2), 945–981.

Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics and Business, 7(8), 577–588.

Parrott, J. (2017). Sincerity, Honesty, and Goodwill in the Quran and Sunnah.

Pathiranage, Y. L., Jayatilake, L. V. K., & Abeysekera, R. (2020). A Literature Review on Organizational Culture towards Corporate Performance. International Journal of Management, Accounting & Economics, 7(9).

Pejic-Bach, M., Dumičić, K., Žmuk, B., & Ćurlin, T. (2020). Data mining approach to internal fraud in a project-based organization. International Journal of Information Systems and Project Management, 8(2), 81–101.

Rahmat, M., & Yahya, M. W. (2021). How to Improve the Honesty of Students in Indonesia? Sufism-Based Islamic Education Model as an Alternative. International Journal of Education and Practice, 9(1), 80–92.

Rezaeian, M. (2021). The world of research and its mysteries; transparency and honesty. Journal of Rafsanjan University of Medical Sciences, 20(7), 731–732.

Sabuhari, R., Sudiro, A., Irawanto, D., & Rahayu, M. (2020). The effects of human resource flexibility, employee competency, organizational culture adaptation and job satisfaction on employee performance. Management Science Letters, 10(8), 1775–1786.

Sawai, R. P., Jaafar, N., Noah, S. M., & Krauss, S. E. (2020). Inculcating the Sense of Modesty (Al-Haya’) in Youth from the Perspectives of the Quran and Sunnah. Maʿālim Al-Qurʾān Wa Al-Sunnah, 16(2), 16–30.

Schein, E. (2020). The levels of culture. In Organizational Collaboration (pp. 135–143). Routledge.

Shodimukhamedovich, K. M., & Kutbidinovich, K. S. (2022). ORGANIZATION OF INTERNAL AUDIT SYSTEM IN BUDGETARY ORGANIZATIONS. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE & INTERDISCIPLINARY RESEARCH ISSN: 2277-3630 Impact Factor: 7.429, 11(06), 25–27.

Sulitzeanu-Kenan, R., Tepe, M., & Yair, O. (2022). Public-sector honesty and corruption: field evidence from 40 countries. Journal of Public Administration Research and Theory, 32(2), 310–325.

Syadali, M. R., Segaf, S., & Parmujianto, P. (2023). Risk management strategy for the problem of borrowing money for Islamic commercial banks. Enrichment: Journal of Management, 13(2), 1227–1236.

Tacconi, L., & Williams, D. A. (2020). Corruption and anti-corruption in environmental and resource management. Annual Review of Environment and Resources, 45, 305–329.

Usmani, M. M. T. (2021). An introduction to Islamic finance (Vol. 20). Brill.

DOI: http://dx.doi.org/10.17977/jabe.v9i2.55560