Islamic finance in Europe (144)

Continuation

A comparison of ethical and Islamic investments

Shareholder activism

Ethical investment – Shareholders/investors play an active role in ensuring that company activities remain within ethical boundaries.

Islamic investment – Shareholders/investors do not always play an active role in advising the company to act according to Shari’ah principles.

Type of investor

Ethical investment – Open to all investors, especially those who are:

-      ethically-concerned

-      or religious.

Islamic investment – Open to all, especially investors seeking assets that are compatible with their:

-      religious belief

-      and ethical values.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)