Title: Ethical Dimensions Of Banking Governance In The Gulf Countries: Balancing Profitability And Social Responsibility
Authors: Hadil Sami Abusamra, Omar Akram Abusamra, Raad Abdelhalim Ibrahim Alsakarneh, Peiji Yu
Volume: 9
Issue: 4
Pages: 20-31
Publication Date: 2025/04/28
Abstract:
The ethical aspects of banking governance in the Gulf area have garnered considerable focus as financial organizations manage the intricate equilibrium between profitability and social responsibility. This paper analyzes significant ethical dilemmas encountered by Gulf banks, emphasizing transparency, accountability, risk management, and compliance with Environmental, Social, and Governance (ESG) principles. The study used a quantitative research methodology to analyze panel data from four Gulf banks (2013-2023) in order to assess the influence of governance and ethical criteria on Ethical Risk Management (ETHRM_score). The econometric model includes regulatory frameworks, technical ethics, stakeholder involvement, Islamic banking assets, sustainable finance investments, fintech ethics, and crisis management resilience. Research demonstrates that robust regulatory monitoring, ethical leadership, and stakeholder engagement substantially improve ethical banking governance. The incorporation of sustainability initiatives and ethical investment techniques enhances financial stability and corporate reputation. The research emphasizes the significance of digital transformation and fintech advances in influencing ethical banking practices, while also addressing difficulties associated with data privacy and algorithmic biases.This research provides empirical insights and best practices, offering actionable recommendations for banks, regulators, and politicians to improve ethical governance frameworks. The results underscore the necessity for proactive ethical leadership, openness in financial practices, and a dedication to sustainable banking to promote enduring financial resilience in the Gulf area.