Should Western Corporations Ban the Use of Shari’a Arbitration Clauses in their Commercial Contracts?

Journal of Business Ethics 132 (3):613-626 (2015)
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In recent years, there has been an increase in the adoption of Shari’a in Europe and North America as an arbitration protocol for the resolution of potential contractual disputes. In a largely secular Western business environment, this reality raises corporate policy implications for business organizations. In particular, questions are raised about whether Shari’a is by nature too unpredictable—and too dismissive of women’s rights—to be properly and ethically permitted by Western companies as a possible dispute resolution alternative. This article examines the dynamics and factors that are involved as corporate managers decide whether Shari’a arbitration ought to be banned entirely from contractual negotiations. Arguments for and against the inclusion of a Shari’a arbitration clauses in commercial contracts and contract negotiations are presented. The article concludes that while managers should exercise great prudence and consider the moral implications of negotiating arbitration clauses, an organizational ban of the use of faith-informed arbitration generally, or Shari’a in particular, would be neither morally required nor optimally serve the interests of the organization or its stakeholders.



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Author Profiles

Eun-Jung Katherine Kim
Wayne State University
Albert Spalding
Wayne State University

Citations of this work

Dispute Resolution as an Ethical Phantasm.Bart Jansen - 2021 - Philosophy of Management 20 (3):293-306.

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