The Need to Adhere to the Principle of Fairness in Concluding Banking Contracts Based on Stakeholder Theory in Corporate Governance

Document Type : Science - Research (Islamic Financial Rights)

Authors
Fereshteh Mollakarimi Khozani 1
Mohamad Nozari Ferdosiyeh 2
1 PhD Student in Islamic Law and Fundamentals of Islamic Law, Qom University, Qom, Iran and Researcher at the Monetary and Banking Research Institute of the Central Bank of the Islamic Republic of Iran, Tehran, Iran.
2 Assistant Professor at Jurisprudence and Fundamentals of Islamic Law, Qom University, Qom, Iran
10.30497/ifr.2019.2401
Abstract
Based on the foundations of stakeholder theory, one aspect of customer support is fair contracts. This paper seeks to demonstrate the importance of observing the principle of fairness in concluding banking contracts in corporate governance with reference to juridical and legal foundations of stakeholder theory. According to the principle of property, the rule of law and the principle of justice, the protection of customers’ rights and the design of fair contracts is necessary.
   This article, which is based on content analysis, suggests that in the current context, banking contracts are faced with an unfair disadvantage. The existence of multiple requirements is one of the most important challenges that is in a serious conflict with the principles of corporate governance based on stakeholder theory. Accordingly, it is advisable to emphasize the necessity of concluding fair contracts while taking into account the clients' rights in drawing up bank contracts, as one of the strategic principles for protecting stakeholder rights.
Keywords
Corporate Governance
Stakeholders
Customers
Principle of Fairness
Banking Contracts JEL Classification: G30
K12
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Volume 9, Issue 1 - Serial Number 17
November 2019
Pages 37-68

  • Receive Date 31 October 2018
  • Revise Date 20 April 2019
  • Accept Date 22 April 2019