ICMS Academic Tackles Ethics in Investment Decisions

How do ethical and religious values shape the way we invest? Dr Ahmad Shahid, ICMS Program Manager (Business and Accounting), explores this question in his latest research.  

Co-authored with Professor Chris Patel and Dr Peipei Pan from Macquarie University, the paper, Islamic worldview, social consciousness, and socially responsible investment, was published in the A-ranked journal Advances in Accounting. 

The study sheds light on how professionals make socially responsible investment decisions, especially when faced with ethical dilemmas. 

Religious Values and Socially Responsible Investing

“My research focuses on how individuals’ intrinsic values can shape their investment decisions. It is about socially responsible investing—decisions that benefit both society and the environment,” Dr Shahid said. 

The study examines how professional accountants and business executives make socially responsible investment (SRI) decisions, particularly when faced with ethical dilemmas.  

Using a scenario-based survey, the research explores a case involving a profitable firm accused of employing child labor under hazardous conditions in Pakistan. 

The findings show that professionals with a strong Islamic worldview are more likely to prioritise ethical considerations in their investment decisions.  

Social consciousness plays a key role in this process, influencing how they perceive and respond to media allegations of unethical practices.  

The study challenges the traditional view that investment decisions are driven solely by risk and return, showing that ethical and religious values can also play a significant role. 

“Our findings show that professionals are guided by their Islamic worldview in making SRI decisions that go beyond profit motives,” Dr Shahid explained.  

“We also provide solutions for Islamic and developing countries on how to address child labor while encouraging socially responsible investment.” 

Bringing Research into the Classroom

Dr Shahid is passionate about ensuring his research has practical relevance.  

By sharing these insights with his students, he helps them understand the importance of social consciousness, corporate sustainability, and ethical responsibility in business. 

“My research highlights how professionals integrate ethical and religious values into decision-making, especially when faced with serious social issues like child labor,” Dr Shahid said.  

His teaching emphasises that business decisions aren’t always just about profit—values and ethics matter too. 

This approach helps ICMS students prepare for the complexities of global business, equipping them to make decisions that balance financial goals with social impact. 

A Strong Research Focus at ICMS

Dr Shahid recently co-authored a paper titled ‘Fostering Environmental Integrity via Investor-focused Communications: Private In-house Meeting Disclosures and Greenwashing Behaviours’.   

The study, published in the  Journal of Economic Behavior and Organisation (JEBO), was a collaboration with Dr June Cao and Zhijie Huang from Curtin University, Australia. JEBO is an A-star ranked journal recognised by the Australian Business Deans Council.  

Dr Shahid, who holds a PhD in Accounting from Macquarie University and is both a Chartered Accountant and a Certified Practicing Accountant, was recently awarded a Scholarly Practice Grant from ICMS.  

This grant will support him in presenting his work at the Asia-Pacific Interdisciplinary Research in Accounting (APIRA) Conference in Adelaide this July. 

ICMS supports faculty research through initiatives like the Scholarly Practice Grants, which are awarded three times a year. These grants encourage research that benefits students and the wider community. 

Education That Makes a Difference

Dr Shahid’s work reflects ICMS’s focus on education that connects directly to real-world issues.  

His research shows how ethical and religious values can shape investment decisions, and he encourages students to think about the broader impact of their choices. 

“Investment decisions guided by social consciousness and integrity can make a real difference,” Dr Shahid said. 

ICMS’s commitment to combining academic research with industry relevance helps prepare students to lead with purpose and make a positive impact in their careers.