Abstract

The role of religion in ethical decision-making, both for individual managers and at an organisational level, remains elusive due to contrasting findings in extant literature. This is exacerbated by a dearth of studies focusing on specific religious mechanisms that can foster ethical decision-making, particularly with respect to organisational corporate socially responsible (CSR) behaviour and in backgrounds different from Christianity. This exploratory study investigates the mechanisms in Islam that can influence individual/micro- and organisational/meso-level ethical decision-making, and hence CSR outcomes. It draws on in-depth, qualitative data from 63 domestic organisations in Saudi Arabia, the United Arab Emirates and Oman. The findings reveal a complex macro-normative religious environment, founded on specific factors that shape ethics and decision-making. Internalised by organisational leaders, these factors translate into organisational CSR behaviour as the organisation becomes a place for fulfilling individual religious responsibilities and even creates CSR products shaped around religious principles. The study contributes to the literature on ethical decision-making, organisational behaviour and Islamic CSR and offers recommendations for policymakers and practitioners on integrating religion within the organisation.