The Stakeholder theory has become one of the most important developments in the fieldof business ethics, which is widely regarded as being a key element in Islamic banking, makingit of extreme relevance. While the stakeholder concept has evolved and gained prominence as amethod of integrating ethics into the basic purposes and strategic objectives of the bank,authors argue that stakeholder theory has retained certain Western assumptions from the widerbusiness literature that limit its usefulness. The use of Islamic banking provides a means of reinterpreting the stakeholder concept in a way that overcomes many of the existing limitations. This reading provides a different understanding of the identity and meaning of Islamic banking,specifically in terms of its relationship to stakeholder groups, such as Islamic banks are aconnected body, they should have control over the external environment, and should implementhierarchies.