Scribd
Upload
251 views25 pages

Business Ethics in Islam: by - Saba Nadeem

This document outlines Islamic principles for business ethics according to the Quran and teachings of Prophet Muhammad. It discusses that Muslims must adhere to high ethical standards in all aspects of life, including business. Business ethics in Islam emphasize honesty, fairness, social justice, and avoiding practices like usury and monopolization. A successful Muslim businessman should act to please God, rather than solely amass wealth or avoid legal punishment. The document provides examples from the life of Prophet Muhammad on ethical business practices and prohibitions in Islam.

Uploaded by

Muhammad Aayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
251 views25 pages

Business Ethics in Islam: by - Saba Nadeem

This document outlines Islamic principles for business ethics according to the Quran and teachings of Prophet Muhammad. It discusses that Muslims must adhere to high ethical standards in all aspects of life, including business. Business ethics in Islam emphasize honesty, fairness, social justice, and avoiding practices like usury and monopolization. A successful Muslim businessman should act to please God, rather than solely amass wealth or avoid legal punishment. The document provides examples from the life of Prophet Muhammad on ethical business practices and prohibitions in Islam.

Uploaded by

Muhammad Aayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 25

BUSINESS ETHICS IN

ISLAM
By - Saba Nadeem
INTRODUCTION
 The importance of business can never be
over emphasized.

 It played a vital role in economic and social


life of people throughout the ages.

 Importance of business extends to all levels-


individual, societal, regional, national and
international level.
WHAT CHARACTERISES A MUSLIM’S
BEHAVIOUR IN BUSINESS LIFE
 As Muslims, we have to adhere to ethical
standards, not only in business but also in all
aspects of life.

 Both business and ethics are interrelated.

 There is a reference to this point in the


Qur’an: For you in the Messenger of Allah is a
fine example to follow (Al-Ahzab 33:21).
ISLAMIC PERSPECTIVE
 Islam provides a fairly comprehensive
guidance for the conduct of a Muslim
businessman.

 The basic consideration motivating a Muslim


businessman’s behavior should neither be the
fear of governmental punishment nor the
desire to mass riches.

 He should act in a manner that should please


God.
WHY IS ETHICS NECESSARY?

 Morals and ethics differentiate humans from


animals.

 When Muslims stick to ethics in their daily


lives, they will become good examples to
emulate.
Muslim is expected not only to shun all that
is prohibited, but also to stay away from grey
areas.
THE HALLMARK OF A MUSLIM
 A Muslim takes into account the
consequences of his actions, not only in this
life, but also in the life to come.

 He should base himself on the teachings of


Quran and try to seek guidance from the
traditions of the Prophet(PBUH).
ISLAMIC CONCEPT OF BUSINESS
 GAINFUL BUSINESS

 A gainful business according to the Holy


Quran, consists of three elements:

 Knowing the best investment

 Making the sound judgment

 Following the right conduct


ISLAMIC CONCEPT OF BUSINESS
 THE LOSING BUSINESS

 All such dealings and transactions that might


bring a small profit but eventually result in
tremendous loss are regarded in Islam a
losing business.

 Usury, for instance, is regarded as a losing


business despite the fact that the usurer
apparently increases his wealth by charging
interest on his capital.
BUSINESS AND PROPHET
MUHAMMAD P.B.U.H
 Prophet Muhammad P.B.U.H was a complete
human being. An ideal father, preacher,
teacher, guide, statesman, lawgiver, judge,
the best family man, a kind father, a good
neighbor, and friend of his people.

 Before Allah declared Prophet Muhammad his


last messenger; he was involved in business
activities.
BUSINESS AND SUCCESS
THROUGH ETHICS
 The Prophet emphasized that honesty and
kind dealings with customers are the secrets
of success in business.

 He said, “The truthful and honest merchant


is associated with the Prophets, the upright
and the martyrs” (Al-Tirmidhi).

 “God shows mercy to a person who is kindly


when he sells, when he buys and when he
makes a claim” (Al-Bukhari).
PRINCIPLE OF FAIR BUSINESS ACCORDING
TO PROPHET MUHAMMAD P.B.U.H
1. No fraud or deceit, the Prophet (pbuh) is
reported to have said, “ When a sale is held,
say, “There’s no cheating” (Al-Bukhari).

2. Sellers must avoid making too many oaths


when selling merchandise. “Be careful of
excessive oaths in a sale. Though it finds
markets, it reduces abundance” (Muslim).

3. Mutual consent is necessary. “The sale is


complete when the two parties involved
depart with mutual consent” (Al-Bukhari
4. Be strict in regard to weights and measures.
“When people cheat in weight and measures, their
provision is cut off from them” (Al-Muwatta).

5.The Prophet forbade monopolies. “Whoever


monopolizes is a sinner” (Abu Dawud).

6.The price of the commodities should not be fixed


unless there is a situation of crisis or extreme
necessity.

7.Hoarding merchandise in order to increase the


prices is forbidden.

8.Transaction of haram items, such as intoxicants,


are forbidden.
ISLAM AND WORK(AMAL)
 Islam attaches utmost importance to every
kind of productive work.

 “O ye who believe! Eat not up your property


among yourselves in vanities: but let there
be amongst you traffic and trade by mutual
goodwill….” (4:29)
LAZINESS AND IDLENESS
 Islam is very much against laziness and
wasting of time by engaging oneself in
unproductive activity.

 It calls upon man to take full advantage of


time by investing it in gainful pursuits.

 All sorts of incentives are provided to


persuade man to get involved in productive
activities.
PROMISE OF REWARDS
 Quran exhort hard work, and promises God’s
assistance and guidance for those who
involve themselves in rightful work.

 Quran promises abundant reward for the


worker thus providing him incentive to
improve his quality of work.

 It encourages humans to acquire skills and


technologies by calling it bounties of Allah.
IMPORTANCE OF BUSINESS
 A good, successful and flourishing business
depends very much on the sincere efforts
and persistent hard work of the businessman.

 Quran permitted business in explicit terms in


fact beyond doubt.

 Islam permits the business even during the


Pilgrimage- a period of complete devotion,
shows its importance.
POSITIVE VIEW OF BUSINESS
 Islam calls on every able bodied person to
work for his living.

 There are several sayings of the


Prophet(PBUH) which emphasizes on working
and doing rightful business.

 ‘ The greatest portion of God’s bounty(rizq)


lies in business.’ (Bukhari)
ROLES AND RESPONSIBILITIES OF BUSINESS ETHICS
 Freedom of economic pursuits – There should be no
possibility of trade and legal transactions unless the
rights are given to the other party without any
coercion.
 Recognition of personal property – Islam
recognizes the authority of man over his wealth and
grants him full freedom to make any transaction he
wants within the limits of Islamic law.
 Legality of Trade – Quran not only permits but
encourages the believer to engage in an honest and
mutually beneficial trade.
APPROVED BUSINESS CONDUCT
 Justice ---
 Fulfillment of promise, pacts and contracts
 Exactness in weights and measures.
 Work, Wages and payments
 Truthfulness, Sincerity and honesty
 Efficiency and competence
 Selection on merit
 Investigation on merit

The universal golden rule states, “Like for


others what you like for yourself.”
MANNERS: COMMANDED AND
COMMENDED
 Leniency

 Politeness

 Forgiveness

 Compensation

 Removal of hardships

 Providing help
RIGHTS OF EMPLOYEE
 Islam often lays down more benevolent
provisions and puts more stress on their
observance.

 For instance, about employee-employer


relationship, Islam very clearly declares that
both enjoy the same dignity socially and
legally.
ISLAM FORBIDS…
 Islam does not allow an entity to deal in alcohol,
drugs, gambling, gharar, pork, pornography,
prostitution and riba. In jurisdictions where all or
some of these are allowed.
 Muslims there must avoid them because Islam has
prohibited these trades.
 A true Muslim must never neglect the welfare of
employees, performance of business dealings of the
enterprise.
BUSINESS TODAY
 If we compare Islamic business ethics with
present-day western business ethics, we find
NO similarities. For instance,
 Workplace harassment
 Discrimination in hiring and promotion,
employment pressures
 Layoffs
 Conflict of interest
 Misuse of business assets
 Environmental pollution, etc.,
CONCLUSION

 Islam not only permits and encourages all


sorts of productive work and business, but
also enjoins it upon Muslims as a duty.
 It regards business as lawful, good and
beneficial for both the individual and the
society.
 Fair trade and honest business are praised
and recommended strongly by the Quran.
RECOMMENDED READING

 Business Ethics in Islam -


By Dr. Mushtaq Ahmad

You might also like