ISLAMIC ETHICS IN BUSINESS1

5.1 BUSINESS IN ISLAM

No conflict with Islamic law which is not in conflict with the religious and to please Allah.

The seller make no distinction between buyers in the price of a commodity nor be difficult nor swear (an oath). When the buyer regrets (the purchase) and seeks to cancel the transaction, (the seller should) accept the cancellation.

It is obligatory to preserve the order of Islamic society and secure its needs. In other than these situations, earning and labour is emphatically recommended, in particular, to assist the poor and for the comfort of dependents.

"Involved with business activities because in it there is nine-tenths of livelihood." (Al-Tirmidhi).

5.2 PRINCIPAL ISLAMIC BUSINESS ETHICS

HONEST

Islam encourages truthfulness in business transactions and raises the status of a truthful merchant so .

Allah blesses business dealings if both the buyer and the seller are true to each other. Telling lies and hiding facts will result in the loss of divine blessing

The Prophet (saw) has also urged the believers to strictly obey to truthfulness in business transactions. He says:

“The seller and the buyer have the right to keep or return the goods as long as they have not parted or till they part; and if both the parties spoke the truth and described the defects and qualities [of the goods], then they would be blessed in their transaction, and if they told lies or hid something, then the blessings of their transaction would be lost.” (Bukhari, No: 1937)

TRUSTWORTHY

Trust is a moral virtue and duty incumbent on a Muslim in the performance of his affairs. It demands sincerity in work and purity of intention from every believer.

avoid fraud, deception, and other dubious means in selling his merchandise. The sense of mutual trust demands that the pros and cons of commodity be revealed to the buyer so that he purchases the commodity in full satisfaction.

Says the Holy Qur’an:O you believers! Do not betray Allah and the Messenger, nor knowingly, betray your trusts. (8:27)

JUST

Treat people equally – fairness

traders should moderation in all things without profitable side party, fair or equal treatment of all our customers, consider fair and unbiased and gives the right to the right.

represents moral rectitude and fairness, since it means things should be where they belong

“God commands justice and fair dealing...” ( Surah An – Nahl , 90 )

The Prophet is also reported to have said : “The wages of the labourers must be paid to him before the sweat dries upon his body.” (Ibn Majah, No: 2434)

“And approach not the property of the orphan except in the fairest way, until he [or she] attains the age of full strength, and give measurement and weight with justice…” ( Surah Al – An’am , 152 )

5.3 ISLAMIC BUSINESS ETHICS IN GENERAL

LOVE

Absolute goodness is a key feature of Islam which is God's creation s.w.t. Produced very pure kindness to individual, family and community. It is suitable for

every place, time and atmosphere.

For example, a generous nature was organized by the Islamic practice of giving a sincere and confidential.

The Qur'an has explained this by the word of God s.w.t:

“ Meaning: "And if you conceal charity it and you give it to the poor, it is better for

you. “ (Surah al-Baqarah, 3:271)

RESPECT

There’s no cheating

respect the rights of both buyer and seller

Give a good services

Healthy competition

Be kind to your parents and kindred, the orphans, and those in need, and speak kindly to mankind. ( surah Al – Baqarah , 83 )

TOLERANCE

allows us to understand that not all people think like me and therefore we must give them the opportunity to express themselves and try to understand what tell us

being able to deal with coworkers and customers without loosing your self-control

the ability to cope with any developments that don't go the way you'd prefer

can remove their frustration and a customer satisfied and at the same time an improvement to our business

“… If the enemy incline towards peace, you (also) incline towards peace, and trust in Allah…”[Sura Anfal 8:61].

SINCERE

Be truth in word and act – not expected to deceive , harm and take advantage

Discourage manipulation or exploitation of others for personal reason

Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah does not look at your appearance or wealth, but rather He looks at your hearts and actions.” ( sahih Muslim )

5.4 PRINCIPLES OF ISLAMIC BUSINESS

AVOID ILLEGAL

The traders and businessmen generally have a tendency to motivate the customers by adopting fraudulent business practices. Islam strongly condemns all such practices in business transactions (Al-Ghashsh). The Messenger of Allah has commanded the believers not to indulge in cheating and fraudulent practices in business transactions.

Example

Sale of dead animal, dubious and vague transactions, manipulating the prices, selling the items belonging to a desert dweller by a townsman Al-Najsh (trickery), false eulogy and concealment of defects are all examples of cheating and fraud . The Prophet (saw) has strongly condemned all such practices in a number of traditions and the believer to abstain from them.

The Prophet (sws) is reported to have said:

The seller and the buyer have the right to keep the goods or return them as long as they have not parted. He also said that if both the parties have spoken the truth and described the defects as well as the merits thereof (the goods), they would be blessed in their deal. If they have told lies or concealed something, then blessings of their transaction would be lost. (Bukhari, No: 1937)

RIBA

Riba is an arabic word meaning interest,addition or growth.

Unjust gains in trade or business,generally through exploitation

Any increment on a loan or debt,either preconditioned or in rescheduling.

“Allah has permitted trade and has forbidden interest” (2:275)

GHARAR

refers to the sale of a commodity or good which is not present at hand; or the sale of an article or good, the consequences or outcome of which is not yet known; or a sale involving risks or hazards where one does not know whether at all the commodity will later come into existence.

Such a sale is strictly prohibited in Islam because the quality, whether good or bad, is not known to the buyer at the time of the deal and there is every possibility that the contract may give rise to disputes and disagreements between the concerned parties.

The Prophet (saw), therefore, prohibited the sale of what is still in the loins of the male; or sale of birds in the air; or the sale of fish in the water, and any transaction which involves Gharar. (i.e. anything that involves deception).

He also forbade the sale of fruits before they look healthy and also the sale of crops until the grain hardens.

MAISIR

“Briefly, qimar/maisir means every form of gain of money the acquisition of which depends purely on luck and chance

Example , the buyer who buy an exhibition ticket with intention to win the prize

They ask you about wine and gambling . Say: 'In them both lies grave sin, though some benefit, to mankind. But their sin is more grave than their benefit. —Qur'an, 2:219 (al-Baqarah)