Analysing Business And Islam Ethics Religion Essay Example

Analysing Business And Islam Ethics Religion Essay Example Analysing Business And Islam Ethics Religion Essay Analysing Business And Islam Ethics Religion Essay In Islam, the difference between moralss and jurisprudence is really narrow. There is a considerable convergence between the same. The Prophet Muhammad gave a discourse on the twenty-four hours of the last pilgrims journey which outlines some of the basic Islamic rules. Some parts of the discourse are reproduced here: O People, impart me an attentive ear, for I know non whether after this twelvemonth, I shall of all time be amongst you once more. Therefore listen to what I am stating to you really carefully and Take THESE WORDS TO THOSE WHO COULD NOT BE PRESENT HERE TODAY.O People, merely as you regard this month, this twenty-four hours, this metropolis as Sacred, so see the life and belongings of every Muslim as a sacred trust. Return the goods entrusted to you to their rightful proprietors. Hurt no 1 so that no 1 may ache you. Remember that you will so run into your LORD, and that HE will so think your workss. ALLAH has forbidden you to take vigorish ( involvement ) , hence all involvement duty shall henceforward be waived. Your capital, nevertheless, is yours to maintain. You will neither inflict nor suffer any unfairness. Allah has Judged that there shall be no involvement and that all the involvement due to Abbas ibn Abdal Muttalib ( Prophet s uncle ) shall henceforward be waived ISLAM AND BUSINESS ETHICS: A Freedom of Enterprise Islam gives complete freedom to economic endeavor. Each person in an Islamic society enjoys complete freedom in the earning of his support. He can get down, manage and form any sort of concern endeavor within the bounds set by the Islamic Shariah. However, freedom does non and must non run without a sense of duty. An person is free to prosecute his economic activities provided he respects the codification of behavior prescribed for the profession, which loosely means choosing things lawful and eschewing affairs improper. The dictates of the Holy Quran and the instructions of the Prophet ( southwest ) service to put a graduated table in everybody s head to separate between the lawful and the improper agencies of earning, and to forbid or disapprove of all things that are either morally incorrect or socially unacceptable. Islam, as a affair of rule, prohibits all activities which may do injury either to the bargainers or the consumers in the market. It encourages the prevalence of free market where everyone earns his nutriment without authorities intercession. However, it puts certain restraints in order to extinguish the incidence of unfairness and look into malpractices and improper operations Islamic Tenets Concerning Business TransactionsA Islam demands a certain type of behavior from the economic agents the consumers and the manufacturers. The behavior prescribed for the economic units of the society are so devised as to take to a happy province of personal businesss, which is the ultimate end of Islam. An Muslim market is characterized by certain norms that take attention of the involvements of both the purchaser and the marketer. There are a figure of regulations of ethical subject in Islamic commercial minutess without which concern contract would be regarded as missing flawlessness in the visible radiation of the codification of good manners, decency and ethical excellence. Some of these dogmas are as follows: A Keenness to Gain Legitimate ( Halal ) Net incomes Islam places great accent on the codification of lawful and improper in concern minutess. Many Quranic poetries disapprove the unlawful pickings of the belongings. Says the Holy Quran: A Do non devour one another s belongings wrongfully, nor throw it before the Judgess in order to devour a part of other s belongings sinfully and wittingly. ( 2:188 ) A Do non devour another s belongings wrongfully unless it be by trade based on common consent. ( 4:29 ) A The Prophet ( southwest ) endorsed the importance of legitimate ways of gaining in the undermentioned words: A Asked what signifier of addition is the best? [ the Prophet ] said, A adult male s work with his custodies, and every legitimate sale . ( Ahmad, No: 1576 ) A A Thingss legitimate and bastard are clearly defined in Islam A tradition of the Prophet ( southwest ) provinces: A A A clip will come upon the people when one will non care as to how he gets his money whether lawfully or illicitly. ( Bukhari, No: 1941 ) A Foremost among the unacceptable concern patterns strongly condemned in Islam is Riba. Riba ( involvement ) , by definition, is the excess amount the usurer charges from the borrower for deferred payment. Islam has forbidden all signifiers of Riba since it involves both subjugation and development. The Holy Quran says: A A Allah has permitted trading and out Riba ( vigorish ) . ( 2:275 ) A Devour non Riba doubled and re-doubled. ( 3:130 ) A O you who believe! fright Allah and give up what remains of your demand for usury if you are so trusters. If you do it non, take notice of war from Allah and his Apostle: but if you turn back you shall hold your capital amounts ; cover non unjustly and you shall non be dealt with unjustly. ( 2:278 ) A The Sunnah is every bit emphasized in denouncing Riba.A The Prophet ( southwest ) is reported to hold said: A May Allah direct down His expletive on the 1 who devours Riba and the 1 who pays it and on the two informants and on the individual composing it. ( Ahmad, No: 624 ) A Harmonizing to the Quranic instructions there is a clear differentiation between echt concern net incomes and involvement ; while the former is recommended and desirable, the latter is hated and undesirable.A A Trade through Mutual Consent Common consent between the parties is a necessary status for the cogency of a concern dealing. It, hence, follows that a sale under coercion is non acceptable in Islam. A sale dealing is to be regarded as legal merely if it is made through the common consent of the parties concerned. Taking advantage of person s predicament and bear downing high monetary value is besides a signifier of monetary development and as such forbidden in Islam. The Holy Quran says: A O you who believe! eat non up your belongings among yourselves in amour propres: but allow at that place be amongst you traffic and trade by common good will: nor kill [ or destruct ] yourselves: for verily Allah has been to you Most Merciful. ( 4:29 ) A sale is a sale merely if it is made through common consent. ( Ibn Majah, No: 2176 ) A Truthfulness in Business Minutess Islam encourages truthfulness in concern minutess and raises the position of a true merchandiser. The true merchandiser [ is rewarded by being ranked ] on the Day of Resurrection with Prophetss, veracious psyches, sufferer and pious people. ( Tirmidhi, No: 1130 ) The marketer and the purchaser have the right to maintain or return the goods every bit long as they have non parted or till they portion ; and if both the parties spoke the truth and described the defects and qualities [ of the goods ] , so they would be blessed in their dealing, and if they told prevarications or hid something, so the approvals of their dealing would be lost. ( Bukhari, No: 1937 ) A A Trustworthiness in Business Minutess The sense of common trust demands that the pros and cons of trade good be revealed to the purchaser so that he purchases the trade good in full satisfaction. Says the Holy Quran: A O you trusters! Do non bewray Allah and the Messenger, nor wittingly, bewray your trusts. ( 8:27 ) A Generosity and Leniency in Business Minutess One should be indulgent and generous in bargaining. The Prophet ( southwest ) invokes Allah s clemency therefore: A May Allah s clemency be on him who is lenient in his purchasing, merchandising, and in demanding back his money [ or debts. ( Bukhari, No: 1934 ) A A Honoring and carry throughing Business Duties Islam attaches great importance to the fulfillment of contract and promises. Islamic instructions require a Muslim bargainer to maintain up his trusts, promises and contracts. The basic rules of truth, honestness, unity and trust are involved in all concern traffics. O you who believe! Fulfil [ your ] duties. ( 5:1 ) A The Muslims are bound by their judicial admissions. ( Abu Daud, No: 3120 ) A A In order to safeguard the involvement of both the purchaser and the marketer it is desirable, harmonizing to the Islamic instructions, to clearly specify all the necessary inside informations refering the concern trade. Each concern contract should clearly stipulate the quality, the measure and the monetary value of the trade good in inquiry. Therefore, in a concern contract the offer and credence should be made between the parties concerned on a trade good which is with the purchaser and, which he is able to present. A Fair Treatment of Workers Islam puts certain conditions and limitations to rid of the opportunities of resentment between the employer and employees. A Those are your brothers [ workers under you ] who are around you, Allah has placed them under you. So, if anyone of you has person under him, he should feed him out of what he himself eats, clothe him like what he himself puts on, and allow him non put so much load on him that he is non able to bear, [ and if that be the instance ] , so impart your aid to him. ( Bukhari, No: 2359 ) A A I will be foe to three individuals on the Last Day: one of them being the 1 who, when he employs a individual that has accomplished his responsibility, does non give him his due. ( Bukhari, No: 2109 ) A The rewards of the laborers must be paid to him before the perspiration dries upon his organic structure. ( Ibn Majah, No: 2434 ) A Prohibited Matters in Business TransactionsA Another facet of concern moralss is the assorted signifiers of unethical concern patterns a Muslim man of affairs must avoid in his concern traffics. Some of these prohibited and unwanted concern patterns are as follows: A Covering in Prohibited ( Haram ) Items Covering in improper points such as carrion ( dead meat ) , hogs and graven images is strongly prohibited in Islam. Dead meat would intend the flesh of any bird or carnal dead from natural causes, without being decently slaughtered in an Muslim manner. Likewise, trading in porc or alcohols and sale of graven images and statues is non permitted in Islam. A A A Allah and His Messenger made illegal the trade of alcoholic spiritss, dead animate beings, hogs and graven images. ( Bukhari, No: 2082 ) A A A Sale of Al-Gharar ( Uncertainty, Risks, Speculation ) In Islamic this refers to the sale of a trade good or good which is non present at manus ; or the sale of an article or good, the effects or result of which is non yet known ; or a sale affecting hazards or jeopardies where 1 does non cognize whether at all the trade good will later come into being. Such a sale is purely prohibited in Islam because the quality, whether good or bad, is non known to the purchaser at the clip. Randomly Repairing the Monetary values Islam grants absolute freedom to bargainers provided they adhere to the codification of lawfulness. It does non, hence, promote the pattern of price-fixing and leaves the bargainers to gain the net incomes from each other within the lawful bounds. O Messenger of Allah! Monetary values have shot up, so repair them for us. Thereupon the Messenger of Allah said: Allah is the One Who fixes monetary values, withholds, gives extravagantly, and provides, and I hope that when I meet Allah, none of you will hold any claim on me for an unfairness sing blood or belongings. ( Tirmidhi, No: 1235 ) A A Hoarding of Foodstuff The Arabic word for billboard is Ihtikar. It means storing groceries or keep backing them in outlook of rise in their monetary values. Sometimes, a smattering of bargainers runing in the market purchase the full measure of an point, rice for illustration, and shop it up with the object of selling it subsequently at the clip of scarceness to pull maximal net income out of it and to order the monetary values. The consumers are left with no pick but to buy the article concerned from the 1 who hoards, as he is the lone 1 in the market who holds it. Sometimes, a bargainer hobnobs with the providers who will merely sell their ware to him. As a consequence, he holds the full stock of the indispensable points that other bargainers do non possess. He is, hence, in a place to order his footings in the market and sell them at an extortionately high monetary value to the needy people.A No 1 caches but the treasonists ( i.e. the evildoers ) . ( Abu Daud, No. 2990 ) A A The importer [ of an indispensable trade good ] into the town will be fed [ by Allah ] , and the hoarder will hold [ Allah s ] expletive upon him. ( Ibn Majah, No: 2144 ) A Exploitation of one s Ignorance of Market Conditions It is similar moving as the in-between adult male, taking advantage of people understanding of the market to derive maximal net income for yourself. The Prophet ( southwest ) has prohibited this pattern through a figure of instructions. A tradition reads: A A A town inhabitant should non sell the goods of a desert inhabitant. ( Bukhari, No: 2006 ) A Al-Najsh ( Trickery ) The term Al-Najsh means an action in which a individual offers a high monetary value for something, without meaning to purchase it, but merely to rip off or victimize another individual who truly means to purchase it. The individual rehearsing it may join forces with the marketer to offer high monetary values in forepart of the purchasers simply as a agency to rip off them. This type of deceitful dealing is wholly prohibited in Islam. The Prophet ( southwest ) is reported to hold said: A Do non harbor enviousness against one another ; make non outbid one another [ with a position to raising the monetary value ] ; make non bear antipathy against one another ; make non bear hostility against one another ; one of you should non come in into a dealing when the other has already entered into it ; and be fellow brothers and true retainers of Allah. ( Muslim, No: 4650 ) A Islam forbids person to offer a higher monetary value for a trade good after the trade has been accomplished between the parties. Obviously he is offering a higher monetary value in order to botch the understanding reached between the parties. As a consequence of this offer the purchaser may experience tempted to call off his contract to sell it at a higher monetary value. It may give rise to differences and dissensions between brothers. Hence it is purely prohibited in Islam. A Cheating and Fraud in Business Minutess The bargainers and business communities by and large have a inclination to actuate the clients by following deceitful concern patterns. Islam strongly condemns all such patterns in concern minutess ( Al-Ghashsh ) . The Messenger of Allah has commanded the trusters non to indulge in cheating and deceitful patterns in concern minutess. Sale of dead animate being, doubtful and obscure minutess, pull stringsing the monetary values, selling the points belonging to a desert inhabitant by a townsman Al-Najsh ( hocus-pocus ) , false eulogium and privacy of defects are all illustrations of cheating and fraud i.e. Al-Gashsh. The Prophet ( southwest ) has strongly condemned all such patterns in a figure of traditions and the truster to abstain from them. A The marketer and the purchaser have the right to maintain the goods or return them every bit long as they have non parted. He besides said that if both the parties have spoken the truth and described the defects every bit good as the virtues thereof ( the goods ) , they would be blessed in their trade. If they have told prevarications or concealed something, so approvals of their dealing would be lost. ( Bukhari, No: 1937 ) A A Cursing The bargainers frequently take resorts to cursing to stress that their points are of good quality. They claim qualities in the ware, which do nt be. They try to carry the purchasers to buy their trade good by raising Allah s name. Cursing in concern for such intents is out in Islam, be it false or true. A Cursing [ by the marketer ] may carry the client to buy the goods but the trade will be deprived of Allah s approval. ( Bukhari, No: 1945 ) A Giving Short Measures Another signifier of fraudulence is to pull strings weights and steps. It refers to the act of taking full steps from others and giving them short steps in your bend. Giving short steps was a common unease blighting the pre-Islamic yearss. The community of the Prophet Shuayb ( southwest ) was known for rehearsing it with impunity.. One of the poetries says: And O my people! give merely step and weight, nor withhold from the people the things that are their due: commit non evil in the land with purpose to make mischievousness. ( Hud 11:84-88 ) A A Covering in Stolen Goods Almighty Allah has declared thievery improper and warned of terrible penalty such as cutting the manus of the stealer from the carpus articulation if the necessary legal conditions for the award of penalty are met. Even if the stealer escapes worldly punishment and gets off with stolen goods, it is non allowable for a Muslim to knowingly purchase or sell these points. The stolen points are neither to be bought nor sold by those who know the world. : A The 1 who knowingly purchases a stolen good, is a spouse to the act of wickedness and the shame. A Decision In modern times concern moralss has become a major subject of treatment among concern communities and other related organisations. Each and every society has evolved ethical and moral codifications of behavior for concern minutess. However, the Western secular ethical values are by and big supposed to be useful, comparative, situational and devoid of any religious sanctioning power. The Islamic ethical codifications, on the contrary, are humane instead than useful or comparative. They are good for all times and absolute and do nt acquire old as believed by people. Encyclopedia Britannica comments about Umar: The stating with which he began his reign will neer turn antiquated: By God, he that is weakest among you shall be in my oculus the strongest, until I have vindicated for him his rights ; he that is strongest I will handle as the weakest, until he complies with the jurisprudence . It would be impossible to give a better general definition of the map of the State. Ethical and moral codifications in Islam are portion of the overall Islamic religion and detecting them will non merely take to a happy province of personal businesss in this universe but besides holds the promise of multiplex returns in the Hereafter. Islamic ethical and moral codifications therefore create a sense of duty and answerability in the heads of the trusters, be they purchasers or Sellerss. Our attempt been to show the Islamic position refering concern moralss. As we saw, the ethical codification of Islam is multidimensional, far making and comprehensive. Islamic ethical model is repeatedly stressed throughout the Holy Quran, and the instructions of the Prophet and embrace all domains of life including concern fiscal traffics and duties. The cardinal codifications of moral behaviors such as truthfulness, trustiness, generousness and lenience, attachment to concern committednesss and contracts, just intervention of workers, turning away of evil patterns ( such as fraud, cheating, fraudulence, billboard of grocery, developments, giving short steps etc. ) provide, to a big extent, the general background of Islamic concern moralss. A BIBLOGRAPHY Book Lectures on Ethical motives, Dr. Sabahuddin Azmi, Ph. D. ( Economics ) , Lecturer, College of Islamic Banking, World Al-Lootah University ( Internet ) , Dubai.A Islamic Business Ethics, Rafiq Issa Bekun. Web sites: www.islamonline.net makkah.wordpress.com/ /some-key-business-ethics-principles-in-islam www.islamicperspective.net/Pictures/Essay % 20File/a6s2s2.pdf