Business Ethics in Islamic Perspective

M.TALHA KHAN https://www.facebook.com/talha.khan.522066?fref=ufi

TOPIC:

ETHICS:

Set of moral principles that distinguish what is right from what is wrong.

Evaluates human practices.

Prescriptive advice on how to act morally.

Branch of ethics that examines ethical rules and principles within a commercial context.

BUSINESS ETHICS:

Islam places the highest emphasis on ethical values in all aspects of human life.

In Islam, ethics governs all aspects of life.

The Prophet (P.B.U.H) said:

"I have been sent for the purpose of perfecting good morals."

ISLAMIC BUSINESS ETHICS:

HONESTY:

Secret of success in business.

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

Allah blesses business dealings if both the buyer and the seller are true to each other.

PRINCIPLES OF ISLAMIC BUSINESS ETHICS:

HONESTY IN ISLAMIC PERSPECTIVE:

“HONESTY IS THE ONLY POLICY”

Trust is a moral virtue and duty incumbent on a Muslim in the performance of his affairs.

It demands sincerity in work, avoid fraud, deception, and other dubious means in selling his merchandise.

TRUSTWORTHY:

Treat people equally. Traders should moderate

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.

EQUALITY:

Islam puts certain conditions and restrictions to obviate the chances of bitterness between the employer and employees.

Fair wages on time. good working conditions. suitable work and excellent brotherly treatment

should be provided to the workers.

FAIR TREATMENT OF WORKERS:

PROFIT SHOULD BE SMALL:

seller has right to place Profit as much he wants but when there is alternative.

If there is monopoly in some product then the profit margin need to be small.

what Islam allow:

what ethics says:

In any situation your profit margin should not be double than your cost.

Bribery. (Al-Baqarah: 188) Usurping others’ property. (Al-Baqarah: 188) Fraud. (Al-Imran: 161)    Stealing and Robbery. (Al-Maida: 38) Income from sources of vulgarity. (Al-Noor: 19) Gambling. (Al-Maida: 90) Wine and its business. (Al-Maida: 90) Interest. (Al-Baqarah: 275) Hoarding of foodstuff.

source of income prohibited in Islam:

Islam prohibits certain type of business due to the “concern to protect health and life”

(Zinkin 2005).

WHY ISLAM PROHIBITS SUCH TYPE OF BUSINESS ?

The Prophet said: “A truthful and trustworthy merchant is

associated with the prophets.”

(Al-Tirmidhi, Hadith 50)

CONCLUSION: