Islamic Business in Kayseri
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Abstract This paper examines particularly on the cultural difference in adapting in a new form of business, typically comparing the secular and capitalistic and the principal values of Islamic business. Several questions are being investigated: What are the values of Islam that is hostile to business? What is the relationship between Islam and business? What is the experience gain from the region Kayseri where Islamic culture still practised? What are the implications of Islamic values towards business to country like Turkey in the global economy? The findings show that Values of Islam are never a hostile to business as the edifice of the entire Islamic way of life depends on absolute ethical values. The role of Muslim women in business especially in Islamic countries, make up only a very small part of the workforce as the traditional Islamic value still hinders the involvement of this group. Despite these concerns, this study also shows that how Turkeys central region clearly demonstrates that the country can indeed function successfully in the global economy.
1.0 Introduction The Islamic World Muslims never differentiate between the religious and the secular but regard Islam to be a complete way of life. They interpret from the teachings of the Quran and from the sunnah. The Islamic worldview is widely based on nature of concepts in human well being and good life which stress socioeconomic justice and rationalism. Islam is often misunderstood, alas is surprising to some that it contains a sophisticated of entire socioeconomic system with specific guidelines for business. In Islam, business activity is regarded to be a beneficially useful function as Prophet Muhammad too was involved in trading for much of his life. The Islamic socio-economic system includes detailed coverage of specific economic variables such as interest, taxation, circulation of wealth, fair trading, and consumption. Islamic law (shariah), derived from the Quran and sunnah, governs business relationships between buyers and sellers. Activities are broadly categorized into as lawful (halal) or prohibited (haram), as decreed by the Providence above. Nothing is illegal except what is specifically prohibited in the Quran or in a clearly authenticated, explicit sunnah (practice or saying) of Prophet Muhammad.
Currently, Muslim consumers have enormous and growing purchasing power in countries such as Turkey, Egypt, Iran, Malaysia, Saudi Arabia and South Africa. The trend in many countries with predominantly Muslim populations is towards stronger religious conservatism and commitment (Amin 2000, Lawrence 1998). The increasing impact of Islam on business operations is evidenced by the recent rapid growth of Islamic banking and finance worldwide. For example, in Malaysia, banks have Islamic banking division widely aimed at investors who follow Islamic investment guidelines. There is an increasing number of Muslims who want to participate in the global marketplace in ways consistent with Islamic religious law. These developments suggest that religion may strategies also play an important role in the effectiveness of some business. Proved, one of the traits that differentiate Muslims from followers of some other faiths is that the influence of religion is clear in every aspect of the Muslims life.
Geographical Settings Kayseri named and inclassical later antiquity as Mazaka or Mazaca, Eusebia, Caesarea a large and industrialized city in Central
Anatolia, Turkey seated of Kayseri Province. The city of Kayseri, as defined by the boundaries of Kayseri Metropolitan Municipality, is structurally composed of five metropolitan districts, the two core districts of Kocasinan and Melikgazi, and since 2004, also Haclar, Incesu and Talas. In conjunction with the addition of new districts and first stage municipalities into the metropolitan area, the city's population, which was 690,000 in 2000, is currently 950,017. Kayseri received notable public investments in the 1920s and 1930s. Sumer Textile and Kayseri Tayyare Fabrikasi were set up here during the early Republican Era with the help of German and particularly Russian experts. The latter manufactured first aircraft "made in Turkey" in the 1940s. After the 1950s, the city suffered from a decrease in amount of public investment. However, during the same years Kayseri businessmen and merchants transformed to countrywide capitalists. Families such as Sabanc, Has, Dedeman and Ozilhan who started out as small-scale merchants in the city of Kayseri became prominent actors in the Turkish economy. However, these families set up their headquarters in cities such as Istanbul and Adana, nevertheless often coming back to Kayseri to invest. Introduction of economic liberalization policies in the 1980s, created a new wave of merchants and industrialists from Kayseri joining their predecessors choosing Kayseri as base of their operations.
2.0 Values of Islam never a Hostile to Business
Values of Islam are never a hostile to business. Many question emerged on why global economy looks unjust, with large income and wealth disparities and exploitation all too apparent. Islamic ethical values are not a replacement for universal values and virtues, but solely build on these by stressing compassion, tolerance, leniency, benevolence and hospitality. In fact, there is nothing to discover with regard to business ethics in Islam. The edifice of the entire Islamic way of life depends on absolute ethical values. Justice and equity, honesty, integrity, veracity, leniency, compassion, tolerance, selflessness,
benevolence, cooperation, mutual consideration, sacrifice and harmlessness, are the guiding values in all walks of life, business being not excepted. Muslims are deemed to truly observe these values in whatever position they are: either employer or employee, landlord or peasant, trader or customer, ruler or ruled, officer or subordinate, transporter or passenger, depositor or fiduciary, relatives or strangers, neighbours or fellow-workers, nobody is allowed to ditch these. In enable to recognise these values as binding is a concomitant of true faith; to neglect them in practical life means a serious lapse these values are laid down and emphasised in the Qur'an and reinforced in the Hadith.
Mutual consent between the parties is a necessary precursor for the validity of a business transaction. Therefore, a sale under coercion is unacceptable in Islamic context. A sale transaction is to be regarded as legal only if it is made through the mutual consent of the parties concerned. Taking advantage of someones plight and charging high price is also a form of pecuniary exploitation and as such forbidden in Islam. In the case of Kayseri, it depends on how people look at the term of exploitation. It was a mutual agreement that was made since that both parties agree into it. Trustworthiness is one of the most vital principles of ethical discipline in commercial transactions. 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. A true Muslim trader will not, therefore, barter his Akhirah (hereafter) for worldly gains and attention. He will void fraud, deception, and other dubious means in selling his merchandises or products. The sense of mutual trust demands that the advantages and disadvantages of commodity be known to the buyer so that he purchases the commodity in full satisfaction. Islam attaches great importance to the fulfilment of contract and promises. Islamic teachings teach a Muslim trader to keep up his trusts, promises and contracts. The basic principles of truth, honesty, integrity and trust are involved in all business dealings. The Holy Quran emphasizes the moral obligation to fulfil ones contracts and undertakings. In order to safeguard the interest of both the buyer and the seller
it is desirable, according to the Islamic teachings, to clearly define all the necessary details concerning the business deal.
It is a pivotal act that each business contract should clearly specify the quality, the quantity and the price of the commodity in question. Thus, in a business contract the offer and acceptance should be made between the parties concerned on a commodity which is with the buyer and, which he is able to deliver. Any commodity which is non-existent or not deliverable is disallowed to be transacted. A contract must be explicit with regard to the rights and obligations of the parties concerned so that it does not lead to disputes and disagreements among them. To encourage economic activity while seeking to keep it from being exploitive as well as becoming an end in itself, Islam has exhorted its adherents to refrain from riba, which translates literally as unlawful or exploitive gains. It must be equated with economic exploitation and the prohibition against it must not be construed as applying only to transactions involving usury or even interest. The prohibition against riba is intended to promote ethical economic activities that do not exploit other human beings in order to create wealth for an individual. Repeatedly, the Qur'an urges Muslims to pay others what is owed to them since exploitation occurs when one does not pay one's obligation. Therefore, these principles can provide a useful foundation and platform for any interested individuals or groups to launch programmes and policies towards conservation and betterment of the surrounding environment and the resources therein. To practise Islamic values in business is a good start. It is, however, a pity that the conceptual and operational bases of Islamic perspective of sustainable development had only been marginally explored which loom large over the developing countries.
3.0 Relationship between Islam and Business Much has been ma