Business Ethics in Islam

Hussain Qadri, Hussain Mohi-ud-Din Qadri

• Publisher: Routledge
• Year: 2019
• Topic: Business
• eBook ISBN:
  9781000701210
• Subtopic: Business General
• Index: Business

Islamic Business Finance is based on strong ethical regulations as suggested by Islamic Literature, such as the Quran and the Traditions of the Prophet of Islam, and could be considered as a subclass of the wider subject of ethical standards in business. This book highlights the basic principles of Islamic Business ethics and their implication in today's global business environment. It highlights the most important features of Islamic banking and finance in relation to the core principles of Shariah law. It is the most comprehensive book to date, in terms of the number of Quranic verses and traditions of the Prophet relating to this subject, which are interspersed throughout the text. It explains how ethics are defined both in general terms and within the context of an Islamic perspective. In addition, it provides a logical interpretation of Islamic principles of business ethics, while keeping in view thethrough the use of contemporary business practices. Topics such as digital currencies, money laundering, etc. are discussed at length. This book also discusses the new and emerging ethical issues faced by business and industry globally.

This book will be a valuable reference guide for students, teachers and researchers of Islamic banking and finance.

1
Islamic economic system and its main characteristics

1.1 The importance of good intentions for traders

Purity of intention is one of the cornerstones, fundamental supports and most important integrals of religion. Islam places great stress on making Allah (The Exalted) one’s sole objective in devotional acts and mutual dealings. In order to instil pure thoughts, intentions and constant Divine awareness in the faithful, Allah, the Exalted, said in the Qur’ān:

And he who leaves his home, migrating towards Allah and His Messenger (Allah bless him and give him peace), and then death overtakes him (on the way), his reward with Allah is ensured and Allah is Most Forgiving, Ever-Merciful.¹

It is essential that believers strive solely to please the Divine. However, to attain eternal salvation pure intention is a must in carrying out every matter pertaining to this world and the next.

Prophetic Traditions also give emphasis to being truthful, upright and honest in one’s intention. So that believer’s every deed is for the sake of Allah, the Messenger (Allah bless him and give him peace) told his community how actions are valued:

According to ‘Umar b. al-Khaṭṭāb, Allah’s Messenger said: “Actions are valued according to the intention, and every man is credited with what he intended. If someone’s emigration was to Allah and His Messenger, his emigration was therefore to Allah and His Messenger, and if someone’s emigration was to acquire some worldly benefit, or to take a woman in marriage, his emigration was to that to which he emigrated.”²

The very act of earning one’s keep is an act of service to the Divine when the intention is wholesome. Ka’b b. ‘Ujra (may Allah be pleased with him) narrated:

A person passed by the Prophet (Allah bless him and give him peace), and his companions commented after seeing his body and his hard work: “Messenger of Allah, what if his work is for the sake of Allah?” Allah’s Messenger replied: “If he has left (his house) for earning livelihood for his children, he is in the path of Allah, and if he has left (his house) for his old parents, it is again in the path of Allah, and if he has left his house for making his effort, he is in the path of Allah. However, if he has stepped out from his house for vanity and outward show, he is following the Devil’s path.”³

When one performs a lawful act, Allah accepts it, on condition that it is carried out for His sake.

According to Abū Hurayra‘Abd al-Raḥmān b. Ṣakhr (may Allah be pleased with him):

Allah’s Messenger (Allah bless him and give him peace) said: “Allah does not observe your bodies and your forms, but He does observe your hearts.”

In one version, the wording is: “Allah does not observe your forms and your properties, but he does observe your hearts and your deeds.”⁴

Indeed, in Islam the mundane and permissible affairs of life are transformed into acts of obedience if they are accompanied by noble intentions. The act of managing even our most routine affairs of life can change into worship and devotion to Allah provided that their good intention exist. So, if someone eats nourishing food in order to can meet religious and social obligations, his or her act of consuming food will be considered worship, deserving of recompense in the world to come.

In contrast, a scripturally forbidden act remains unlawful regardless of purpose. In the light of the Qur’ān and Hadith, evil deeds cannot change into good ones under any circumstance – no matter how good the intention, how worthy the aim. The Muslim religion does not condone employing unlawful means in order to achieve “laudable” ends. It insists that not only the aim be reasonable and fair but also that the means chosen be just. Therefore, the common thesis, “the end justifies the means,” is contrary to Islamic law.

Allah is so gracious that when humans intend to do good, He orders angels to record a good deed to their credit, but their transgressions are recorded against them only when they are committed.

According to Abū Hurayra (may Allah be pleased with him), Allah’s Messenger (Allah bless him and give him peace) said:

Allah says (to angels): “If My servant intends to commit a bad deed, you must not record it against him until he commits it. Then, if he commits it, you must record it with its equivalent (sin). If he refrains from it for My sake, you must record a good deed to his credit. If he intends to perform a good deed, but he does not perform it, you must record a good deed to his credit. If he does perform it, you must record the like of it to his credit, from ten up to seven hundred times.”⁵

The following Tradition also demonstrates the vital importance of forming pious intentions even if one is unable to carry out the intended good action.

According to Anas b. Mālik that Allah’s Messenger returned from the Tabūk expedition and approached Medina and said: “In Medina there are people who have been with you whatever distance you have travelled and whatever valley you crossed.” They said: “Messenger of ...

Table of contents

• Cover
• Half Title
• Series Page
• Title
• Copyright
• Contents
• Foreword
• Author’s preface
• 1 Islamic economic system and its main characteristics
• 2 The key features of the Islamic economic system
• 3 Reflections on licit and illicit transactions
• 4 Sharia rules on usury (ribā)
• 5 Restrictions for the business class
• 6 Seven highly destructive practices of traders
• 7 The legal status of contracts
• 8 The Islamic way of business and trade
• 9 Sharia rules on giving and receiving loans
• 10 Zakāt
• 11 Contemporary issues in Islamic business and trade
• 12 Islamic system of banking and finance
• Glossary
• Bibliography
• Index