business ethics in islamic perspective

The articulation of purpose will bring forth the business mission. Please click this link to view samples of our professional work witten by our professional essay writers. The first step to gaining trust is to listen. The supervisory committee should be considered as one which work not just to represent the stakeholders but as a guide for the company itself. June 18, 2012. one thing i should says that this blog is very important for every Muslims to read this blog and because this is very important to know work places. This goes without saying that there is a general consensus among human beings about certain fundamental ethical values. The trio of “heart, tongue, and deed” is frequently mentioned. Islam always encourages its followers to involve in the business from day one. said “An honest and trustworthy business man will be the martyrs on the day of resurrection”. Sura 31:18-19 says, “Do not be disdainful of other people, nor walk in arrogance in the earth. College of Islamic Banking, World Al-Lootah University (Internet), Dubai. From the buyer’s perspective, he takes comfort from knowing that a seller taking advantage of someone’s difficulties and marking up unreasonably high prices for a product or service are deemed as forms of financial exploitation and as such are forbidden in Islam. The concept of two willing parties, the buyer and the seller, is a requirement to a valid sale. Fulfil your obligations.” (5:1). Justice, honesty, and public welfare are the pillars of Islamic business ethics. Thereby creating a process that will automatically provide for the “good” (of society). Communicate them to your stakeholders. The more engaged the people are the more they would want the brand to succeed. The “why” are we doing this business OR “why” are we going into this business? ISLAM AND ETHICS Let us see some of the differences at the way corporate governance system looks like comparing the western and the Islamic system. It explores the normative and practical of business ethics in the context of Islamic religious perspective to organization and personal business man. Islam has its own distinctive value-based ethical system for business dealings. His Omnipotence imbues material reality with normative content. Businesses tend to think good corporate responsibility is about managing the footprint of their impact on society. Business Ethics in Islamic Perspective Business is one of many ways to meet human needs. View original from ejurnal.unisri.ac.id By Dr. Muzammil Siddiqi. It (i) enumerates the general ethical rules of business conduct, (ii) identifies ethically desirable forms of business, and, (iii) specifies the undesirable modes of transactions. It should be noted that the benefits of the company could also be sought in terms of barakah or blessings from the Almighty. PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF . One of the most important ways in which Islamic ethics can contribute to corporate governance would be to have Shariah governance committee as a supervisory committee. Islam holds committed Muslim businessman in high esteem due to the fact that Prophet Muhammad s.a.w. Everyone agrees that it’s not enough to advocate moral actions (the action of the tongue) but then act differently. Discussion on the Concepts of Business Ethics in the Islamic Perspective Ethics in general can be defined as the system of rules governing the ordering of values (Bateman & Snell, 2002). The basic principles of truth, honesty, integrity and trust are involved in all business dealings. – The purpose of this paper is to examine and discuss business ethics from an Islamic perspective., – Descriptive, analytical, and comparative analyses are used., – The study reveals several factors that affect Muslims' ethical behavior, including legal, organizational, and individual factors. Business Ethics: An Islamic Perspective. Islamic perspective is more suitable in explaining ethics as it is comprehensive, moderate and realistic (al-Aidaros et al., 2013). Moral principles and codes of ethics are repeatedly stressed throughout the Holy Qur’an. D. (Economics). Business is one of the way to meet human needs. But real progress will be achieved when they use their muscle to achieve genuine social change linked to their business. Business ethics are broad Islamic due to the high moral values. BUSINESS International Journal of Islamic Business & Management Vol. However, the Islamic ethical system substantially differs from the so-called secular ethical systems as well as from the moral code advocated by other religions and societies. Judaism – “What is hateful to you, do not do to your fellow man. It (i) enumerates the general ethical rules of business conduct, (ii) identifies ethically desirable forms of business, and, (iii) specifies the undesirable modes of … This is the entire Law; all the rest is commentary.” (Talmud, Shabbat 31a). Most studies on business ethics in general and the work ethic in particular have been based on the experiences of Western nations, with a primary focus on the Protestant work ethic (PWE) as advanced by Max Weber. Looking for a flexible role? 1; 2017 Published by Centre for Research on Islamic Banking & Finance and Business Business Ethics: An Islamic Perspective K. M. Anwarul Islam1 Md. Explain why despite these standards, some Muslim countries are still adopting their own standards. Business Ethics—The Islamic Perspective The aim of this chapter titled “Ethics—The Islamic Perspective” is to present the ethical course of action for managers from an Islamic viewpoint. Business Ethics. “HONESTY IS THE ONLY POLICY”. We're here to answer any questions you have about our services. To exemplify its importance in the national and global context, the Muslim author from Indonesia points with admiration to Konosuke Matsushita, founder of Matsushita Electric Corporation, who already in the 1930s set up the seven ethical principles for healthy business growth, which also are commended by the Islamic imperative. Manage risk effectively and you can head off financial risks like additional legislation, taxes or consumer boycotts. Islam places the highest emphasis on ethical values in all aspects of human life. When it comes to doing what is morally right, having the proper character (consisting of virtues such as wisdom, concern for justice, modesty, and the avoidance of vices such as lust, greed, and anger) is as important as following a set of rules. Comments Off on Business ethics: Islamic perspective You are the best of peoples, evolved for mankind, enjoining what is right, forbidding what is wrong, and believing in Allah. If not, what Islamic ethics can offer us pertaining to business? In bringing forth a strong Islamic business model, financial success is only one dimension of the value provided by the business unit. Allow me to bring to your attention two key Islamic principles, among many others, that shaped Muslim businessmen in the past and will be of great help in this challenging era. ‘THE ISLAMIC ETHIC is expressed in terms on the immanent presence of God in the earthly affairs of man. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Besides, there are numerous teachings of the Prophet (sws) which cover the area of moral and ethical values and principles. We have already given an example of the real by the Prophet … We have already given examples of the real by the Prophet SAW.bagaimana way he does business with to trade. It is also important to know that many companies involve in business transactions which might not exactly be Shariah compliant. The behaviour prescribed for the economic units of the society are so devised as to lead to a happy state of affairs, which is the ultimate goal of Islam. Almighty through prophets, religious scriptures and religious authority, Shuratic decision-making process: consultation and consensus-seeking, Financial governance by suppliers of finance. This includes providing market avenues that allow marginalized producers the opportunity to sell, ensuring humane working conditions, and all the while protecting environmental and cultural factors that play into the production process. 1, No. ‘Fair trade’ is considered a financial relationship between producers, sellers, and consumers based on the principle of equity within the exchange of goods. An Islamic Approach to Business Ethics. Intentions are as important as deeds (as is true also in acts of worship) Sincerity is crucial. These teachings not only prohibit from amalgamation, black-marketing, hoarding and deception but also force to treat a customer amiably. If a businessman is in a rental of house units business, each business contract should clearly specify the content, the quantity and the price of the unit in detail. Zeynep Arslan BBA, Marmara University, 2008 . Get notified on the next article and occasional announcement on Pergas events. The concept of business ethics in islamic perspective: an introductory study of Small and Medium Enterprises (SMEs) @inproceedings{Muhammad2013TheCO, title={The concept of business ethics in islamic perspective: an introductory study of Small and Medium Enterprises (SMEs)}, author={M. Z. Muhammad and A. Abdullah and Razman Hafifi Redzuan and Siti Fariha Muhamad}, … Use the country example familiar to you. We can also formulate some contributions of the governance based on steps suggested by Abdullah (2010) for the purpose of business model creation based on Islamic ethics. Ethical norms and moral codes that can be deduced explicitly or implicity from the verses of the Holy Qur’an and the teachings of the Prophet (sws) are numerous, far reaching and comprehensive. Required fields are marked *, For these reasons, we have seen Islamic finance flourish in the last decade. In relation to the Islamic paradigm aboutbusiness ethics, the philosophical foundation that must be built in time is the Muslim conception of human relationships with the people and the environment, and the human relationship with his Lord, who is known in religious language with the term (hablum minallah wa hablumminannas). Ethics, Production, Trade, Islamic Economics The present study aims to contribute to the existing research in the field of business and shed more light on the business ethics from the perspective of Islamic economics. Ethical norms and moral codes discernible from the verses of the Qur’an and the Hadith are numerous, far reaching and comprehensive. First of all, the second largest religion in the world which beliefs in the oneness of God is Islam. ETHICS IN ISLAMIC PERSPECTIVE ... Business Ethics Business Ethics is the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons engaged in commerce. Both God's law expressed in the Qur'an and Sunna and the objective circumstances in which man must strive to obey them are divinely ordained. New corporate governance regulations have come about which make the directors have responsibilities in the area of ‘trust’ or customer satisfaction through transparent and authentic marketing claims. There are a number of rules of ethical discipline in Islamic commercial transactions without which business contract would be regarded as lacking perfection in the light of the code of good manners, decency and ethical excellence. September 13, 2012. In Islam, ethics governs all aspects of life. The business mission should then be evaluated for the impact it would have on society. People, by nature, like to ‘belong to groups’. If other major religions, such as Christianity, call for a review to inculcate religious values in Christian businessmen, Muslim businessmen can be proof of success stories where business ethics and religious values can merge harmoniously for the betterment of the individual and his community. In Islamic study, right and wrong is clearly advocate through the word of Allah. The central themes in Islamic finance that prohibits leverage and riba, and promotes asset-backed transactions are now increasingly being universally accepted. Your email address will not be published. One can estimate the importance of business ethics in Islam for economic development in Islamic society it is evident by the Hadith of Prophet Muhammad (PBUH) in which He excluded a trader from Muslim community who did not behave in good manner with his clients. Ethics in business: Islamic perspective. Rezaul Karim Miajee1 1 Department of Business Administration, The Millennium University, Dhaka, Bangladesh Correspondence: Department of Business Administration, the … Alongside these Islamic ethics also emphasizes on no reward without risk (, On another occasion, a tradition of the Prophet (Peace be upon him) states: “A time will come upon the people when one will not care as to how he gets his money whether legally or illegally.”. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The second Islamic principle is fulfilling promises and contracts. And stories enable for a dialogue to take place thereby leading to engagement and a furthering a common cause. Don't worry, we don't like spam either! clearly developed Islamic business ethics. Islamic teachings strongly stress the observance of ethical and moral code in human behaviour. Equity is achieved via creating a platform for trade that is transparent and therefore accountable for the just treatment of all producers. An action done just for external compliance, says Islam, isn’t nearly as good as one that comes from the heart. Buddhism – “Hurt not others with that which pains yourself.” (Udana-Varga 5,1). Mutual consent between the parties is a necessary condition for the validity of a business transaction. The key governance factors of ethics, adherence to sharia etc would need to be clearly articulated and directions provided for employees dealing in the area of investment, compliance, competitive differentiation, improving reputation or winning customer loyalty. Mutual understanding, honesty and ethics possess central place in Islamic teachings. ISLAMIC FINANCE Faith and effort are both required. This principle of calling to “do good and forbid evil” is a guiding light. Any promise which is non-existent or not deliverable is not allowed to be transacted. Something that comes from the heart will be accompanied by words and actions. Our academic experts are ready and waiting to assist with any writing project you may have. And forbid evil ” is frequently mentioned concept of two willing parties, second. The finance departments discernible from the heart will be achieved when they their! These teachings not only prohibit from amalgamation, black-marketing, hoarding and but! Who believe by the business from day one oneness of God is Islam consulting a set of rules company in! A platform for trade that is transparent and therefore accountable for the impact it would have on society lead... Islam encourages truthfulness in business transactions and raises the status of a country on! 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