Business Ethics in IslamBusiness Ethics in Islam A person can earn money by two means; one is A person can earn money by two means; one is agriculture and the other is business. If business is not done agriculture and the other is business. If business is not done according to the ethics then there will always be inflation and according to the ethics then there will always be inflation and shortage of goods. As it can be seen in the case of many shortage of goods. As it can be seen in the case of many commodities like wheat, sugar etc. It is due to the stocking in, commodities like wheat, sugar etc. It is due to the stocking in, speculation and the selfishness of some businessmen. The speculation and the selfishness of some businessmen. The government has also become a trader itself, while the shariah government has also become a trader itself, while the shariah has stopped the Islamic government from trading.has stopped the Islamic government from trading.As it can be seen that business is an important part of life, the As it can be seen that business is an important part of life, the Prophet Muhammad (P.B.U.H) said, "People get 9/10 of their Prophet Muhammad (P.B.U.H) said, "People get 9/10 of their daily bread by trade." Islam explains the concept of righteous daily bread by trade." Islam explains the concept of righteous trade by telling business ethics.trade by telling business ethics.

Allah says in the Quran, "they say that buying Allah says in the Quran, "they say that buying is also like interest but Allah has declared is also like interest but Allah has declared buying as permissible and interest as buying as permissible and interest as forbidden." And "When you buy or sell then forbidden." And "When you buy or sell then make someone a witness of it." make someone a witness of it."

The Holy Prophet Muhammad (P.B.U.H) The Holy Prophet Muhammad (P.B.U.H) encouraged the trust worthy traders by these encouraged the trust worthy traders by these words, "A trustworthy and truthful merchant words, "A trustworthy and truthful merchant shall be with the prophets and the truthful and shall be with the prophets and the truthful and the martyrs and the righteous ”.the martyrs and the righteous ”.

Prophet Prophet Muhammad(P.B.U.H) Muhammad(P.B.U.H) &Business &Business Prophet Muhammad was chosen by God to be His last Prophet Muhammad was chosen by God to be His last

prophet and messenger at the age of 40. Before that he prophet and messenger at the age of 40. Before that he was very much involved in business. He and his wife was very much involved in business. He and his wife Khadija were both merchants. It is reported that he Khadija were both merchants. It is reported that he traveled to Syria, Yemen, Bahrain, and many other traveled to Syria, Yemen, Bahrain, and many other places in Arabia for trade. Some historians have also places in Arabia for trade. Some historians have also suggested that he probably traveled to Iraq and suggested that he probably traveled to Iraq and Ethiopia. From his early age, he was involved in Ethiopia. From his early age, he was involved in commerce. He had a good reputation as a hardworking, commerce. He had a good reputation as a hardworking, honest, truthful, and very successful businessman.honest, truthful, and very successful businessman.

Fair dealings in businessFair dealings in business The Holy Qur'an and Prophet Mohammad (PBUH) have made The Holy Qur'an and Prophet Mohammad (PBUH) have made

it clear that a Muslim must be honest and upright in his it clear that a Muslim must be honest and upright in his business and monetary dealing. Also the true Muslim should business and monetary dealing. Also the true Muslim should keep his word and fulfill his promises, shun fraud and avoid keep his word and fulfill his promises, shun fraud and avoid deceit and perfidy, encroach not upon the rights of others, nor deceit and perfidy, encroach not upon the rights of others, nor take part in wrongful litigation.take part in wrongful litigation.

The Qur'an is rich with verses that confirm all this. Allah says The Qur'an is rich with verses that confirm all this. Allah says in the Quran, "Eat not up each other's property by unfair and in the Quran, "Eat not up each other's property by unfair and dishonest means.“dishonest means.“

Allah urges Muslims to be very particular about their trusts Allah urges Muslims to be very particular about their trusts and about other people's rights. "Allah does command you to and about other people's rights. "Allah does command you to render back your trust, to those to whom they are due."render back your trust, to those to whom they are due."

Major principles of fair Major principles of fair business dealingsbusiness dealings

1.1. No fraud or deceitNo fraud or deceit

2.2. Sellers must avoid making too many oaths when selling Sellers must avoid making too many oaths when selling merchandise.merchandise.

3.3. Mutual consent is necessaryMutual consent is necessary

4.4. Be strict in regard to weights and measuresBe strict in regard to weights and measures

5.5. The Prophet (P.B.U.H) forbade monopoliesThe Prophet (P.B.U.H) forbade monopolies

6.6. Hoarding merchandise in order to increase the prices is Hoarding merchandise in order to increase the prices is forbidden.forbidden.

7.7. Transaction of forbidden (Haram) items, such as Transaction of forbidden (Haram) items, such as intoxicants, is forbiddenintoxicants, is forbidden

Fraud and dishonesty in businessFraud and dishonesty in business

Prophet Muhammad (P.B.U.H) has stressed the importance of Prophet Muhammad (P.B.U.H) has stressed the importance of honesty in most of his sermons, saying, "Remember, there is no honesty in most of his sermons, saying, "Remember, there is no faith in him who is not trustworthy; there is no place for him in faith in him who is not trustworthy; there is no place for him in religion who cares not for his pledged word or promise. religion who cares not for his pledged word or promise.

He (PBUH) also said, "The signs of a hypocrite are three, when He (PBUH) also said, "The signs of a hypocrite are three, when he speaks, he is false, when he promises, he fails; and when he he speaks, he is false, when he promises, he fails; and when he is trusted, he plays false.“is trusted, he plays false.“

who cheat in business Prophet Mohammad who cheat in business Prophet Mohammad (PBUH) has said, "He who cheats is not of (PBUH) has said, "He who cheats is not of us. Deceitfulness and fraud are things that us. Deceitfulness and fraud are things that lead one to Hell."lead one to Hell."

Prophet Muhammad (P.B.U.H) said, "The seller must Prophet Muhammad (P.B.U.H) said, "The seller must explain to the buyer the defects, if any, in the quality of the explain to the buyer the defects, if any, in the quality of the article offered for sale. Should this not be done, the seller article offered for sale. Should this not be done, the seller will permanently be caught in the Wrath of Allah.“will permanently be caught in the Wrath of Allah.“

In short, all manner of deceit and dishonesty in business is In short, all manner of deceit and dishonesty in business is prohibited in Islam. The Holy Prophet has expressed his prohibited in Islam. The Holy Prophet has expressed his strong dislike for those who do so.strong dislike for those who do so.

Once Prophet Muhammad (P.B.U.H) came upon a heap of Once Prophet Muhammad (P.B.U.H) came upon a heap of corn in the market of Madinah and thrust his hand onto it. corn in the market of Madinah and thrust his hand onto it. His fingers felt damp. On being asked, the trader replied that His fingers felt damp. On being asked, the trader replied that rain had fallen upon it. The Prophet (P.B.U.H) observed, rain had fallen upon it. The Prophet (P.B.U.H) observed, "Why did you not then keep (the wet portion of) it above the "Why did you not then keep (the wet portion of) it above the dry corn, so that men may see it? He, who deceives, is not dry corn, so that men may see it? He, who deceives, is not one of us."one of us."

Bribery in business transactionsBribery in business transactions

Bribery and usury, although might be practiced by mutual Bribery and usury, although might be practiced by mutual consent and agreement, are totally prohibited and forbidden. consent and agreement, are totally prohibited and forbidden.

Prophet Muhammad (P.B.U.H) said, "The curse of Allah Prophet Muhammad (P.B.U.H) said, "The curse of Allah rests on him who offers loan on usurious terms, and on him rests on him who offers loan on usurious terms, and on him who receives, and on those who are witnesses to the who receives, and on those who are witnesses to the transaction, and on the writer who writes the deed thereof."transaction, and on the writer who writes the deed thereof."

"Remember, he who will obtain the property of another by "Remember, he who will obtain the property of another by swearing a false oath will appear as a leper before Allah (on swearing a false oath will appear as a leper before Allah (on the Day of Judgment).“the Day of Judgment).“

"Whoever laid a claim on a thing that was "Whoever laid a claim on a thing that was not his is not of us.“not his is not of us.“

Swearing Swearing

The traders often take recourse to swearing to emphasize The traders often take recourse to swearing to emphasize that their items are of good quality. They claim qualities in that their items are of good quality. They claim qualities in the merchandise, which don’t exist. They try to persuade the the merchandise, which don’t exist. They try to persuade the buyers to purchase their commodity by invoking Allah’s buyers to purchase their commodity by invoking Allah’s name. Swearing in business for such purposes is forbidden name. Swearing in business for such purposes is forbidden in Islam, be it false or true.in Islam, be it false or true.

The Prophet (P.B.U.H) is reported to have said:The Prophet (P.B.U.H) is reported to have said: Swearing Swearing [by the seller] may persuade the customer to purchase the [by the seller] may persuade the customer to purchase the goods but the deal will be deprived of Allah’s blessing. goods but the deal will be deprived of Allah’s blessing. ((BukhariBukhari, No: 1945), No: 1945)

Giving Short MeasuresGiving Short Measures

Another form of deceit is to manipulate weights and measures. It Another form of deceit is to manipulate weights and measures. It refers to the act of taking full measures from others and giving refers to the act of taking full measures from others and giving them short measures in your turn.them short measures in your turn.

The community of the Prophet The community of the Prophet Shu‘aybShu‘ayb (sws) was known for (sws) was known for practising it with impunity. Consequently, they were destroyed practising it with impunity. Consequently, they were destroyed for their persistence in deceit and disbelief in Allah and His for their persistence in deceit and disbelief in Allah and His Messenger. Allah the Almighty has repeatedly commanded Messenger. Allah the Almighty has repeatedly commanded exactitude in weights and measures.exactitude in weights and measures.

One of the verses says:One of the verses says: And give full  And give full measure when you measure, and weigh with measure when you measure, and weigh with a just balance. That is good and better in the a just balance. That is good and better in the end. (17:35)end. (17:35)

Dealing in Stolen GoodsDealing in Stolen Goods Almighty Allah has declared thievery unlawful and warned of Almighty Allah has declared thievery unlawful and warned of

severe punishment such as cutting the hand of the thief from severe punishment such as cutting the hand of the thief from the wrist joint if the necessary legal conditions for the award of the wrist joint if the necessary legal conditions for the award of punishment are met. Even if the thief escapes worldly punishment are met. Even if the thief escapes worldly punishment and gets away with stolen goods, it is not punishment and gets away with stolen goods, it is not permissible for a Muslim to knowingly purchase or sell these permissible for a Muslim to knowingly purchase or sell these items. The stolen items are neither to be bought nor sold by items. The stolen items are neither to be bought nor sold by those who know the reality. The Prophet (sws) made the those who know the reality. The Prophet (sws) made the person knowingly buying a stolen commodity a partner to the person knowingly buying a stolen commodity a partner to the crime. He said:crime. He said:

The one who knowingly purchases a stolen good, is a partner to The one who knowingly purchases a stolen good, is a partner to the act of sin and the shame. (the act of sin and the shame. (Kanz Al-‘Ammal, No: 9258Kanz Al-‘Ammal, No: 9258) )

ConclusionConclusion

In modern times business ethics has become a major topic of In modern times business ethics has become a major topic of discussion among business communities and other related discussion among business communities and other related organizations. Each and every society has evolved ethical and moral organizations. Each and every society has evolved ethical and moral codes of conduct for business transactions. However, the Western codes of conduct for business transactions. However, the Western secular ethical values are by and large supposed to be utilitarian, secular ethical values are by and large supposed to be utilitarian, relative, situational and devoid of any spiritual sanctioning power. The relative, situational and devoid of any spiritual sanctioning power. The Islamic ethical codes, on the contrary, are humane rather than Islamic ethical codes, on the contrary, are humane rather than utilitarian or relative. They are good for all times and absolute. Ethical utilitarian or relative. They are good for all times and absolute. Ethical and moral codes in Islam are part of the overall Islamic faith and and moral codes in Islam are part of the overall Islamic faith and observing them will not only lead to a happy state of affairs in this observing them will not only lead to a happy state of affairs in this world but also holds the promise of manifold returns in the Hereafter. world but also holds the promise of manifold returns in the Hereafter. Islamic ethical and moral codes thus create a sense of responsibility Islamic ethical and moral codes thus create a sense of responsibility and accountability in the minds of the believers, be they buyers or and accountability in the minds of the believers, be they buyers or sellers.sellers.

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