Learning OutcomesAt the end of this lecture, you should be able to:

Define ethics from the Islamic perspective

Explain the source and origin of the Islamic ethical system

Describe the concept of Islamic worldview

Explain the five axioms of Islamic ethical philosophy and their importance to a Muslim’s life

Explain the Islamic perspective of the relationship between firms and their stakeholders

Explain some prohibited matters in business transactions

Islamic ethics Islamic ethics can be defined as:

“a set of universal standards of right or wrong that prescribe the acceptable or unacceptable human

conduct as highlighted in the Quran and shown by the exemplary life of the Prophet Muhammad pbuh”

In a nutshell, Islamic ethics represent all virtuous deeds (al’amal assalih) in one’s personal life and professional life.

Islamic ethics are absolute in nature – to be observed in all situations, dealings and roles in one’s life.

Integrates the inner and outer aspects of anindividual’s life (Ibn. Manzur, 1990 : 86; MiqdadYaldin, 1973.

It concerns individual physical development withpriority on the soul development which is crucialto the individual’s behaviour and characterdevelopment.

Islamic Ethics – Ethics of The Soul

Sources and Origins of Islamic Ethics There are two primary sources of Islamic ethics:

They provide complete guidance for Muslims to live their life.

Decisions that are based on the Quran and Sunnah are deemed ethical.

A divine book of revelation that comprises verbatim and

unalterable words of Allah revealed to Prophet

Muhammad pbuh

Hadiths or reports about the recorded sayings, personal

teachings, character, deeds, actions and practices of

Prophet Muhammad pbuh in personal and public life that

exemplify the teachings of Islam

Al Quran

Sunnah

Developing the correct worldview is important.

God-centered Worldview vs Secular Worldview whichseparates world and religious affairs;

The importance of integrating worldly affairs withreligion. Islam as a way of life.

Developing the Correct Worldview

Islamic Worldview and Ethical System

Worldview is defined as a ‘set of implicit and explicit assumptions about the origin of the universe and the nature of life’.

It refers to how man perceives and explains the reality regarding the existence of the universe and their role in it.

Islamic Worldview

It is derived from the Al-Quran and founded on

the fact that Islam is a religion and also a way

of life in which Muslims must pay attention to

the world, the Hereafter and the Day of

Judgement.

Core Ideas of Islamic Worldview

Unity of God – Allah is the one and only Creator and Sovereign of the entire universe. Man are as vicegerents of Allah on earth and must worship and obey Allah, who is the cause and end of everything. Man should aim for everlasting life after death.

Man is accountable to Allah for which He will judge him based on his actions in life. Disobedience will result in corruption and disorder in the world.

Allah has chosen a few humans as Prophets (peace be upon them) to show others the right path to live in the world.

All Prophets carried the same message –to worship only Allah and to obey his commandments.

Muhammad pbuh was the only one that Allah commanded to lead the entire humanity. He was the last of all Prophets.

The Islamic worldview sets the foundation for four vital principles in the Islamic ethical system.

The Link Between Islamic Worldview and Ethical System

KhalifahTawheed

Taqwa

‘abd

Four Principles of the Islamic Ethical System

Belief in the unity of Allah.

The first and foremost requirement to embrace the Islamic faith.

Tawheed Taqwa

All-inclusive, inner consciousnessof one’s duty and accountabilitytoward Allah.

It is a quality of human beings thatis related to the state of the heart.

It results in pious behaviour – tobe accountable and fear ofreprisals of Allah.

Four Principles of the Islamic Ethical System

Someone who carries out his or her role as the Khalifah (vicegerency) of Allah on earth.

As a Khalifah, we must strive to do the right thing and avoid doing harm.

We must also obey Allah, make a good society and take care of this world.

Khalifah ‘abd

This means servants of Allah.

As servants, we have to follow andobey His rules in all of ourdealings.

Our way of life must be within theboundaries of Shari’ah – life is aworship.

Axioms of Islamic Ethical Philosophy

Unity

Equilibrium

Free will

Responsibility

Benevolence

Allah is one and only Creator of the earth and universe.Requires total submission of man to Allah.

Allah created this world in perfect balance and harmony.Actions must be based on justice and maintenance of socialharmony.

Man has freedom to live his life but it must be exercisedwithin the bounds of Shari’ah.

Man must fullfil various types of responsibilities in life.Every action will be accounted for in the Day of Judgement.

Man must strive to show act of kindness toward otherbeings by doing things that benefits others and mankind.

Responsibility of a Khalifah

Responsibility to Allah – unwavering faith on the unity of Allah and obey all his rulings.

Responsibility to Himself – have a good life by making the right choices that are in accordance with Shari’ah.

Responsibility to Society – to foster brotherhood, peace and harmony in the society.

Responsibility to the Environment – to use natural resources in accordance with the will of Allah and prevent destruction of the environment.

Humans as special creations of God (Syed Othman Alhabshi & Aidit Hj. Ghazali,1994). The concept of khalifah . Human beings are therefore in a unique positionto be a guardian.

Islamic ethical system - four axioms or maxims i.e. Islam, Iman, Ihsan and Taqwa(Beekun and Badawi, 1999)

It concerns individual physical development with priority on the souldevelopment, crucial to the individual’s behaviour and character development(Noorazzah Kamri, 2010).

The values of the soul are universal and consistent without having to separatehuman, physical and spiritual values determined by Allah SWT.

These values shall remain unaffected by changes in external conditions andcircumstances of life (al Maududi, 1978:36)

Islamic Worldview and Ethical System

The foundation of the Islamic ethical system is Al Quran and the Prophet’stradition or Sunnah.

Humans have three main responsibilities: to make himself/ herself good; to help others be good and to make the physical world good.

One cannot preach goodness if he or she does not personally embodygoodness.

The Islamic ethical system thus requires a Muslim to totally submit to theCreator, seek from Him guidance and give the best to fellow humans as akhalifah on Earth.

Islamic knowledge is pertinent above all other forms of knowledge, to enablea Muslim to lead a life of taqwa or piety.

Islamic Worldview and Ethical System

How can we apply Islamic Ethics in the Business

World?

Refer Chapter 11 of Textbook

Values & Ethics Components in Islamic Management

Religious values

Professional Values

Personal Values

Quality Values

Taqwa (God conscience),

Gratitude, Ihsan(benevolence),

Tawakkal, Muhasabah (self

evaluation), Justice, Amarmakruf nahi

munkar(promoting good and forbidding

evil).

Education, Skill, Honesty,

Punctuality, Trustworthy,

Syura( consultation).

Accountability, Moderation, Excellence, Patience,

Tolerance, Humble, Salam.

Quality, productivity, Itqan (i.e. the

level of quality work),

Istiqamah (i.e. being straight

and steadfast/commi

tment), Efficiency, Creativity, Innovation,

Collectivity , Ihsan

(benevolence i.e. being kind and

helpful)

(Source: Paper “ The Role of Islamic Ethics in Organizations: An Experience in Malaysia Norazzah Kamri and Khairiah Salwa Hj. Mokhtar, USM)

“ Did you think that We had created you in play(without any purpose), and that you would not bebrought back to Us?”

(Al-Mu’minun 23:115)

His creation is for a purpose

Comes into the world innocent but must be guided

Has to succeed in this world to succeed in the next

Must develop a world view that will allow him tosuccess

Man

Determines our actions

Different from person to person

Worldview can take us away from or closer to ourpurpose

Worldview must be accurate, positive and motivating

Worldview

Behold, thy Lord said to the angels:

“ I will create a vicegerent (khalifah) on earth.”

(Al Baqarah 1:30 )

The Anointment

Man is informed of his role in a direct statement.

Man is in a unique position

That of a guardian

Allah breathed His spirit into Man.

“but He fashioned him in due proportion and breathed into him something of his spirit.”

(As Sajdah 32:9)

Given the ability to know Allah intimately.

Special Creation

Given the highest degree of free will;

Intellect is like no other;

Good by choice. Given inner control;

Accountable for all actions

Man is Special

“We have indeed created man in the best of moulds,”

(At Tin 95:4)

Go back to our role as Khalifah of Allah

Chosen One

“ Let there arise out of you a band of people inviting to all that is good, enjoining what is

right and forbidding what is wrong. They are the ones to attain felicity (success).”

(Ali Imran 3: 104)

Three Areas of Responsibility

1

• Self

2

• Society

3

• Physical World

Three Responsibilities

Make yourself good

Help others be good

Make the physical world good

Start with self

We cannot preach goodness if we do not embodygoodness ourselves

Clear instructions in Quran & Sunnah

Make Yourself Good

We can only help

Their free-will will make the choices

Their world view will determine their actions

“The believers, men and women, are protectors one of another: they enjoin what is just, and forbid what is evil”

(At Taubah 9:71)

Help Others Be Good

“See you not (o men) that Allah has subjected for you whatsoever is in the heavens and whatsoever is in the

Earth,”

(Luqman 31:20)

Man is duty bound to keep the physical world in a balanced state.

Make The Physical World Good

A comprehensive word found in the AlQuran that carries the meaning of fear,

respect and reverence for God

(Green,2008 at http:islamic- beliefs.suite101.com/article.cfm/what_ is_ taqwa)

An individual with Taqwa will sincerely obey the rules of Allah and begrateful to Him.

To carry out responsibilities, we must know what is right and what is wrong.Must acquire knowledge.

We must be in a state of consciousness. Consciously accept the existence ofAllah.

We must be in a state of remembrance of Allah.

In Islam, it must be enlightened obedience; not blind obedience.

Application of knowledge from AlQuran and Sunnah . Internalize and

translated into virtues as an obedient servant of Allah.

Taqwa

They are the patient, and the truthful, and the obedient, and the charitable, and the seekers of forgiveness in the early morning. (Al Quran, Surah Al Imran, 2:17)

As a religious concept, it is all encompassing inner consciousness of one’s duty towards God (Allah) and the awareness of one’s accountability toward HIM which results in the right conduct (Nayal Rashed Mukred Mohsen, 2007).

These are characteristics of the Motaqeens i.e. people who hold taqwa as a value.

People of Taqwa from Al Quran

“I heard the Messenger of Allah, may Allah bless him and grant him peace, say, “Whoever of you sees

something wrong should change it with his hand; if he cannot, then with his tongue; if he cannot, then

with his heart, and this is the weakest form of belief.”

(Muslim)

Carrying Out Responsibilities

“ And it was by God’s grace that thou (O Prophet) did deal gently with thy followers: for if thou had been harsh and hard of heart , they would indeed have broken away from

thee.”

(Ali Imran 3: 159)

Must be gentle in dealing with others.

Carrying Out Responsibilities

Our entire life is a jihad. Jihad –one of the fundamentals ofIslam

Jihad - Holy fighting in the Cause of Allah or any other kindof effort to make Allah Word ( i.e. Islam) superior.

It is a struggle to do the best in the name of goodness.

Every step towards good and away from evil is a Jihad.

It is a life long struggle.

Has to be done in the best of manner.

Life is a Jihad

“Invite (all) to the Way of the Lord with wisdom and beautiful preaching; and argue with them in ways that are

best and most gracious”

(Surah An- Nahl, 16:125)

Ihsan (benevolence i.e. being kind and helpful).

Our Responsibility

Humans are responsible for the progression (or even the regression) of the Earth.

Being Khalifah is THE MOST IMPORTANT ROLE. A leader on this Earth.

Unique and special role

We are part of Allah’s plan

We have specific duties

“ Say: Travel through the earth and see how He makes the first creation, so will Allah produce a later creation: for Allah has power over all things”.

(Al – Ankabut 29:20)

All About Balance

“ But seek, with that (wealth) that Allah has bestowed on you, the home of the Hereafter, and

forget not your portion of lawful enjoyment in this world; and do good as Allah has been good to you, and seek not mischief in the land. Verily Allah likes not the Mufsidan( those who commit great crimes

and sins, oppressors, tyrants, mischief makers, corrupters)”

(Al Qasas 20:77)

The two books (Al- Quran andHadith/ Sunnah) must bestudied in balance

Will lead to betterunderstanding and betterpractice

Entire life is one of worship/Ibadah

A Life of Worship

“Say (O Muhammad SAW): Verily, my salat

( prayer), my sacrifice, my living, and my dying are for Allah, the Lord of the ‘ Alamin

(the Cherisher of the Worlds)”

(mankind, jinns and all that exists).”

(Al- An’am 6 :162)

The Five Pillars of Islam

The Six Pillars of Iman

The Five Pillars of Islam

Faith or belief in the Oneness of God and the finality of the prophet hood of Muhammad; (shahadah)

Establishment of the daily prayers; (5 times a day)

Concern for and almsgiving to the needy; (zakat)

Self-purification through fasting; and (fasting in the month of Ramadhan)

The pilgrimage to Makkah for those who are able.

(Source: http://www.islam101.com/dawah/pillars.html )

The Six Pillars of Iman

Belief in Allah

Belief in the angels

Belief in the revealed books

Belief in the commissioned Messengers (peace be upon them)

Belief in the resurrection and the events of Qiyamah

Belief in the predestination by Allah of all things, both the (seemingly) good and the (seemingly) bad

(http://www.missionislam.com/knowledge/sixpillarsiman.htm)

(Iman is Faith or Belief)