(Qur'an 3:110) Every day, we face ethical issues at work place, and hardly know how to deal with them to find a workable solution. And stories enable for a dialogue to take place thereby leading to engagement and a furthering a common cause. Business is one of the way to meet human needs. Islam – “No one of you is a believer until he loves for his neighbour what he loves for himself.” (Hadith Prophet Muhammad s.a.w. '. ISLAM AND ETHICS 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. JOHN C. MAXWELL. ‘THE ISLAMIC ETHIC is expressed in terms on the immanent presence of God in the earthly affairs of man. Islamic Business Ethics. If circumstances prevent accomplishment of the action, then commitment of the heart is still regarded as good. Let us see some of the differences at the way corporate governance system looks like comparing the western and the Islamic system. Listening, using the variety of mediums that are available, to hear what the stakeholders are saying and thereby get into a dialogue with them and engage them. The concept of two willing parties, the buyer and the seller, is a requirement to a valid sale. Free resources to assist you with your university studies! December 2017; International Journal of Islamic Business & Management 1(1):7-9; DOI: 10.46281/ijibm.v1i1.45 Mutual understanding, honesty and ethics possess central place in Islamic teachings. International marketing practices, embedded in a strong ethical doctrine, can play a vital role in raising the standards of business conduct worldwide, while in no way compromising the quality of services or products offered to customers, or surrendering the profit margins of businesses. Equity is achieved via creating a platform for trade that is transparent and therefore accountable for the just treatment of all producers. Islam encourages truthfulness in business transactions and raises the status of a truthful merchant. It’s strange that “risk management’ is still in the purview of the finance departments. About Islamic Business Ethics . Judaism – “What is hateful to you, do not do to your fellow man. This is the question which needs to be identified and answered with clarity. A verse states thus: “O you who believe! A sale transaction is considered as legal only if it is made through the mutual consent of the parties concerned as freedom to contract is protected under Islamic business law. 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. For this purpose the author offers, first, the essentials of such an ethics: the utmost importance of all sort of productive work and the distribution of wealth in society; the vocation of trade; the fundamental principles of freedom and justice for business conduct; the prescription of certain manners such as Islam demands a certain type of behaviour from the economic agents – the consumers and the producers. An Islamic market is characterized by certain norms that take care of the interests of both the buyer and the seller. This principle of calling to “do good and forbid evil” is a guiding light. Opinions expressed in this article belong to the author and do not represent Pergas’ official stand unless if Pergas explicitly says so. 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. In the Islamic scheme of things, adherence to moral code and ethical behaviour is a part of iman (faith) itself. 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. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. If a brand does not have its finger on the pulse of stakeholder opinion, it doesn’t have a feel for its brand health. 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.”. 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. ISLAMIC PERSPECTIVE *You can also browse our support articles here >. This social aspect of the business’s mission would also be the heart and soul of its brand identity (and be reflected through the overall brand experience). There are many stories in almost every business. The central themes in Islamic finance that prohibits leverage and riba, and promotes asset-backed transactions are now increasingly being universally accepted. In Islam there are rules and ethics of doing business. 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. Almighty through prophets, religious scriptures and religious authority, Shuratic decision-making process: consultation and consensus-seeking, Financial governance by suppliers of finance. We're here to answer any questions you have about our services. This would come about from the product or services it intends to market and how it affects the consumer. It (i) enumerates the general ethical rules of business conduct, (ii) identifies ethically desirable forms of business, and, (iii) specifies the undesirable modes of … clearly developed Islamic business ethics. Bring these stories out. No part of this article may be reproduced or stored in a retrieval system or transmitted in any form or by any means, electronic or otherwise without the permission of Pergas. As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. It should be noted that the benefits of the company could also be sought in terms of barakah or blessings from the Almighty. “HONESTY IS THE ONLY POLICY”. Ethics in business: Islamic perspective According to Websters Dictionary, “Ethics” is related to what is good or bad, having to do with moral duty and obligation. 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. It is also important to know that many companies involve in business transactions which might not exactly be Shariah compliant. It explores the normative and practical of business ethics in the context of Islamic religious perspective to organization and personal business man. The second Islamic principle is fulfilling promises and contracts. Alongside these Islamic ethics also emphasizes on no reward without risk (al ghormi bil ghonm) and profit comes with responsibility (al kharaj bil dhaman). 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