Business Ethics From

Islamic Perspective
Group Membres

FATEHI ABDULLAH (80062)

SAZANAH MD ALI (801899)
HILAL RASHID (801173)
JALAL HANAYSHA (806175)
 What is Islam?
• Emphasis on the oneness of God - the
Almighty praised the Creator - in His
essence and attributes.

• To emphasize that God alone should be

worshiped, and that not being the other
should be worshiped along with him or
without him.
• To maintain human well-being, and
opposition to corruption and evil. Thus,
all guarantees that faith and life, and
why, property, birth, is part of human
well-being, which protects religion. On
the other hand, anything that threatens
these five needs of all is a form of
corruption, which opposes religion and
prohibited.
• To invite people to the highest level of
virtue and moral values and noble
customs and traditions.
 Allah
• Elements of Muhammad’s spiritual
transformation
- Almighty Allah created our universe.
– Allah rules the universe
– Allah would soon bring his judgment on the world
• Muhammad received messages or revelations
from Gabriel, the archangel, instructing him to
explain his faith to others.
 The prophet of Islam

He was the best teacher, preacher, and guide; the

best political leader, lawgiver, judge, diplomat,
negotiator of treaties, and military commander; the
best family man, a good husband, a kind father, a
good neighbor, and friend of his people. He was also
a very honest and successful businessperson. The
Prophet was chosen by Allah to be His last prophet
at the age of 40

Before that, he was very much involved in

business.
How the Ethics related to Islam

Ethics is defined
as a set of moral principles
that distinguish what is right from
wrong, and in an Islamic context, the
Qur'anic term khuluq is closest to it.
Also, some other terms referenced from
Qur'an describing the concept of good
are khayr (goodness), birr
(rightousness), qist (equity), and 'adl
(equilibrium and justice).
 Business Ethics from Islamic perspective

- Islam encourages work in general, and trade and

commerce in particular.
- Muslims must be ethical in all aspects of life.
- Islamic principles strongly focus the observance of
ethical and moral code.
- Islamic businesses must operate on a basis of fairness
and integrity, while also treating everyone equally.
- In Islamic business there must be fairness and trust
between people which is very important for dealing with
people.
- Business Ethics in Islam is based on tawhid, or unity
principle, which determines the relationship between
God and man; man and man; and man and society.
As Muslims in business and in our field of work, we should
follow these principles:
• Love God and his commands more than your trade or
business, so as Muslims we realize that we are just trustee
for God.
• Be honest and truthful with people because this is from
Islamic principles: Honesty incorporates the concepts of
truthfulness and reliability and covers all aspects of
relationships in human life thought, word and action.
• Keep secrets: spreading business secrets and giving
information about business is forbidden and each one must
keep on the secrets of the other, this is found to remove
conflict and create love and faithfulness.
• Be simple and patient in how you conduct your life and deal with
others: you must be kind with people and know that everyone is
different about the other so you should deal with them kindly to
keep on yourself and on business.

• Don’t deal with fraud because it refused in Islam.

• Don’t bribe because this can lead to many problems.

• Respect others : a person or organization cannot under self

benefit measures takes an action or start a business that will harm
the community or environment more than providing good to it.
 Business ethics in Islamic context

Impact of Islamic ethics on business Islamic ethics described

by Quran and Sunna and affects on the Muslims business by
the following points:

• Lead to integrity
• Prevent cheat and deceit
• Prevent corruption and abuse of power
• Care about employees’ rights and concern with fair
• Create initiatives and provide best quality
• Consistent and help provide cooperation between business
people and the other society.
Freedom and enterprise
Islam gives complete freedom to economic
enterprise. within the limits set by Islamic
Shari‘ah.
Truth fullness in business transactions
Muslim must avoid fraud, deception and any
other cheat in selling and dealing with people.
Honoring and fulfilling Business Obligations
The basic principles of truth, honesty, integrity
and trust are involved in all business dealings.
Cheating and Fraud in Business Transactions
Not allowed any way
 Examples of Not Allowed transaction

Producing , purchasing and selling of goods which are

prevented by Islamic law like alcohol and drugs .
prevents of making high profit costs on interest
account. But, reasonable and acceptable cost
recommended.
Interests: Islam prevent people to take or give
interests
Dealing in Prohibited (Haram) Items.
Sale of Al-Gharar (Uncertainty, Risks, Speculation):
refers to the sale of a commodity or   good which is
not present at hand.
Al- Najsh (Trickery): means an action in which
a person offers a high price for something,
without intending to buy it, but just to cheat
or defraud another person who really means
to buy it.
Sellers must avoid making oaths during
selling merchandise, Prophet Mohammad
said” Be careful of excessive oaths in a sale.
Though it finds markets, it reduce
abundance”
 The different between Ethics business in
Islam and other religions

• Christian
•Jewish
•Buddhist
Why they are different:

- Different resources, there are two kinds of

religions one kind came from creator and
another came from human themselves. Those
Which came from creator has completely
picture in the first time but now Christian and
Jewish are not like first time. Only Islam still
clear as first time because Allah protect
Quran.

- The different cultures and religion had

different ethics of business.
 Main sources of Islam
• Al-Quran
• Is a speech from Allah to All humankind. Download to
our prophet Mohammad to teach all humankind about
their life and how they must regard their creator. So. Al-
Quran including every thing.
• sunah
• Including three things, speech’s prophet, prophet’s work
and his acceptance. Actually he is guidance for Muslim.
 ‫آمنُوا ِإ َذا تَ َدايَنتُم ِب َديْ ٍن ِإل َٰى أ َ َج ٍل ُّم َس ّ ًمى َفاكْتُبُ ُ‬
‫وه ۚ‪ ‬‬ ‫ين َ‬ ‫يَا أَيُّ َها ال َّ ِذ َ‬
‫عل َّ َم ُه‬ ‫بك ََما َ‬ ‫ب ِبال َْع ْد ِل‪َ ۚ ‬ول َا يَأْب ك َا ِت ٌ َ‬ ‫َول ْيَكْتُب بَّيْنَك ُْم ك َا ِت ٌ‬
‫بأن يَكْتُ َ‬ ‫َ‬
‫عل َيْ ِه ال َْح ُّق َول ْيَتَّ ِقالل َّ َ‬
‫ـه َربَّ ُه َول َا‬ ‫ب َول ْيُ ْملِ ِلال َّ ِذي َ‬ ‫ـه‪َ ۚ ‬فل ْيَكْتُ ْ‬ ‫الل َّ ُ‬
‫يها أ َ ْو َض ِعيفًا أ َ ْو ل َا‬ ‫عل َيْ ِه ال َْح ُّق َس ِف ً‬ ‫َان ال َّ ِذي َ‬ ‫خ ْس ِمن ْ ُه َشيْئًا‪َ ۚ ‬ف ِإن ك َ‬ ‫يَبْ َ‬
‫يديْ ِن‬ ‫استَ ْش ِه ُدوا َش ِه َ‬ ‫و‬
‫َ‬ ‫‪ ‬‬
‫ۚ‬ ‫ل‬‫ِ‬ ‫د‬‫ْ‬ ‫ْع‬
‫َ‬ ‫ل‬ ‫ا‬ ‫ب‬
‫ِ‬ ‫ه‬‫ُ‬ ‫ُ‬ ‫ّ‬ ‫ي‬‫ِ‬ ‫ل‬‫و‬‫َ‬ ‫ل‬
‫ْ‬ ‫ِ‬ ‫ل‬‫م‬‫ْ‬ ‫ُ‬ ‫ْي‬ ‫ل‬ ‫ف‬
‫َ‬ ‫و‬
‫َ‬ ‫ه‬
‫ُ‬ ‫ل‬ ‫َ‬ ‫ّ‬ ‫ِ‬
‫م‬ ‫ُ‬ ‫ي‬ ‫ن‬ ‫يع أ َ‬
‫يَ ْستَ ِط ُ‬
‫ْ‬
‫ِمن ِّ ّـِر َجالِك ُْم‬
‫‪O you who believe! when you deal‬‬
‫‪with each other in contracting a‬‬
‫‪debt for a fixed time, then write it‬‬
‫‪down; and let a scribe write it‬‬
‫;‪down between you with fairness‬‬
 ُ َ ّ ‫ۗ َوالل‬ ‫ات‬
﴿‫ـه‬ ِ ‫الص َد َق‬
َّ ‫الِربَا َويُ ْر ِبي‬
‫ـه ِّ ّـ‬ ُ َ ّ ‫ح ُقالل‬
َ ‫﴾ يَ ْم‬٢٧٥
٢٧٦﴿ ‫يم‬ ‫ث‬ َ
ٍ ‫ب ك ّ َُل ك َ ّف ٍَار أ‬
ِ ُّ ‫﴾ل َا يُ ِح‬

(275) Allah does not bless usury, and

He bless charitable performance to
grow, and Allah does not love any
ungrateful sinner. (276)
‫البيعان بالخيار ما لم‬ : ‫قال‬ " ‫عن النبي " صلى الله عليه وسلم‬
‫وكتما‬ ‫وان كذبا‬ ‫لهما في بيعهما‬ ‫فإن صدقا وبينا بورك‬ ،‫يتفرقا‬
‫) البخاري‬ ‫ محقت بركة بيعهما‬.
The Prophet "peace be upon him," said: the sellers still
have a choice to confirm or cancel before separate . If
they tell the truth and cleared we will blessed their sell,
but if they lie and keep secret about some defect then
blessing will canceled).
 Conclusion
The Islam is Comprehensive, and
every thing is clear.
- There is no way to escape from the
hereafter and the justice will be
achieved then.
- As Allah created our universe so,
he is only the one can manage the
Universe.
- our prophet came to complete the morals,
this was his target.
- our prophet had good experience and
involving in all aspects before being Allah’s
messenger.
- The Islam has completed picture in Ethics,
Law and compulsory CSR. So, nothing is
new today we already have this before
1400 years .
Conclusion