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Islamic Principles of Business Ethics

Islamic ethics governs all aspects of life and encourages honesty, fairness, and justice in business transactions. Honesty is seen as the key to success and increases trust between buyers and sellers. Business practices like deception, unequal treatment, excessive profits, bribery, and interest are prohibited in Islam to protect people's well-being.

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33 views13 pages

Islamic Principles of Business Ethics

Islamic ethics governs all aspects of life and encourages honesty, fairness, and justice in business transactions. Honesty is seen as the key to success and increases trust between buyers and sellers. Business practices like deception, unequal treatment, excessive profits, bribery, and interest are prohibited in Islam to protect people's well-being.

Uploaded by

Zurul
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

 Set of moral principles that distinguish

what is right from what is wrong.

 Evaluates human practices.

 Prescriptive advice on how to act morally.


 Branch of ethics that examines ethical rules and
principles within a commercial context.
 Islam places the highest emphasis on ethical values
in all aspects of human life.

 In Islam, ethics governs all aspects of life.

 The Prophet (P.B.U.H) said:

"I have been sent for the purpose of perfecting


good morals."
HONESTY:

 Secret of success in business.

 Islam encourages truthfulness in business


transactions and raises the status of a truthful
merchant.

 Allah blesses business dealings if both the buyer and


the seller are true to each other.
“HONESTY IS THE ONLY POLICY”
Trust is a moral virtue and duty incumbent on a
Muslim in the performance of his affairs.

 It demands sincerity in work, avoid fraud, deception,


and other dubious means in selling his merchandise.
 Treat people equally.
 Traders should moderate
in all things without profitable side party.
 fair or equal treatment of all our customers.
 consider fair and unbiased and gives the right to
the right.
Islam puts certain conditions and restrictions to
obviate the chances of bitterness between the
employer and employees.

Fair wages on time.


good working conditions.
suitable work and excellent brotherly treatment
should be provided to the workers.
what Islam allow:
 seller has right to place Profit as much he
wants but when there is alternative.

 If there is monopoly in some product then


the profit margin need to be small.

what ethics says:


 In any situation your profit margin
should not be double than your cost.
 Bribery. (Al-Baqarah: 188)
 Usurping others’ property. (Al-Baqarah: 188)
 Fraud. (Al-Imran: 161)
 Stealing and Robbery. (Al-Maida: 38)
 Income from sources of vulgarity. (Al-Noor: 19)
 Gambling. (Al-Maida: 90)
 Wine and its business. (Al-Maida: 90)
 Interest. (Al-Baqarah: 275)
 Hoarding of foodstuff.
WHY ISLAM PROHIBITS SUCH TYPE OF BUSINESS ?

Islam prohibits certain type of business due to the


“concern to protect health and life”
(Zinkin 2005).
The Prophet said:

“ A truthful and trustworthy merchant


is associated with the prophets. ”

(Al-Tirmidhi, Hadith 50)

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