Business Ethics in Islam By Dr.

Muzammil Siddiqi As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. Both business and ethics are interrelated. There is a reference to this point in the ur!an" #or you in the Messen$er of Allah is a fine e%ample to follow &Al'Ahzab ((")*+. ,t is worthy stressin$ here that when Muslims stic- to ethics in their daily lives, they will become $ood e%amples to emulate. .erhaps this will help rectify some aspects of the distorted ima$e about ,slam. Thus they will to some e%tent become worthy ambassadors of their reli$ion. .rophet Muhammad &pbuh+ was an ideal human bein$. /e was the best teacher, preacher, and $uide0 the best statesman, law$iver, 1ud$e, diplomat, ne$otiator of treaties, and military commander0 the best family man, a $ood husband, a -ind father, a $ood nei$hbour, and friend of his people. /e was also a very honest and successful businessman. The .rophet was chosen by 2od to be /is last prophet at the a$e of 34. Before that he was very much involved in business. /e was born in Ma--ah, frequented by caravans from Syria in the north and 5emen in the south. The .rophet would 1oin these caravans and that is how he traveled to Syria, 5emen, Bahrain, and many other places in Arabia. Some historians have also su$$ested that he probably traveled to ,raq and 6thiopia. #rom his early a$e, he was involved in commerce. /e had a $ood reputation as a hardwor-in$, truthful businessman. ,t was due to this reputation that 7hadi1ah, a wealthy businesswoman, hired him to wor- for her business. Many people in Ma--ah had as-ed for her hand and wor-ed for her, but they either cheated her or she was not satisfied with their wor-. #inally, she found Muhammad &he was not a prophet at that time+ and she as-ed him to wor- for her. /e made several business trips. She was impressed with his wor- as well as his impressive personality, they later $ot married. After marryin$ 7hadi1ah, the .rophet too- several business trips throu$hout parts of Arabia. Ancient Arabia used to have commercial fairs in almost all ma1or towns and re$ions0 it is probable that the .rophet visited some of these commercial fairs. After becomin$ a prophet, his business activities decreased, althou$h he would occasionally participate in business transactions. /is vast business e%perience helped him in dealin$ with people with $reat care. /e often used to mention the names of people and tribes whom he met in his 1ourneys. .eople were often amazed of his -nowled$e of people and their re$ions.

The .rophet emphasized that honesty and -ind dealin$s with customers are the secrets of success in business. /e said, 8The truthful and honest merchant is associated with the .rophets, the upri$ht and the martyrs9 &Al' Tirmidhi+. 82od shows mercy to a person who is -indly when he sells, when he buys and when he ma-es a claim9 &Al'Bu-hari+. The .rophet $ave many teachin$s on business and economic issues, he covered almost every aspect of business and economics. /ere are only a few ma1or principles of fair business dealin$s accordin$ to ,slam. *. :o fraud or deceit, the .rophet &pbuh+ is reported to have said, 8 ;hen a sale is held, say, 8There!s no cheatin$9 &Al'Bu-hari+. ). Sellers must avoid ma-in$ too many oaths when sellin$ merchandise. The .rophet &pbuh+ is reported to have said, 8Be careful of e%cessive oaths in a sale. Thou$h it finds mar-ets, it reduces abundance9 &Muslim+. (. Mutual consent is necessary. The .rophet &pbuh+ is reported to have said, 8The sale is complete when the two parties involved depart with mutual consent9 &Al'Bu-hari+. 3. Be strict in re$ard to wei$hts and measures. The .rophet &pbuh+ is reported to have said, 8;hen people cheat in wei$ht and measures, their provision is cut off from them9 &Al'Muwatta+. /e told the owners of measures and wei$hts, 85ou have been entrusted with affairs over which some nations before you were destroyed9 &Al'Tirmidhi+. <. The .rophet forbade monopolies. 8;hoever monopolizes is a sinner9 &Abu Dawud+. =. #ree enterprise, the price of the commodities should not be fi%ed unless there is a situation of crisis or e%treme necessity. >. /oardin$ merchandise in order to increase the prices is forbidden. ?. Transaction of haram items, such as into%icants, are forbidden. The .rophet!s $eneral advice to all people was, 8;hat is lawful is clear and what is unlawful is clear, but between them are certain doubtful thin$s which many people do not reco$nize. /e who $uards a$ainst the doubtful thin$s -eep his reli$ion and his honour blameless, but he who falls into doubtful thin$s falls into what is unlawful, 1ust as a shepherd who pastures his floc-s round a sanctuary will soon pasture them in it. 6very -in$ has a sanctuary, and 2od!s sanctuary is the thin$s he had declared unlawful9 &Al'

Bu-hari+. The Role of Business Ethics Today Business people and their enterprise require to be reminded about their role and responsibilities. The followin$ issues need special attention in the present scenario. *. 2lobalization should mean that all people are considered to comprise one family. All human bein$s should be treated with respect, equality, and fairness. 6%ploitation of one $roup by another should stop. There should not be any division amon$ people because of their race, colour, nationality, $ender, or faith. ). The resources of the 6arth are not only for us, we share this biosphere with other species, and so we ta-e care not to waste or destroy them. (. ;e should use the 6arth!s resources with $reat care and should remember that we have a duty to leave this world in a better condition for the posterity. 3. /uman bein$s are one family, althou$h we have our differences. Diversity is natural and beautiful. ;e should try to understand other people!s reli$ions and cultures and we should be sensitive to their feelin$s and emotions. <. The universal $olden rule states, 8@i-e for others what you li-e for yourself.9 ;e should try to empower others and wor- to eradicate poverty, hun$er, illiteracy, disease, and unsanitary conditions in order to live in peace and tranquility. =. Businesses should promote ethical standards in their enterprise, .eople involved in business should always be honest, truthful, and fulfil all promises and commitments. ;e must eliminate fraud and cut'throat competition. >. ;e should also promote more political freedom, open debates, participatory democracies. ?. ;e must encoura$e and support an educational system that promotes openness, dialo$ue and that which $uards a$ainst fanaticism. Aur educational system should not teach every view in the absolutist terms. Aur children should be tau$ht about the multitude of perspectives and one should be open to other points of view.

&Dr. Muzammil Siddiqi is president of the #iqh Bouncil of :orth America+