Islamic Business Ethics

Business Ethics that examine ethical rules, values and principles within a commercial context, a variety of moral or ethical problems that can occur in a business setting; and any responsibility that is valid to persons engaged in different business. Islam is a religion of nature and provides codes, values, principles and ethics for all the sections of life.

Now day’s business ethics and code of conduct has become a most important discussion topic among business communities and scholars. Each and every society has evolved ethical and moral codes of conduct for business contracts and dealings. The Islamic ethical codes are very much humane as compare to other codes and ethics. They are good for all times and absolute. Ethical and moral codes and ethics in Islam are part of the overall Islamic faith and observing them will not only lead to a happy state of affairs in this world but also holds the promise of manifold returns in the Hereafter. Islamic ethical and moral codes thus create a sense of responsibility and accountability in the minds of the believers, be they buyers or sellers.

Holy Prophet S.A.W.W. said “I have been sent for the purpose of perfecting good morals”.

Islam emphasized strongly on the following of morality codes of conduct in every human behavior and aspect of life. Islam has also distinguishing ethics of business. There is also a very effective and popular Islamic business system observed by large number of people all around the world. There are lots of European business scholars and related people didn’t believe in any kind of ethics in business but Islamic teachings gave different ethical codes of conduct for the betterment of the society.

Islamic teachings and business ethics very much keen to earn money through Halal (legitimate) ways. There are lots of Quranic Verses about the earning via legitimate ways as follows:

Do not devour one another’s property wrongfully, nor throw it before the judges in order to devour a portion of other’s property sinfully and knowingly. (2:188)

Do not devour another’s property wrongfully – unless it is by trade based on mutual consent. (4:29)

In Islamic codes and ethics things are very clearly defined what is legitimate or illegitimate. According to Islamic ethics people should follow the teaching and don’t do any thing which would be harmful for the society even it is suitable for your business. Islam also mentions some kind of famous businesses of the time as illegitimate because those businesses affect the society in a negative way, as business of Alcohol or narcotics.

There is another very important code of Islamic business ethics is truthfulness. Islam prohibits people to hide the real facts and truth in dealing with people or in business. Now days it is very common practice that people and big companies lie for sailing their products or services. But Islamic ethics are very much against this practice. Holy Prophet S.A.W.W. said:

The truthful merchant [is rewarded by being ranked] on the Day of Resurrection with prophets, veracious souls, martyrs and pious people. (Tirmidhi, No: 1130)

Islam also prohibits of business which contains dealing of usury or interest which is called as Riba in Islamic business ethics.

There are lots of other business ethics described by Islamic scholars and business related persons. In Pakistan there is an international conference on Islamic business is going to commence next week where world top business and Islamic scholars will define and explain the Islamic Business Ethics in detail. It would be a great opportunity to Pakistani business man and scholars to attend this conference and get information about the Islamic business ethics.