Fundamental moral values in Islam have practical implications across all spheres of life, including business. As such, we will explore a selection of Islamic principles relating to business ethics :
1) Truthfulness
“O believers! Fear Allah and speak (always) the truth” (Quran, 33:70)
This instruction has profound implications for establishing a flourishing business environment. All business dealings must be managed in an honest, truthful and straightforward manner.
There is no scope for cheating, misrepresenting and misleading in the Islamic framework. The principle of truthfulness and honesty are not followed merely as a matter of business strategy, rather they are the obligations of a true Muslim in all his dealings, including politics, diplomacy, judiciary, governance, administration and economic activities.
The Quran also describe Prophet Yusuf (as) as “man of truth” (Quran, 12:46).
Another unique feature of the Islamic economic system is that its moral values are fortified through institutional arrangements in the form of an hisbah for fair business.
2) Trust
A business enterprise is viewed as a trust from Allah swt between the society and entrepreneurs or sponsors. A businessperson is required to treat all business resources as a Divine trust. Hence, she/he is expected to make the most efficient and socially desirable use of business resources.
Prophet Musa (as) is described as “trustworthy”, one of the traits critical for his future role (Quran, 28:26). This concept of trust highlights the sense of responsibility towards all stakeholders, and holds true even where those entrusting something to Muslims are non-Muslims.
3) Justice
The whole universe is based on the concept of justice and balance. Justice means everyone should be treated as she/he duly deserves without discrimination. It includes fair treatment, equality and a sense of proportion and balance. Justice is a dynamic characteristic that each Muslim is required to develop.
Quran states : ‘O believers! Stand out firmly for Allah as witness for fair dealing and let not the hatred for others (non-Muslims) prevent you from justice. Be just : that is next to piety and ; and fear Allah for Allah is well acquainted with all that you do” (5:8)
Justice is a prerequisite for successful business and trade as it encompasses the entire gamut of corporate life. It permeates almost every business decision – pricing, product quality, human resource policy, corporate governance, financial disclosures, environmental protection and so on.
4) Competence
Competence is highly valued in Islam, even to the extent that a competent but Islamically weak leader may be preferred to an incompetent leader who is Islamically more knowledgeable. Notwithstanding this assertion, the most preferred set of qualifications is surely a combination of competence and knowledge.
Quran (28:26) describes Prophet Musa (as) as al-qawi (the most competent or qualified) and declares that Allah swt granted him “wisdom and knowledge” (Quran, 28:14).
In striving for excellence, Quran assures, “whoever pledges his life to Allah and his deeds are excellent, his reward is with his Creator” (2:112), and Prophet Muhammad (saw) states : “You should not be extremist, but try to be near to perfection” (Bukhari).
A distinction is also drawn between knowledge (ilm) and one’s ability (competence) to put his knowledge into practice (hikmah). The combination of these two concepts encourages entrepreneurial initiatives among the followers of Islam.
5) Sincerity and humility
Islam attaches enormous importance to humility and sincerity in every department of life. The performance of duties to perfection requires individuals to work with sincerity and devotion, and discourages manipulation or exploitation for personal gains. Accordingly, a sincere businessperson refrains from cheating or harming his/her business associates deliberately.
Quran describes Muslims in general as “those who walk on the earth with humility” (25: 63). Even affluent Muslims are not permitted to spend their wealth extravagantly, they are urged to spend cautiously so that economic resources are allocated only to productive asets (Quran, 17:26-29).
6) Brotherhood
Islam declares all human beings as one single community (Quran, 10:19). This has profound implications for the way in which entrepreneurs treat employees, customers, suppliers, shareholders and other stakeholders. Business dealings should not be conducted with the aim of personal gain, or the defeat and humiliation of business adversaries; rather they should be driven by the desire to add value to the general welfare of the society. Competition is then replaced with cooperation, but not at the expense of the efficient allocation of society’s resources.
7) Zakat
If implemented sincerely, this is a social self-help system that embeds welfare at the heart of society and results in complete eradication of poverty. The optimum use of zakat increases purchasing power in society and plays a vital role in maintaining sustained levels of demand and supply in the economy. However, this unique instrument for establishing economic justice based on Islamic values is being ignored, even in Muslim societies.
8) Knowledge and science
Islam makes it obligatory for Muslims to seek knowledge and obtain excellence in performance. Islam encourages dynamism, fosters initiative and enjoins Muslims to work persistently for progress and advancement, both materially and spiritually. Research and development is highly valued in Islam.
Prophet Muhammad (saw) urged Muslims to travel as far as China (the most distant country known to the Arab world in the 6th Century) in search of knowledge. This passionate quest for knowledge and science brought unprecedented glory and success to Islamic civilization between the 6th and 14th Century. Indeed, it is believed in some quarters that the decline of Islamic civilization was set in train by a progressive reduction in resources allocated to education and human capital development after the 14th Century.
