Some problems of business ethics: islamic point of view 67 68 Philosophy and Progress

Philosophy and Progress: Vols. LXI-LXII, January-June, July-December, 2017 1. Introduction

ISSN 1607-2278 (Print), DOI : https://doi.org/10.3329/pp.v61i1-2.44203
Business has been emerged from the necessity of mankind. In
primitive society, men fulfilled their necessities through mutual
exchange of commodities. One had a kind of commodity while
others had different kinds of commodities. So, they exchanged
them with each other which is well-known as Barter system.
SOME PROBLEMS OF BUSINESS ETHICS: However, it was not effective for long. It was also not possible
ISLAMIC POINT OF VIEW to exchange goods for goods because of gradual increase of
man’s diverse needs and demands. Human beings started to
*
produce goods for making profits instead of exchanging goods.
Abul Khayr Md. Yunus So, they introduced some measurement such as the rare snail,
the oyster, the stone and so forth for exchange of goods. But it
Abstract was not also effective for long. Later metallic coins, bank-notes
Business ethics is one of the important branches of applied ethics. etc. were used for the exchange of goods. In this way, business
Many thinkers including ethicists, economists, academicians and activities gradually have been advanced.
philosophers have tried to explore necessary principles, standards,
rules and regulations for business-related issues. Islam, a major In business, there are different categories of people one
religion of the world, has prescribed, from its very inception, has to respond to: shareholders, creditors, customers and
necessary rules and principles for every aspect of life including clients, employees, dealers, vendors, suppliers, government and
business and commerce-related dealings. This paper explores Islamic society as well as international companies and organisations.
concepts of business, its principles, rules and regulations. From the So, business persons should abide by some rules and
Islamic point of view, this paper shows that business is not merely a regulations for their dealings. Herein the question of ethics is
job of profit-making, but also an ibadah (worship). Moreover, it involved in business. It needs principles, ideal codes of
claims that Islamic business ethics is not only concerned with moral conduct, rules and regulations. In this regard, a discipline
soundness of business persons, but also closely connected with the named Ôbusiness ethics’ was established by ethicists, moralists,
salvation of man.
economists, academicians and philosophers. It has definite
Key words: Business, Islamic ethics, halal (lawful) earning, haram subject-matter, principles, standards and methodology. Islam,
(unlawful) earning, consumer protection, corporate social as one of the major religions of the world, has its own way of
responsibility. dealing with the business-related issues. In this paper an
attempt has been made to explore Islamic attitude, principles
*
Associate Professor, Department of Philosophy, University of and rules and regulations regarding business.
Dhaka. E-mail: yunusakm@gmail.com
Some problems of business ethics: islamic point of view 69 70 Philosophy and Progress

2. Islamic attitude towards business own efforts and capacity. S/He has to depend upon
others. One can provide one kind of things or services
According to Islamic belief, the earthly life of human being is
and another can provide different kind of things and
transient while the life after death is permanent. In the life after
services. Thus one can meet another’s necessities.
death man will be rewarded or punished for his/her earthly
That’s why men are dependent on one another. This
deeds. For this reason, the life and activities of an individual in
dependency can be met through business. So, without
this world is not less important. So, a man has to take this
business human necessities cannot be met.
world seriously. S/he has to take this world seriously for his
livelihood and sustenance. One can’t live without earning. c. Business is a great source of income and gaining
Accordingly, an occupation is most vital one for human being. wealth. There are many lawful ways to earn money and
There are many occupations for earning, business is one of livelihood, but business is of great worth. In business,
them. Islam has encouraged business and has given man has to engage wholeheartedly. It needs physical
businessman a significant status. and mental labours through which man’s earning
becomes more pure.
Islam places great emphasis on business. There are many
Quranic injunctions which have encouraged to engage in We should keep in mind that business cannot run without
lawful trade and commerce. Al Quran vehemently prohibits to some principles, rules and regulations. Without rules and
possess other’s property by wrong means. Allah (SWT) said: principles whimsicality and willfulness will be advanced in
ÒO ye who believe! Eat not up your property among yourselves business. As a result, business will be a means of exploitation
in vanities: But let there be amongst you traffic and trade by and businessman will make money by hook or crook;
mutual good-will.” (Al Quran, 4:29, vide, 73:20, 35:12, 62:10, customers and clients will not be taken into consideration for
30:46, 62:10-11) There are underlying wisdom in business their benefit. Eventually, the individual and society will be
which are: harmed and degraded by the whimsicality and willfulness of
businessman. For the intelligible reason, business ethics has
a. Goods and services can be made available through
been advanced through ages. For the same reason, Islam has
business. One produces goods, but if one cannot
provided some standards, principles, rules and regulations for
distribute them to others, he/she will lose his interest in
achieving wealth, means of production, distribution and
producing further, or he will be bound to destroy his
auxiliaries related to business issues.
products. Similarly, if a skilled person or a service
provider (like, an advocate) does not get any client to
extend his service, he will lose incentive in his 3. Main purpose of business
profession. So, business can uphold the availability of In early times, it was said that the business of business is
goods and services. business. That means, the only motto of business was to make
b. Necessities of human beings are multi-dimensional. profit. Nowadays, the idea of business has been changed. The
One cannot fulfill his all needs and requirements by his idea of social responsibility has been conjoined profit-
Some problems of business ethics: islamic point of view 71 72 Philosophy and Progress

maximization amid continuing debates for and against the There are some indications in aforementioned verse.
generation of profit in business. Some people think that making Firstly, whatever wealth man does possess has been given by
profits are the only business of business while others hold the Allah. Man cannot own wealth without the grace of Allah.
view that business activity should engage more than mere Secondly, he should use his wealth for the sake of the life after
profits. (vide, for details, Satris, 234-249) Undoubtedly, death. His wealth should be used in such a way so that his
business is profit-oriented enterprise. But Islam significantly ultimate purpose of the life after death will be realized. Thirdly,
presents different implication by business. It refers business to man should not forget his portion of wealth in this world. He
latent purpose of human life. The life after death is final, will endeavour wholeheartedly for legitimate needs of this
permanent and eternal according to Islam. So, this worldly life world. It implies that he cannot lead an idle life. He has to
is less important than life after death. A person wants to adopt a profession for his livelihood. Fourthly, man is
achieve final goal in his/her life hereafter through all activities commanded to do the good for others as Allah has bestowed
in this worldly life. For this reason, earning livelihood or wealth upon him. He will extend his support for others as much
making profit only is not his/her main target through business. as he can by using his wealth. Finally, man has to keep in his
S/He wants to earn livelihood and do business but s/he does not mind that by no means he will let his wealth to use in
want to lose a little thing in life hereafter. That is why he loves producing collective ills or spreading disorder in the earth. His
Allah, the Almighty, and the akhirah (the life after death) more wealth will be used for the well-being of mankind, not for
than his business. enhancing harm to society.
Giving priority and supremacy of life after death does not What follows from the above discussion is that whatever
mean that the earthly life is valueless and adversary to wealth man does achieve through business is not his absolute
mankind. Islam only discourages absolute concentration on property. He is obliged to spend his wealth according to the
wealth. It suggests that man will run earthly activities but never command of his Lord. It is important to note here that the
will forget his Lord and the life after death. Man will govern Islamic standpoint on the question of property is distinguished
his earthly deeds in accordance with his Lord’s commands by from both the capitalist and socialist points of view. Unlike
following the Holy Quran and the sunnah (the way) of the capitalism, Islam gives man conditional, not absolute right over
prophet Muhammad (PBUH). The Quranic indication his wealth, and does not allow him to spend it as he likes.
regarding earning wealth, leading earthly life is reflected in the Unlike socialism, Islam gives man personal right over his
following verse. Allah said: wealth, and allows him to spend it for legitimate needs
But seek, with (the wealth) which God has bestowed on thee, whenever he wants. He needs not to wait for the state to meet
the home of the hereafter nor forget thy portion in this world: his needs. In fact, according to Islam wealth is a trust to a man.
but do thou good, as God has b een good to thee, and seek Allah, his Lord, wants to see and examine who is good and
not (occasions for) mischief in the land: for God loves not righteous in using his wealth.
those who do mischief in the land. (Al Quran, 28:77) From the Islamic point of view, the purpose of business
not only to earn livelihood, but also to realize his ultimate goal
Some problems of business ethics: islamic point of view 73 74 Philosophy and Progress

of life. If he does it according to the command of his Lord, he valid transaction and sound dealings. If a businessman has ill
would be considered to be successful person and the purpose of intention he must adopt ill means in every step of his business.
his business will be a service for the betterment of his fellow-
4.2. Awareness about halal (lawful) earning
being and the community and won’t be harmful for the society.
Business is a very important means of livelihood. So, it is
4. Basic principles of business in Islam necessary for a businessman to acquire knowledge about lawful
As a human being a businessman should remain alert about his and unlawful business. Halal (lawful) earning will make his
dignity and moral sense. He can’t do anything what a wicked good fortune for the life here and hereafter, while haram
man or a thief can do. He can’t forget complaisance, honesty, (unlawful) earning will make him shameful and ruinous.
kindness, politeness and modesty in every dealing. A According to Islamic tradition,“seeking of knowledge is
businessman, thus, will be a person of high moral integrity. incumbent on every Muslim.” (Imam Ibn-e-Majah, vol. 1,
Without moral consideration business may cause extreme Hadith no. 224) So, in order to benefit from business one
exploitation and immense harm to the society. For good should have the correct knowledge of legitimate business. At
dealings and harmless business, the persons who are engaged the same time, he should always remain conscious about halal
in commerce should abide by some basic principles. Islam has earning for the betterment of himself as well as of his society.
provided several principles that are given below:
4.3. Truthfulness
4.1. Intention or good will Truthfulness is very necessary in every good dealing and
Intention is very important behind every act or deed according relationship. If there is no truthfulness, deception and
to Islam. Good intention or good will produces good effects fraudulence must exist. If one does not remain honest in three
while bad intention or ill will brings forth bad consequences. steps of business, i.e., production, distribution and the
So, intention determines the merit or demerit of action. There is auxiliaries, products and services won’t be good in terms of
a very famous tradition of the great prophet Muhammad quality.
(PBUH) that says, “Surely, the reward of deeds depends on the Every Muslim must be truthful in every matter. He can’t
intentions and every person will receive reward according to cheat anyone. He can’t serve inferior stuff after showing
what he has intended.” (Imam Bukhari. vol. 1, Hadith no.1) specimen of good quality stuff. He can’t give less weight than
Intention is a mental process. So, it is not easy to identify agreed upon. Every Muslim is asked to speak truth. Allah said,
whether it is good or not. However, manifestation of behaviour “O ye who believe! Fear God, and (always) say a word directed
and activities refer to the fact that lies behind it. We can guess to the Right.” (Al Quran, 33:70) “Grievously odious is it in the
what kind of planning and scheme someone is making by sight of God that ye say that which ye do not.” (Al Quran,
looking at one’s behaviour and activities. 61:3)
A businessman, first of all, must have this good intention
or good will. This intention will motivate him to good acts,
Some problems of business ethics: islamic point of view 75 76 Philosophy and Progress

4.4. Trustworthiness 4.6. Justice

Trustworthiness is an essential quality of human being, without Justice is very important for business. Literally it means
which peace and balance cannot exist in a society. A rightness, equity, impartiality, awarding of what is due etc. It is
businessman should be aware of trustworthiness and maintain related to human dealings with others. When conflict or claim
it in every step of his business, since it is the greatest asset for arises between two or more persons about rights, due deserts or
business. It extends reputation of an enterprise. proper behaviour, then whatever conduct be done, that will be
either justice or injustice. It means that the concept of justice
Earning others’ trust may take a long time, but it can be
and injustice refer to the actions of individuals or institution
destroyed in a few minutes unless one is not careful about
with others. A businessman must ensure justice with concerned
dealings. So, all actions and decisions must be made in a
ones; otherwise disorder and disturbance will spread among
business properly. An entrepreneur can achieve trust by
them as well as in society.
maintaining honesty, integrity and fairness. He can not cheat,
betray anyone and adopt wrong means. A Muslim strictly 5. All exchangeable things are not subject to business
asked to maintain trust and not to betray anyone. (Vide, Al Unlike conventional business, Islam holds the view that all
Quran, 4:58, 8:27, 2:283) exchangeable things cannot be subject to business. According
4.5. Sincerity to Islam, humanity, i.e. human purity, human protection,
welfare, is most important than profit-making. Impure,
Sincerity means doing something cordially with purity of heart.
unclean, harmful and unlawful things cannot be matter of
It results in more efficiency as well as a high degree of
business. Things that are not allowed for business are discussed
productivity. It prompts a man to do his duty in the best way, to
as follows with their reasons behind it.
struggle hard and bear all the troubles.
Sincerity is very much related to business. The principle of 5.1. Impure things are not subject to business
sincerity can preserve the interests of all concerned people or It is clear that an unclean and impure thing cannot make other
groups. Sincerity is free from all kinds of deception, clean and pure. Islam does not permit impure, dirty and
fraudulence, falsehood and outwardness. In case of religious harmful things for buying and selling. Islam prohibits trading
people, especially Muslims, it is very much effective. A in intoxicants, living off prostitution, trading in stolen goods
Muslim considers all things from the viewpoint of his faith, etc. Prophet Muhammad (PBUH) says that Allah and his
intention and so forth. A Muslim, a person having trust in prophet have made haram (unlawful) buying wine, dead
Allah, in life after death, in resurrection, in the Day of animal, swine and idols (Al-Tabrizi, 241). Allah said in the
Judgment etc. works with utmost sincerity for the pleasure of Holy Quran, “O ye who believe! Intoxicants and gambling,
his Master. He struggles and strives sincerely in the cause of (dedication of) stones, and (divination by) arrows, are an
Allah to the best of his capability. So, there is no scope of abomination, - of Satan’s handiwork: Eschew such
adopting ill means for a true Muslim. (abomination), that ye may prosper.” (Al Quran, 5:93) In
Some problems of business ethics: islamic point of view 77 78 Philosophy and Progress

another place He said, “He hath only forbidden you dead meat, 5.1.2. Dead animal
and blood, and the flesh of swine, and that on which and other Al Quran says that maitat - the dead animal - is haram
name hath been invoked besides that of God.” (Ibid, 2:173) (unlawful). Maitat means carrion, i.e. the flesh of such animal
Here the Quranic verses and Hadith describe the prohibition of that dies of itself. The flesh of that animal which has not been
eight things: (1) drinking, (2) gambling, (3) idolatry, (4) slaughtered in the manner prescribed by Islamic law is
divining arrows, (5) dead animal, (6) blood, (7) the flesh of forbidden to eat, buy and sell. An animal may die of various
swine and (8) animal that has been sacrificed in the name of reasons. It may be strangled to death, may be beaten to death,
anyone other than Allah. All these acts are impure. Producing may be died through a fall from a height, may be smitten to
and selling them are unlawful. We will discuss here some items death with another animal’s horn, may be died of sickness or
of them and the reasons underlying their unlawfulness. any disease, may be died as food of other animal. All kinds of
carrion are forbidden by Islam. The wisdom underlying behind
5.1.1. Drinking or intoxication this is as follows:
It is widely known that drinking is very harmful for body. It The main reason for forbidding carrion is its impurity. The
causes many diseases including various types of cancer. It animal which is not slaughtered in Islamic method, rather
harms not only a particular part of a body, but it damages the which is died of any reason, its meat is harmful for health. The
body as a whole (like brain, liver, stomach, breasts, pancreas, blood of that animal gets stopped in body. As a result, the meat
bones, heart, central nervous system etc.). It reduces becomes very quickly perverted. In addition, in blocked blood
coordination, impairs memory and loses consciousness. germs remain alive, even that germs are not perished by
burning. On the other hand, the animal which is slaughtered in
Apart from bodily damages, it causes different mental Islamic manner, the total liquid blood gets out of body. The
disorders, like depression, anxiety, violent behaviour etc. Due meat, thus, becomes pure. It is hygienic and not harmful for
to the effect of alcohol, a man loses his rationality and health. The question remains: what about hair and fat of dead
conscience. He cannot distinguish between right and wrong, animal? The answer is that the eatable parts of dead animal are
good and bad. Drinking, thus, causes to harm an individual, a forbidden for selling and buying while the uneatable parts are
family as well as society. So, Islam has correctly prohibited legitimate in buying and selling.
producing, selling and buying it. Drug is his only one desired 5.1.3. The blood
thing. He becomes lunatic for drug. He can do everything for
drug. He needs a big amount of money for the fulfillment of his The above mentioned Quranic verse proclaims that the blood is
intoxication. For money he adopts different ill means, like forbidden. Here blood means the flowing blood. It bears
stealing, deception, fraudulence etc. Sometimes he oppresses various kinds of germ and ferocity, so it is very harmful for
the people of his surroundings. eating. Apart from this, it is impure. Every impure thing is
forbidden in Islam. So selling, buying and all income earned
from it is forbidden. What about blood transfusion? Some have
Some problems of business ethics: islamic point of view 79 80 Philosophy and Progress

permitted the use of blood on medical grounds. The transfer of However, dogs for guarding, elephants for transporting and those
human blood to another body is not permissible under normal animals whose skins are used for making useful goods are
conditions, but in compulsive conditions i.e. the life saving legitimate for selling and buying. Similarly, there are some
conditions doing so is permissible. (Shafi,430) For life saving, animals (it is immaterial whether eating their meat is lawful or
blood can be collected from relatives, from donor at the free of not), they are very beautiful to look at, like peacock, and some
cost, from Blood Bank or any other legitimate sources. animals have sweet sound, i.e. those animals which have aesthetic
value are allowed to sell or buy in Islam.
5.1.4. The flesh of swine
5.3. Things which are not virtually transferable are not
The Holy Quran has declared the flesh of pig as haram subject to business
(unlawful) 5 times in different verses. Swine is a dirty animal.
It lives on offal. Its body is a container of infectious diseases. Things that are not in a position to deliver can not be matter of
selling or buying. Fetus in a womb, yet unborn or unripe fruits in
Moreover, its flesh belongs much fat than muscle building
tree or garden and uncut corps in the field cannot be sold or
ingredients. It carries such germ which cannot even be
bought. Similarly, the bird in the air, the fish in the water cannot
destroyed by burning. So, eating pork may cause of several be the object of selling or buying.
diseases.
5.4. Things which are unknown or indefinite can not be
It should also be mentioned here that eating something that subject to business
is not permitted by Islam does not affect only body, but it has
far-reaching impact upon human mind and nature. We also find Both goods and prices must be known and fixed according to
such affects among animals. Blood and flesh-eating animals Islam. In case of unknown and unfixed price of goods for selling
are much crueler than non-flesh eating animals. The nature of and buying will not be valid; for example, if a diver said, I would
the tiger, the lion, the bear are different from that of the cow, dip into water this time, and whatever I would catch, I would give
you for this fixed amount (like one thousand, two thousand etc.)
the buffalo and the goat. The first three are flesh-eating
of money. In this case price was fixed earlier but goods were
animals. Therefore, it would not be an exaggeration to say that
indefinite and unknown. This type of business is not allowed in
eating materials influence over the nature of eater. Islam, thus,
Islam as valid.
on the one hand keeps human body disease-free by forbidding
filthy and disease-prone things like, dead meat, blood and pork. 6. Why some things are not subject to business
On the other hand, Islam shows the way to remain pure by Things which are not subject to business are of three categories:
forbidding those cruel animal’s meat as well as impure things.
6.1. Things that are by nature impure and harmful.
5.2. Harmful things are not subject to business
6.2. Things that are not by nature impure and harmful, they are
Goods which are not be useful for humanity are not legitimate good in nature but they become corrupted for using unfair means.
to sell or buy according to Islam. For example, snake, rat,
6.3. Things which dealings are not transparent.
hornet, worms and insects etc. are not to be sold or bought.
Some problems of business ethics: islamic point of view 81 82 Philosophy and Progress

These three categories have been discussed below: deception, fraudulence, roguery may take place. Undoubtedly,
in it one party loses and another gains. As a result, seller-buyer
6.1. We have previously seen that there are some things which
will be involved in quarrel. Suppose a situation, one sold his
are essentially impure, germful, diseased, poisonous and filthy.
fruits in the garden which are yet not ripen. After some days
This category includes dead animal, blood which flows, the
fruits became ruined by natural cause. Now the seller said, I
swine, wine, etc. These impure things cannot make man pure
have sold these, so I am not liable for this and I will not be
and healthy. These things are not only harmful for human body
loser. On the other hand, the buyer said, I did not get fruits at
but their ill effects hinder the mental development of man.
all, so I would not be liable for this. For these reasons, Islam
Where physical and mental development disrupts, there
has forbidden the selling and buying of unknown, indefinite
spiritual excellence cannot be attained. Islam abhors these
goods which delivery is doubtful.
items and proclaims as haram (totally forbidden). Islam gives
preference of spirituality to body and mind. But it does not 7. The ethics of consumer protection
ignore the last two. Forbidding these items Islam has taken an Consumers are the main stakeholder of business. However,
effective measure for tripartite development of body, mind and they are often deprived and deceived by means of substandard
spirit. products, misinformation, increasing prices, creating artificial
6.2. There are some things which are essentially pure and good. crises and so on. They have some rights. To discuss the ways
Things which by themselves are not forbidden for buying or of the protection of their rights is an important issue of
selling, but they have characterized in different names due to business ethics. Islam stresses on the protection of their rights
unfair means, e.g. stolen things, smuggled things, things owned as explained below:
by others (like husband’s property or wife’s property) without
7.1. The right to get quality products and services
permission of the owner, are not considered as valid for selling
and buying. Incomes from this kind of things are haram. Consumers have rights to get quality products, goods and
Moreover, in these dealings, one is deprived from his right. services from producer and service provider. The customers
Secondly, the seller or buyer of stolen or smuggled things is and consumers have the right to get standard and appropriate
extending their hands in an illicit deed. Thirdly, there are goods, as Allah said: “Nor withhold from the people the things
possibilities to dismiss mutual trust, good relation and fellow- that are their due; commit not evil in the land with intent to do
feeling. Islam, thus, has attempted to save society from mischief.” (Al Quran, 11:85). Selling commodities with less
malpractice and unwarranted meddling by forbidding selling than the accurate weight and measurement is a very well
and buying things that one earns by unfair means and not by known way of cheating in business. Nowadays it has taken
possession. various forms like adulteration, harmful chemical mixed
production etc. Islam has strictly prohibited such dealing. Allah
6.3. Some businessmen may adopt such process in which said, “Woe to those that deal in fraud. Those who, when they
goods, price and delivery are unknown, indefinite, unclear and have to receive by measure from men, exact full measure. But
not transparent as we have seen above. In these cases when they have to give by measure or weight to men, give less
Some problems of business ethics: islamic point of view 83 84 Philosophy and Progress

than due.” (Ibid, 83:1-3, vide, 11:85, 17:35, 55:7-9) These therein all kinds of things in due balance.” (Ibid, 15:19, vide,
types of businessmen according to Islamic shariÔah, will be 78:14-16, 35:22-28, 2:195. 16:80-81) Man has the role towards
punished in earthly life as well as in life after death. the environment by making himself responsible of his
surroundings. Man destroys his environment by abusing it. He
7.2. The right to be informed
cuts tree, hills, fills up river and canals. As a result, nature
The customers and consumers have the right to know all about becomes adverse for men. Allah said, “Mischief has appeared
the products. So, goods or service providers should disclose the on land and sea because of (the meed) that the hands of men
maximum possible information. If there is any defect, the have earned.” (Ibid, 30: 41) So producer, manufacturer and
buyer should be informed about that and then it is up to buyer business man should keep it their mind that environment can
to accept to buy or not. Hiding any known defect in an item never be destroyed or polluted by their initiatives. According to
offered for sale is a matter of deception and it causes loss and Islam, keeping environment clean is a part of faith.
harm for buyer. Sometimes it may lead to quarrel with each
7.4. The right not to be deceived
other and may make disorder in society. Islam has strongly
forbidden it. Allah said, “Nor withhold from the people the Customer will be served properly in all respects. He will not be
things that are their due: And do no mischief on the earth after deceived in any way. Telling lie, bearing false witness,
it has been set in order.” (Ibid, 7:85, 11:85) hypocrisy, delivering adulterated goods, misleading
representation on utility of products, false and exaggerate
7.3. The right to healthy environment
advertising, these are all means of cheating. Islam has abhorred
The healthy environment is very important for the sustainable and strictly prohibited all these kinds of malpractices. Telling
living. Environment can be polluted in many ways. Industrial lie, giving false witness, hypocrisy, cheating etc. are considered
plants are one of them. Manufacturing process may cause a great sin in Islam. Prophet Muhammad (PBUH) said, “Refrain
great harm for environment. Industrial smoke and waste are from taking more oath in business, it may get some profits, but
health hazard. But their proper management will keep the the prosperity will vanish from their trade.” (al-Tabrizi, 243)
environment safe. Industrialist, manufacturer and businessmen
7.5. The right to legal aid
are always not aware and often careless about the healthy
environment because of their profit-maximizing target. Consumer has the right to demand redress. He can complain to
Businessman will run business but he cannot hamper authorities concerned like association of manufacturers,
consumer’s healthy environment right making various kinds of association of traders, government etc. Concerned authorities
pollution. will take necessary measure. According to Islam, a
businessman who commits sin, crime in his dealings in any
Islam stresses on the protection of environment. Allah has
means, will be brought to book based on shariÔah in the worldly
created all necessary things for the equilibrium of environment.
Allah said: “And the earth we have spread out (like a carpet); life and he will also be punished in the life hereafter. Allah
said,
set thereon mountains firm and immovable; and produced
Some problems of business ethics: islamic point of view 85 86 Philosophy and Progress

The punishment of those who wage war against God and His we would like to draw attention to some points that are related
Apostle, and strive with might and main for mischief to the obligations of employer to employees and vice versa.
through the land is: execution, or crucifixion, or the cutting
off of hands and feet from opposite sides, or exile from the 9.1. Obligations of employers to employees
land: that is their disgrace in this world, and a heavy 9.1.1. Fair recruitment practices
punishment is theirs in the Hereafter. (al Quran, 5:36)
First of all, a business entrepreneur has a moral obligation to
8. Hoarding recruit all levels of employees on fair and transparent basis.
Hoarding is a very bad practice in business. It exploits the According to Islam, there is no scope of discriminations,
customers. Hoarding means stocking essential commodities to nepotism, corruption and bribery in recruitment process.
create an artificial scarcity for the purpose of pushing up the Among the job seekers, the best person has the right to obtain
prices. The lust for money and the desire for becoming desired post. An honest businessman cannot deprive the
overnight richer lead a businessman to hoard essential deserving persons and do injustice. Allah said, “God doth
commodities with a view to sell the same at manifold prices. command you to render back your trusts to those to whom they
Islam has prohibited this strictly. The prophet Muhammad are due; and when ye judge between man and man, that ye
(PBUH) said, “The one who brings food to the market, Allah judge with justice.” (Al Quran, 4:58)
will grace him, provide well, while the one who hoards is 9.1.2. Fair treatment of workers
cursed by Allah.” (al-Tabrizi, 251) The reason behind the
prohibition of hoarding is to keep the essential commodities Man is the most excellent of the creatures. So, workers or any
available in the open market so that customers and consumers man should not be treated as machines or tools, but as human
can get that with fair prices. On the other hand, Islam wants to beings. Employers should provide equal opportunities to all
prevent covetousness, profiteering, corruption, dishonesty etc. employees irrespective of their race, caste, gender, religion etc.
Above all, Islam emphasises on the protection of common Islam emphasises on fair wages, good working environment
people’s interest and not to harm them any way. and brotherly treatment of the workers. The great prophet
Muhammad (PBUH) said, “Pay the worker his wages before
9. Obligations to employee and employer in Islam his sweat dries.” (Imam Ibn-e-Majah, vol. 3, Hadith no. 2443)
According to Islam all men are equal in respect of creation of Further he said, “Allah said, I will be a plaintiff to three types
Allah. They all are from the same source. But one is superior to of people on the Day of Judgment: ....One who employs a
others in terms of knowledge and responsibility. None is here labourer and takes full work from him but does not pay him
totally self-dependant. Everyone is to come in contact with due wages.” (Imam Bukhari, vol.3, Hadith no. 2270)
each other as one set requires the services of the other and vice 9.1.3. To give share of profits
versa. However, everyone has some obligations to others.
Islam suggests fair, just and benevolent treatment of each. Here Workers produce wealth, make profit. They work hard. So,
only wages are not enough for them. Profits should be
Some problems of business ethics: islamic point of view 87 88 Philosophy and Progress

distributed among them. If not so, wealth will be accumulated 9.2.2. Protection of employer’s assets
in one hand i.e. all profits will go to owner’s possession. Islam Employees should keep in their mind that the assets and
does not allow it. Allah said, “It [wealth] may not (merely) properties of the employer are a trust on them. They must not
make a circuit between the wealthy among you.” (Al Quran, abuse and misappropriate the trust. Furthermore, they must not
59:7) Sometimes accumulated wealth may cause exploitation. do anything to cheat or deceive the employer directly or
If profits only go to the possession of investor or capital indirectly. Similarly, they must neither embezzle the funds nor
provider, it makes the rich richer; but the poor (workers, disclose any secrets of employer to outsiders.
labourer) remains poor. It eventually makes the have and the
have not. 9.2.3. Considering duty as worship
Some think that when employer earns big amount or extra An employee must perform his duty not only for the salary but
profit then employees should be given insentives or additional also as ibadah- worship. As an employee he is liable for his
benefit. It will help employees but it will deprive them from work to his employer while as a believer he is liable for his
getting share of profits. But we think, not only insentives or work to his Lord-Allah. If he performs his duties perfectly, he
bonuses, but they always should be given a certain share of will be rewarded by the Almighty. But willful negligence will
profits. Islam directs us to do so. The prophet Muhammad be considered as sin. An employee will be asked for his
(PBUH) said: responsibility. The prophet Muhammad (PBUH) said: “All are
custodians and are responsible for their charges.” (Imam
Allah has made some of your brothers as slaves under your
care. So whoever has his brother under his care, then let him
Bukhari, vol. 2, Hadith no. 18)
feed him from his food, and let him clothe him from his 10. Corporate Social Responsibility of Business
clothes. And do not give him such duty that he can not bear,
and if you give him a duty he cannot bear, then assist him Business is not only for profit-making initiative but
with it. (Imam Tirmidhi, vol. 4, Hadith no. 1945) businessperson has important responsibility to his surrounding
people, community, country and the mankind as well. This
This hadith makes each worker a brother of his employer. responsibility is called corporate social responsibility (CSR).
9.2. Obligation of employees to employer What is CSR? The World Business Council For Sustainable
Development defines it as:
9.2.1. Professional responsibility
Corporate social responsibility is the continuing commitment
It is generally expected that an employee will be dedicated to by business to behave ethically and contribute to economic
his employer with high standard of professional responsibility. development while improving the quality of life of the
He will be committed to maximize the goal of his employer. workforce and their families as well as of the local
He must discharge his duty with integrity and will be respectful community and society at large. (Fernando, A.C., 218)
to the confidential matter to which he has access.
First of all, the social responsibility of businessperson is
ethical. They should not do anything that is ethically wrong.
Some problems of business ethics: islamic point of view 89 90 Philosophy and Progress

Their dealings and transaction should be accomplished abiding Thirdly, another responsibility of businessman is to work
by the norms of morality and transparency. At the same time, it for the betterment and welfare of his subordinates and their
is their responsibility to provide quality goods and families and local community as well. He will be with them in
commodities, i.e. they are morally bound to provide things that their every weal and woe. He will help them in their every
are not harmful for customers and consumers as well as necessity. Islam does not think their relationship as owner and
society. Islam has strictly prohibited any fraudulence in servant, boss and dependent but Islam presents their
dealings and proclaimed haram - unlawful of harmful things’ relationship as brethren and oneness. Allah said: “The believers
selling and buying like wine, flesh of swine, dead meat etc. are but a single brotherhood.” (Ibid, 49:10) If a businessman
According to Islam, a perpetrator will be brought to book in the does not feel his workers or his community sympathetically, he
conventional court as well as before Allah in the Day of is not a true Muslim. The prophet Muhammad (PBUH) said,
Judgment. (Al Quran, 5:33, 2:85) The prophet Muhammad “None of you truly believes until he loves for his brother” or he
(PBUH) said: “No foot of a servant of Allah [on the said, “for his neighbour, what he loves for himself.” (Imam
resurrection day] will move before being asked about four Ibn-e-Majah, vol. 1, Hadith no. 66.) Further he said, “Nobody
things: … his wealth and how he earned it and on what he will be considered to be a true believer unless he likes for his
spent it….(Imam Tirmidhi, vol. 2, Hadith no., 2416) brother the same thing which he likes for himself.” (Imam
Bukhari, vol. 1, Hadith no.13)
Secondly, business person has another important
responsibility to contribute to the economic development as 11. Conclusion
much as he can. It is his responsibility to employ unemployed Islamic business ethics presents an extensive but clear
persons of his society. He has to help financially the poor, principles, rules and regulations concerning business. It always
destitute and insolvent people of his community. Islam has reminds a businessman that the business is not only for profit-
done mandatory social responsibility for a businessman by making, but also an ibadah-worship. If one obeys the rules of
declaring zakat (regular charity) in business commodities. A business provided by Islam one performs not only one’s
Muslim businessperson is bound to pay zakat to the poor every professional duty but also divine duty. If he does his acts
year for his business commodities. Moreover Al Quran has morally he will be rewarded in the Day of Judgment, otherwise
repeatedly stressed on voluntary charity. Allah said: he will be punished. Islam puts up the concept of two lives,
It is not righteousness that ye turn your faces towards East or worldly and other-worldly.
West; But it is righteousness to believe in God, and the last
day.…To spend of your substance, out of love for Him, for Islamic business ethics is humanistic in terms of attitude,
your kin, for orphans, for the needy, for the wayfarer, for nature, aim and spirit. Its main purpose is to assist one to fulfill
those who ask, and for the ransom of slaves; To be steadfast one’s ultimate goal, not to maximize profit. It strictly prohibits
in prayer, and practice regular charity [zakat]. (Al Quran, producing, selling and buying of those goods that are things in
2:177) themselves harmful for mankind like wine, pork, blood, etc.
Not only that, it prohibits selling of legal things for illegal use,
Some problems of business ethics: islamic point of view 91 92 Philosophy and Progress

e.g. weapons, drugs, etc. Grapes are lawful fruits, its selling Khattab, Nasiruddin, Saudi Arabia: Riyadh: Darussalam Publishers
and buying are also lawful. But Islam prohibits its selling to & Distributors.
one who makes professionally wine by it. Similarly, selling Imam Bukhari, Muhammad bin IsmaÔil bin Al Mughirah, (1997),
weapons is not permissible to one who engages in illegal or Sahih al Bukhari, (Arabic-English), trans. Khan, Muhammad
unjust war. (Sabeq, 147) Muhsin, Saudi Arabia: Riyadh : Darussalam Publishers &
Distributors.
Any immorality, according to Islam, is sin. This concept is
very important for a business man. It leads him to avoid any Imam Tirmidhi, Hafiz Abu ÔIsa Muhammad Ibn ÔEisa, (2007), JamiÔ
unfairmeans. Islamic business ethics also prescribes that At Tirmidhi,
earning by unfairmeans is haram, and one’s ibdah will not be trans., Khaliyl, Abu, Saudi Arabia: Riyadh: Darussalam Publishers
accepted, if one adopts haram earnings. Therefore, Islamic & Distributors.
business ethics teaches that a businessman should make him Kant, Immanuel, (1962) Fundamental Principles of The Metaphysic
clean, pure and moral for his spiritual grounds as well as of Ethics,(10th ed.), trans. Abbott, T.K., London: Longmans.
salvation. Satris, Stephen, (ed.), (1988), Taking sides: Clashing views of
controversial Moral Issues, U.S.A. : The Dushkim publishing
In fine, we can sum up from above discussions that the
Group, Inc.
Islamic business ethics rightly shows a businessperson as well
as an organisation proper principles of morality. These Shafi, Mufti Muhammad, MaÔariful Quran, (N.D.), trans.,
principles are able to lead business activities on right track. Muhammad Hasan Askari & Muhammad Shamim, India : New
Accordingly, this ethics can protect business from decadence Delhi : Farid Book Depot (P) Ltd.
of morality and humanity. Sabeq, Syed, (1983), Fiqhus Sunnah, (4th ed.), vol. 3, Lebanon:
Bairut; Darul Fiqh.
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Ali, A. Yusuf, (1983), The Holy Quran: Text, Translation and
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Al Tabrizi, Shaikh Wali al-Din Muhammad Bin Abdullah al-Khatib
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Mishkatul Masabih, India : New Delhi ; M Bashir & Sons.
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Delhi; Dorling Kindesley pvt. ltd..
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Majah, trans. al