Concept of business ethics in Islam - approach to the entrepreneur

UNITAR e-Journal, 2008

2013

Islam places the highest emphasis on ethical values in all aspects of human life. In Islam, ethics governs all aspects of life. Ethical norms and moral codes discernible from the verses of the Qur'an and the Hadith are numerous, far reaching and comprehensive. Islamic business ethics is essential for SME industry. The challenge of Islamic business ethics is to make that inevitable ethical decision making explicit to make it better. Far from being anti-business, ethics actually provides essential support for maximizing long-term business value. In an Islamic system, ethics and business are not only compatible but also they are inseparable. Islam stresses the link between business and religion. It projects a perfect way of life. A human manner and behavior in small and medium enterprises cannot be effectively clarified without references to the Islamic ethics which can manage it. Thus, this paper will discuss the issues pertaining to the concept of business ethics in Islamic perspective toward Small and Medium Enterprises (SMEs). This is because of their significant contribution in the Malaysian economics at large. Furthermore, this study also explains how SME could adapt the Islamic business ethics system in their day-to-day business activities.

International Research Publication House – Delhi – India Book : Dynamics of Commerce and Management in the New Millennium ISSN : 978-83-84144-65-4, 2014

The purpose of this paper is to discover the nature and effect of Islam on business Ethics and also the need of understanding ethical values of human life which governs all aspects of a human being. The Author in this study have presented the various repeatedly verses from Holy Quranic translation and teachings (Hadiths) of the Prophet. But unfortunately the western dominancy on our systems with great extent effaced our core Islamic values, beliefs and idea regarding business and trade. This paper focuses on the creativities taken up by different organizations for engaging themselves in carrying out their business operations across their boundaries. In the last two decades, business ethics has drawn increased interest from business practitioners as well as from academicians. In today's modern business each business enterprise is fettered to follow the ethical perspective of the business language because no business activity can be best managed and organized without knowing sound Islamic business ethics especially for Muslims. One of the critical question facing organizations today is how to develop the business/organization in the light of Business Ethics, as business doesn't have any religion but should be under a frame work.

Journal of Transnational Management, 2013

The attitudes and values of a society play a significant role in entrepreneurship development as they influence and shape the environment within which entrepreneurial activity takes place. This paper focuses on the philosophical basis of entrepreneurship principles within an Islamic framework. This paper highlights, in particular, the role of Islamic-based moral and ethical values underpinning the entrepreneurial process from a point of view of the behavioral dimensions of entrepreneurship, enterprise management and marketing, capital and fund raising, and resource utilization.

internationalconference.com.my

. This is because of their significant contribution in the Malaysian economics at large. Furthermore, this study also explains how SME could adapt the Islamic business ethics system in their day-to-day business activities.

Entrepreneurship from an Islamic perspective offers a unique approach that integrates ethical values, socio-economic development, and sustainability into business practices. This study explores the foundational principles of Islamic entrepreneurship, such as justice (Adl), trustworthiness (Amanah), and public welfare (Maslahah), highlighting their role in shaping ethical entrepreneurial behavior. Historical examples and modern interpretations demonstrate the compatibility of these principles with contemporary business trends, including corporate social responsibility and sustainability. However, challenges such as misconceptions, resource constraints, and cultural variations hinder its widespread adoption. The study also examines the role of technology and Shariah-compliant financial models in expanding the reach of Islamic entrepreneurship. Recommendations emphasize the importance of education, institutional support, and leveraging technology to overcome these barriers. This research concludes that Islamic entrepreneurship provides a sustainable and inclusive framework for addressing modern economic and social challenges while promoting ethical business practices.

ICR Journal, 2019

This paper argues that the various contemporary crises are both the cause and effect of contemporary consumer culture, which tends to create artificial needs by marketing unneeded products and services as elements of identity and self-image. Thus, Muslim intellectuals and entrepreneurs need to join hands towards a holistic appraisal and design of an Islamic business ethics. However, the way Muslim entrepreneurs learn and teach business currently, does not encourage a sense of responsibility towards finding solutions. Many Muslim entrepreneurs are unaware either of the extent, nature and magnitude of the crises resulting from overconsumption, or of the Islamic religio-ethicospiritual perspective and guidance. Thus presently, Muslim-run businesses constitute part of the problem rather than solutions. To act as agents for reform, Muslim entrepreneurs a deeper understanding of the rich repository of Islamic beliefs, concepts and practices that need to be revived within the societies thr...

Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)

Entrepreneur is a strategic economic change agent for the Indonesian people in reducing poverty. By seeing that most of the Indonesia's population is Muslim, so it is very appropriate to implement an Islamic-based entrepreneurship system. Entrepreneur is a system in accordance with the teachings of Islam because it is highly recommended to seek risky or income. Islamic teachings view that work is worship, so that entrepreneurs besides can lift income per capita, also can reduce poverty. In this library research emphasize the importance of entrepreneur applied in Islam because in view of Islam is aspect of life which is grouped into human relations in social interactions according to the source of life problem which closely related to relation between human with God which will be accounted later in achiral. Business in the Qur'an is a human trade with God associated with spending his rescue to someone who cannot afford. Successful behavior in Islam cannot simply come; there are many values that need to be interpreted by Muslims as an entrepreneur. One of them, orientation which is a conception of a good self or someone else who becomes a habit as a way of life (way of life).Analysis of the success of an Islamic entrepreneur is to consider the variables of success and failure with internal and external factors based on Islamic teachings.

Islamic Entrepreneurship ethics - Case Study: Dubai, 2019

This paper argues that entrepreneurship thrives in the Islamic economy in compliance with Islamic business ethics. The paper considers the traditional entrepreneurship in the conventional economy then goes in details to the principles and contemporary applications of this concept in the Islamic context. Then considering Dubai as a case study as the Government of Dubai adopting Islamic Economy.

Al-Ida’at Arabic Research Journal, 2024

The economy is one of the most important parts of human life because of its multi-dimensional effects on various aspects of our lives. Our Prophet, may God bless him and grant him peace, He introduced detailed ethical principles to promote fare and business. These principles led to the expansion of trade to the international level and the spread of Islam around the world. Unfortunately, the Muslim merchants and businessmen forgot the golden prophetic principle and fell into various wrong practices including hypocrisy, Fraud, fraud, embezzlement, dishonesty, breach of promise, etc. This exercise of wrong practices results in adverse effects in terms of customer dissatisfaction as well increased risk in trade. Moreover, imported products are popular in Market while domestic products are losing ground due to its quality and other related issue like low packing material, lower grade stuff and so on and so forth. One of the elementary and major causes of this troubling situation is the lack of professionalism and less know how of Islamic ethics. It must be restored by following the letter and spirit of the prophetic principles. Under the said context, Muslim traders, Entrepreneurs and service providers are evenly facing this serious economic problem related to the issue of Ethics. It would be very early to pass on any conclusive remark but ourا moral values are less embraced in our actions. We need to include these economic values So that we can achieve success in this world and hereafter.

Ethical business attempts to establish justice to all of its stakeholders by satisfying their ethical desires. But lack of ethical desires of the stakeholders is a major hindrance to developing an ethical business. In a larger-scale-enterprise, owner, management, and accountant play vital role in initiating, establishing, and ensuring ethical guidelines for all of its stakeholders. In the way to ethical business development, one or two of these three parties are not able to ensure justice independently rather needs a mutual cooperation.

Canadian Institute for Knowledge Development (CIKD)

The present study aims to contribute to the existing research in the field of business and shed more light on the business ethics from the perspective of Islamic economics. Assessing the compatibility and incompatibility of economic development indicators with Islamic doctrines is the main focus and central topic of this study. Nowadays, most Islamic countries are observed to be among underdeveloped or developing countries. Therefore, it is necessary to conduct a study in order to know whether Islamic teachings are barrier for accelerating the development process or not. To this end, economic development indicators in the form of commercial business from the perspective of Islamic economics are discussed.

International Journal of Islamic Economics and Finance (IJIEF), 2020

There are persistent increasing number of scenarios in Singer and Dawanau markets of Kano metropolis which are seen as unethical among which includes deception, inappropriate weight and measures, hoarding and price manipulation as well as false-swearing to support a sale. This study therefore assesses the determinants of Islamic business ethics practices among Muslim entrepreneurs in Kano metropolis, Nigeria. Structural Equation Modelling (SEM) technique is employed in analysing the hypothesized model of the study. The results indicate that entrepreneurs fairly adhere to Islamic business ethics practice while legal and organizational factors significantly affect Islamic business ethics, but Individual factors do not. The study recommends the need for Kano State Ministry of Commerce and Industry in collaboration with market organizational leaders to engage in public enlightenment on the importance of business as an act of worship (Ibadat). It was suggested that organization leaders i.e. Market leaders (trade union leaders) should liaise with Kano state Shariah Commission to set standard for Islamic business ethics whereas Hisbah Board to enforce compliance. The study further suggests that the concept of ethics should be incorporated in teaching and learning curriculum.

International Journal of Scientific Research and Management, 2019

In Islam, business is one of the most important parts of mu'āmalah (worldly transaction) and gets a very serious attention. Islam teaches the values that must be obeyed and followed by its adherents when conducting business. Unfortunately, the present reality shows that there are still many Muslims who prefer opting and practicing business principles and methods that may not contain and display Islamic values in their practices. This paper is aimed to explore what values are taught by Islam in conducting a good and permissible business, principally and ethically. The study was a library research employing the discourse analysis. The results of this study show that Islam teaches a very comprehensive concept of business pertaining to its principles and ethics. They also show that, contrary to conventional business principles, Islamic ones accentuate the aspect of divinity in business. This is so because the basic principles and ethics taught by Islam through its maqāṣid sharī'ah in conducting mu'āmalah, in this case doing business, are meant to none other than bring benefits to mankind justly and proportionally as well as resisting any harm from them.

Deleted Journal, 2022

Islamic Sharīʽah includes all affairs of human life. An important part of Sharīʽah is related to human transactions. Conducting business is considered an important transaction, which has existed since the beginning of human life until today. Presently, committing unethical activities in conducting businesses has increased both among Muslims and non-Muslims all over the world. These unethical activities cause a Muslim to lose blessings of Allah Subḥānahū wa Taʽālā (SWT) in his income and make his earnings haram, which leads to unacceptance of his worship by Allah (SWT). It also causes harm to other people. This ultimately will be an important reason for him to be not successful on the Day of Judgment. To make a Muslim successful in this world and the life hereafter, Islam provides rules and guidelines to be followed. Among them are the rules and guidelines for conducting businesses sincerely and righteously. These rules and guidelines are called Islamic ethics of business. These ethics can be divided into two types: first, some attributes which must be possessed by a businessman; second, several forbidden things which must be avoided by him. This paper aims to analytically discuss the second type of these ethics and strives to investigate how committing these forbidden things causes to violate different types of maqāṣid (objectives) of Sharīʽah. An important finding of this research paper is that Islamic ethics of business have been prescribed by Allah (SWT) in a way that they maintain significant balance between dīn and dunyā and cause a Muslim to be successful both in this world and the next world.