(Qur'an 3:110) Every day, we face ethical issues at work place, and hardly know how to deal with them to find a workable solution. Islam has its own distinctive value-based ethical system for business dealings. ISLAMIC FINANCE The person who has gone astray cannot hurt you if you are rightly guided.”. BUSINESS Free resources to assist you with your university studies! For example, we have the ‘fair trade’ brand which is quite popular these days in the west. It means that Allah Almighty has given direction to the servants - to do his business. Manage risk effectively and you can head off financial risks like additional legislation, taxes or consumer boycotts. by . About Islamic Business Ethics . Then came the ‘fairtrade’ labeling of bananas as well as other products through which brands started competing with the other products. Hence. ‘Fair trade’ is considered a financial relationship between producers, sellers, and consumers based on the principle of equity within the exchange of goods. Business is one of the way to meet human needs. said “An honest and trustworthy business man will be the martyrs on the day of resurrection”. But real progress will be achieved when they use their muscle to achieve genuine social change linked to their business. This includes providing market avenues that allow marginalized producers the opportunity to sell, ensuring humane working conditions, and all the while protecting environmental and cultural factors that play into the production process. If a brand does not have its finger on the pulse of stakeholder opinion, it doesn’t have a feel for its brand health. International Journal of Islamic Business & Management Vol. Sura 2:23 says, “To those who believe and do acts of righteousness give the good news that they will go to paradise.” The moral choices one makes are serious as they play a role in determining one’s ultimate fate – to heaven or to hell. It’s strange that “risk management’ is still in the purview of the finance departments. Sura 31:18-19 says, “Do not be disdainful of other people, nor walk in arrogance in the earth. Judaism – “What is hateful to you, do not do to your fellow man. September 13, 2012. There’s no such thing as “Business” Ethics. 6. People, by nature, like to ‘belong to groups’. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! *You can also browse our support articles here >. Joy (2010) highlights some of the basic principles of Islamic ethics which include the following: Every action has moral significance. Thereby creating a process that will automatically provide for the “good” (of society). – In the light of major corporate failures worldwide, business ethics have become an increasingly important area of managerial competence and responsibility. In most situations people act instinctively, in accord with their basic character, rather than by consulting a set of rules. You communicate a consumer benefit (and win a bit more trust).More importantly creating – employee engagement on the business mission- employees working together for a common goal. Will Islamic values be a hindrance to business success? Reply. This is the question which needs to be identified and answered with clarity. ‘THE ISLAMIC ETHIC is expressed in terms on the immanent presence of God in the earthly affairs of man. If other major religions, such as Christianity, call for a review to inculcate religious values in Christian businessmen, Muslim businessmen can be proof of success stories where business ethics and religious values can merge harmoniously for the betterment of the individual and his community. ‘Business ethics’ is often viewed as an oxymoron, in the way that ‘seriously funny’ and ‘open secret’ are considered to be counterintuitive. These usually are called brand values and become the guiding principles of how business is to be done. The Shariah governance structure should be considered as a brand in itself. By Dr. Muzammil Siddiqi. There are a number of rules of ethical discipline in Islamic commercial transactions without which business contract would be regarded as lacking perfection in the light of the code of good manners, decency and ethical excellence. As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. 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