Business precepts of Islam: the lawful and unlawful business transactions according to Shariah

The lawful or permissible (halal) and unlawful or prohibited (haram) transactions in Islamic jurisprudence (fiqh) are presented in this chapter. The rationale behind all of these tenets of business practices in Islamic economic system is bound by the fact that everything that is good and beneficial for the society is lawful and permissible and anything that causes harm or menace to the society is unlawful and prohibited. This is the foundation of Islamic business precept and quintessentially forms the ethical system in Islam. Some of the general rulings regarding the tenets of business transactions will be discussed in light of the Shariah-Islamic social/legal system and the basis for such decrees

A conceptual framework of business ethics in Islam

This chapter introduces a set of axioms that systematize and summarize the concept of ethics in Islam. The fundamental ethical axioms of unity, equilibrium, free will, and responsibility are discussed in detail in light of the holy Qur'an and Hadith. Propositions and business expectations/applications based on the ethical axioms have been presented to elaborate a possible conceptual framework of business ethics in Islam. The axiom of unity forms the foundation of Islamic faith. Belief in one and only Allah (the most exalted) and submitting to His will is the essence of the Islamic belief system. This creates a relationship between the Creator and the creation where Allah (TME) through His mercy, provides everything on earth for the benefit of mankind and assigns them as His vicegerent (Khalifah) on earth. However, mankind holds these resources in trust (amanah) and is obliged to utilize them responsibly in accordance to Allah's (TME) will. The axiom of equilibrium is the horizontal dimension of Islam. It can be a sense of balance among the various aspects of a man's life to produce the best social order. God has created everything in the universe with a balance to maintain the equilibrium. As a vicegerent of God on earth, mankind is supposed to reflect His qualities and, thus, (ideally) must maintain a balance in every aspect of socioeconomic behavior. The axiomatic principle of free will gives mankind the freedom to choose between the right and the wrong, the knowledge of which is clearly provided in the divine commandments in the holy Qur'an and Hadith. As a trustee (al 'amin) of Allah's (TME) resources on earth, mankind can utilize them in accordance to the divine commandments or misuse them as Allah (TME) has given them the freedom to choose. Although mankind is free to do whatever they wish, Islam provides this freedom to mankind with elements of discipline and dignity to reflect man's vicegerency (Khalifah) of Allah (TME). A Muslim's free will to choose is guided by the will of Allah (TME) and His divine commandments. The final ethical axiom of responsibility is logically related to free will. Freedom must be counterbalanced by responsibility and having opted for the power to choose between good and evil, man must endure its logical consequences. Since he/she is responsible for all that he does, man must be accountable for his actions. The four axioms, which are foundation of the Islamic ethical framework, are based on Qur'anic injunctions and provide clear guidelines for an ethical system in Islam

The ethical system in Islam: implications for business practices

The ethical system in Islam is presented in light of Shariah---the Islamic social/legal system. According to Islam, whatever leads to welfare of the individual or society is morally good and whatever is injurious is morally bad. The ethical system prescribed in Islam is eternally divine and forms the foundation of an Islamic society. Islamic ethics prescribe its followers to zealously guard their behavior, words, thoughts, and intentions and observe certain norms and moral codes in their family affairs; in dealings with relatives, neighbors, and friends; in their business transactions; in their social affairs; and in private and public life. The unique feature of the Islamic ethical system is that it permeates all spheres and fields of human life. Islam also has its own distinctive value-based ethical system for business dealings. It prescribes certain specific guidelines governing business ethics, which are dictated primarily by the notion of halal (lawful or permitted) and haram (unlawful or prohibited) as per Islamic jurisprudence (fiqh). This chapter explores the ethical system in Islam, which is essentially a reflection of the divine commandments and guideline for the right and wrong and enumerates the general ethical rules of business conduct

The Islamic paradigm of morality: Toward a business ethics approach

The paradigm of morality in Islam is presented in light of Shariah - the Islamic social/legal system. According to Islam, whatever leads to welfare of the individual or society is morally good and whatever is injurious is morally bad. The moral or ethical system prescribed in Islam is eternally divine and forms the foundation of an Islamic society. Islamic morality prescribe its followers to zealously guard their behaviour, words, thoughts and intentions and observe certain norms and moral codes in their family affairs; in dealings with relatives, with neighbours and friends; in their business transactions; social affairs, and in private and public life. The unique feature of the Islamic moral or ethical system is that it permeates all spheres and fields of human life. Islam also has its own distinctive value-based ethical system for business dealings. It prescribes certain specific guidelines governing business ethics, which are dictated primarily by the notion of halal (lawful or permitted) and haram (unlawful or prohibited) as per Islamic jurisprudence (fiqh). This study explores the moral paradigm or ethical system in Islam, which is essentially a reflection of the divine commandments and guideline for the right and wrong and enumerate the general ethical rules of business conduct. Further, the halal and haram transactions in Islamic jurisprudence (fiqh) are presented in this paper. The rationale behind all of these tenets of business practices in Islamic economic system is bound by the fact that everything that is good and beneficial for the society is lawful and permissible and anything that cause harm or menace to the society is unlawful and prohibited. This is the foundation of Islamic business precept and quintessentially forms the ethical system in Islam

An Islamic perspective of corporate social responsibility

Notions of corporate social responsibility (CSR) have been suggested to be consistent with an Islamic view of society. Indeed, values and principles that have been central to Islam since the time of the holy Prophet Mohammed (Peace and blessings be upon him) may serve as a foundation for notions of corporate social responsibility similar to those in the West. Much contemporary discussion of CSR, however, has not recognized this. These discussions have largely been based on a Western orientation informed by Western religious values. Moreover, CSR has evolved literally in response to particular issues or problems that are specific to businesses in a Western context. This led to a lack of a comprehensive global context within which a wider perspective of CSR should be positioned. On the other hand, the notion of social responsibility and justice has been an integral part of Islamic society for nearly 14 centuries. However, the Islamic literature remains scattered, fragmented and lacks a coherent framework that would allow such a concept in Islam to be systematized. While Islamic philosophy is rich in precepts pertinent to CSR, these precepts have not yet been formally synthesized to present a systematic model with an explicit notion of CSR in Islam. Thus, there exists a gap in both the Western and Islamic literature. This was fruitfully exploited in this study to advance the understanding of the concept of CSR in a wider cultural and religious setting

An Islamic perspective of corporate social responsibility

Notions of corporate social responsibility (CSR) have been suggested to be consistent with an Islamic view of society. Indeed, values and principles that have been central to Islam since the time of the holy Prophet Mohammed (Peace and blessings be upon him) may serve as a foundation for notions of corporate social responsibility similar to those in the West. Much contemporary discussion of CSR, however, has not recognized this. These discussions have largely been based on a Western orientation informed by Western religious values. Moreover, CSR has evolved literally in response to particular issues or problems that are specific to businesses in a Western context. This led to a lack of a comprehensive global context within which a wider perspective of CSR should be positioned. On the other hand, the notion of social responsibility and justice has been an integral part of Islamic society for nearly 14 centuries. However, the Islamic literature remains scattered, fragmented and lacks a coherent framework that would allow such a concept in Islam to be systematized. While Islamic philosophy is rich in precepts pertinent to CSR, these precepts have not yet been formally synthesized to present a systematic model with an explicit notion of CSR in Islam. Thus, there exists a gap in both the Western and Islamic literature. This was fruitfully exploited in this study to advance the understanding of the concept of CSR in a wider cultural and religious setting

Shattering and salvaging the grounded theory: a one-dot theory conversion

Abstract not available