Rabiatul Adawiyah Binti Azamin

DCE 131051
Ethics And Fiqh For Everybody Life :An Islamic Perspective
Madam Umaimah Bt Mansor

Describe Islamic Ethics in Business Transaction.

What I can describe about Islamic Ethics in Business
Transaction is as Muslims, we have to adhere to ethical
standards, not only in business but also in all aspects of life.
Both business and ethics are interrelated. There is a reference
to this point in the Quran : For you in the Messenger of Allah is
a fine example to follow (Al-Azhab 33:21)
Islam gives complete freedom to economic enterprise.
Each individual in an Islamic society enjoys complete freedom in
the earning of his livehood. He can start, manage and organize
any kind of business enterprise within the limits set by the
Islamic Shariah. However, freedom does not and must not
operate without a sense of responsibility. An individual is free to
persue his economic activities provided he respects the code of
conduct prescribed for the profession, which broadly means
choosing things lawful and shunning matters unlawful. The
dictates of the Holy Quran and the teachings of the Prophet
(saw) serve to set a scale in everybodys mind to distinguish
between the lawful and the unlawful means to earning, and to
prohibit or disapprove of all things that are either morally wrong
or socially unacceptable.
The Prophet emphasized that honesty and kind dealings
with customers are the secrets of success n business. He said,
The truthful and honest merchant is associated with the
Prophets, the upright and the martys (Al-Bukhari). The
Prophets gave many teachings on business and economic
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issues, he covered almost every aspect of business and

economics. Here are only a few major principles of fair business
dealings according to Islam :
1. No fraud or deceit, the Prophets (saw) is reported to have
sad, When a sale is held, say Theres no cheatng (AlBukhari)
2. Sellers must avoid making too many oaths when selling
merchandise. The Prophets (saw) is reported to have said
Be careful of exessive oaths in a sale. Thought it finds
markets, it reduces abundance (Muslim).
3. Mutual consent is necessary. The Prophet (saw) is reported
to have said, The sale is complete when the two parties
involved depart with mutual consent (Al-Bukhari)
4. Be strict in regard to weights and measures. The Prophet
(saw) is reported to have said, When people cheat in
weight and measures, their provision is cut off from them
(Al-Muwatta). He told the owners of measures and weights,
You have been entrusted with affairs over which some
nations before you were destroyed (Al-Tarmidhi)
5. The Prophet forbade monopolies. Whoever monopolizes is
a sinner (Abu Dawud)
6. Free enterprise, the price of the commodities should not be
fixed unless there is a situation of crisis or extreme
necessity.
7. Hoarding merchandise in order to increase the prices is
forbidden.
8. Transaction of haram items, such as intoxicants, are
forbidden.

The Role of Business Ethics Today

Business people and their enterprise require to be reminded
about their role and responsibilities. The following issues need
special attention in the present scenario.

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1. Globalization should mean that all people are considered

to comprise one family. All human beings should be
treated with respect, equality, and fairness. Exploitation of
one group by another should stop. There should not be any
division among people because of their race, colour,
nationality, gender or faith.
2. The resources of the earth are not only for us, we share
this biosphere with other species, and so we take care not
to waste or destroy them.
3. Human beings are one famil, although we have our
differences. Diversity is natural and beautiful. We should
try to understand other peoples religions and cultures and
we should be sensitive to their feelings and emotions.

Makrooh Transaction
-Interfere in a deal being carried out by a Muslim, and
make ones own offer
-Transact a deal between the Fajr prayers and sunrise

Haram Transaction
-Any transaction which involves interest
-Sale and purchase of those things which are usually
utilised for haram a cts
acts only, like gambling tools
-Sale and purchase of usurped property

Conditions of a Seller and a Buyer

-Should be baligh
-Should be sane
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-Have not been forced to sell and buy

Circumtances in Which One Has a Right to Cancel a Transaction

The right to cancel a transaction is called Khiyar. The seller and
the buyer can cancel a transaction in the following cases ;
If the parties to the transaction have not parted from each
other, through they may have left the place of agreement.
This is called khiyarul majlis.
If while entering into a transaction, it s agreed that up to a
stipulated time, one or both the parties will be entitled to
cancel the transaction. This is called Khiyarush Shart.
If one of the parties to the presents his commodity as
better than it actually is, and thereby attracts the buyer, or
makes him more enthusiastic about it. This is called khiyar
tadlis.
If the commodity supplied is defective. This is called
Khiyarul aib.

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