LECTURE 9-10

ISLAMIC BUSINESS ETHICS

AKHTER ABBAS
 PROGRAM MANAGER
DEPARTMENT OF COMMERCE

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The Holy Quran says:
"Wealth and sons are allurements
of the life of this world; But the
things that endure, good deeds,
are the best in the sight of your
Lord, as rewards, and best as the
foundation for hopes."

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The Holy Prophet (P.B.U.H) said:
The seller or the buyer have the
right to keep or return goods as
long as they have not parted; and if
both the parties spoke the truth and
described the defects and qualities
of the goods, then they would be
blessed in their transaction, and if
they told lies or hide something,
then the blessings of their
transaction would be lost.

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Fifteen Axioms(sayings)
those govern Islamic Ethics Muslims are
gratified to follow the given Islamic code of ethics.

1.Fair& transparent (related to the

concept of God regarding business
dealings).
2. Honesty (Honesty at any cost)
/Integrity (related to the concept of
'adl’ or justice. No compromise on
integrity).
3.Halal/Haram (to obey & follow all
Islamic guide lines regarding
haram/forbidden things

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Principles of Islamic Business Style
4.Responsibility (accountability for one's
actions in business).

5.kindness.Kind & soft in all dealings &

transactions

6.Truthfullness (No concept of a Muslim

business man without truthfulness )

7.Good HR practices (regarding internal

dealing in time payments, charity&
unexpected bounces& perks)

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Principles of Islamic Business Style
8-Charity Loving God more than trade & spending on
his creatures.(CSR) / Pay Zakat
9- Once sold is returnable
10- Suitable prophet
11-Written agreements Using mutual consultation
in business affairs to avoid misunderstanding
certain degree,
12- Full weight & measure (Not dealing in fraud,
no comprise on less weight)

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Principles of Islamic Business Style
13-No Gambling
14- No bribery
15- Interest free Business dealings

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Managing Ethics
1. Developing a Code of Ethics to guide the
organization's ethical principles in all its
interactions.
2. Ensuring observance by appointing key
organization actors to an ethics review panel.
3. Appointment of an ethics advocate to
probe management's decisions regularly.
4. Selection and training incorporating an
employee's ethical responsibilities to help set
common expectations and understanding
within the organization.
5. Adjusting the award system to reward
ethical behavior and encourage repetition.
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 Islamic Business principles
Muslims are gratified to follow the
given Islamic code of ethics.
1. Individual responsibilities
2. Honesty
3. Truthfulness
4. Keeping your word
5. Loving God more than trade
6. Supporting intra-Muslim trade
7. Being humble
8. Using mutual consultation in business affairs
9. Not dealing in fraud
10.No bribery
11.Dealing justly
12.Written agreements

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The Holy Prophet (P.B.U.H) said:
”The merchants will be raised
on the day of resurrection as
evil-doers, except those who
fear God, are honest, and
speak the truth.” (Termzi)

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Business; An act of worship

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The Holy Prophet (P.B.U.H) said:
Give full measure when you
measure, and weigh with a balance
that is straight; that is the most
fitting and the most advantageous
in the final determination.

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The Holy Prophet (P.B.U.H) said:
O you who believe! Why you say
that which you do not? Grievously
odious is it in the sight of Allah that
you say that which you do not.

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