Nur Suhaili Ramli

University of York, UK

Islamic Entrepreneurship: Business Ethics

What is Ethics?

In Islam, ethics governs all aspects of life. The conditions for everlasting success or falah in Islam are

the same for all Muslims–whether in conducting their business affairs or in carrying out their daily activities.

Islam is a way of life, including in business, everyday activities, study, marriage, working, charity – all aspects

Business and entrepreneurship – encouraged in Islam. Moral principles and codes of ethics are repeatedly

stressed throughout the Holy Qur’an.

“You are the best nation that has been raised up for mankind; You enjoin right conduct, forbid evil and believe in Allah” (Quran 3:110)

Introduction

Business Ethics in Islam?

Islamic Ethical System

Secular Ethical SystemVS

In Islamic view, business ethics is referring closely related to khuluq that mentioned in Quran, which is a great moral character. (Quran 68:4)

In Quran describes the concept of goodness in every aspect including business.

Islam encourages entrepreneurship activities as the source of income. For example: Prophet Muhammad (PBUH) was also known

to have engaged in entrepreneurial activities. Prophet Muhammad (PBUH) mentioned that 9/10 of sources

of rezeki (incomes) can be derived from business activities Islamic ethical system substantially differs from the so-

called secular ethical systems.

Business Ethics in Islamic view

Ideology Islamic Business Ethics

Believe and philosophy

Trust

Legitimate resources

on acquiring property

Order to expenditu

re

Zakat

Parsimony

(thriftiness)/economic order

Lawful earning

Honesty in

business dealings

Bounty and

humanity in

business contacts

Satisfying all

business obligatio

ns

Reasonable

handling of staff

Mutual

esteem

Clear business

transactions

Purchasing, and buying justly

Moral principles that distinguish between right and wrong doing.

Business Ethics – Concept of Syumul (Integrated)

Business

Ethics

Management ethics

Organizational ethics

Leadership

Org

an

izatio

n

Islamic concept

• Concept of syumul (integrated) which he argued to mean that entrepreneurship could not be separated or isolated from Islam itself

• Entrepreneurship falls within the system of Islam

• This system includes; Islamic faith, law, moral and ethics.

• Example: Figure 1 Figure 1: System of Islam, Integrated concept of syumul

Concept of goodness in Islamic view

khayr (goodness)

birr (righteousnes

s)

qist (equity)

'adl (equilibrium and justice)

haqq (truth and right)

ma'ruf (known and approved)

taqwa (piety)

Concept of

goodness

Figure 2: Concept of goodness in Islam

The system prescribes certain specific guidelines for governing business ethics;

Distinctive value-based ethical system

Counts the general ethical rules of business

conduct

Classifies ethically desirable forms of

business

States the undesirable modes of transactions.

Quran Rafik Issa Beekun, 1996, Islamic Business Ethics Sabahuddin Azmi, An Islamic Approach to Business Ethics,

http://www.renaissance.com.pk/Mayviewpoint2y5.htm Muhammad Hashim, 2012, Islamic Perception of Business Ethics and the Impact of

Secular Thoughts on Islamic Business Ethics , http://www.hrmars.com/admin/pics/656.pdf

References