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Islamic Entrepreneurship: Business Ethics

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Islamic Entrepreneurship: Business Ethics

  1. 1. Nur Suhaili Ramli University of York, UK
  2. 2.  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)
  3. 3. Islamic Ethical System Secular Ethical SystemVS
  4. 4.  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.
  5. 5. Believe and philosophy Trust Legitimate resources on acquiring property Order to expenditure Zakat Parsimony (thriftiness) /economic order Lawful earning Honesty in business dealings Bounty and humanity in business contacts Satisfying all business obligations Reasonable handling of staff Mutual esteem Clear business transactions Purchasing, and buying justly
  6. 6.  Moral principles that distinguish between right and wrong doing. Business Ethics Management ethics Organizational ethics Leadership Organization 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
  7. 7. khayr (goodness) birr (righteousness) 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
  8. 8.  The system prescribes certain specific guidelines for governing business ethics; Counts the general ethical rules of business conduct Classifies ethically desirable forms of business States the undesirable modes of transactions.
  9. 9.  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

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