Legal Law

Business ethics in Islam


A person can earn money in two ways; one is agriculture and the other is business. If business is not done according to ethics, there will always be inflation and a shortage of goods. As can be seen in the case of many basic products such as wheat, sugar, etc. It is due to stockpiling, speculation and the selfishness of some businessmen. The government has also become a trader, while sharia has prevented the Islamic government from trading.

As it can be seen that business is an important part of life, Prophet Muhammad (peace and blessings of Allaah be upon him) said: “People get 9/10 of their daily bread through trade.” Islam explains the concept of fair trade by counting business ethics. If trade or anything else is done against morals and creed, this will lead to the bad end on the day of resurrection. Also, according to the law, the person guilty of an illegal business would end up nowhere. Islam greatly emphasizes the importance of business ethics. Allah says in the Qur’an, “They say that buying is also like an interest, but Allah has declared that buying is allowed and that interest is forbidden.” And “When you buy or sell, have someone witness it.” The Holy Prophet Muhammad (peace and blessings of Allaah be upon him) said: “If trade had not existed, then you would have become a burden to others.” He also said that “a merchant is the guardian of the means of daily bread and a guardian of the dignity of himself and of others.” The Holy Prophet Muhammad (peace be upon him) encouraged trustworthy merchants with these words: “A trustworthy and truthful merchant will stand with the prophets and the truthful and the martyrs and the righteous.” “God has mercy on those who are kind when they sell, when they buy and when they make a claim” The prophet emphasized much about the veracity and rectitude of entrepreneurs. He said that “Truly, merchants will be raised sinners on the day of resurrection, except he who fears God, and is good, and speaks the truth.”

Business and ethics

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 Qur’an, “For you the Messenger of Allah is a good example to follow.” Allah Almighty says: “To the people of Midian (we sent) Shu’aib, one of his own brothers: he said: ‘My people! Worship Allah. You have no other god but Him. And do not give him little measure or weight. I see you in prosperity, but I fear for you the punishment of a day that will surround you every turn. And my people, give just measure and weight, do not deny the people what they are owed: do not commit evil on earth with the intention to do harm. What Allah has left you is the best for you, if (but) you believe. But I am not in charge of watching! “

Prophet Muhammad was chosen by God to be His last prophet and messenger at the age of 40. Before that, he was very involved in business. Both he and his wife Khadija were merchants. It is reported that he traveled to Syria, Yemen, Bahrain and many other places in Arabia to trade. Some historians have also suggested that he probably traveled to Iraq and Ethiopia. From an early age he dedicated himself to commerce. He had a good reputation as a hardworking, honest, truthful, and highly successful businessman.

Fair deals in business

The Holy Quran and the Prophet Muhammad (peace be upon him) have made it clear that a Muslim must be honest and upright in his business and monetary transactions. Furthermore, the true Muslim must keep his word and promise, avoid fraud and avoid deception and perfidy, not invade the rights of others or engage in unlawful litigation. Furthermore, a good Muslim does not bear false witness and refrains from making illegal money such as usury and bribery. According to Islam, whoever is not free from these vices is not a true believer, but a renegade and a worthless transgressor.

And the Qur’an is rich in verses that confirm all this. Allah says in the Qur’an: “Do not eat the property of others by unjust and dishonest means.”

Allah forbids all impure and corrupt means of making money, such as dishonest trading, gambling and bribery. And the Holy Quran has explained and described such practices in many of its verses. He says: “Woe to those who traffic with fraud, to those who, when they have to receive by measure of men, demand full measure, but when they have to give by measure or weight to men, they give less than they should! they will be asked on a Strong Day when (all) humanity will appear before the Lord of lords. “

Another example is given in the next verse, where Allah urges Muslims to be very particular about their trusts and about the rights of other people. “Allah commands you to return your trust to those to whom it is owed.”

Fundamental principles of fair business transactions

According to Islam, the following things should be avoided to start a fair business.

1. Without fraud or deception, the Prophet (PBUH) is reported to have said, “When a sale is made, say: No cheating.”

2. Sellers should avoid taking too many oaths when selling merchandise. The Prophet (PBUH) is reported to have said: “Beware of excessive oaths in a sale. Although you find markets, you reduce abundance.”

3. Mutual consent is necessary. The Prophet (peace and blessings of Allaah be upon him) is reported to have said: “The sale is complete when the two involved leave with mutual consent.”

4. Be strict about weights and measures. The Prophet (peace and blessings of Allaah be upon him) said: “When people cheat in weight and measure, their supply is cut off.” He told the owners of measures and weights: “You have been entrusted with matters for which some nations before you were destroyed.”

5. The Prophet (peace be upon him) prohibited monopolies. “Whoever monopolizes is a sinner.”

6. Free enterprise, the price of goods should not be fixed unless there is a situation of crisis or extreme need.

7. The hoarding of merchandise to increase prices is prohibited.

8. The transaction of prohibited articles (Haram), such as intoxicants, is prohibited.

Fraud and dishonesty in business

Prophet Muhammad (peace and blessings of Allaah be upon him) has stressed the importance of honesty in most of his sermons, saying: “Remember, there is no faith in the untrustworthy; there is no place for he in religion who does not care about his promised word or promise … He (PBUH) also said: “The signs of the hypocrite are three, when he speaks, he is false, when he promises, he fails; and when he is trusted, he plays false. “

Condemning those who cheat in business, the Prophet Muhammad (PBUH) has said: “The deceiver is not of us. Deception and fraud are things that lead to hell.”

Once, Prophet Muhammad (peace be upon him) came across a pile of corn in the market in Medina and laid his hand on it. My fingers felt wet. When asked, the merchant replied that it had rained on him. The Prophet (peace and blessings of Allaah be upon him) observed: “Why then did you not keep it (the wet part) on the dry corn, so that men could see it? of us”.

Therefore, merchants who cheat by showing customers a fake sample or hiding the defects of the product they sell are not true Muslims in the judgment of Allah the Prophet (peace be upon him) and they will end up in hell.

Prophet Muhammad (peace and blessings of Allaah be upon him) said: “The seller should explain to the buyer the defects, if any, in the quality of the item offered for sale. If this is not done, the seller will be left permanently caught in the wrath of Allah. “

In short, all kinds of deception and dishonesty in business are forbidden in Islam. The Holy Prophet has expressed his strong dislike for those who do.

Bribery in commercial transactions

Bribery and usury, although they can be practiced by mutual agreement and consent, are totally prohibited and prohibited. Those who are guilty of them have been condemned by Allah and His Prophet (peace be upon him). Prophet Muhammad (peace and blessings of Allaah be upon him) said: “The curse of Allaah falls on the one who offers loans on usurious terms, and on the recipient, and on those who are witnesses to the transaction, and on the writer who writes the writing “.

Prophet Muhammad (peace and blessings of Allaah be upon him) said: “If a person made a recommendation for someone in a fair way and the gratified party gave him something as a gift (in exchange for it) and he accepted it, then he made a serious mistake (that is, it is also a form of bribery). “

Usurpation of someone else’s property by force or fraud or dishonest litigation is even worse. Prophet Muhammad (peace and blessings of Allaah be upon him) made this clear, as he says: “Whoever occupies the land that belongs to another unjustly will be sunk into the earth along with the parcel of land on the Day of Judgment. End until you reach the lowest layer of the earth. ” And “He who unjustly acquires the property of a Muslim by taking a false oath (before an official) is forbidden by Allah from entering Paradise and Hellfire becomes unavoidable for him.” It is said that Prophet Muhammad (PBUH) again warned a person who was very fond of litigation with others with these strong words: “Remember, the one who will obtain the property of another by taking a false oath will appear like a leper. ” before Allah (on the Day of Judgment) “.

And, again he (peace be upon him) said: “Whoever claimed something that was not his, is not ours.”