Ethics of business transactions in Islam
[ February 10, 2017 ]
Islam demands a certain type of behaviour from the economic agents – the consumers and the producers. The behaviour prescribed for the economic units of the society are so devised as to lead to a happy state of affairs, which is the ultimate goal of Islam. An Islamic market is characterized by certain norms that take care of the interests of both the buyer and the seller.
it is imperative for a muslim to draw a line between genuine business profits and interests and follow the teaching of holy Quran to make genuin
There are a number of rules of ethical discipline in Islamic commercial transactions without which business contract would be regarded as lacking perfection in the light of the code of good manners, decency and ethical excellence. Islam places great emphasis on the code of lawful and unlawful in business transactions. A Muslim trader must be determined to earn only through legitimate means. He should not only avoid illegitimate means in earning his provisions and livelihood but also distance himself from matters dubious and doubtful.Things legitimate and illegitimate are clearly defined in Islam and, in between them, are doubtful things, which should be avoided. A true Muslim businessman should be wary of the doubtful things in order to keep himself clear in regard to his faith and his honour because one who falls into doubtful matters is sure to fall into that which is unlawful (Haram). Foremost among the unacceptable business practices strongly condemned in Islam is Interest, which by definition, is the extra sum the money lender charges from the borrower for deferred payment. Islam has forbidden all forms of interests since it involves both oppression and exploitation. Islam strictly forbids this form of tyrannical dealings and condemns it in severe terms. Many verses of the holly Qur’an and traditions of the Prophet Muhammad (SAW) clearly demonstrate that all those business transactions which involve interest in one form or other, are unlawful in the sight of Islam. According to the Qur’anic teachings there is a clear distinction between genuine business profits and interest; while the former is recommended and desirable, the latter is hated and undesirable. So it is imperative for a muslim to draw a line between genuine business profits and interests and follow the teaching of holy Quran to make genuine and legitimate earning for living a prosperous life. The sooner the muslims understand this religious code of business ethics, the better it is for them and the generations to come.
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