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250508P - BUSINESS MANAGEMENT: THE ETHICAL DIMENSION

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Presented at the opening of the Course ‘Certificate in Islamic Business and Management’ at IIUM on May 10, 2025 at 9.00 am Kuala Lumpur time by Professor Omar Hasan Kasule.

 

1.0  IS THERE ROOM FOR ETHICS IN BUSINESS?

  • Does the profit motive drive people to cut ethical corners?
  • Does competition for customers arise from misrepresentation?
  • Can marketing be done with honesty?
  • Can an honest trader do business at all?  Can he make a profit?
  • What do we teach marketing students: straight honesty or techniques of persuasion?
  • Is the commercial advertising industry ethical at all?
  • Is the consumer sovereign or is he misled to part with his money?
  • How is psychology used in business?

 

2.0 BUSINESS IS FULL OF ETHICAL TRAPS

  • Masajid are the best places and markets are the worst.

  • روى مسلم عن أبي هريرة رضي الله عنه أن النبي صلى الله عليه وسلم قال: (أحب البلاد إلى الله تعالى مساجدها، وأبغض البلاد إلى الله أسواقها.

  • Traders wanted to abandon business when Islam came because the pre-Islamic markets were full of unethical practices. Qur’an was revealed to encourage them to stay in business.

  • لَيْسَ عَلَيْكُمْ جُنَاحٌ أَن تَبْتَغُوا فَضْلًا مِّن رَّبِّكُمْ ۚ فَإِذَا أَفَضْتُم مِّنْ عَرَفَاتٍ فَاذْكُرُوا اللَّهَ عِندَ الْمَشْعَرِ الْحَرَامِ ۖ وَاذْكُرُوهُ كَمَا هَدَاكُمْ وَإِن كُنتُم مِّن قَبْلِهِ لَمِنَ الضَّالِّينَ . البقرة198 :

  • Avoid ethical traps in business and cleanse your wealth from any mistakes.
  • Sadaqat cleanses the business.

  • يا معشر التجار إن الشيطان والإثم يحضران البيع فشوبوا بيعكم بالصدقة. الترمذي.

  • Zakat cleanses wealth.

  • خُذْ مِنْ أَمْوَالِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِمْ بِهَا. التوبة ١٠٣


3.0 BUSINESS ETHICS IS FROM EARLY TARBIYAT: THE MILK VENDOR AND HER DAUGHTER

  • في جوف الليل يمشي الفاروق مع خادمه أسلم بين أزقة المدينة المنورة.. يتفقّد أحوال رعيته.. ينهكهما التطواف، فيسندان ظهريهما على جدار بيت متواضع الحال؛ ليتناهى إلى سمعهما حوارٌ خلّده التاريخ:
  • "قومي إلى ذلك اللبن فامذقيه بالماء.
  • يا أُمَّاه، وما علمتِ ما كان من عَزْمَة أمير المؤمنين اليوم؟
  • وما كان من عزمته؟
  • إنه أمر مناديًا فنادى: لا يُشَابُ اللبن بالماء.
  • يا بُنيّتي، قومي إلى اللبن فامْذقيه بالماء فإنك في موضع لا يراك فيه عمر، ولا منادي عمر.
  • واللَّه ما كنت لأطيعه في الملأ وأعصيه في الخلاء، إن كان عمر لا يرانا، فربّ أمير المؤمنين يرانا."
  • كلّنا

 

4.0 THE CONCEPT OF ‘THE HONEST TRADER Al taajir al amiin

  • Honest trader is at a high rank.

  • التاجر الصدوق الأمين مع النبيين والصديقين والشهداء. الترمذي

  • The Prophet traded using Khadijah’s money
  • The Prophet went for trade to Shaam. He also traded in markets around Makkah: Ukadh, Majnah, dhu al Majaaz.
  • Traders used to flock to him because of his honesty.
  • He was well known for his honesty until he was named ‘Al amiin’

 

5.0 ETHICS REQUIRES AN ALTERNATIVE BUSINESS MODEL

  • Small community-based businesses can operate within ethics.
  • We have yet to develop an ethical model for big business.
  • We cannot have an alternative model unless we also develop an alternative economic system.
  • Our challenge is the alternative system.
  • I have a dream that we can mobilize research funds for youths to run small ethical businesses in small communities that adhere to the Shariat in all their systems.
  • The success of small systems isolated from the prevalent capitalist.
  • Slowly develop a theoretical or even empirical basis for honest business.
  • Zakat al maal cleanses wealth.