Business Ethics in Islam
By Dr. Muzammil H. Siddiqi

To the Madyan people (We sent) Shu'aib, one of their own brethren: he said: "O my people! Worship Allah: ye have no other god but Him. And give not short measure or weight: I see you in prosperity, but I fear for you the Penalty of a Day that will compass (you) all round. "And O my people! give just measure and weight, nor withhold from the people the things that are their due: commit not evil in the land with intent to do mischief. "That which is left you by Allah is best for you, if ye (but) believed! but I am not set over you to keep watch!" They said: "O Shu'aib! does thy (religion of) prayer command thee that we leave off the worship which our fathers practised, or that we leave off doing what we like with our property? Truly, thou art the one that forbeareth with faults and is right-minded!" He said: "O my people! see ye whether I have A Clear (Sign) from my Lord, and He hath given me sustenance (pure and) good as from Himself? I wish not, in opposition to you, to do that which I forbid you to do. I only desire (your) betterment to the best of my power; and my success (in my task) can only come from Allah. In Him I Trust, and unto Him I look. (Hud 11:84-88)
Prophet Shu’aib –peace be upon him- was a great Prophet of Allah. He was sent to the people of Madyan closer to the time of Prophet Abraham – peace be upon him and all the Prophets and Messengers of Allah. Prophet Shu’aib was sent among a people who were very much involved in business. They were very proud of their business knowledge and success, but they were dishonest. He told them to observe ethics in business. They became very angry with him and told him, “Don’t mix religion with business.” The Qur’an tells us that Allah’s punishment came upon those people and only Prophet Shu’aib and his followers were saved.
It is indeed serious that every one must adhere to ethical standards in business. Business and ethics are not separate; they are interconnected.
Allah says in the Qur'an:
For you in the Messenger of Allah, there is a fine example to follow…
(Al-Ahzab 33:21)
Prophet Muhammad was an ideal human being in every respect. He was the best teacher, preacher and guide; the best statesman, lawgiver, judge, diplomat, negotiator of treaties and commander of the armies; the best family man: a good husband, a good and compassionate father and grandfather, a good neighbor and friend of the people. He was also a very honest and successful businessman.
Prophet Muhammad was chosen by God to be His last Prophet and Messenger at the age of 40. Before that he was very much involved in Business. The city of Makkah where he was born was a trade center of Arabia. Caravans from Syria in North and Yemen in South used to pass by the city of Makkah. Prophet Muhammad joined in these caravans. It is reported that he traveled to Syria, Yemen and Bahrain and many other places in Arabia in these caravans. Some historians have also suggested that he probably traveled to Iraq and Habasha in Africa.
From his early age he was involved in trade. He had a good reputation as a hardworking, honest, truthful and very successful businessman. It was due to this reputation that a rich lady of Makkah hired him to work for her business. Many people in Makkah approached her and worked for her, but they either cheated her or she was not satisfied with their work. Finally she found Muhammad (he was not a Prophet at that time) and she asked him to work for her. He made several business travels for her and was very successful. She was impressed with his work as well as his great personality. Later they were married.
After his marriage to Khadija, the Prophet also continued his work and had several business journeys in different parts of Arabia. Ancient Arabia used to have commercial fairs in almost all major towns and regions; it is probable that Prophet Muhammad visited some of these commercial fairs. After becoming the prophet of God, his business activities decreased, but still now and then he used to involve himself in some business transactions. His vast business experience helped him in dealing with the people with great care. He often used to mention the names of people and tribes whom he met in his journeys. People were often amazed of his knowledge of the people and their regions.
The Prophet emphasized that honesty and kind dealings with customers are the secrets of success in business. He said, “The truthful and honest merchant is associated with the Prophets, the upright and the martyrs.” (Al-Tirmidhi, 1130) “God shows mercy to a person who is kindly when he sells, when he buys and when he makes a claim.” (Al-Bukhari, 1934) Prophet Muhammad’s teachings on business and economic issues in general are many and they cover almost ever aspect of business and economics. Here are only a few major principles of fair business dealings according to Prophet Muhammad – peace be upon him:
1. No fraud or deceit: He said, “When a sale is held, say - there’s no cheating.” (Al-Bukhari, 1974)
2. The seller must avoid excessive oaths in selling an article: He said, “Be careful of excessive oaths in a sale. Though it finds markets, it reduces abundance.” (Muslim, 3015)
3. Mutual consent is necessary: “The sale is complete when the two part with mutual consent.” (Al-Bukhari, 1970)
4. Be strict in regard to weights and measures. “When a people cheat in weight and measures, their provision is cut off from them.” (Al-Muwatt, 780) He told the owners of measures and weights: “You have been entrusted with affairs over which some nations before you were destroyed.” (Al-Tirmidhi, 1138
5. He forbade monopoly: “Whoever monopolizes, he is a sinner.” (Abu Da’ud, 2990)
6. Free enterprise: The price of the commodities should not be fixed unless there is a situation of crisis or extreme necessity.
7. Hoarding is forbidden: Hoarding the commodities in order to increase their prices is forbidden.
8. Transaction of things that are forbidden is also forbidden, such as intoxicants.
His general advice to all people was this:
What is lawful is clear and what is unlawful is clear, but between them are certain doubtful things which many people do not recognize. He who guards against the doubtful things keep his religion and his honor blameless, but he who falls into doubtful things falls into what is unlawful, just as a shepherd who pastures his flocks round a preserve will soon pasture them in it. Every king has a preserve, and God's preserve is the things he had declared unlawful." (Bukhari, 50)
The Role of Business Today:
Business people and their corporations need to be reminded about their role and responsibilities. Following issues need special attention today:

1. Globalization should mean considering all people as one family. All human beings should be treated with respect, equality and fairness. Exploitation of one group by another should stop. There should not be any division among people because of their races, colors, national origin, gender or faith.
2. The resources of the earth are not only for us, but we share this biosphere with other species, and so we should care for them.
3. We should use the earth’s resources with great care and should remember that we have a duty to leave this world better for the generations to come after us.
4. We human beings are one family, but we do have our differences. Diversity is natural and it is beautiful. We should try to understand other people’s religions and cultures and we should be sensitive to their feelings and emotions.
5. ‘Love for others what you love for your self’ is the universal golden rule. We should try to empower others and remove poverty, hunger, illiteracy, diseases and unhealthy conditions from the world. So that all people can live in peace and happiness.
6. Businesses should promote ethical and moral behavior within the corporations as well as in the world at large. In business we should strictly follow honesty, truthfulness and fulfillment of trusts and commitments. We must eliminate fraud, cheating, and cut throat competition.
7. We should also promote more political freedom, open debates, participatory democracies and representative governments.
We must encourage and support an educational system that promotes openness, dialogue and guards against fanaticism. Our educational system should not teach every view in the absolutist terms. Our students should be taught that there could be various perspectives and one should be open to other points of view.
(Khutbah at ISOC – Shawwal 20, 1425/ December 3, 2004)

Editor: Akhtar M. Faruqui
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