Introduction to Values in Business: The value systems in societies differ considerably because the value systems are built through centuries. In the West, however, a meaningful change is taking place. Dr Hasanuzzaman believes that man must train his inner self to abandon selfishness in favour of social interests. The case of Egypt illustrates some divergence between Islamic philosophy and practice in economic life. The literature used is Islamic literature in the Bosnian and English languages. The Institute, with the consensus of the three communities, adopted a declaration that emphasised the key moral values of justice, mutual respect, trusteeship and honesty. The findings are that Islamic laws compel companies to be wary of interest, uncertainty or risk. Observance of benevolence would automatically protect the precincts of justice. They prescribe compassion, tolerance, leniency, benevolence and hospitability over and above the basic universal values. Lancaster University, 2017. The official organisation that was entrusted with the task of enjoining good and forbidding evil was the hisba (lit, accountability) headed by a muhtasib (monitor or ombudsman). The first is the option on account of false description, where the seller has sold goods as possessed of some good quality. Combining these practices in good intention is called an ibadah. These virtues are necessary to win over other societies and find a respectable place in them require some additional values, such as justice, honesty and integrity, kindliness, selflessness and sympathy. The Qur'an and the Hadith both condemn demonstration of one's resourcefulness through luxurious living. Absolutely free trade, an unregulated market mechanism and cut-throat competition have been the motivating forces of traders. The emphasis that inheres in this value system is aimed at training the inner self of man, so as to motivate him to abandon selfishness in favour of social interests. The Qur'an makes a mention of a number of economic pursuits in a tone of approval, except for a few that it condemns. published by the Institute of Islamic Banking and Insurance, London, UK 2003]. This relates to the discussion of the concept of the just price and the Islamic law on contracts and the shariah position on options. Islamic ethical values are but a complement of universal ethical values. The purpose of this essay is to explore the impact of Islamic ethical values on cognitive thinking of a devout Muslim in the strategic business decision-making process and practical implications of those values in a business context. The suspicion described above is not totally unfounded, but it is also the result of xenophobia. They seem to believe in a kind of free-trade under which consumers are no more than a means of profiteering. Many of the ethical values laid down in Islam are not unique to Islamic society. The Prophet has given to the seller the option to annul the sale if he finds that he was paid less than the market price in the off-market purchase made by brokers. KEYWORDS: business ethics, Egypt, Islamic business The concept of justice in an economic context encompasses fairness, equity, balance and equilibrium, symmetry and impartiality. During the month of Ramadan we are required to reflect upon our condition in a society. Justice and equity, honesty, integrity, veracity, leniency, compassion, tolerance, selflessness, benevolence, cooperation, mutual consideration, sacrifice and harmlessness, are the guiding values in all walks of life, business being no exception. They have been universally observed, but constrained by temporal and spatial limitations in order to achieve the interest of some particular person, society, class or territory. University of St. Thomas MKTG 330 International Marketing Islam Beliefs and Impact on Business Presented by Presented to Mohamed El-Kamony Dr. Yusen Liu Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Integrity is about Christ-centered living. The underdevelopment of many of the Muslim economies along the Silk Road is often ascribed to the negative effects of Islam. It is important to remember, however, that such a theory must be part of the holistic vision of Islam and the integration of all aspects of human endeavor and interaction. He regulated demand by rejecting the dictating of an arbitrary price by monopoly purchasers, placed moral restrictions on the advertisement of products and emphasised simple living. No foreign foothold is possible anywhere without active local support. In addition to these duties, it was also supposed to ensure efficient service by some public utility projects. What the Islamic system of values ensures is that supply should not be artificially suppressed or withheld, nor should demand be artificially created. Japanese and Chinese ethical values differ considerably to Indian ones. How should Christian values impact business ethics in the office? Cerimagic, S. (2010), "The effects of Islamic law on business practices", Education, Business and Society: Contemporary Middle Eastern Issues, Vol. The Qur'an and the Prophet have paid greater attention to remedying the evil effects of wealth than to planning the elimination of poverty. What we feel is that a distinction should be made between essential and non-essential goods. As viceregents, we are directed to perfect our earthly existence whether it is in our private, domestic, social, economic or political lives. It is in the interests of all to appreciate and support these attempts at reform rather than adopting a negative attitude. Many people engaged in business activity, including accountants andlawyers, are professionals. These automatically discard using secrets for personal gain, such as the disclosing of trade secrets or undisclosed manufacturing formulas or any other information that might adversely affect the business position of the enterprise concerned. These business values, which have become firmly imbedded in businessmen's minds, cannot be replaced by mere legislation. The organization with integrity will make its business decisions based on the standards and principles of God—righteousness, truth, and honesty. The abundance of MNCs is seen to be a stratagem to pave the way for economic imperialism by industrialised nations. God's rules ensure that affluence does not breed vices. These efforts to make business more ethical may be objected to on many grounds. The law protects the consumer by giving him options on a number of grounds. While the charging of interest is central to so many dealings in the U.S. and other Western nations, the practice is forbidden under Islamic … "Ramadhan is the (month) in which was sent down the Qur'an as a guide to mankind, also humanity, also clear (Signs) for guidance and judgment (between right and wrong).”. A person who observes the basic values and abides by the guiding principles of trade, as laid down in the Qur'an and the Hadith, is deemed to be commendable in this world and in the Hereafter. The objective behind Islamic law and procedure in trading is that of protecting both the trader and the customer from any harm being inflicted by the other party. It will require a change in the inner selves of the traders, shareholders and executives. As global business operations expand, managers need more knowledge of foreign cultures, in particular, information on the ethics of doing business across borders. Changes in modes of production and trade, development in information technology, globalization of the market, the role of international financing agencies, and the role and impact of multinational corporations, have given rise to new challenges, problems and dilemmas. These principles incorporate the provision of a safe and healthy workplace, fair employment practices, employees' right to organise and bargain collectively, and responsible practices to protect the environment. It is to be practised with individuals, orphans, wives, tribes, communities and nations and even with peaceful enemies. If you think you should have access to this content, click the button to contact our support team. The purpose of this essay is to explore the impact of Islamic ethical values on cognitive thinking of a devout Muslim in the strategic business decision-making process and practical implications of those values in a business context. published by the Institute of Islamic Banking and Insurance, London, UK 2003]. by Hershey H. Friedman Professor of Business and Marketing Department of Economics Brooklyn College of the City University of New York E-mail: [email protected] For the God-fearing health is better than wealth. Few examples of those beliefs and values are dedication towards work, tolerance to the group members, group behavior etc. In Islam, the Creator is the real Owner of the universe and everything therein and of mankind, too. The Ottoman Code of Civil Law defines grave deception as higher than 5% (profit) on goods, 10% on animals and 20% on immovable property. The Prophet, in the following words, conveys the relative value of wealth: “There is no harm in opulence for one who fears God. In addition to this objection, discussion of business ethics in the context of MNCs is susceptible to suspicion, especially in South East and Far East Asia, where people equate MNCs with the role played by The East India Company. For example, in Islam the basis of these codes and laws is the holy scripture, The Quran, whose teachings are … The desire for wealth is seen as natural, but there is a need for balance, and wealth should not be worshiped. [Extract from Preface of Islam and Business Ethics by Dr S M Hasanuzzaman, The flurry of resentment against this company and its followers has not yet died down. This means that companies that rely on compelling interest on the consumer are prohibited in operating in Islamic states. Islamic ethical values represent universal ethical values. Conclusion References A change emerging from the Inner Self is more reliable and lasting than piecemeal changes. The Sharia contains prescriptions, proscriptions, recommendations, suggestions, general principles, and guidelines that may be considered the basis for an overall economic theory. Governments have been upholding a laissez-faire policy towards trade. In addition, this paper has some limited literature review on such a complicated and sensitive topic. to provide some knowledge of Islamic philosophy in order to help managers do business in Muslim cultures. The Islamic law on sales of goods also provides the use of options by either party in order to protect their interest. As such, they are bound by codes ofconduct promulgated by professional societies. Man may work hard, strive to make his business profitable and seek value for money in expenditure; but for the devout Muslim justice, honesty and compassion should temper these efforts. Over and above the activities on the academic plane, concerted efforts are also being made at national and international level to enlist the support of the largest number of academics, traders and communities. It recognises the significance of wealth as an adornment of this worldly life. (Tayeb, 1996) Principles of Management in Islam The principles of Islamic … The law is there to protect the welfare of all the parties involved. In Islam confidential information is a trust and must be honoured, whether it be contractual or implied and understood. Different approaches to professional communication are just one of the innumerable differences in workplace norms from around the world. Addresses: Department of Business Administration, Al Al-Bayt University, Jordan ' Dundee Business School, Aberaty University, Scotland, UK. In Islamic law, if anybody charges an extraordinarily high price, it is termed as grave deception and is unacceptable. These are matters of principle and faith, but Dr Hasanuzzaman readily admits that many Muslim societies have abandoned both religious and universal values for the sake of material wealth. Islam has given detailed regulations for our economic life, which is balanced and fair. The Compacts, the Declaration and the Principles all have many good points and need to be supported. According to Muslim belief The Qur'an teaches us how to live our lives as complete human beings. United Kingdom, Registered charity no. The manmade laws and regulations act as a secondary support and help suppress any digression by those who have become weak in their belief. The market mechanism calls for the unhindered interplay of the forces of demand and supply in determining the price of a product. Islam does not compromise on this value as it does not compromise on truth. It begins where the limits of justice end. Persons involved in the modern theory or practice of economics or business have also picked up the gauntlet and seem to be determined to bring about a change in the existing situation. This value is prescribed in legal, social, moral and economic dealings. The impact of Islamic culture on business ethics : Saudi Arabia and the practice of Wasta. Its function was to encourage and help people to observe Islamic tenets and rituals, and, in particular, to ensure and facilitate a healthy environment in public places, mainly shopping centres. Islam and Business. Many firms also havedetailed codes of conduct, developed and enforced by teams of ethicsand compliance personnel. The multifarious problems that the secular orientation created triggered a reaction first among religious leaders and philosophers and then among intellectuals. A Note on Islamic Finance: Finance that complies with Sharia law can vary dramatically from Western notions of finance.While some Muslim businesspeople have adopted interpretations of Sharia law that are more compatible with Western practices, don’t be surprised if you encounter resistance to certain types of financial arrangements. Rewards in business are too often unrelated to effort. Thus a businessman whose object is earning his livelihood through a business activity without violating these principles is treated, in the next world, as being on par with the apostles. Emphasises that love for wealth is a natural instinct and should not be suppressed. It will not be out of place to point out here that the US Department of Commerce has also released Model Business Principles, thereby encouraging corporations to develop their own codes of conduct. The Prophet refused to interfere in the free operation of real market forces. There is much that non-Muslim students of business ethics can learn from Islamic teaching, with its emphasis on khilafah or responsibility to God for the management of resources. All rights reserved, The Movement of Business Ethics in the West, IIBI Institute of Islamic Banding and Insurance. With this firm belief, it is well nigh impossible for a believer to be misguided by his instincts and to cross the limits of ethical guidelines laid down by God and His Prophet. organizations bring their cultural values and beliefs at their work place. A look at the Interfaith Declaration and the Caux Principles reveals an almost identical approach to the issues involving MNCs. According to Solomon, “the way we think about business all too often tends to relegate ethics to the margins, to see morals as a set of side constraints, necessary but tangential to the real business of business'. And happiness is also wealth.”. Unless we bring about a basic change in our attitude to, and concept of, life, we cannot expect a meaningful and effective change with respect to the different compartments of life. Can we then justify price variations at different centres? In addition to these general values, there are sector-specific injunctions to guide different sectors of activities meticulously. Ethical values laid down by the Qur'an and the Prophet Muhammad (pbuh)  As critically as they deserve. Islam seeks to control and discipline these instincts by instilling in man a firm belief in a One and Only Omnipresent, Omnipotent and Omniscient God and all His Attributes, in man's resurrection and accountability for his actions and in reward and punishment in the Hereafter. Even so, there are Muslim entrepreneurs who conduct business regardless of the meaning lawful or unlawful in Islamic side. However, when certain issues fall on the jurisdiction of an Islamic country they have to address it by using the Islamic laws (Shariah laws) maintained in the Qur'an. Education - Education - Aims and purposes of Muslim education: Islam placed a high value on education, and, as the faith spread among diverse peoples, education became an important channel through which to create a universal and cohesive social order. Islam always encourages its followers to involve in the business from day one. A major part of the world falls outside the range of these well-sounding compacts, which reflect the capitalist philosophy and hedonistic individualism of the market, money and exchange. He emphasises that Islamic ethics is not simply about justice in the legal sense, but ihsan, benevolence that transcends justice. 2981339) The source of material for this paper is literature review based on texts and references sourced in the business environment. 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