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Business ethics in Islam
Published in The Saudi Gazette on 23 - 12 - 2014


Dr. Khaled M. Batarfi


“IT was Ramadan, the summer of 1960. The days were long and heavy with classes and school work in Leister university, England.”
Sheikh Abdullah Makki told my “Business Ethics" class, in Prince Sultan College, Alfaisal University.
He is the secretary general of an organization that takes care of the welfare of guest students, in Sudan.
They receive support from the Sudanese government and universities, as well as the World Assembly of Muslim Youth to financially help and academically advise students from poor countries during their stay in the country.
He went on to tell his story: “My Sudanese colleagues discussed the problem of a certain class, during which iftar (breaking of the fast) time was.
Some thought we should skip the class. Others argued we should attend, and iftar can wait.
I was alone of the opinion that we could talk to the professor and explain the matter. They thought he would never understand or appreciate our dilemma.
“Undeterred, I waited till it was ten minutes before the start of the class, and went to our formidable professor's office without an appointment.
He listened intently as I explained to him about our fasting month, and was so surprised to learn that we fast all day, all month.
In the minutes remaining, he inquired more about Islam and Ramadan, then told me he will consider my request to be allowed five minuets only for prayers and a quick meal.
“I didn't tell my colleagues about it, and went to attend class as usual. Exactly at the time of after, our professor stopped to announce to all, that in this minute Muslims are breaking their day-long fast.
They do it everyday for a whole month, every year. Therefore, and out of respect for their religion, class would adjourn for ten minutes.
All Muslims stood proud as we left to have our iftar and offer Maghreb prayers. Everyone else just waited for us.”
Sheikh Makki paused for a minute, then asked my students: “What do you think a Muslim professor or manger would do if a similar request came from a Christian or a Jewish student or worker?” And when all my students seemed to think that most wouldn't allow such a break, he announced: “That would not be Islamic,” and remind us of Caliph Omar Bin Khattab (may Allah be pleased with him), when he entered Jerusalem and how he respected and protected Christians' rights and dues.”
“Ethics,” he maintains, “Is basic in any culture. It is part of our humanity. If we treat others as we wish to be treated, then we believe in equality and justice.
And if we do, we would not allow racism, nepotism, classism, and other viruses to infect our relationship, be it in family, community or business.
“Bias is a product not the illness. The source is our beliefs and values. Prophet Muhammad (peace be upon him) asserted that he was sent to augment ‘Makarem Alakhlaq' (noble ethics).
So before we study modern theories about ethics in business and life, let's review what we already have in our religion and culture.”
Students were excited. Their questions include: “What about modern issues, like green products, social responsibility, accountability and sustainability? Does Islam have similar concepts? What are our stands on issues like inside trading, whistle-blowing, bribery, tricky advertising and cheating?”
I joined in to answer: “Yes, we do!” And went on to explain that the Islamic economic theory is based on a totally different concept than other theories, such as capitalism, communism and socialism.
In capitalism, the capital is owned by the person, and in communism and socialism it is owned by the people.
“In Islam, however, it is owned by Allah, who lents it to us, to build earth and develop the nation.
Therefore, every action we do with our money should follow His rules. It should do good and prevent harm, and must not be wasted or saved away.
Money should always be invested in what produces, builds and employs people. It should feed, serve and accommodate.
Dealing with partners, employees and customers must be fair, kind and generous. Part of the money is given to the poor and needy.
The rich and able must support good causes and talents. “Islam builds an infrastructure of values, upon which everything, including business ethics are built.
Usury, bribery, monopoly and flooding the market with under-cost products to undermine competitors, are strictly prohibited. Wasting money and resources are sins.
If you over-spend, for example, on not so useful or necessary stuff, a judge may take your rights to control your own fortune.
“As you can see, every issue is judged by the established Islamic principles. Therefore, we have our own code of business ethics well established 1400 years ago, and are good to go for now and future.”
— Dr. Khaled M. Batarfi is a Saudi writer based in Jeddah. He can be reached at [email protected]. Follow him at Twitter: @kbatarfi


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