Teaching PowerPoint Slides - Chapter 11

11
ISLAMIC ETHICS
Learning Outcomes
At the end of this chapter, you should be able to:

 Define ethics from the Islamic perspective
 Explain the origin of the Islamic ethical system
 Describe the concept of Islamic worldview
 Explain the five axioms of Islamic ethical philosophy and
their importance to a Muslim’s life
 Explain the Islamic perspective of the relationship
between firms and their stakeholders
 Explain some prohibited matters in business
transactions
BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2018 7–3
Introduction
 In Islam, the rules and principles laid down in Shari’ah

guide ethics. The guidance is holistic because it covers
all aspects of life such as faith in Allah SWT, social
behaviour, politics and commercial practices.
 Ethics from the Islamic perspective is also known as the

ethics of action, in which Muslims must not only believe
in the teachings of the Quran and Sunnah but must
demonstrate this belief through action

Definition of Ethics from the
Islamic Perspective
 Akhlaq
– The foundation that establishes the standards of right or
wrong of human conduct.
– The Islamic disposition or the practice of virtue and
morality.
 Adab
– The manners, etiquette or behaviour of an individual.
– Muslims must observe adab with Allah, His attributes, His
signs and symbols.

Islamic Perspective (cont.)
 Muslims who have good akhlaq and observe adab when

dealing with Allah and other human beings are said to
have faith in Islam.
 Islamic ethics are derived from the Quran and Sunnah

that prescribe the standards of acceptable and
unacceptable behaviour for all aspects of human life.

Islamic Perspective (cont.)
 Unlike secular views, Islam does not separate religious

from worldly pursuits. Everything that Muslims do in life
that is in line with the teachings of Islam is considered
ibadah (acts of worship towards Allah).
 Two dimensions of Islamic ethics are ethics towards

Allah and ethics towards others. Humans are ultimately
responsible to Allah and to other human beings. The
latter responsibility is derived from the spirit of
ukhuwwah (brotherhood).

Origin of Islamic Ethics
 Islam is not only a religion, but also a way of life. Two

main sources of Islamic ethics are the Quran and
Sunnah.
 Both the Quran and Sunnah give a complete guide to

Muslims to administer all aspects of their life—
personal, professional, business, political and social
affairs.

Origin of Islamic Ethics (cont.)
 The Quran is the primary point of reference in

evaluating ethical behaviour. It prescribes the
permissible and forbidden in the lives of Muslims.
 The Sunnah is derived from the reports of recorded

sayings, personal teachings, practices, behaviour,
character and deeds of the Prophet Muhammad
(PBUH).

Islamic Worldview and Ethical
System
 A worldview consists of one’s beliefs, ideas or values

about God, the world, and the relationship with God
and the world.
 Islamic worldview has dual perspectives—concerns for

both the worldly pursuits and the life Hereafter, and the
Day of Judgement.
 In Islam, life in this world is temporary, whereby the

whole universe will come to an end one day. Humans
should aim for the eternal life after death.
System (cont.)
 Islamic worldview sets the foundation for four vital

principles in the Islamic ethical system—tawhid,
taqwa, Khalifah and ‘abd (servant) of Allah.

System (cont.)
 Islamic worldview

System (cont.)
 Five pillars of Islam: reciting shahadah, performing

obligatory daily prayers, fasting during Ramadhan,
performing Hajj and paying zakat.
 Allah created humans as His best creations and

entrusted this world and other creations to them to be
used to sustain their life in accordance to His will.
 A Khalifah of Allah has four responsibilities: the

responsibility to Allah, to himself, to society, and to the
environment.
Axioms of Islamic Ethical
Philosophy
 Axioms of Islamic ethical philosophy represent the core

values accepted as being true to guide the day-to-day
conduct of a Muslim.

Axioms of Islamic Ethical
Philosophy (cont.)

Islam and Stakeholder
Relationships
 Islam encourages its followers to embark on

entrepreneurial activities, but the objective of a business
must be in line with the maqasid al-Shari’ah and within
the bounds of Shari’ah.
 Islam promotes a broader purpose of business, i.e.

being profitable.
 It also promotes social justice by taking care of the

welfare of stakeholders in the spirit of justice and
brotherhood.
Islam and Stakeholder
Relationships (cont.)
 Islam places great emphasis on the spirit of

brotherhood to maintain balance and harmony in
society. Firms must pursue and uphold this spirit by
ensuring that they care for the welfare of the
stakeholders.
 Humans are responsible towards the natural

environment, thus business owners must prevent their
business activities from causing harm to the
environment.

Relationship with Stakeholders
from the Islamic Ethical System
Perspective
 Relationship with Shareholders
– Muslim shareholders cannot absolve themselves from the
responsibility of ensuring that the business activities of a
firm they invest in are in line with Shari’ah.
– The goal of a company is to seek value maximization for

both shareholders and other stakeholders as opposed to
profit maximization for shareholders only (Saeed et al.,
2001).

Perspective (cont.)
– A person has to earn what he seeks to obtain. Hence,
shareholders cannot expect to receive return from their
investment without taking any risk and at the same time
let the other stakeholders bear the risks (Beekun and
Badawi, 2005).

Perspective (cont.)
 Relationship with Employees
– The basis for treating employees at a workplace is based
on the principle of fairness.
– Islam prohibits any form of discrimination, including

gender discrimination.
– Employers are to treat their employees with respect and

they must fulfil their responsibility to care for the latter’s
welfare, which is consistent with the spirit of brotherhood
and tawhid.

Perspective (cont.)
 Relationship with Customers
– Islamic ethics addresses common issues that are closely
related to the rights of customers—products, full
disclosure of products, pricing, and deceptive and
misleading marketing/advertising.
– Islam prohibits the sale of unseen items because it puts

the buyer at an unfair disadvantage. Buyers usually have
weaker bargaining power than sellers, so Islam requires
the latter to observe fair play in trading.

Perspective (cont.)
– Business transactions must be free from gharar (risk),
transparent and free from any form of deception. Pricing
must be determined by natural market forces. Marketing
cannot be deceptive and misleading.

Perspective (cont.)
 Relationship with Suppliers

– Suppliers are in business to make profits.
– They depend on firms to make prompt payments to be
able to achieve this objective. Thus, firms must not delay
payment to suppliers.
– Supply of raw materials and goods must be made on
clear contract (terms and conditions are specified clearly
to prevent disputes).
– Business owners must not work in cohort with suppliers
to create a monopoly.

Perspective (cont.)
 Relationship with the Natural Environment
– Allah created nature and it belongs to Him. Humans are
free to utilize natural resources to support their life, but
must not cause harm and destruction to nature.
– Protection of the natural environment is everyone’s sacred

duty, including business owners. They are expected to
take corrective actions if their business activities cause
damage to the natural environment.

Perspective (cont.)
– Business activities that cause harm and damage to the

natural environment are not consistent with the principle
of Khalifah and responsibility to the society. Irresponsible
and harmful business activities will disrupt the equilibrium
in the world.

Prohibited Earnings and Business
Transactions
 Muslims cannot engage in business activities that

contravene the Shari’ah.
 Islam prohibits trading in haram items that have riba,

gharar and maysir elements.
 Haram goods include intoxicants, pork, tobacco, marijuana,

crops used to produce drugs, idols, crosses and statues.
 Riba refers to an increase, excess, growth, increment or

expansion.
Prohibited Earnings and Business
Transactions (cont.)
 Riba occurs in loan and exchange contracts that are not
Shari’ah compliant.
 Maysir refers to a game of pure chance to obtain wealth

and to advance in life (e.g. gambling). Islam prohibits this
as it encourages society to depend on luck or chance to
get ahead in life.
 Islam wants its followers to attain success and create

wealth through education, productive work and
entrepreneurship as opposed to engaging in speculative
behaviours.

Teaching PowerPoint Slides - Chapter 11

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Teaching PowerPoint Slides - Chapter 11

Diunggah oleh

Hak Cipta:

Format Tersedia

11

At the end of this chapter, you should be able to:

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 In Islam, the rules and principles laid down in Shari’ah

 Ethics from the Islamic perspective is also known as the

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Muslims who have good akhlaq and observe adab when

 Islamic ethics are derived from the Quran and Sunnah

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Unlike secular views, Islam does not separate religious

 Two dimensions of Islamic ethics are ethics towards

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Islam is not only a religion, but also a way of life. Two

 Both the Quran and Sunnah give a complete guide to

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 The Quran is the primary point of reference in

 The Sunnah is derived from the reports of recorded

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 A worldview consists of one’s beliefs, ideas or values

 Islamic worldview has dual perspectives—concerns for

 In Islam, life in this world is temporary, whereby the

 Islamic worldview sets the foundation for four vital

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Five pillars of Islam: reciting shahadah, performing

 Allah created humans as His best creations and

 A Khalifah of Allah has four responsibilities: the

 Axioms of Islamic ethical philosophy represent the core

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Islam encourages its followers to embark on

 Islam promotes a broader purpose of business, i.e.

 It also promotes social justice by taking care of the

 Islam places great emphasis on the spirit of

 Humans are responsible towards the natural

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

– The goal of a company is to seek value maximization for

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

– Islam prohibits any form of discrimination, including

– Employers are to treat their employees with respect and

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

– Islam prohibits the sale of unseen items because it puts

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Relationship with Suppliers

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

– Protection of the natural environment is everyone’s sacred

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

– Business activities that cause harm and damage to the

BUSINESS ETHICS (SECOND EDITION) All Rights Reserved

 Muslims cannot engage in business activities that

 Islam prohibits trading in haram items that have riba,

 Haram goods include intoxicants, pork, tobacco, marijuana,

 Riba refers to an increase, excess, growth, increment or

 Maysir refers to a game of pure chance to obtain wealth

 Islam wants its followers to attain success and create

Anda mungkin juga menyukai