Different approaches to professional communication are just one of the innumerable differences in workplace norms from around the world. The Islamic perspective is that we, as human beings, are composed of both body and soul or matter and spirit. The … In other words, Islamic business ethics must be observed by the believers in Muslim and non-Muslim jurisdictions alike. In jurisdictions where all or some of these are allowed, Muslims there must avoid them because Islam has prohibited these trades. Yet this prosperity is very much qualified. The unfortunate situation is that most of the developing countries desperately need foreign capital and technology to overcome their backwardness. Ethical values laid down by the Qur'an and the Prophet Muhammad (pbuh)  Those concerned with corporate governance should be aware of the concept of shura that implies consultation on policy formulation rather than simply the introduction of new initiatives by management dictate. Its nature and extent varies according to the mode, scale and impact of the business organisation concerned. It recognises the significance of wealth as an adornment of this worldly life. The issue of insider trading is also considered, a practice that is illegal in most jurisdictions, but which too often goes undetected to the detriment of shareholder and other stakeholder interests. It is to be practised with individuals, orphans, wives, tribes, communities and nations and even with peaceful enemies. With increasing globalisation, the various sets of business ethics are continuously acquiring common values and forms. The holy book of Islam is called the Qur'an.Muslims believe that there are some more prophets such as Jesus and Muhammad, whereas Jews reject both.Muslims believe that … Thus both the source of the values and the objective in observing them prevent them being confined to any specific place or time. Religion pervades everything including the business culture and commercial environment. Many world organisations have diverted their attention to the role of multinational organisations (MNCs) in the host countries and laid down some broad operational guidelines for them. In short, to become a spiritually forgetful being in the material and mechanical processes of ordinary life. The Five Pillars of Islam are five practices regarded by all sects of the Islamic religion as essential to the Muslim faith. As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. The country is governed on the basis of Sharia (Islamic Law) and a great majority of the population are Arabs who adhere to the Wahhabi sect of Islam. In Islam, it is one that appeared before Mohammed to give him the Quranic texts. The secularist intellectual orientation in the West had pushed ethical values to a secondary position and divorced economic activity from its fold. Dec. 30, 2020. Ultimately, most worship services and holidays are meant to help people remember their faith’s legacy. Trust matters in business, and where there are shared religious values, this creates great opportunities for industry and commerce as analysts of Muslim history have observed from the time of Ibn Khaldun. The capitalist countries in the West, where ethics have been alien to business activity for some time, are not in search of a moral code for business. Black Protestants are most likely to say there is a lot of discrimination against Muslims (65%), but majorities of all religious groups say Muslims face a … Islam shapes the values and rules concerning the appropriate way to behave and relate to family, community and business. An international group of thirty business executives from Japan, Europe and the United States, who meet each year in Caux, Switzerland, have agreed on operational principles and procedures which could be made a standard of accountability for corporations the world over. As viceregents, we are directed to perfect our earthly existence whether it is in our private, domestic, social, economic or political lives. Islam and Christianity: Explore Further. Islam and Christianity are very similar. Since Islam is predicated on law, variations in the interpretation of that law – along with geography and distinct legal schools – have all contributed to differences in the religion. Those who fail to distinguish between business ethics and ethical business do not seem to be clear headed on the issue. He has also given a very stern warning to those traders who sell their goods without pointing out any defects. Does this mean that Islam makes hypocrites or that the provisions given in the Quran and Sunnah are no more practical? This value is prescribed in legal, social, moral and economic dealings. The suspicion described above is not totally unfounded, but it is also the result of xenophobia. Everything they do must honor Allah, and act in accordance with Quranic law. The duties and responsibilities of employees are as caliph of Allah. 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. 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. Adoption of codes of conduct reflecting these principles is made voluntary. Many of the ethical values laid down in Islam are not unique to Islamic society. Consequently, Muslims must abide by these instructions not only for the betterment of society, but also to secure their afterlife. In such a case, the purchaser has an option in Islam to rescind the contract of sale. Apart from the role of these international organisations, private efforts are also under way to touch upon this situation. Muslims are ordered truly to observe these values in whatever position they are: whether employer or employee, landlord or peasant, trader or customer, ruler or ruled, officer or subordinate, transporter or passenger, depositor or fiduciary, relatives or strangers, neighbours or fellow-workers, nobody is allowed to disregard these values at any time. Within Christianity, Catholics and Protestants often have very different beliefs, and Protestantism itself holds denominations as varied as evangelical fundamentalism and Unitarianism. Sonia Zaman, (Assistant Professor, Department of Business Studies, University of Development Alternative (UODA), Dhaka, Bangladesh) Md. A blasphemy signifying belief in three gods. I he significance of the movement lies in the realisation of the evils caused by a value-free system. With the requirement for strict observance of the elaborate system of values that Islam prescribes and with its negation of full freedom, the question is whether there is still any possibility of a market economy in an Islamic system. Falsity and deceit are unjustifiable and sinful. Can the beard, prayers and fasting really absolve them from ignoring their duties to their employees, clients, competitors, consumers and society as a whole? This relates to the discussion of the concept of the just price and the Islamic law on contracts and the shariah position on options. Mehedi Hasan Islam, Christianity, and some sects of modern Judaism teach the bodily resurrection of the dead, the fulfilment of a divine plan for creation, and the immortality of the human soul. We are also considered to be both the viceregent of God on earth and His servants. [Extract from Foreword by Prof. Rodney Wilson on Islam and Business Ethics by The cultural differences between a Muslim country and the US will cause business practices to differ dramatically. The abundance of MNCs is seen to be a stratagem to pave the way for economic imperialism by industrialised nations. These relate to each department of life, trade being one of them. The Qur'an and the Prophet have paid greater attention to remedying the evil effects of wealth than to planning the elimination of poverty. Quick Overview of the similarities and differences between Islam & Christianity . Can we say that Christianity makes thieves just because there are thieves who happen to be Christian? Absolute justice is a legal requirement and, therefore, essential, but the Prophet, in line with the Qur'anic requirement, has persuaded his followers to behave magnanimously in claiming their rights and be generous in discharging their duty. International Differences in the Business Practices and Productivity of Firms offers a much-needed model for measuring the productivity and performance of international firms in a fast-paced global economy. For instance, workplace harassment, discrimination in hiring and promotion, employment benefits, layoffs, conflict of interest, quality control, misuse of business assets, environmental pollution, etc., are matters on which Islamic and western approaches are more or less similar. Doing Business in Islamic Countries: The Impact of Faith-Based Practices on Markets January 28, 2002 January 23 — With 1.3 billion people, a rich endowment of natural resources, and large pools of capital, Islamic nations are a significant piece of the global economy. Islam, in both theory and practice, is “exceptional” in how it relates to politics. Islamic vs. Islam believes in right to private ownership, market forces and profit motives but there are some limitation attached to all of them. For your Malay associates, avoid products made from pigskin and alcohol as these goods contravene the laws of Islam. Everything they do must honor Allah, and act in accordance with Quranic law. 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. It prescribes certain specific guidelines governing business ethics, which are dictated primarily by the notion of halal (lawful or permitted) and haram (unlawful or prohibited) as per Islamic jurisprudence (fiqh). At the heart of capitalism there appears to be an immoral core, where CEOs get ever-larger pay rises and bonuses while the asset values of their companies slump. Men are encouraged to pray in the mosques instead of at home to strengthen community bonds, while women are granted a special concession if they wish to pray at home due to their family responsibilities. Islam has given guiding principles for all human activities and also prescribes and explains the ethics of business. THEIR BELIEFS, PRACTICES AND INSTITUTIONS. This fact belies the pretension of man's unbridled freedom in any sphere of his activity. Another technique of salesmanship involves haggling, which also implies the customer's partial or conditional acceptance of the deal. Compunode.com Pvt. Prezi’s Big Ideas 2021: Expert advice for the new year; Dec. 15, 2020. These business values, which have become firmly imbedded in businessmen's minds, cannot be replaced by mere legislation. Islam – Islam touches many aspects of society within Saudi Arabia. Muslims have a huge advantage in being able to turn to their religious teaching for guidance in their business dealings. This objection fails to realise that the existing state of affairs is longstanding. 2981339) Muslims are required to pray five times a day. Islamic ethical values are but a complement of universal ethical values. Customs in Arab Muslim Cultures. By growing a beard, praying five times a day and fasting in Ramazan, they believe it is enough to fulfil their obligations to God. The Prophet refused to interfere in the free operation of real market forces. The Caux principles accommodate the Japanese concept of kyosei (working together for the common good) and the Western concept of human dignity. The underlying culture shapes business practices in both countries. Also, he gave the classic definition of justice as giving each his due, treating equals equally and trading equals for equals. Both business and ethics are interrelated. When such Christian practices function to foster ecclesiastical authority and even sacramentalism, they depart essentially from Islam. However, in the modern West, economic activity has been divorced from religion just as politics has been separated from the church. For example, about employee-employer relationship, Islam very clearly declares that both enjoy the same dignity socially and legally. It does, however, usually involve exaggeration, the use of puns, pomposity and digression. In global business, religion is a key factor in how global teams work together, schedule meetings and more. The value system set forth in Islam does not accept any constraints, because of its source and the objective behind observing it. The reaction against business malpractices was so strong that some thinkers tried to divest business of its primary object — earning a livelihood. Although Muslims are all around the world, Islam is the driving religious force in the Middle East, Africa, and the Indonesian islands. Maimonides (12th century Spain/North Africa), the great Jewish legalist and philosopher, begins his exposition of the laws of courts and civil administration with an explanation of the verse in Deuteronomy (16:18), “You shall appoint magistrates and officials….” It allows the free operation of market forces only for as long as one benefits without damaging others' interests. The Prophet, in the following words, conveys the relative value of wealth: “There is no harm in opulence for one who fears God. In some respects there is scope for the ethical business movement in the West and Islamic scholars to learn from each other and move forward together. Trust matters in business, and where there are shared religious values, this creates great opportunities for industry and commerce as analysts of Muslim history have observed from the time of Ibn Khaldun. Most importantly, Muslim finance takes … It is this firm belief that induces man to act upon the injunctions regarding physical and financial sacrifice and turns him from undesirable consumption and forbidden earnings. The Ottoman Code of Civil Law defines grave deception as higher than 5% (profit) on goods, 10% on animals and 20% on immovable property. Institute of Islamic Banking and Insurance The religious/ceremonial aspect of Taoism has many ritualistic similarities with Christian rituals. Observance of benevolence would automatically protect the precincts of justice. Distinct societal differences can turn winning practices in one culture into failures in another. Initially, different cultures and regions had different ethics of business. As critically as they deserve. 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 is not proper to reject advertising altogether. In the early days this department was supposed to look after quality control, professional honesty and reliability, hygiene and sanitation, professional competence, control of intermediaries, decency and good manners, the flow of traffic and other miscellaneous functions. Many Muslims are unaware that Aristotle too condemned usury. Islam does not compromise on this value as it does not compromise on truth. Islamic vs. The latter would claim their alliance and friendliness simply share their prosperity and progress. Moreover, the critics should distinguish between two things: the objectionable role of the East India companies, on the one hand, and the MNCs and the need to reform them on the other. Among these values, justice and benevolence (ihsan) are the most important. There is a reference to this point in the Qur’an: For you in the Messenger of Allah is … Islam shapes the values and rules concerning the appropriate way to behave and relate to family, community and business. Islam – Islam touches many aspects of society within Saudi Arabia. inflicts harm and disturbs peace and harmony, but the absence of ihsan does not harm anybody. The desire for wealth is seen as natural, but there is a need for balance, and wealth should not be worshiped. Islam, major world religion that emphasizes monotheism, the unity of God (‘Allah’ in Arabic), and Muhammad as his final messenger in a series of revelations. United Kingdom, Registered charity no. The Prophet not only condemned such practices but also emphasised good manners, leniency and courtesy. There is now a genuine need to meet these challenges and discover which set of Islamic principles can be applied to these problems, and how. It will require a change in the inner selves of the traders, shareholders and executives. In Islam, similarly large differences exist between Sunni, Shia, and Sufi … However, the Quran is not the only divine text that lays down such instructions and Muslim thinkers were not the first to conceive this idea. All these facts lead to the conclusion that Islam does not allow unbridled freedom to traders to manipulate the supply, demand or price of the available goods. This is an explanation of what Islam and Christianity believe about the Scriptures, the Prophets and the Trinity. The public role women can take, appropriate etiquette (including simple things like not passing objects with the left hand), holidays, and wining and dining all differ from patterns in the US. Islam began in the 7th century in Arabia, making it the youngest of the three. Within Christianity, Catholics and Protestants often have very different beliefs, and Protestantism itself holds denominations as varied as evangelical fundamentalism and Unitarianism. They seem to believe in a kind of free-trade under which consumers are no more than a means of profiteering. How to increase brand awareness through consistency; Dec. 11, 2020 A breach of western business ethics never results in the violator incurring a sin. To recognise these values as binding is a concomitant of true faith; to neglect them in practical life means a serious lapse these values are laid down and emphasised in the Qur'an and reinforced in the sayings of the Prophet Muhammad (may peace be upon him). Business immorality has becomes a universal menace. Business Practices. Is it possible to deceive God? These guide Muslim's everyday life, business practices and traditions. Muslim business ethics: For Islam, the basis of these laws is the Qur'an. Similarities and differences between Judaism, Christianity, Islam, and other religious practices coincide intuitively with the histories of each faith. By regulating the activities of intermediaries and brokers, he discouraged the manipulation of prices. Tackling religious extremism will remain a low priority for the state. Islam and Christianity: Explore Further. If we are advancing towards forming a world community, governments and businessmen should demonstrate feelings of mutual consideration and sympathy for the members of a human community who are the children of Adam and Eve, the family of God. This paves the way for initiating reforms, after which alone legislation can become effective. Judaism vs. Christianity vs. Islam. More subtly, even the practices in common have fundamental differences, some of which go to the very foundational differences between the faiths. The Five Pillars of Islam are five practices regarded by all sects of the Islamic religion as essential to the Muslim faith. It implies a more liberal treatment than justice demands. Management and labor have a moral character, has the skills, commitment to the organization, and have the spirit of brotherhood among Muslims. Thus, Islamic financial products and services, in most of the cases, are Islamic only in form, not substance. Alperton Lane, Greenford UB6 8AA Islam and Christianity are thought of as two monolithic religions. The Qur'an and the Hadith both condemn demonstration of one's resourcefulness through luxurious living. The duties and responsibilities of employees are as caliph of Allah. 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'. Ask a Muslim entrepreneur about Islamic business ethics and he will gladly give a lengthy sermon on the instructions given in the Quran and Sunnah on the topic and will accurately narrate numerous examples set by early Muslim businessmen regarding honesty in trade and employee welfare. Not at all. Business practices in an Islamic country are likely to differ a lot from business practices in Canada. 5. A change emerging from the Inner Self is more reliable and lasting than piecemeal changes. The way in which, and the extent to which, business enterprises advertise has seriously jeopardised the concept of the free market. The flurry of resentment against this company and its followers has not yet died down. As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. Blog. Dr Hasanuzzaman believes that man must train his inner self to abandon selfishness in favour of social interests. The concept lays down the rate of profit but not the sale price. There is a reference to this point in the Qur’an: For you in the Messenger of Allah is a fine example to follow (Al-Ahzab 33:21). Doing Business in Islamic Countries: The Impact of Faith-Based Practices on Markets January 28, 2002 January 23 — With 1.3 billion people, a rich endowment of natural resources, and large pools of capital, Islamic nations are a significant piece of the global economy. Workplace etiquette. The market mechanism calls for the unhindered interplay of the forces of demand and supply in determining the price of a product. 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. For instance, Thomas Aquinas discussed business in the context of justice and honesty, and condemned usury. 25 Jan 2021 13:54 | Editorial Team . ‘Adl is the primary condition for setting up an Islamic government, while ihsan plays a vital role in building up a truly Islamic society; the former is a legal phenomenon while the latter is moral and religious. 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. 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