Ethics in Islam
Business Ethics in Islam - Part III
In previous articles I have tried to lay the foundation for Islamic ethical business practices. In so doing I pray that I have been able to demonstrate how Islamic ethics differ from western methodology.
In this third installment I will demonstrate how Islamic business ethics permeate every aspect of a Muslim’s life and how his life in Islam shapes the practices of Islamic ethics in the business world.
Based upon the previous articles, some key parameters of the Islamic ethical system have been uncovered, and can be summarized as follows:
· Actions and decisions are judged to be ethical depending on the intention of the individual. Allah is omniscient, and knows our intention completely and perfectly.
· Good intentions followed by good actions are considered as acts of worship. Halal (good) intentions cannot make haram (bad) actions halal (good).
· Islam allows an individual the freedom to believe and act however he/she desires, but not at the expense of accountability and justice.
· Belief in Allah endows the individual with complete freedom from anything or anybody except Allah.
· Decisions that benefit the majority or a minority are not necessarily ethical in themselves. Ethics is not a numbers game.
· Islam uses an open system approach to ethics, not a closed, self-oriented system. Egoism has no place in Islam.
· Ethical decisions are based on a simultaneous reading of the Qur’an and the natural universe.
· Unlike the ethical systems advocated by many other religions, Islam encourages humankind to experience tazkiyah through active participation in this life. By behaving ethically in the midst of the tests of this dunya, Muslims prove their worth to Allah.
In contrast to all the approaches summarized in Part II of this series, the Islamic ethical system is neither fragmented nor one-dimensional. It is part of the Islamic view of life and therefore complete. There is internal consistency, or ‘adl, or equilibrium, within an individual’s code of conduct. This axiom of equilibrium is at the heart of the following Qur’anic ayat:
“And thus have We willed you to be a community of the middle way, so that [with your lives] you might bear witness to the truth before all mankind, and that the Apostle might bear witness to it before you.” (Qur’an 2:143)
“…community of the middle way…” can also be interpreted as ‘middlemost community’, i.e., a community that keeps an equitable balance between extremes and is realistic in its appreciation of man’s nature and possibilities, rejecting both licentiousness and exaggerated asceticism. This balanced attitude, peculiar to Islam, flows directly from the concept of God’s oneness and, hence, of the unity of purpose underlying all His creation.
Axioms of Islamic Ethical Philosophy
Unity – Related to the concept of Tawhid and is the political, economic, social, and religious aspects of man’s life from a homogenous whole, which is consistent from within, as well as integrated with the vast universe without. This is the vertical dimension of Islam. The most important aspect (la ilaha illa Allah), being that a Muslim will obey and observe God’s law. As such no Muslim should discriminate against his employees, suppliers, buyers, or any other stakeholder on the basis of race, color, sex, or religion. "O men! Behold! We have created you all out of a male and a female, and have made you into nations and tribes, so that you may know one another. (Qur’an 49:13) In essence the implication is that this equality of biological origin is reflected in the equality of the human dignity common to all.
Also, the Muslim should not be coerced into unethical practices, since he has Allah to fear and love. “Wealth and children are an adornment of this world’s life; but good deeds, the fruit whereof endures forever, are of a greater merit in thy Sustainer’s sight, and a far better source of hope”. (Qur’an 18:13)
Equilibrium – Related to the concept of ‘adl and is a sense of balance of the various aspects of a man’s life mentioned above in order to produce the best social order. This sense of balance is achieved through conscious purposes and is the horizontal dimension of Islam and relates to the all-embracing harmony in the universe. As Allah says; “Behold, everything We have created in due measure and proportion" (Qur’an 54:49).
The property of equilibrium is more than a characteristic of nature; it is a dynamic characteristic that each Muslim must strive for in his or her life. Allah stresses the need for balance and equilibrium when He labels the Muslim ummah as ummatun wasatun. To maintain a sense of balance between those who have and those who have not, Allah stresses the importance of giving and condemns the practice of conspicuous consumption: “And spend freely in God’s cause, and let not your own hands throw you into destruction; and persevere in doing good: behold, God loves the doers of good" (Qur’an 2:195).
The principal of equilibrium or balance applies both figuratively and literally in business. For example, Allah admonishes Muslim businessmen to; “And give full measure whenever you measure, and weigh with a balance that is true: this will be [for your own] good, and best in the end" (Qur’an 17:35). It is interesting that another meaning of the term ‘adl is justice and equity. As can be seen in the above ayat, a balanced transaction is also equitable and just.
Free Will – To a certain degree man has been given the free will to steer his own life as Allah’s vicegerent on earth. Notwithstanding the fact that he is completely regulated by the law governing Allah’s creation, he has been endowed with the ability to think and form judgments, to adopt whatever course of life he wishes, and, most importantly, to act in accordance with whatever code of conduct he chooses. Unlike other creatures in Allah’s universe, he can choose how ethically or unethically he will behave.
Based on the axiom of free will, man has the freedom to make a contract and either honor it or break it. A Muslim who has submitted to the will of Allah, will honor all contracts. As Allah tells us; “O you who have attained to faith! Be true to your covenants!” (Qur’an 5:1) In other words, be true to your contracts and honor your contracts and commitments.
It is important to note that Allah is directing the above verse explicitly to Muslims. As Yusuf ‘Ali suggests, the word ‘uqud is a multidimensional construct. It implies the following:
1. The divine obligations that spring fro our spiritual; nature and our relationship to Allah;
2. Our social obligations such as a marriage contract;
3. Our political obligations such as a treaty; and
4. Our business obligations such as a formal contract to perform certain tasks or a tacit contract to treat our employees decently.
The Muslim must, therefore, manage his free will to act according to the moral code laid out by Allah.
Responsibility – Unlimited freedom is absurd since it implies no responsibility or accountability. To meet the dictates of ‘adl and unity that we see in Allah’s creation, man needs to be accountable for his actions. Allah stresses this concept of moral responsibility for one’s actions: “…[that] he who does evil shall be requited for it, and shall find none to protect him from God, and none to bring him succor, whereas anyone – be it man or woman – who does [whatever he can] of good deeds and is a believer withal, [sic] shall enter paradise, and shall not be wronged by as much as [would fill] the groove of a date-stone.” (Qur’an 4:123-124).
Islam is fair, as previously discussed; people are not responsible for their actions if:
· They have not reached the age of puberty;
· They are insane; or
· They are acting during sleep.
Should a Muslim businessperson behave unethically, he cannot blame his actions on the pressures of business or on the fact that everyone else is behaving unethically. He bears the ultimate responsibility for his own actions. According to Allah; “[On the Day of Judgment,] every human being will be held in pledge for whatever [evil] he has wrought – save only those that have attained to righteousness:” (Qur’an 74:38-39).
Hence this axiom ties in with the other axioms of unity, equilibrium and free will. All obligations must be honored unless morally wrong. For example, Abraham (saaw) rejected his filial obligations because his father wanted him to engage in shirk or idolatry. On the other hand, the Prophet (saaw) observed the conditions of the treaty of Hudhaybiyah although it meant that Abu Jandal, a new Muslim, had to be returned to Quraysh envoys. Once a Muslim has given his word or engaged in a legitimate contract, he must see it though. “The Prophet, may peace be upon him, said,
“The signs of a hypocrite are three:
(1) whenever he speaks, he tells a lie,
(2) whenever he promises, he always breaks it, and
(3) if you trust him, he proves to be dishonest (if you keep something as a trust with him, he will not return it).” (Sahih al-Bukhari no. 1.32).
Benevolence – Benevolence (ihsan) or kindness to others is defined as “an act that benefits persons other than those from whom the act proceeds without any obligation. Kindness is encouraged in Islam. The Prophet (saaw) is reported to have said:
“The inmates of Paradise are three types:
(1) one who wields authority and is just and fair;
(2) one who is truthful and has been endowed with power to do good deeds; and
(3) the person who is merciful and kind-hearted toward his relatives and to every pious Muslim, and who does not stretch out his hand in spite of having a large family to support.” (Sahih Muslim, Hadith no. 6853).
According to Ghazzali there are six kinds of benevolence:
1. If a person needs a thing, one should give it to him making as little profit as possible;
2. If a man purchases anything from a poor person, it will be more graceful on his part to suffer a loss by paying more than what is considered a fair price;
3. In realizing one’s dues and loans one must act benevolently by giving the debtors more time to pay than is due and making reductions in loans to provide relief to debtors;
4. It is proper that people who want to return goods they have purchased should be permitted to do so as a matter of benevolence;
5. It is a graceful act on the part of a debtor if he pays his debts without being asked to do so; and
6. When selling things on credit one should be generous enough not to press for payment when people are not able to pay on the stipulated terms.
Although the above axioms guide us in our daily life, they are more descriptive of the ethical philosophy of Islam. The Qur’an and the Sunnah complement these axioms by specifying the degree of lawfulness of key types of behaviors as well as the hiram and halal business areas for Muslim businessmen.
Lawful and Unlawful Behavior
In describing the moral code of Islam, it is important for us to understand that actions can be categorized according to their degree of lawfulness and unlawfulness. In fiqh, five such classes have been determined:
1. Fard – represents the class of actions that are mandatory on every person claiming to be a Muslim; such as salah. swam, and zakah.
2. Mustahabb – describes the class of actions that are not obligatory but highly recommended of Muslims, such as supererogatory fasting beyond Ramadan, praying nawafil, etc.
3. Muhab – these actions are not permissible in the sense they are not mandatory nor forbidden; such as having a personal preference for one type of halal food over another, or a Muslim may like to garden.
4. Makruh – these actions are not absolutely forbidden, but are detested. The mukruh is less in degree than haram, and the punishment for mukruh is less than for those acts which are haram, except when done in excess. For example, smoking is not expressly forbidden like drinking alcohol, it is in itself an action that is makruh. It should be noted, however, that there are many Ulema that regard smoking as haram.
5. Haram – actions are unlawful and prohibited and committing them is a major sin, e.g., murder, adultery, drinking alcohol.
Interestingly, relatively few things fall into the area of haram or halal. The boundaries between the five above-mentioned categories are not absolute. For example, what is haram under one set of circumstances may become permissible under others. Thus, a Muslim is not allowed to eat pork. However, should he fear death from starvation, and nothing but pork is available, he is allowed to eat pork in that specific situation.
Based upon the above categorization and principals, a first rule to be observed is: that which is lawful is wholesome and pure and what is unlawful is harmful or can hurt us. For example, Islam has long discouraged Muslims from drinking alcohol. It is only recently that childbirth studies have revealed that any amount of alcohol consumed during pregnancy may harm the unborn fetus. Implicitly, what is lawful is also moral, and what is unlawful is immoral. For example, adultery is both unlawful and immoral. A second rule is that what leads to an unlawful action is also unlawful. Hence, pornography is unlawful and immoral because it may lead to adultery.
In mapping out one’s ethical behavior, it is important for Muslims both to avoid the unlawful and to avoid making the unlawful as lawful. Allah Himself says, “Say: “Have you ever considered all the means of sustenance which God has bestowed upon you from on high – and which you thereupon divide into ‘things forbidden’ and ‘things lawful’?” Say: “Has God given you leave [to do this] – or do you, perchance, attribute your own guesswork to God?” (Qur’an 10:59)
The reverse is also true, as Allah says, “O you who have attained to faith! Do not deprive yourselves of the good things of life which [sic] God has made lawful to you, but do not transgress the bounds of what is right: verily, God does not love those who transgress the bounds of what is right. Thus, partake of the lawful, good things which God grants you as sustenance, and be conscious of God, in whom you believe.” (Qur’an 5:87-88).
Muslims should not make unlawful what Allah has labeled lawful. For example, a buffalo may be an endangered species. One may stop hunting it in order to allow its herds to grow back, but one cannot say that it is forbidden to eat buffalo meat or to trade in buffalo skins.
The fourth and final part of this series, to be published in the next issue of Muslim Executive and Expatriate, on Islamic business ethics will focus on halal and haram business practices. In it I will demonstrate that what is haram may be presumed to correlate with business areas that are themselves haram and hence unethical. Similarly, what is halal may be presumed to correlate with business areas that are themselves halal and ethical.
We invite all of our readers to submit their questions or comments regarding this series. And, Insha Allah, we will be pleased to respond in either this forum or by mail. Thank you for your readership and we pray that you are finding this series of articles of interest and of use to you in your daily life. Thank you.
In previous articles I have tried to lay the foundation for Islamic ethical business practices. In so doing I pray that I have been able to demonstrate how Islamic ethics differ from western methodology.
In this third installment I will demonstrate how Islamic business ethics permeate every aspect of a Muslim’s life and how his life in Islam shapes the practices of Islamic ethics in the business world.
Based upon the previous articles, some key parameters of the Islamic ethical system have been uncovered, and can be summarized as follows:
· Actions and decisions are judged to be ethical depending on the intention of the individual. Allah is omniscient, and knows our intention completely and perfectly.
· Good intentions followed by good actions are considered as acts of worship. Halal (good) intentions cannot make haram (bad) actions halal (good).
· Islam allows an individual the freedom to believe and act however he/she desires, but not at the expense of accountability and justice.
· Belief in Allah endows the individual with complete freedom from anything or anybody except Allah.
· Decisions that benefit the majority or a minority are not necessarily ethical in themselves. Ethics is not a numbers game.
· Islam uses an open system approach to ethics, not a closed, self-oriented system. Egoism has no place in Islam.
· Ethical decisions are based on a simultaneous reading of the Qur’an and the natural universe.
· Unlike the ethical systems advocated by many other religions, Islam encourages humankind to experience tazkiyah through active participation in this life. By behaving ethically in the midst of the tests of this dunya, Muslims prove their worth to Allah.
In contrast to all the approaches summarized in Part II of this series, the Islamic ethical system is neither fragmented nor one-dimensional. It is part of the Islamic view of life and therefore complete. There is internal consistency, or ‘adl, or equilibrium, within an individual’s code of conduct. This axiom of equilibrium is at the heart of the following Qur’anic ayat:
“And thus have We willed you to be a community of the middle way, so that [with your lives] you might bear witness to the truth before all mankind, and that the Apostle might bear witness to it before you.” (Qur’an 2:143)
“…community of the middle way…” can also be interpreted as ‘middlemost community’, i.e., a community that keeps an equitable balance between extremes and is realistic in its appreciation of man’s nature and possibilities, rejecting both licentiousness and exaggerated asceticism. This balanced attitude, peculiar to Islam, flows directly from the concept of God’s oneness and, hence, of the unity of purpose underlying all His creation.
Axioms of Islamic Ethical Philosophy
Unity – Related to the concept of Tawhid and is the political, economic, social, and religious aspects of man’s life from a homogenous whole, which is consistent from within, as well as integrated with the vast universe without. This is the vertical dimension of Islam. The most important aspect (la ilaha illa Allah), being that a Muslim will obey and observe God’s law. As such no Muslim should discriminate against his employees, suppliers, buyers, or any other stakeholder on the basis of race, color, sex, or religion. "O men! Behold! We have created you all out of a male and a female, and have made you into nations and tribes, so that you may know one another. (Qur’an 49:13) In essence the implication is that this equality of biological origin is reflected in the equality of the human dignity common to all.
Also, the Muslim should not be coerced into unethical practices, since he has Allah to fear and love. “Wealth and children are an adornment of this world’s life; but good deeds, the fruit whereof endures forever, are of a greater merit in thy Sustainer’s sight, and a far better source of hope”. (Qur’an 18:13)
Equilibrium – Related to the concept of ‘adl and is a sense of balance of the various aspects of a man’s life mentioned above in order to produce the best social order. This sense of balance is achieved through conscious purposes and is the horizontal dimension of Islam and relates to the all-embracing harmony in the universe. As Allah says; “Behold, everything We have created in due measure and proportion" (Qur’an 54:49).
The property of equilibrium is more than a characteristic of nature; it is a dynamic characteristic that each Muslim must strive for in his or her life. Allah stresses the need for balance and equilibrium when He labels the Muslim ummah as ummatun wasatun. To maintain a sense of balance between those who have and those who have not, Allah stresses the importance of giving and condemns the practice of conspicuous consumption: “And spend freely in God’s cause, and let not your own hands throw you into destruction; and persevere in doing good: behold, God loves the doers of good" (Qur’an 2:195).
The principal of equilibrium or balance applies both figuratively and literally in business. For example, Allah admonishes Muslim businessmen to; “And give full measure whenever you measure, and weigh with a balance that is true: this will be [for your own] good, and best in the end" (Qur’an 17:35). It is interesting that another meaning of the term ‘adl is justice and equity. As can be seen in the above ayat, a balanced transaction is also equitable and just.
Free Will – To a certain degree man has been given the free will to steer his own life as Allah’s vicegerent on earth. Notwithstanding the fact that he is completely regulated by the law governing Allah’s creation, he has been endowed with the ability to think and form judgments, to adopt whatever course of life he wishes, and, most importantly, to act in accordance with whatever code of conduct he chooses. Unlike other creatures in Allah’s universe, he can choose how ethically or unethically he will behave.
Based on the axiom of free will, man has the freedom to make a contract and either honor it or break it. A Muslim who has submitted to the will of Allah, will honor all contracts. As Allah tells us; “O you who have attained to faith! Be true to your covenants!” (Qur’an 5:1) In other words, be true to your contracts and honor your contracts and commitments.
It is important to note that Allah is directing the above verse explicitly to Muslims. As Yusuf ‘Ali suggests, the word ‘uqud is a multidimensional construct. It implies the following:
1. The divine obligations that spring fro our spiritual; nature and our relationship to Allah;
2. Our social obligations such as a marriage contract;
3. Our political obligations such as a treaty; and
4. Our business obligations such as a formal contract to perform certain tasks or a tacit contract to treat our employees decently.
The Muslim must, therefore, manage his free will to act according to the moral code laid out by Allah.
Responsibility – Unlimited freedom is absurd since it implies no responsibility or accountability. To meet the dictates of ‘adl and unity that we see in Allah’s creation, man needs to be accountable for his actions. Allah stresses this concept of moral responsibility for one’s actions: “…[that] he who does evil shall be requited for it, and shall find none to protect him from God, and none to bring him succor, whereas anyone – be it man or woman – who does [whatever he can] of good deeds and is a believer withal, [sic] shall enter paradise, and shall not be wronged by as much as [would fill] the groove of a date-stone.” (Qur’an 4:123-124).
Islam is fair, as previously discussed; people are not responsible for their actions if:
· They have not reached the age of puberty;
· They are insane; or
· They are acting during sleep.
Should a Muslim businessperson behave unethically, he cannot blame his actions on the pressures of business or on the fact that everyone else is behaving unethically. He bears the ultimate responsibility for his own actions. According to Allah; “[On the Day of Judgment,] every human being will be held in pledge for whatever [evil] he has wrought – save only those that have attained to righteousness:” (Qur’an 74:38-39).
Hence this axiom ties in with the other axioms of unity, equilibrium and free will. All obligations must be honored unless morally wrong. For example, Abraham (saaw) rejected his filial obligations because his father wanted him to engage in shirk or idolatry. On the other hand, the Prophet (saaw) observed the conditions of the treaty of Hudhaybiyah although it meant that Abu Jandal, a new Muslim, had to be returned to Quraysh envoys. Once a Muslim has given his word or engaged in a legitimate contract, he must see it though. “The Prophet, may peace be upon him, said,
“The signs of a hypocrite are three:
(1) whenever he speaks, he tells a lie,
(2) whenever he promises, he always breaks it, and
(3) if you trust him, he proves to be dishonest (if you keep something as a trust with him, he will not return it).” (Sahih al-Bukhari no. 1.32).
Benevolence – Benevolence (ihsan) or kindness to others is defined as “an act that benefits persons other than those from whom the act proceeds without any obligation. Kindness is encouraged in Islam. The Prophet (saaw) is reported to have said:
“The inmates of Paradise are three types:
(1) one who wields authority and is just and fair;
(2) one who is truthful and has been endowed with power to do good deeds; and
(3) the person who is merciful and kind-hearted toward his relatives and to every pious Muslim, and who does not stretch out his hand in spite of having a large family to support.” (Sahih Muslim, Hadith no. 6853).
According to Ghazzali there are six kinds of benevolence:
1. If a person needs a thing, one should give it to him making as little profit as possible;
2. If a man purchases anything from a poor person, it will be more graceful on his part to suffer a loss by paying more than what is considered a fair price;
3. In realizing one’s dues and loans one must act benevolently by giving the debtors more time to pay than is due and making reductions in loans to provide relief to debtors;
4. It is proper that people who want to return goods they have purchased should be permitted to do so as a matter of benevolence;
5. It is a graceful act on the part of a debtor if he pays his debts without being asked to do so; and
6. When selling things on credit one should be generous enough not to press for payment when people are not able to pay on the stipulated terms.
Although the above axioms guide us in our daily life, they are more descriptive of the ethical philosophy of Islam. The Qur’an and the Sunnah complement these axioms by specifying the degree of lawfulness of key types of behaviors as well as the hiram and halal business areas for Muslim businessmen.
Lawful and Unlawful Behavior
In describing the moral code of Islam, it is important for us to understand that actions can be categorized according to their degree of lawfulness and unlawfulness. In fiqh, five such classes have been determined:
1. Fard – represents the class of actions that are mandatory on every person claiming to be a Muslim; such as salah. swam, and zakah.
2. Mustahabb – describes the class of actions that are not obligatory but highly recommended of Muslims, such as supererogatory fasting beyond Ramadan, praying nawafil, etc.
3. Muhab – these actions are not permissible in the sense they are not mandatory nor forbidden; such as having a personal preference for one type of halal food over another, or a Muslim may like to garden.
4. Makruh – these actions are not absolutely forbidden, but are detested. The mukruh is less in degree than haram, and the punishment for mukruh is less than for those acts which are haram, except when done in excess. For example, smoking is not expressly forbidden like drinking alcohol, it is in itself an action that is makruh. It should be noted, however, that there are many Ulema that regard smoking as haram.
5. Haram – actions are unlawful and prohibited and committing them is a major sin, e.g., murder, adultery, drinking alcohol.
Interestingly, relatively few things fall into the area of haram or halal. The boundaries between the five above-mentioned categories are not absolute. For example, what is haram under one set of circumstances may become permissible under others. Thus, a Muslim is not allowed to eat pork. However, should he fear death from starvation, and nothing but pork is available, he is allowed to eat pork in that specific situation.
Based upon the above categorization and principals, a first rule to be observed is: that which is lawful is wholesome and pure and what is unlawful is harmful or can hurt us. For example, Islam has long discouraged Muslims from drinking alcohol. It is only recently that childbirth studies have revealed that any amount of alcohol consumed during pregnancy may harm the unborn fetus. Implicitly, what is lawful is also moral, and what is unlawful is immoral. For example, adultery is both unlawful and immoral. A second rule is that what leads to an unlawful action is also unlawful. Hence, pornography is unlawful and immoral because it may lead to adultery.
In mapping out one’s ethical behavior, it is important for Muslims both to avoid the unlawful and to avoid making the unlawful as lawful. Allah Himself says, “Say: “Have you ever considered all the means of sustenance which God has bestowed upon you from on high – and which you thereupon divide into ‘things forbidden’ and ‘things lawful’?” Say: “Has God given you leave [to do this] – or do you, perchance, attribute your own guesswork to God?” (Qur’an 10:59)
The reverse is also true, as Allah says, “O you who have attained to faith! Do not deprive yourselves of the good things of life which [sic] God has made lawful to you, but do not transgress the bounds of what is right: verily, God does not love those who transgress the bounds of what is right. Thus, partake of the lawful, good things which God grants you as sustenance, and be conscious of God, in whom you believe.” (Qur’an 5:87-88).
Muslims should not make unlawful what Allah has labeled lawful. For example, a buffalo may be an endangered species. One may stop hunting it in order to allow its herds to grow back, but one cannot say that it is forbidden to eat buffalo meat or to trade in buffalo skins.
The fourth and final part of this series, to be published in the next issue of Muslim Executive and Expatriate, on Islamic business ethics will focus on halal and haram business practices. In it I will demonstrate that what is haram may be presumed to correlate with business areas that are themselves haram and hence unethical. Similarly, what is halal may be presumed to correlate with business areas that are themselves halal and ethical.
We invite all of our readers to submit their questions or comments regarding this series. And, Insha Allah, we will be pleased to respond in either this forum or by mail. Thank you for your readership and we pray that you are finding this series of articles of interest and of use to you in your daily life. Thank you.
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