Ethics in Islam
Business Ethics in Islam - Part II
“O you who have attained to faith! Do not devour one another’s possessions wrongfully – not even by way of trade based on mutual agreement – and do not destroy one another: for behold, God is indeed a dispenser of grace unto thee!“And as for him who does this with malicious intent and a will to do wrong – him shall We, in time, cause to endure [suffering through] fire: for this is indeed easy for God.” (Qur’an 4:29-30)
In order to understand the Islamic ethical system one must first understand the differences between the secular and moral models of other ethical systems. The secular ethical model assumed moral codes that were transient in nature and narrow in perspective. They were created by the secular establishment and willingly modified or compromised to suit evolving secular social interests. The moral ethical models imposed by other religions have often stressed values that de-emphasized our existence in this world. For example, Christianity by its overemphasis on monasticism encourages its adherents to retire from the real world and “escape” to the religious order thereby convoluting the relationship between ethical behavior and manipulated behavior.
The Islamic ethical model, on the other hand, places its emphasis on the Creator. Because God is perfect and Omniscient, Muslims have a code that is neither time bound or biased by human intervention. To explain this further we must examine other ethical models and identify their differences.
In general there are six major ethical systems that now dominate ethical thinking. These can be summarized as follows:
1. Relativism – Ethical decisions are made on the basis of self-interest and needs.
2. Utilitarianism – Ethical decisions are made on the basis of the outcome resulting from these decisions (Calculation of costs and benefits). An action is ethical if it results in the greatest benefit for the largest number of people.
3. Universalism – Ethical decisions stress the intention of the decision or action (Duty). Everyone under similar circumstances should reach similar decisions.
4. Rights – Ethical decisions stress a single value; liberty, and are based on individual rights (Individual Entitlement) ensuring freedom of choice.
5. Distributive Justice – Ethical decisions stress a single value; justice, and ensure an equitable distribution of wealth and benefits (Fairness and Equality).
6. Eternal Law – Ethical decisions are made on the basis of eternal law –which is revealed in scripture.
Relativism since it stresses the individual’s self-interests, excludes any interaction with or input from the outside. It also implies a certain laziness in the decision-maker since he or she can justify their actions by simply referring to their own self-interests. Islam takes a different approach on both counts. First, Islam stresses that the individual’s ethical behavior and values should be based on criteria enunciated in the Qur’an and Sunnah. Second, Islam stays away from decisions based only on one’s perception of a situation. The concept of consultation or shura with others is an intrinsic part of the Muslim businessman’s decision-making apparatus. Egoism has no place in Islam.
The Qur’an (45:23) says, “Hast thou ever considered [the kind of man] who makes his own desires (ego) his deity, and whom God has [thereupon] let go astray, knowing [that his mind is closed to all guidance],…”
Utilitarianism is generally considered outcome oriented. What ever is good for the majority is considered ethical. The problems with this system are many. First, who is to decide what is ‘good’ for the majority? Second, what happens to the minority interests? Third, how are costs and benefits to be assessed when nonquantifiable issues such as health are to be dealt with? Fourth, individual rights are ignored in favor of the collective rights of the majority. And fifth, it determines the ethical nature of future actions through weighing their costs against their benefits, and can easily be carried to extremes. This can best be seen in the American business world where the bottom line dictates decisions in the boardroom despite their “ethical” consequences.
Contrary to the microeconomics approach to business ethics, profit maximization should not be the ultimate goal or the only ethical outcome of trade in Islam. Allah directs us in the Qur’an (18:46); “Wealth and children are an adornment of this world’s life: but good deeds, the fruit whereof endures forever, are of a far better merit in thy Sustainer’s sight, and a far better source of hope.” It should be noted that the expression "...good deeds, the fruit whereof endures forever...”, occurs twice in the Qur’an – in the above verse and 19:76.
Universalism, in contrast with Utilitarianism, focuses on the intention of the decision or action. In essence Kant’s principal of the categorical imperative spawned this system, which is in two parts. First, a person should choose to act only if they are willing to let everyone else on earth act the same way. Second, others should be treated as ends, worthy of dignity and respect, and not just a means toward an end. Consequently this system focuses on the duty that an individual owes toward other individuals and humanity.
However, good intentions alone do not make an unethical act ethical. As pointed out by Yusuf al Qaradawi, “good intentions do not make the haram acceptable.” Whenever a Muslim follows up a good intention with a permissible action, his action becomes an act of worship.
Moreover, if an act is haram, then Islam does not allow this haram act to be used as a means to achieve a good deed. In other words, the end does not justify the means. If someone acquires wealth through haram means and then gives charity from it, he will not benefit from it and the burden of sin still remains. Said another way, if a government official accepts money illegally then uses the money to make his Hajj, Islam would not recognize his pilgrimage.
Rights is a system of business ethics stressing a single value: liberty. To be considered ethical all decisions and actions must be based on individual rights ensuring freedom of choice. This approach suggests that each individual have moral rights that are not negotiable. An employee should expect a decent wage and clean working environment while the employer should expect his trade secrets to be safeguarded.
The rights approach to ethics can be abused. Some individuals may insist that their rights take priority over others, such as the problem in America with gun control laws where the rights to bare arms is conflicting with societies desire for safe streets.
Contrary to western perspective Islam is for freedom. For example God tells us in the Qur’an (2:256); “There shall be no compulsion in religion: Truth stands out clear from error: whoever rejects evil and believes in Allah has grasped the most trustworthy handhold that never breaks. And Allah hears and knows all things.”
Islam, however, is for balance and rejects the notion of liberty without accountability. Man bears responsibility for his actions. Therefore, the greatest freedom is attained by submission. Indeed, once a person believes in Allah, he attains a different kind of freedom. Islam frees the Muslim from servitude to anyone or anything except Allah.
Distributive Justice is a system that revolves around a single value: justice. To be considered ethical, decisions and actions should ensure an equitable distribution of wealth and benefits and burdens. There are five principals that may be used to ensure this proper distribution of benefits and burdens:
To each an equal share,
To each according to individual need,
To each according to individual effort,
To each according to social contribution, and
To each according to merit.
Islam is in favor of justice. According to the Qur’an, the role of the messages delivered by all of His Prophets has been to establish justice, to wit (57:25): “Indeed, [even aforetime] did We send forth Our apostles with all evidence of [this] truth; and through them We bestowed revelation from on high, and [thus gave you] a balance [whereupon to weigh right and wrong], so that men might behave with equity; …”
Islamic principals of distributive justice include the following:
1.Every person is entitled to own property. T
2.he poor have a claim on part of the wealth accumulated by the rich to the extent that the basic needs of everyone in the society are met.
3.Human exploitation at any level, in any shape and under any circumstances is anti-Islamic and must be ended.
In general Islam agrees with all of the principals of the Distributive Justice approach to ethics, but in a balanced manner. Also, Islamic justice can not be modified nor suppressed by invoking rank and/or privilege.
Eternal Law decisions is made on the basis of eternal laws that are revealed in scripture and in the state of nature. Many writers, including Thomas Acquinas, believed that by studying either the scripture or nature, man would become ethically aware.
Islam takes a differing path. Basing himself on the Qur’anic passages 96:1-5; 68:1-2; and 55:1-3, Taha Jabir al Alwani concludes that humankind has been enjoined by Allah to perform two different kinds of readings simultaneously: a reading of Allah’s revelation (the Qur’an) and a reading of the natural universe. Those who undertake the first become ascetics. Sometimes, such a reading makes them become imbalanced and incapable of independent thinking. Those who stress the second reading are powerless to answer the ‘ultimate’ questions and generally dismiss everything beyond their abilities to perceive by means of the senses as supernatural.
As a result of these two readings, the Islamic code is unlike the moral code advocated by other religions. Islam does not advocate withdrawal from the world by stressing piety and meditation, but stresses active participation in the world through the struggle of this life.
While participating in this life, a Muslim must remember to be consistent both in acts of worship and in his daily life. Observing the five pillars of Islam is not enough for a Muslim; he also needs to conform to the Islamic code of ethics.
According to Abu Hurayrah (Sahih Muslim, Hadith number 6251): “Allah’s Apostle (peace be upon him) said, “Do you know who is poor?” They (the companions of the Prophet) said, “A poor man amongst us is one who has neither dirham with him nor wealth.” He (the Prophet) said, “The poor of my ummah would be he who would come on the Day of Resurrection with prayers and fasts and zakat but (he would find himself bankrupt on that day as he would have exhausted his funds of virtues) since he hurled abuses upon others, brought calumny against others and unlawfully consumed the wealth of others and shed the blood of others and beat others, and his virtues would be credited to the account of one (who suffered at his hands). And if his good deeds fall short to clear the account, then his sins would be entered in (his account) and he would be thrown in the Hell-Fire.”
The eternal law of Islam is not limited to matters of religion; it permeates all aspects of a Muslim’s life.
In part three of this series I will address the Islamic ethical system and how unity, equilibrium, free will, responsibility and benevolence come into play.
“O you who have attained to faith! Do not devour one another’s possessions wrongfully – not even by way of trade based on mutual agreement – and do not destroy one another: for behold, God is indeed a dispenser of grace unto thee!“And as for him who does this with malicious intent and a will to do wrong – him shall We, in time, cause to endure [suffering through] fire: for this is indeed easy for God.” (Qur’an 4:29-30)
In order to understand the Islamic ethical system one must first understand the differences between the secular and moral models of other ethical systems. The secular ethical model assumed moral codes that were transient in nature and narrow in perspective. They were created by the secular establishment and willingly modified or compromised to suit evolving secular social interests. The moral ethical models imposed by other religions have often stressed values that de-emphasized our existence in this world. For example, Christianity by its overemphasis on monasticism encourages its adherents to retire from the real world and “escape” to the religious order thereby convoluting the relationship between ethical behavior and manipulated behavior.
The Islamic ethical model, on the other hand, places its emphasis on the Creator. Because God is perfect and Omniscient, Muslims have a code that is neither time bound or biased by human intervention. To explain this further we must examine other ethical models and identify their differences.
In general there are six major ethical systems that now dominate ethical thinking. These can be summarized as follows:
1. Relativism – Ethical decisions are made on the basis of self-interest and needs.
2. Utilitarianism – Ethical decisions are made on the basis of the outcome resulting from these decisions (Calculation of costs and benefits). An action is ethical if it results in the greatest benefit for the largest number of people.
3. Universalism – Ethical decisions stress the intention of the decision or action (Duty). Everyone under similar circumstances should reach similar decisions.
4. Rights – Ethical decisions stress a single value; liberty, and are based on individual rights (Individual Entitlement) ensuring freedom of choice.
5. Distributive Justice – Ethical decisions stress a single value; justice, and ensure an equitable distribution of wealth and benefits (Fairness and Equality).
6. Eternal Law – Ethical decisions are made on the basis of eternal law –which is revealed in scripture.
Relativism since it stresses the individual’s self-interests, excludes any interaction with or input from the outside. It also implies a certain laziness in the decision-maker since he or she can justify their actions by simply referring to their own self-interests. Islam takes a different approach on both counts. First, Islam stresses that the individual’s ethical behavior and values should be based on criteria enunciated in the Qur’an and Sunnah. Second, Islam stays away from decisions based only on one’s perception of a situation. The concept of consultation or shura with others is an intrinsic part of the Muslim businessman’s decision-making apparatus. Egoism has no place in Islam.
The Qur’an (45:23) says, “Hast thou ever considered [the kind of man] who makes his own desires (ego) his deity, and whom God has [thereupon] let go astray, knowing [that his mind is closed to all guidance],…”
Utilitarianism is generally considered outcome oriented. What ever is good for the majority is considered ethical. The problems with this system are many. First, who is to decide what is ‘good’ for the majority? Second, what happens to the minority interests? Third, how are costs and benefits to be assessed when nonquantifiable issues such as health are to be dealt with? Fourth, individual rights are ignored in favor of the collective rights of the majority. And fifth, it determines the ethical nature of future actions through weighing their costs against their benefits, and can easily be carried to extremes. This can best be seen in the American business world where the bottom line dictates decisions in the boardroom despite their “ethical” consequences.
Contrary to the microeconomics approach to business ethics, profit maximization should not be the ultimate goal or the only ethical outcome of trade in Islam. Allah directs us in the Qur’an (18:46); “Wealth and children are an adornment of this world’s life: but good deeds, the fruit whereof endures forever, are of a far better merit in thy Sustainer’s sight, and a far better source of hope.” It should be noted that the expression "...good deeds, the fruit whereof endures forever...”, occurs twice in the Qur’an – in the above verse and 19:76.
Universalism, in contrast with Utilitarianism, focuses on the intention of the decision or action. In essence Kant’s principal of the categorical imperative spawned this system, which is in two parts. First, a person should choose to act only if they are willing to let everyone else on earth act the same way. Second, others should be treated as ends, worthy of dignity and respect, and not just a means toward an end. Consequently this system focuses on the duty that an individual owes toward other individuals and humanity.
However, good intentions alone do not make an unethical act ethical. As pointed out by Yusuf al Qaradawi, “good intentions do not make the haram acceptable.” Whenever a Muslim follows up a good intention with a permissible action, his action becomes an act of worship.
Moreover, if an act is haram, then Islam does not allow this haram act to be used as a means to achieve a good deed. In other words, the end does not justify the means. If someone acquires wealth through haram means and then gives charity from it, he will not benefit from it and the burden of sin still remains. Said another way, if a government official accepts money illegally then uses the money to make his Hajj, Islam would not recognize his pilgrimage.
Rights is a system of business ethics stressing a single value: liberty. To be considered ethical all decisions and actions must be based on individual rights ensuring freedom of choice. This approach suggests that each individual have moral rights that are not negotiable. An employee should expect a decent wage and clean working environment while the employer should expect his trade secrets to be safeguarded.
The rights approach to ethics can be abused. Some individuals may insist that their rights take priority over others, such as the problem in America with gun control laws where the rights to bare arms is conflicting with societies desire for safe streets.
Contrary to western perspective Islam is for freedom. For example God tells us in the Qur’an (2:256); “There shall be no compulsion in religion: Truth stands out clear from error: whoever rejects evil and believes in Allah has grasped the most trustworthy handhold that never breaks. And Allah hears and knows all things.”
Islam, however, is for balance and rejects the notion of liberty without accountability. Man bears responsibility for his actions. Therefore, the greatest freedom is attained by submission. Indeed, once a person believes in Allah, he attains a different kind of freedom. Islam frees the Muslim from servitude to anyone or anything except Allah.
Distributive Justice is a system that revolves around a single value: justice. To be considered ethical, decisions and actions should ensure an equitable distribution of wealth and benefits and burdens. There are five principals that may be used to ensure this proper distribution of benefits and burdens:
To each an equal share,
To each according to individual need,
To each according to individual effort,
To each according to social contribution, and
To each according to merit.
Islam is in favor of justice. According to the Qur’an, the role of the messages delivered by all of His Prophets has been to establish justice, to wit (57:25): “Indeed, [even aforetime] did We send forth Our apostles with all evidence of [this] truth; and through them We bestowed revelation from on high, and [thus gave you] a balance [whereupon to weigh right and wrong], so that men might behave with equity; …”
Islamic principals of distributive justice include the following:
1.Every person is entitled to own property. T
2.he poor have a claim on part of the wealth accumulated by the rich to the extent that the basic needs of everyone in the society are met.
3.Human exploitation at any level, in any shape and under any circumstances is anti-Islamic and must be ended.
In general Islam agrees with all of the principals of the Distributive Justice approach to ethics, but in a balanced manner. Also, Islamic justice can not be modified nor suppressed by invoking rank and/or privilege.
Eternal Law decisions is made on the basis of eternal laws that are revealed in scripture and in the state of nature. Many writers, including Thomas Acquinas, believed that by studying either the scripture or nature, man would become ethically aware.
Islam takes a differing path. Basing himself on the Qur’anic passages 96:1-5; 68:1-2; and 55:1-3, Taha Jabir al Alwani concludes that humankind has been enjoined by Allah to perform two different kinds of readings simultaneously: a reading of Allah’s revelation (the Qur’an) and a reading of the natural universe. Those who undertake the first become ascetics. Sometimes, such a reading makes them become imbalanced and incapable of independent thinking. Those who stress the second reading are powerless to answer the ‘ultimate’ questions and generally dismiss everything beyond their abilities to perceive by means of the senses as supernatural.
As a result of these two readings, the Islamic code is unlike the moral code advocated by other religions. Islam does not advocate withdrawal from the world by stressing piety and meditation, but stresses active participation in the world through the struggle of this life.
While participating in this life, a Muslim must remember to be consistent both in acts of worship and in his daily life. Observing the five pillars of Islam is not enough for a Muslim; he also needs to conform to the Islamic code of ethics.
According to Abu Hurayrah (Sahih Muslim, Hadith number 6251): “Allah’s Apostle (peace be upon him) said, “Do you know who is poor?” They (the companions of the Prophet) said, “A poor man amongst us is one who has neither dirham with him nor wealth.” He (the Prophet) said, “The poor of my ummah would be he who would come on the Day of Resurrection with prayers and fasts and zakat but (he would find himself bankrupt on that day as he would have exhausted his funds of virtues) since he hurled abuses upon others, brought calumny against others and unlawfully consumed the wealth of others and shed the blood of others and beat others, and his virtues would be credited to the account of one (who suffered at his hands). And if his good deeds fall short to clear the account, then his sins would be entered in (his account) and he would be thrown in the Hell-Fire.”
The eternal law of Islam is not limited to matters of religion; it permeates all aspects of a Muslim’s life.
In part three of this series I will address the Islamic ethical system and how unity, equilibrium, free will, responsibility and benevolence come into play.
posted by Rosnun | 4:04 AM
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