Business management and ethics: An Islamic approach

Abstract

This paper explores the relationships between business management and ethics in Islam. The paper's central theme is that business management is not separate from ethics; the latter reinforces the former. In Islam, mundane and spiritual pursuits are complementary as such mundane activities are not left to chance but guided by sharia to enhance the chances of spiritual salvation. To establish this, the paper largely relies on the Holy Quran and Hadith and other complementary sources of data. Istikhlaf (vicegerency), Tauhid (Oneness and Uniqueness of Allah) and ukhuwah (Brotherhood) are regarded as the main guiding concepts or precepts behind activities which a Muslim undertakes and should guide business activities and behavior of businessmen. The paper based on the sharia examines certain ethical issues in business activities such as indulging in interest-related activities, leadership (management) based on ignorance, dishonesty, profiteering, bribery etc. and their prohibition. Finally, Islamic banking which abhors interest and makes halal funds available for business growth and expansion is recommended.