Business Ethics in Islam

Abstract

Discussion on business ethics in Islam is not new; it has been dealt with extensively since the early history of Islam, but the discussion mainly took place while developing principles underlying legal axioms. Virtues of justice, truthfulness, and benevolence were identified as the main ethical values that must be internalized by agents in any business transactions. This chapter builds on these core virtues and character traits desirable in a human being in the Islamic perspective, which lay the foundation of defining business ethics. The internalization and actual realization of these virtues in day-to-day social and economic matters would ensure that decisions and actions taken lead to ethical practices. For example, internalization of core virtues such as the realization of the unity of creation, justice, and protection of rights would lead to ethical business practices in all cycles of business starting from production to consumption to distribution. In addition, core virtues would determine market conduct rules to promote transparent and just markets void of malpractices.