Concept of business ethics base on Islamic perspective
Can be explained through several sources information:
1. Quran and Hadith
Based on the Quran, in the surah Al-Baqarah, verse:275,
“…. Allah has permitted bay’(trading) and forbidden riba(usury)…” Regarding on this verse, it is obviously, explained the concept of business ethics from Islamic perspective; which in Islam, the usury totally prohibited. As we know, the conventional business ethics are allowing usury in the market system so that they can have a big profit in sales. Nevertheless, the concept of business ethics in Islamic religion is differed. Islam avoid the usury(riba) in term of avoiding unfairness to only one side in the sales and also it is haram as mentioned the quranic verse. Plus, base on the verse itself, Islam has never been an obstacle to the mankind to perform business. This is because Allah Himself allows us to involve in business. Its means, Islam encourage Muslim to be active in business. Therefore, the concept of Islamic view in the business ethics through this verse shows that we have to perform business with fairness, honesty, sincerity, and integrity. Thus, the business ethics in Islamic perspective is free from cheating and suppression.
Another source; one of hadith which can be applied as the concept of business ethics in Islamic perspective: “An honest and truthful businessman shall be in the shade of the throne of Allah.”(Al-Isbihani)
Regarding on the hadith above, the concept of business ethics that would be highlighted is about a good character and attitudes in performing business matters. In Islam, the business ethics will be the track for the Muslim to commit the virtues in trading activities. Muslim who has Islamic business ethics will be rewarded in this world and even hereafter. It is because one performing Islamic business ethics is able to find good profit and even be could attain the shade of the throne at the akhirah as mentioned...
...leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). From western perspective, they usually emphasize on seeking tremendous profits regardless how they get it. They will do what ever it takes in order to achieve their targets. The main thing for them is profit maximization.
Whereas, the Islamic approach to management it is an emerging discipline, often referred to as Islamic management, looks at the management of organizations from the perspective of the knowledge from the revealed sources and other Islamic sources of knowledge and results in applications compatible with the Islamic beliefs and practices. The focus of Islamic management of quality and excellence is man (human resource) and not profit maximization. In other words, Islam put emphasize on balancing worldly and hereafter matters not just only aiming for the profits. They often do it in a right way. No negative elements insert to it. All things are done inline with Islamic guideline. They will think of the maslaha of all.
So here, we are suggesting some ideas pertaining to the management fromIslamicperspective.
RESOURCES USED MUST BE PERMISSIBLE (1)
An Islamic Approach to BusinessEthics |
Dr Sabahuddin Azmi
What is Ethics? * Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. * Ethics has a twofold objective: it evaluates human practices by calling upon moral standards; also it may give advice on how to act morally in a given situation. *Ethics, aims to study both moral and immoral behaviour in order to make well-founded judgments and to arrive at adequate recommendations. * Businessethics can also be defined as business morality. BusinessEthics * BusinessEthics is the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons engaged in commerce. * It makes specific judgments about what is right or wrong, which is to say, it makes claims about what ought to be done or what ought not to be done. * Generally speaking, businessethics is concerned with the study of what is good and bad, right and wrong, and just and unjust in business. Ethics in Islam *...
...1. Export capital for production abroad
Exporting capital is the removal of capital from the country in which it is originally held and it’s transfer for investment in an importing country willing to meet the demands of the company. (encyclopedia2.freedicitionary.com). At the basic definition of this practice, I take a libertarian way of thinking on this. If this is what a company needs to do to be profitable, government should not have the ability to interfere with this system. However, this is not how exporting capital happens in today’s world or at any time in history for that matter. Companies are getting away with low wages, long hours, little to know regulation on labor laws and unfavorable working conditions. For these reason, I do believe constraints are not the answer because exporting capital is good for both parties when executed in an ethical way. Taking the utilitarian theory, this is finding the greatest good over bad for the majority of the people. Exporting helps companies remain profitable and help the people and the economy of the country receiving the export. If both side benefit and there are no extremes to either side then exporting can be beneficial to all parties.
2. Export commodities which have been banned from sale in the United States
I believe there should a ban on commodities that are banned in the United States simply because it is a dangerous practice. If it’s not safe for citizens in the US then...
...will one person go to make an immense amount of money? Would they go through a Ponzi scheme? A Ponzi scheme is an investment fraud that brings the payment of the purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new targets by promising to invest their funds in opportunities claimed to generate high returns with little or no risk at all. In almost all of the Ponzi schemes, the fraudsters focus on trying to attract new money to make the promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in my valid investment action.
The term Ponzi scheme gets its name from Charles Ponzi, who tricked thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi promised he could provide a 50% return in just 90 days while annual interest rates from bank accounts were just 5%. He quickly switched to using incoming funds to pay off earlier investors. It took him 9 months to get caught for creating this kind of scheme.
There is only one type of person that in my mind would do all of this criminal behavior and hurt thousands of lives by stealing and falsifying their income and that would have to be an Ethical Egoist. They come from the theory of ethical egoism, which is a type of person that acts in their own self-interest. They believe that everyone should limit their...
During auditing, there arise conflicts of interest since firms try to trace the financial statements that show how the management manages the tax company. The whole scenario may result to pressurizing the auditors to sign for the cleared audits despite any issue that exist between the parties.
Shareholder management conflict
Shareholders are a vital entity to the business since their share contribution is what keeps the business running. They keep on track how the business is performing since this determines the amount of dividend they will get at the end of any trading year. However, conflicts of interest do arise since shareholders possess much influence over the company’s financial statements whereas the managers will produce forged statements to calm down the shareholders (Stanwick & Stanwick, 2014). Shareholders take much interest on the external auditors since they pay their salaries.
Self-interest-professional standards conflict of interest
Most organizations are seen to suffer due to the self-interests of the leaders. For interest, the management, and the auditors may violate their professional standards where they see they can benefit in the expense of the shareholders. Such violations of standards lead to the production of inaccurate financial statements in order to cover-up the...
...HND Business and Finance
Unit 45: BusinessEthics
The concept of businessethics applied in Pfizer, M&S and Shell Global Plc.
Name: Lul Mohamed
To: Pfizer Managers/Directors,
From: Lul Mahamed
Subject: Ethical perspective and corporate responsibility of Pfizer, M&S and Shell Global Plc.
Pfizer pharmaceutical company
According to recent studies, Pharmaceutical company that provide and innovate biopharmaceutical as a medicinal business such as Pfizer are subject on their ethical behaviour. Likewise, Pfizer is a Pharmaceutical firm that have recently been question on their ethical behaviour and standards. The organisation was unsuccessful on their takeover bid on British company AstraZeneca, due to their recent scandals on animal testing, testing drugs on children and bribery issues to resolve their illegal activities (paying 60 million to settle their charges). Each businesses should take into consideration their ethical standards and corporate social responsibility (CSR) . Therefore, it is inevitable to maintain sustainability in order to achieve good public image and reputation within their stakeholders. This report will examine the ethical behaviour including the Corporate Social Responsibility of Pfizer, M&S and Shell Global Plc.
...two choices, yet all of it lead to less than desirable consequences. Either adopts an illegal strategy and risk going to jail, or does nothing and risk going bankrupt. From the video, the first discussion has started by "Dumpster Diving". Dumpster diving can be trade as is a highly unethical behavior by most of the people in the world, but for me, I will first look into their intention. Because most of the hobos become dumpster diving, is just intending to get some basic necessities to survive, such as foods, clothing and money by reselling recycled cans. So why must we judge them as unethical? However, Hobo 1 and 2 in the video actions can be traded as highly unethical as from the various actions they are trying to racketeer 3rd party for money. A very bad morality of the two hobos was. After they had found out the fraud in Million authorize projects in the organization, they trying to collaborate instead of the report to top level management.
The second discussion is forces on the unethical employee. From the video, I had analyzed out some of the unethical errors did by Whitney Blinnz. During working time, she is browsing at social network. In addition, she fraud the organization through collaborate with outsiders. Lastly, she is talking bad behind colleague. This bad morality are not acceptable in the business world and also others sector. We should not do private things during office hours. For example, if we are...
BusinessEthicsBusinessEthicsEthics is how we live our lives both personally and socially. It refers to those values, norms, beliefs, and expectations that determine how people within a culture live and act (“Hartman”, 2013). This paper will discuss three different scenarios dealing with the finding and keeping of an iPod in a businessethics classroom. Each scenario will have a point of view from either personally taking the iPod, watching a friend take the iPod, or being a student on the judicial board at the school and dealing with a student accused of stealing the iPod. All of the scenarios will have certain key facts, ethical issues, alternatives, and consequences depending on the final actions of the individuals and the decision that they make regarding the iPod.
1. In scenario one you are the first person to arrive in your classroom and as you sit down you notice an iPod on the floor underneath the adjacent seat. Since no one else is in the classroom you pick it up and turn on the iPod and find it to be in perfect working condition with many of your favorite songs listed on the playlist. Some key facts that you should think about before you decide to keep the iPod or not is who sits in that seat during the class before yours. Do you know them? If you keep the iPod are they financially able to afford a new one for school? Was...