Business Ethics: Theory and Practice in an Islamic Context

Abstract

In Islam the dilemma whether an act is ethical or otherwise may be resolved by referring to the principles that are enunciated in the sources of the Shari’ah (Islamic law). Islamic business ethics, therefore, is based on these sources and provides an essential foundation in the making of ethical business decisions. Islamic ethics is known as akhlaq and together with its core principles which include ikhlas, zuhud, tawakkal, amanah, siddiq and ‘adl guide an individual to always do good and eschew evil since the aim of business is not merely to accumulate wealth but to bring about a just socio-economic order and to ultimately please God. Further, akhlaq and its core principles guide how business disputes are to be resolved and at the same time restore harmony between the disputing parties. In addition, the chapter demonstrates the application of these core principles within the context of an Islamic organisation.