Learning Outcomes

At the end of this lecture, you should be able to:

Define ethics from the Islamic perspective

Explain the source and origin of the Islamic ethical

system
Describe the concept of Islamic worldview
Explain the five axioms of Islamic ethical philosophy
and their importance to a Muslims life
Explain the Islamic perspective of the relationship
between firms and their stakeholders
Explain some prohibited matters in business
transactions

Islamic ethics
Islamic ethics can be defined as:

a set of universal standards of right or wrong that

prescribe the acceptable or unacceptable human
conduct as highlighted in the Quran and shown by the
exemplary life of the Prophet Muhammad pbuh
In a nutshell, Islamic ethics represent all virtuous

deeds (alamal assalih) in ones personal life and

professional life.
Islamic ethics are absolute in nature to be observed

in all situations, dealings and roles in ones life.

Islamic Ethics Ethics of The

Soul
Integrates the inner and outer aspects of an

individuals life (Ibn. Manzur, 1990 : 86; Miqdad

Yaldin, 1973.

It concerns individual physical development with

priority on the soul development which is crucial
to the individuals behaviour and character
development.

Sources and Origins

of Islamic Ethics

There are two primary sources of Islamic ethics:

Al Quran

A divine book of revelation that comprises verbatim and

unalterable words of Allah revealed to Prophet
Muhammad pbuh

Sunnah

Hadiths or reports about the recorded sayings, personal

teachings, character, deeds, actions and practices of
Prophet Muhammad pbuh in personal and public life that
exemplify the teachings of Islam

They provide complete guidance for Muslims to live their life.

Decisions that are based on the Quran and Sunnah are deemed

ethical.

Developing the Correct

Worldview
Developing the correct worldview is important.
God-centered Worldview vs Secular Worldview which

separates world and religious affairs;

The importance of integrating worldly affairs with

religion. Islam as a way of life.

Islamic Worldview and

Ethical System
Worldview is defined as a set of implicit and explicit

assumptions about the origin of the universe and the

nature of life.
It refers to how man perceives and explains the reality
regarding the existence of the universe and their role in
it.
Islamic
Worldview

It is derived from the Al-Quran and founded on

the fact that Islam is a religion and also a way
of life in which Muslims must pay attention to
the world, the Hereafter and the Day of
Judgement.

Core Ideas of Islamic

Worldview
Unity of God Allah is the one and only Creator and Sovereign of the entire
universe. Man are as vicegerents of Allah on earth and must worship and obey
Allah, who is the cause and end of everything. Man should aim for everlasting

life after death.

Man is accountable to Allah for which He will judge him based on his actions in
life. Disobedience will result in corruption and disorder in the world.
Allah has chosen a few humans as Prophets (peace be upon them) to show
others the right path to live in the world.
All Prophets carried the same message to worship only Allah and to obey his
commandments.

Muhammad pbuh was the only one that Allah commanded to lead the entire
humanity. He was the last of all Prophets.

The Link Between Islamic Worldview

and Ethical System
The Islamic worldview sets the foundation for four

vital principles in the Islamic ethical system.

Tawheed

Khalifah

Taqwa
abd

Four Principles of
the Islamic Ethical System
Tawheed
Belief in the unity of Allah.

Taqwa

The first and foremost

requirement to embrace the

Islamic faith.

All-inclusive, inner consciousness

of ones duty and accountability
toward Allah.
It is a quality of human beings that
is related to the state of the heart.
It results in pious behaviour to
be accountable and fear of
reprisals of Allah.

Four Principles of the Islamic Ethical

System
Khalifah
Someone who carries out his or

abd

her role as the Khalifah

(vicegerency) of Allah on earth.

As a Khalifah, we must strive to
do the right thing and avoid

doing harm.
We must also obey Allah, make a
good society and take care of this
world.

This means servants of Allah.

As servants, we have to follow and
obey His rules in all of our
dealings.
Our way of life must be within the
boundaries of Shariah life is a
worship.

Axioms of Islamic Ethical

Philosophy
Unity

Allah is one and only Creator of the earth and universe.

Requires total submission of man to Allah.

Equilibrium

Allah created this world in perfect balance and harmony.

Actions must be based on justice and maintenance of social
harmony.

Free will

Man has freedom to live his life but it must be exercised

within the bounds of Shariah.
Man must fullfil various types of responsibilities in life.

Responsibility Every action will be accounted for in the Day of Judgement.

Benevolence

Man must strive to show act of kindness toward other

beings by doing things that benefits others and mankind.

Responsibility of a Khalifah
Responsibility to Allah unwavering faith on the unity of Allah and

obey all his rulings.

Responsibility to Himself have a good life by making the right

choices that are in accordance with Shariah.

Responsibility to Society to foster brotherhood, peace and harmony

in the society.
Responsibility to the Environment to use natural resources in

accordance with the will of Allah and prevent destruction of the

environment.

Islamic Worldview and

Ethical System
Humans as special creations of God (Syed Othman Alhabshi & Aidit Hj. Ghazali,
1994). The concept of khalifah . Human beings are therefore in a unique position
to be a guardian.
Islamic ethical system - four axioms or maxims i.e. Islam, Iman, Ihsan and Taqwa
(Beekun and Badawi, 1999)

It concerns individual physical development with priority on the soul

development, crucial to the individuals behaviour and character development
(Noorazzah Kamri, 2010).
The values of the soul are universal and consistent without having to separate
human, physical and spiritual values determined by Allah SWT.
These values shall remain unaffected by changes in external conditions and
circumstances of life (al Maududi, 1978:36)

Islamic Worldview and

Ethical System
The foundation of the Islamic ethical system is Al Quran and the Prophets
tradition or Sunnah.
Humans have three main responsibilities: to make himself/ herself good; to
help others be good and to make the physical world good.
One cannot preach goodness if he or she does not personally embody
goodness.

The Islamic ethical system thus requires a Muslim to totally submit to the
Creator, seek from Him guidance and give the best to fellow humans as a
khalifah on Earth.
Islamic knowledge is pertinent above all other forms of knowledge, to enable
a Muslim to lead a life of taqwa or piety.

 How can we apply Islamic

Ethics in the Business

World?
Refer Chapter 11 of Textbook

Values & Ethics Components

in Islamic Management
Religious
values
Taqwa (God
conscience),
Gratitude, Ihsan
(benevolence),
Tawakkal,
Muhasabah (self
evaluation),
Justice, Amar
makruf nahi
munkar
(promoting good
and forbidding
evil).

Professional
Values

Education, Skill,
Honesty,
Punctuality,
Trustworthy,
Syura(
consultation).

Personal
Values

Quality
Values

Accountability,
Moderation,
Excellence,
Patience,
Tolerance,
Humble, Salam.

Quality,
productivity,
Itqan (i.e. the
level of quality
work),
Istiqamah (i.e.
being straight
and
steadfast/commi
tment),
Efficiency,
Creativity,
Innovation,
Collectivity ,
Ihsan
(benevolence i.e.
being kind and
helpful)

(Source: Paper The Role of Islamic Ethics in Organizations: An Experience in Malaysia Norazzah Kamri and
Khairiah Salwa Hj. Mokhtar, USM)

 Did you think that We had created you in play

(without any purpose), and that you would not be
brought back to Us?
(Al-Muminun 23:115)

Man
His creation is for a purpose

Comes into the world innocent but must be guided

Has to succeed in this world to succeed in the next
Must develop a world view that will allow him to

success

Worldview
Determines our actions
Different from person to person
Worldview can take us away from or closer to our

purpose
Worldview must be accurate, positive and motivating

The Anointment

Behold, thy Lord said to the angels:

I will create a vicegerent (khalifah) on earth.

(Al Baqarah 1:30 )

Man is informed of his role in a direct statement.

Man is in a unique position

That of a guardian

Special Creation
Allah breathed His spirit into Man.

but He fashioned him in due proportion and breathed into

him something of his spirit.
(As Sajdah 32:9)
Given the ability to know Allah intimately.

Man is Special
Given the highest degree of free will;
Intellect is like no other;

Good by choice. Given inner control;

Accountable for all actions

Chosen One
We have indeed created man in the best of moulds,
(At Tin 95:4)

Go back to our role as Khalifah of Allah

 Let there arise out of you a band of people

inviting to all that is good, enjoining what is

right and forbidding what is wrong. They are
the ones to attain felicity (success).

(Ali Imran 3: 104)

Three Areas of Responsibility

Self

Society

Physical World

Three Responsibilities

Make yourself good

Help others be good

Make the physical world good

Make Yourself Good

Start with self
We cannot preach goodness if we do not embody

goodness ourselves
Clear instructions in Quran & Sunnah

Help Others Be Good

We can only help
Their free-will will make the choices
Their world view will determine their actions

The believers, men and women, are protectors one of another: they enjoin what is
just, and forbid what is evil
(At Taubah 9:71)

Make The Physical World

Good
See you not (o men) that Allah has subjected for you
whatsoever is in the heavens and whatsoever is in the
Earth,
(Luqman 31:20)

Man is duty bound to keep the physical world in a

balanced state.

Taqwa
A comprehensive word found in the AlQuran that carries the meaning of fear,

respect and reverence for God

(Green,2008 at http:islamic- beliefs.suite101.com/article.cfm/what_ is_ taqwa)
An individual with Taqwa will sincerely obey the rules of Allah

grateful to Him.

and be

To carry out responsibilities, we must know what is right and what is wrong.

Must acquire knowledge.

We must be in a state of consciousness. Consciously accept the existence of

Allah.

We must be in a state of remembrance of Allah.

In Islam, it must be enlightened obedience; not blind obedience.

Application of knowledge from AlQuran and Sunnah . Internalize and

translated into virtues as an obedient servant of Allah.

People of Taqwa from Al Quran

They are the patient, and the truthful, and the obedient, and the

charitable, and the seekers of forgiveness in the early morning.

(Al Quran, Surah Al Imran, 2:17)
As a religious concept, it is all encompassing inner consciousness

of ones duty towards God (Allah) and the awareness of ones

accountability toward HIM which results in the right conduct
(Nayal Rashed Mukred Mohsen, 2007).
These are characteristics of the Motaqeens i.e. people who hold

taqwa as a value.

Carrying Out Responsibilities

I heard the Messenger of Allah, may Allah bless him

and grant him peace, say, Whoever of you sees
something wrong should change it with his hand; if
he cannot, then with his tongue; if he cannot, then
with his heart, and this is the weakest form of belief.
(Muslim)

Carrying Out Responsibilities

And it was by Gods grace that thou (O Prophet) did deal
gently with thy followers: for if thou had been harsh and
hard of heart , they would indeed have broken away from
thee.
(Ali Imran 3: 159)
Must be gentle in dealing with others.

Life is a Jihad
Our entire life is a jihad. Jihad one of the fundamentals of

Islam

Jihad - Holy fighting in the Cause of Allah or any other kind

of effort to make Allah Word ( i.e. Islam) superior.

It is a struggle to do the best in the name of goodness.

Every step towards good and away from evil is a Jihad.

It is a life long struggle.

Has to be done in the best of manner.

Invite (all) to the Way of the Lord with wisdom and

beautiful preaching; and argue with them in ways that are
best and most gracious
(Surah An- Nahl, 16:125)

Ihsan (benevolence i.e. being kind and helpful).

Our Responsibility
Humans are responsible for the progression (or even the
regression) of the Earth.
Being Khalifah is THE MOST IMPORTANT ROLE. A leader on
this Earth.
Unique and special role

We are part of Allahs plan

We have specific duties

All About Balance

Say: Travel through the earth and see how He makes
the first creation, so will Allah produce a later
creation: for Allah has power over all things.
(Al Ankabut 29:20)

 But seek, with that (wealth) that Allah has

bestowed on you, the home of the Hereafter, and
forget not your portion of lawful enjoyment in this
world; and do good as Allah has been good to you,
and seek not mischief in the land. Verily Allah likes
not the Mufsidan( those who commit great crimes
and sins, oppressors, tyrants, mischief makers,
corrupters)
(Al Qasas 20:77)

A Life of Worship
The two books (Al- Quran and

Hadith/ Sunnah)
studied in balance

Will

lead
understanding
practice

must

to
and

be

better
better

Entire life is one of worship/

Ibadah

Say (O Muhammad SAW): Verily, my salat

( prayer), my sacrifice, my living, and my
dying are for Allah, the Lord of the Alamin
(the Cherisher of the Worlds)
(mankind, jinns and all that exists).

(Al- Anam 6 :162)

The Five Pillars of Islam

The Six Pillars of Iman

The Five Pillars of Islam

Faith or belief in the Oneness of God and the finality of the prophet
hood of Muhammad; (shahadah)
Establishment of the daily prayers; (5 times a day)

Concern for and almsgiving to the needy; (zakat)

Self-purification through fasting; and (fasting in the month of
Ramadhan)
The pilgrimage to Makkah for those who are able.

(Source: http://www.islam101.com/dawah/pillars.html )

The Six Pillars of Iman

(Iman is Faith or Belief)
Belief in Allah
Belief in the angels

Belief in the revealed books

Belief in the commissioned Messengers (peace be upon them)
Belief in the resurrection and the events of Qiyamah
Belief in the predestination by Allah of all things, both the
(seemingly) good and the (seemingly) bad
(http://www.missionislam.com/knowledge/sixpillarsiman.htm)