Islamic Teachings For Business

ISLAMIC TEACHINGS FOR BUSINESS

ISLAMIC TEACHINGS FOR BUSINESS Religion

ISLAM: THE COMPLETE CODE OF LIFE

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Individual Life • Belief • Modes of Worship •

Collective Life • Social System • Economic System •

Customs

Political System

DEEN Only full entry is accepted (Al-Baqarah: 208) Partial entry is not accepted (Al-Baqarah: 85) Surely Deen with Allah is Islam (Aal-e-Imran 19) Any other Deen is not acceptable (Aal-e-Imran 85) Family Morality Spirituality

Global Society Politics Economy

Ideology

Society

Collective Life

LifeIndividual

SCOPE OF ISLAM

STORY OF SHU’AIB (AS)

To the Madyan people (We sent) Shu'aib, one of their own brethren: he said: "O my people! Worship Allah: ye have no other god but Him. And give not short measure or weight: I see you in prosperity, but I fear for you the Penalty of a Day that will compass (you) all round. "And O my people! give just measure and weight, nor withhold from the people the things that are their due: commit not evil in the land with intent to do mischief. "That which is left you by Allah is best for you, if ye (but) believed! but I am not set over you to keep watch!" They said: "O Shu'aib! does thy (religion of) prayer command thee that we leave off the worship which our fathers practised, or that we leave off doing what we like with our property? Truly, thou art the one that forbeareth with faults and is right-minded!” (Hud 11: 84-88)

IMPORTANCE OF FINANCIAL DEALINGS • Questions on the Day of Judgment 1. 2. 3. 4. 5.

How did you spend your life? How did you spend your youth? Where from did you earn? How did you spend it? The knowledge you gained, how much did you act upon? (Tirmizi)

IMPORTANCE OF HALAL EARNINGS 1. 8 times in Qur'aan has instructed to earn living only through lawful means. Prophet (saw) said: "To struggle for halaal earning is obligatory along with other obligations" (Bayhiqi)

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ISLAMIC TEACHINGS FOR BUSINESS Prophet (saw) said: "A true honest businessman will stand with the Prophets, the truthful and the martyrs (on the Day of Judgment)" (Tirmizi)

ISLAMIC INJUNCTIONS FOR HARAAM EARNINGS 1. Qur'aan forbade 13 times to earn unlawfully Prophet (saw) said: "A time will come upon the people when one will not care as to how he gets his money whether legally or illegally" (Bukhari) With Haram earnings worship is not accepted. "Whoever purchased a dress with ten Dirhams out of which one Dirham was of unlawful earning then his prayer will not be accepted till he is wearing that dress." (Musnad Ahmad)

IMPORTANCE OF TRADE AND BUSINESSS  Truthful and honest merchant is associated with the Prophets, the upright and the martyrs.” (Al-Tirmidhi, 1130)  “Allah shows mercy to a person who is kindly when he sells, when he buys and when he makes a claim.” (Al-Bukhari, 1934)

A FEW BASIC PRINCIPLES FOR MUSLIM BUSINESSMAN … in view of a Hadith 1. When they speak, they do not lie 2. When something is placed in trust with them, they do not misappropriate the trust 3. When they promise, they do not renege on their promise 4. When they purchase something, they do not find fault with the merchandise (i.e. they do not try to reduce the price by exaggerating its defects) 5. When they sell, they do not praise the article (i.e. they do not exaggerate its good qualities in order to fetch a better price) 6. When they are indebted, they do not delay payment

TRUSTWORTHINESS … in view of Quran  Commands to convey to the rightful owner what has been entrusted 3 times  Praises the trustworthy people 14 times  Deplores the embezzlers 9 times

TYPES OF TRUST  Advice  Authority property

 Vote  Secrets  Wealth  Office time

 Loans  Meeting

 Inheritance  Office

TRUSTWORTHINESS … in view of Ahadees  One who does not safeguard the trust is not a believer (Bayhiqi)  One who is not trustworthy is a hypocrite (Bukhari)

KEEPING THE PROMISE … in view of Quran  Command to keep the words 6 times  Praise for promise keepers 9 times  Deplore for promise breakers 5 times

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ISLAMIC TEACHINGS FOR BUSINESS

KINDS OF PROMISE … Pledge to / with: 1. Oneself: Intention of piety, repentance etc 2. Mankind:  Implied agreements: Obligations to parents, neighbours etc.  Written agreements: Rent, employment, business etc. 3. Allah:  Lifetime Obedience: Fulfilling purpose of creation i.e. Ibaadat

KEEPING THE PROMISE … in view of Ahadees “One who does not keep his promise has no Deen” (Bayhiqi) “Not keeping promise is a sign of hypocrite” (Bukhari)

JOB (Giving muscle, mind, heart and soul to for effective performance of work) Dedication/Commitment 4. Best use of intelligence performance 7. Judgment as if own work

2. Vision & Foresight 5. Will to work hard 8. Fair Play

3. Decisiveness 6. Consistency of 9. Continuous learning

PRINCIPLES OF EMPLOYMENT

Competent worker 2. Presence of something where to work Work to be lawful 4. Work & Compensation should be known 5. Reward / Payment in due time as agreed

PRINCIPLES OF BUSINESS

Buyer/seller should not be insane 2. Parties should owner of goods/money Defined quality/quantity 4. Possession of property 5. Clear offer/acceptance and should be for lawful things

BUSINESS (Beneficial to society/Sharia Compliant) Quality 4. Overnight profits service 7. Hoarding

2. Quantity 5. Delivery time

8. Misrepresentation

3. Conceal faults 6. Return/after

sale

9. Payment

CRIMES (ZULM) IN DEALINGS

1. Interest (investment/trade/loans) 2. Criminal means (Gambling, threat, theft) 3. Fuhush (work involving sex/vulgarity) 4. Applying unfair/batil means (bribe etc.) 5. Trading harmful activities (speculation) 6. Illegal/harram trade (vine etc.) 7. Manhandling /torturing debtors/creditors 8. Unfair trade (Quality/Quantity/defects) 9. Hoarding/Exploitation (profiteering) 10. Concealing or giving false witness

PRINCIPLE OF DEBTS (Al-Baqarah: 282)

1. All debts should be written weather large or small www.quranacademy.com

ISLAMIC TEACHINGS FOR BUSINESS 2. Writer should not refuse and should write with justice 3. Debtor to arrange agreement execution and should be fair 4. In case of inability, debtors’ guardian should execute agreement with fairness 5. Witness to be two men; or one man & two women 6. Witness when called for witness should not refuse 7. No agreement is required for spot trading 8. Writer and witness should not be harassed either by debtor or creditor

ISLAM ABHORS DEBT AND STRONGLY DISCOURAGES IT Prophet (PBUH) said: "Whoever asks for money while he has what suffices him has asked for a lot of Hellfire's embers." People asked him, "What is the sufficient amount of money above which one should not ask?" He said, "The amount he needs for his lunch and dinner." (Abu Dawud) A man came to the Prophet (PBUH) and said, "O Messenger of Allah! If I was killed in Allah's cause, observing patience, awaiting Allah's reward, attacking, not retreating, would Allah forgive my sins?" The Prophet (PBUH) said, "Yes, except for the debt." The Prophet (PBUH) said, "A believer's soul is attached to his debt till it is paid.” A dead person was brought to the Prophet so that he might lead the funeral prayer for him. He (saw) asked, "Is he in debt?" When the people replied in the negative, he led the funeral prayer. Another dead person was brought and he asked, "Is he in debt?" They said, "Yes." He (refused to lead the prayer and) said, "Lead the prayer of your friend." Abu Qatada said, "O Allah's Apostle! I undertake to pay his debt." Allah's Apostle then led his funeral prayer. (Bukhari)

ISLAM PROHIBITS AND STRONGLY CONDEMNS USURY OR RIBA Allah will deprive usury of all blessing, but will give increase for deeds of charity" (Baqarah2: 276) If you do not stop taking usury, then be ready for a war with Allâh and His Messenger (Baqarah2: 279) Narrated Jabir ibn Abdullah: Allah's Messenger cursed the accepter of interest and its payer, and one who records it, and the two witnesses; and he said: They are all equal (Muslim) Hazrat Abu Hurairah r.a. reported that the Prophet (saw) said: A time will certainly come over the people when none will remain who will not devour usury. If he does not devour it, its vapors will fall on him (Ahmed,Abu Dawood,Nisai,Ibn Majah)

IMPRACTICABILITY OF INTEREST BASED SYSTEM  The economist sees economic activity as a function of infinite "money creation", rather than a function of finite “natural resources".  “Organizations in the West with money to invest, especially those which like to consider themselves as being ethical, might have rather more to learn from Islam than is generally acknowledged. By applying the Islamic approach, a lot of human misery could have been avoided.

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