Islam and business

Abstract

Executive SummaryThe underdevelopment of many of the Muslim economies along the Silk Road is often ascribed to the negative effects of Islam. Yet historically, the Muslim cities along the Road were thriving centers of commerce, and since the collapse of the Soviet Union, there appears to be a revival of business as central Asia is opened up to the global economy. Islam has its own distinctive code of business ethics, and the trust this fosters can lower transaction costs and increase management efficiency. There is no inherent conflict between Islam and capitalism; indeed, it is possible to identify the emergence of a distinctive Islamic type where capital accumulation is based on noninterest forms of financing.

‘Fatwa Repositioning’: The Hidden Struggle for Shari’a Compliance Within Islamic Financial Institutions

“…Their responsibilities are to devise Shari'a rulings for IFIs and ensure IFIs' compliance with such rules/principles. A sound Shari'a governance system should not only ensure minimum levels of Shari'a compliance which, if rightly implemented by IFIs, encompasses the western domain of Corporate Social Responsibility (Dusuki, 2005, Dusuki, 2008b, Wilson, 2006, Graafland et al, 2006, Beekun, 1997, Rice, 1999, Wilson, 1997 but also leads IFIs towards Shari'a objectives. Thus, Shari'a scholars, who constitute the Shari'a governance system, should ensure that IFIs' business models are not only clean from all kinds of Haram (prohibited) activities but also lead to overall public good.…”

“…This time a case was selected which was initially Shakir Ullah Two of the bank's core values are 'Fairness' and 'Trust' which are amongst the core elements of Shari'a objectives (Wilson, 2006, Graafland et al, 2006, Dusuki, 2005, Dusuki, 2008b …”

“…We have detected, nevertheless, a limited but rising awareness regarding Islamic business ethics in recent scholarly research (Rice, 1999, Graafland et al, 2006, Beekun, 1997, Wilson, 2006, Wilson, 1997.…”

Organizational Behavior from an Islamic Perspective

“…The plight of the poor should not be ignored (Wilson, 2006), and the Qur'an stresses the virtue of altruism by saying: "And those in whose wealth there is a known right for those that ask and those that are dispossessed, those who firmly believe in the Day of Recompense" . Provision for the poor and needy comes through Almsgiving; self assessed tax on wealth whose proceeds are earmarked for social expenditures (Wilson, 2006).…”

“…Islam is a way of life. Islamic Society and State are built on such ideological, moral, cultural economic and legal principles (Wilson, 2006).…”