Business from Islamic Point of View

Islam encourages trade because trade is the way to generate revenue. It is true because even today’s economies depend totally on businesses. If there is no business, there will be no money circulation at all, and people will die in no time because a huge number of people will run short of money and humanity will die followed by humans. We can see this happening in those parts of the world where people are poor and they do not have no opportunity to work and to earn. Therefore trade is the lifeline of the world to go on with its economic affair.

Business and trade in islam are very different from what we see in the world today. First of all, there is not interest or usury on money supported by islam, it is rather discouraged and a sin. Second thing is that islam does not excluded or erases the morals and values even from the business unlike the today’s business where a new concept of “CSR” has been introduced to protect consumers and costumers considering them a “social responsibility” of businesses. In islam,. This concept is not separate from finance and planning but it is very much a part of each and every transaction.

If we study the Islamic system of trade, first thing will be to work honestly, which is only dream in the business activities of the industrial oriented world today. If there is no honesty in business, it is rejected by islam and such people are termed as liars, hypocrites and dishonest people and doing business with them only means loss.

Secondly, unlike the annual reports based on false information about business and trade today, islam says to legalize every important commercial transaction and to record it as a contract between two parties. Now when two parties sign a contract, they come to the common terms of agreement on the paper which becomes record. To renew the contract means to sign another contract with the new conditions which will become a new contract hence a business report will be prepared alongside the daily routine tasks. This excludes any chances of creationism oby applying lengthy, complex and unknown accounting principles.

ALLAH (swt) says in Holy Quran: 23: 7
“But those whose desires exceed those limits are transgressors”

So, it is a must to be fair in trade. ALLAH swt says;

 Holy Quran: 23: 8-11
“Those who faithfully observe their Trusts and their covenants; And who (strictly) guard their prayers. Those will be the heirs. Who will inherit Paradise: they will dwell therein (forever). “


Holy Quran: 33:72
“Truly, We did offer Al¬Amânah (the trust or moral responsibility or honesty and all the duties which Allâh has ordained) to the heavens and the earth, and the mountains, but they declined to bear it and were afraid of it (i.e. afraid of Allâh's Torment). But man bore it. Verily, he was unjust (to himself) and ignorant (of its results).”

Holy Quran: 8: 27
“O you who believe! Betray not Allâh and His Messenger, nor betray knowingly your Amânât (things entrusted to you, and all the duties which Allâh has ordained for you).”

Thus, Quran already explains the factor of hionesty in business and in every matter of life.
Prphet Muhammad s.a.w.w Himself was a trader and HE was known as sadiq and amin among the disbelievers of makkh because of His honesty in dealing. It was due to His great business skills and His honesty that hazrat khadija r.a. offered him marriage.

A self explanatory saying of MUAHMMAD s.a.w.w on HIS last sermon. (Reference: See Al-Bukhari, Hadith 1623, 1626, 6361) Sahih of Imam Muslim also refers to this sermon in Hadith number 98. Imam al-Tirmidhi has mentioned this sermon in Hadith nos. 1628, 2046, 2085. Imam Ahmed bin Hanbal has given us the longest and perhaps the most complete version of this sermon in his Masnud, Hadith no. 19774.)

O People, just as you regard this month, this day, this city as Sacred, so regard the life and property of every Muslim as a sacred trust. Return the goods entrusted to you to their rightful owners. Hurt no one so that no one may hurt you. Remember that you will indeed meet your LORD, and that HE will indeed reckon your deeds. ALLAH has forbidden you to take usury (interest), therefore all interest obligation shall henceforth be waived. Your capital, however, is yours to keep. You will neither inflict nor suffer any inequity. Allah has Judged that there shall be no interest and that all the interest due to Abbas ibn ‘Abd’al Muttalib (Prophet’s uncle) shall henceforth be waived…

Beware of Satan, for the safety of your religion. He has lost all hope that he will ever be able to lead you astray in big things, so beware of following him in small things.

So, to be a good trader means to be fair in dealing first. If you expropriate other’s rights, others will doe the same with you.
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