Business Ethics in Islam

By: Drs.Agustianto, MA One of the key studies in Islam is a matter of business ethics. Understanding ethics is a code or set of principles the which people live (or set of principles kaedah that govern human life.) Ethics is a part of philosophy that discusses the rationally and critically about the values, norms or morality. Thus, different moral with ethics. Norma is an institution and the value of good and bad, while ethics is critical reflection and rational explanation of why something is good and bad. Deceiving others is bad. This is at a moral level, while the critical study and rational why cheating is bad what is the reason his mind, a field ethics. One of the most popular ethical study into the 21st century in the third mellinium This is business ethics. Dichotomy MORAL AND BUSINESS In classical times and even in the modern era, the issue of business ethics in the world economy not really have a place. So no wonder that there are many contemporary economists which echoes the perspective of classical economist Adam Smith. They believe that a business has no social responsibility and business regardless of "Ethics". In the words of Theodore Levitt, corporate responsibility is just looking mere economic advantage. In Indonesia, the classical notion is growing at a fertile time in Indonesia, resulting in Indonesia's economy collapsed into the abyss of destruction. Collusion, corruption, monopoly, fraud, hoarding goods, environmental destruction, oppression of labor, bank robberies by the conglomerates, is
problems so naked in front of our eyes that look good in the mass media and

electronic media. In Indonesia, the neglect of business ethics has been a lot happening
particularly by conglomerate. The entrepreneur and capitalist economists are

thick, questioning whether the right to question the ethics in the discourse of economics?. The emergence of resistance of business ethics, backed by a classical paradigm, that economics should free value (value free). Entering gatra social

ethical values in scientific discourse economy, according to the economists as above, will result in economic science be unscientific, since it is disturbing objectivity. They still insisted on holding the jargon of "the myth of a moral business" On the other hand, business ethics is narrow the space for economic advantage. In fact, economic principles, according to them, is to seek maximum profits. Resurrection of Business Ethics Actually, In the West itself, thinking that suggests that economics ethically neutral as above, lately has been sued by some economists West itself. The view that value-free economics, has been fabricated. In science normative economics should be attached to the nuances and not neutral toward the values or ethics social. Economics must contain a determination of objectives and methods to achieve destination. This reasoning is much leveled by Samuel Weston, 1994, which summarizes thinking Boulding (1970), Mc Kenzie (1981), and Myrdal (1984). In the 1990s Paul Ormerof, an English economist published a book critical very horrendous "The Death of Economics, Economic Science has been met death. (Ormerof, 1994). Not a few economists have been aware of the millennium increasingly thin moral consciousness in modern economic life and business. Amitas Etzioni produce monumental work and a best seller, The Moral dimension: Toward a New Economics (1988). Various books of business ethics and moral dimension in economics more and more pop. So, towards the third millennium and into the 21st century, the concept of ethics began to enter business discourse. Business discourse is not only influenced by the economic situation, but by social changes, economics, politics, technology, and shifts attitudes and views of business people or economists. shifts business began to be dismantled. Starting from the development of global markets, recession budget cuts resulted in layoffs, Environmentalism, the demands of the employees increasingly beyond mere material satisfaction, the shareholders activism in companies going public or national trans, kaedah-new kaedah of management, such as Total Quali ty Management, reengineering and

bencmarking which produces hierarchy and empowerment, all of them have

increase to people's consciousness about the necessity of ethics in business

activity. Small sample of consciousness was seen in the attitude of the Western capitalist economists who have felt the evil implications of speculation is very risky strategy, proposed to make policy in the fight against speculation. Prof. Lerner in a book "Economics of Control", argued that the crime of aggressive speculation, best when prevented by counter-speculation. They apparently have not succeeded resolve the crisis, although they handle it seriously. Maybe because that Prof. Taussiq trying to solve this problem by improving moral people. He remarked aloud, "the most efficacious medicine, for damage business world is a good moral norm for all industries. " The views above show, that in the West has emerged awareness new light on the importance of an ethical dimension into the business field. New Trends Large companies, a model 21st century, seems also to have new trend to implement business ethics as a vision of society responsible socially and economically. The reality of the above, as evidenced by results of research conducted by James Liebig, author of Merchants of Vision. In research, he interviewed business leaders in 14 countries. James Liebig found six perspectives, which generally apply, as follows: 1. Acting on ethics, 2. Enhance social justice, 3. Protecting the environment, 4. Empowering creativity human, 5. Defining the vision and business goals that are social and involve employees in building a better business world, turn on the nature of love affection and good service in the company, 6. View review classic paradigm of value-free economics. Perspectives on top shows that business ethics which have been the ideal, is now really easy manifested as reality. Thus, there is no reason to reject the ethics in the business world, even adherence to business ethics, in fact, be conducive to efforts increase profits entrepreneurs or owners of capital. For example, entrepreneurs now, believe that the salary gap between the receiver is not too big salary The highest and lowest

and the facility received by both groups These employees, will encourage the company's overall performance improvement. Employees who used tends to be considered as a large machine screw in the company, now empowered. Women are often the victims of submarine demands of efficiency, now getting the attention it deserves. Large companies vying kinipun displays a conscious selfimage environment, not just the physical environment but also social and cultural environment. If the nest of capitalism itself, (the U.S. and Europe) have begun developing a new trend for business world, namely the necessity of ethics, (though perhaps not perfect), certainly they appear more likely and more fertile in our country that is known religious this. From the description above, it can be concluded, that the existence of ethics in business discourse is an undeniable necessity. In situations requiring the business world ethics, Islam, since over 14 centuries ago, has called for the urgency of ethics for the activity business. Islamic Values and Ethics Resources Islam is a source of values and ethics in all aspects of human life comprehensive, including business discourse. Islam has a comprehensive insight about business ethics. Starting from basic principles, the main points of damage in trade, factors of production, labor, capital, organization, distribution of wealth, issues of wages, goods and services, qualifications in business, to the ethics of socio economic concerns property rights and social relations. Business activities are an integral part of economic discourse. Islamic economic system depart from an awareness of ethics, while other economic systems, such as capitalism and socialism, tends to ignore the ethics that aspect of value not so apparent in the second building of the economic system. Dryness of the two systems that the discourse of morality, because they did not depart from the ethics, but from interest (interest). Capitalism depart from individual interests while depart from the collective interests of socialism. However, now began to emerge a new era of ethics business centers of capitalism. An exciting new development. The Qur'an very much encourage people to do business. (Surah 62:10,).

Remembrance give directions for the business to create a harmonious relationship, mutual pleasure, there is no element of exploitation (Surah 4: 29) and free from suspicion or fraud, such as having to make the administration of the credit transaction (Surah 2: 282). Prophet himself is a reputed international traders who base their building its business to the values of divine (transcendent). On the basis of the Prophet build an enlightened Islamic economic system. The principles of the ideal business was ever done by the Prophet and his companions. Reality is a proof for many people, that a just economic order, in fact never happened, despite national in scope, the state of Medina. Values, spirit and teachings of the Prophet who brought it, useful to build a new economic order, which finally materialized in the governance a just world economy. Syed Nawab Haidar Naqvi, in the book "Ethics and Economics: a synthesis Islami ", describes four axioms of economic ethics, that is, monotheism, the balance (Justice), freedom, responsibility. Tawhid, is a theological discourse that underlies all human activity, including business activities. Tawhid awaken people as a godlike creature, this being the godless. Thus, human business activities can not be separated from the supervision God, and in order to carry out the command of God. (Surah 62:10) Balance and justice, means that business conduct should be balanced and fair. The balance is not excessive (extreme) in the pursuit of economic gain (QS.7: 31). Individual ownership of the infinite, as in the capitalist system, not justified. In Islam, the Treasury has a strong social function (Qur'an 51:19) Freedom, mean, that humans as individuals and collectivities, have freedom of management to conduct business activities. In economics, a free man kaedah-kaedah implement Islam. Due to economic problems, including the mu'amalah aspect, not worship, then applies her common kaedah, "All may except that prohibited ". That should not be in Islam is an injustice and usury.In this level
actually human freedom is not absolute, but is freedom of a responsible and fair.

Accountability, then, that man as a businessman, has moral responsibility to God for business conduct. Property as a commodity business in Islam, is to

trust God that must be accounted for in the presence of God. PROPHET MUHAMMAD IN BUSINESS GUIDE Rasululah Saw, very much to give clues about business ethics, among them is: First, that the essential principle in business is honesty. In the doctrine Islam, honesty is a fundamental requirement in business activities. Messenger high lyintense advocate of honesty in business activity. In this level, he said: "Not allowed a Muslim to sell one seller who has a disgrace, unless she explains her shame "(H. R. Al-Quzwani). "Who is deceiving us, then he is not Our group "(H. R. Muslims). Prophet himself always being honest in business. He forbade the traders putting bad stuff on the bottom and stuff New at the top. Second, awareness of the social significance of business activity. Businesses operating under Islam, not just pursue profits as much as possible, as who taught Mr. capitalist economics, Adam Smith, but also oriented ta'awun attitude (helping others) as the social implications of business activities. Strictly speaking, business, rather than mere material profit, but based on the awareness of giving easy for others to sell goods. Third, do not make a false oath. Prophet Muhammad forbade very intense business people make a false oath in conducting business transactions in a hadith narrated by Bukhari, the Prophet said, "By making a false oath, goods are sold, but the results are not a blessing. " In the hadith narrated by Abu Zar, Messenger of Allah threatened with a painful punishment for those who swear false in the business, and God will not his care later in the day of Judgement (HR Muslim). Practice perjury in today's business activities are often performed, because to convince buyers, and in turn enhance the purchasing power or marketing. However, it should be realized, that although the benefits are plentiful, but results are not a blessing. Fourth, friendly hospitality. A business my head, should be friendly in doing business. Prophet Muhammad said, "Allah have mercy on someone who is friendly and tolerant of doing business "(Bukhari and Tarmizi). Fifth, it should not pretend to offer a high price, for anyone else interested buy at that price. Word of the Prophet Muhammad, "Do not you guys do najsya

business (a specific buyer, in collusion with the seller to raise price, not with the intention to buy, but in order to attract others to buy). Sixth, should not speak ill of someone else's business, for people to buy him. Prophet Muhammad said, "Let no man among you sell intention to vilify what is sold by others "(HR Muttafaq 'alaih). Seventh, do not do ihtikar. Ihtikar is (stacking and storing goods within a certain period, in order for the price one day be up and great advantage was obtained). Messenger strictly prohibits such business behavior. Eighth, the dose, the correct size and weight. In trade, weights is right and proper should really take precedence. Word of God: "Woe to those of cheating, that is, those who, when receiving the dose of other people, they ask met, and when they measure or weigh for others, they reduced "(Surah 83: 112). Ninth, Business should not interfere with the activity of worship to God. Word of God, "People are not neglected by businesses because of the remembrance of Allah, and from established prayer and pay zakat. They fear one day that day, the liver and vision becomes unstable. " Tenth, pay employee wages before his sweat sweat. Prophet Muhammad said, "Give wages to employees, before the sweat dries." This hadith indicates that the payment of wages should not be delayed. Payment of wages shall be in accordance with the work that was done. Eleventh, not monopoly. One of the evils of the capitalist economic system is legitimize monopoly and oligopoly. A simple example is the exploitation (Mastery) of certain individuals over social property, such as water, air and soil and content of its contents, such as mining and mineral goods. Individual dredge personal gain, without giving opportunity to others. It prohibited in Islam. Twelfth, should not be doing business in a state eksisnya danger (harm) which can be harmful and damaging individual and social life. For example, the prohibition run guns in times of chaos (chaos) political. They should not sell kosher goods, such as wine to liquor producer, because he alleged, process it into alcohol. All forms of Islam because the business is prohibited to destroy the essence of social relationships that must be maintained and cared for carefully.

Thirteenth, commodity business being sold is pure and kosher goods, not illicit goods, such as pigs, dogs, alcohol, ecstasy, etc.. Prophet Muhammad Allah said, 'Allah forbids alcohol business, carcass, swine and "Statues" (H. R. Jaber). Fourteenth, the business is done voluntarily, without coercion. Word of God, "O those who believe, do not eat each other neighbor's property by way falsehood, except by way of business in force with the same love-love between you "(Surah 4: 29). Fifteenth, immediately pay off the loan obligations. Prophet praised a Muslim who has a serious interest in the repayment of debt. Prophet Saw, "The best you are the one who most immediately to pay his debts" (HR Judge). Sixteenth, Giving grace period if the debtor (creditor) has not been able to pay. Word of the Prophet, "He who suspended the men who have difficulty pay the debt or release him, God will give him a shade under shade on the day that there was no shade except His shade "(Muslim). Seventeenth, that business is carried net of elements of usury. Word of God, "O those who believe, leave the remains of usury, if ye have faith (Surah alBaqarah: 278) Actors and eater of usury judged by God as one who possessed (Surat 2: 275). Therefore, Allah and His messenger declares war on usury. Thus part of business ethics in the perspective of Islam that had mixed source of Islamic teaching, both originating from the Qur'an and Sunnah.

POSTED BY Agustianto | April 11, 2008