chapter 1: philosophy in islamic business

BPMS1013 Theory & Practice of Islamic Business

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Chapter 1: Philosophy and Islamic Business

By: Mohd Adib Abd MuinIslamic Business School (IBS), UUM

2013


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“This day, I have perfected your religion for you, completed My Favour upon you, and have chosen for you Islam as your religion”.

(al-Ma’idah :3)

Pada hari ini telah Kusempurnakan untuk kamu agamamu, dan telah Ku-cukupkan kepadamu nikmat-Ku, dan telah Ku-ridhai

Islam itu jadi agama bagimu. Maka barang siapa terpaksa karena kelaparan tanpa sengaja berbuat dosa, sesungguhnya Allah Maha

Pengampun lagi Maha Penyayang.


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INTRODUCTIONIslamic overview in MalaysiaMuslims continue to be appreciated and become the basis in everyday

life.Islamic values continue to be accepted at the public, private, and

pluralistic society as the useful life for the good of all in MalaysiaIslam continues to be accepted as the official religion of the country

Meaning of Islam..The name of the religion is Islam, which comes from an Arabic root

meaning “peace” and “submission”.Islam teaches that one can only find peaces in one’s life by submitting

to Almighty God (Allah) in heart, soul, and deed. (tunduk dan patuh kpd perintah Allah dlm mencapai kebahagiaan hidup)


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cont…..Islam which was revealed more that one thousand and

four hundred years ago, concists of a full system of life that is compatible to human being of all ages.

The revelation from Allah and the teachings of Prohet Muhammad (s.a.w) are not confined only to the belief and moral systems, but also include the law that is suitable to be implemented to mankind.


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BASIC CONCEPTS OF ISLAMIC TEACHINGFaith (akidah) - the word aqidah from arabic – aqada, yaqidu,

aqdan or aqidatanLaw (syariah)- law is the Islamic guideline life- includes two items = Mahdhah and Ghairi

Mahdhah- have five pillars of islam• Ethic (akhlaq)- Attitude, character, behaviour, etc..


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The Shari’ahThe word Shari’ah is was defined by al-Qurtubi:Literally:

The road to the watering place, the straight path to be followed.Technically:

The canon law of Islam, all the different commandments of Allah to mankind.

Some scholars defined this word as the injunctions revealed to the Prophet (s.a.w) of Allah related to law or belief. In addition to the above definition, some scholars confined Shari’ah to its linguistic meaning by saying that this word means, following strictly the injunctions of Allah or the way of Islam (din).


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Component of Shari’ahThe Shari’ah which contains all the different

commandments of Allah to mankind can be divided into three fields.1. Al- ahkam al- I’tiqadiyyah

(sanctions relating to beliefs)- Aqidah

2. Al- ahkam al- akhlaqiyyah(sanctions relating to moral and ethics)- Akhlaq

3. Al- ahkam al- ‘amaliyyah(sanctions relating to the sayings and doings of the individuals and his relations with others which is also called fiqh)- Fiqh


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Ethics

- from the perspective of Islam, the word is a syndrome with moral ethics. the word "moral" is derived from the Arabic plural of the word "character" which means nature, honor, religion

- Five Of Islamic Law

i) prescribed (wajib) -an act which when done get the reward and when left to get sin

ii) Recommended (sunat) -an act which when done get a reward and when left not getting sin

iii) Permissible (harus) -an act done or omitted when the same is not a reward or sin

iv) Disliked (makruh) -an act which when ditinggalakan reward and when done do not get sin

v) Unlawful (haram) -an act which when left rewarded and when done get sin


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Needs and desires of humans according to Islamic perspectiveDaruriyyat

- necessities (eg : eat,drink,house)Hajiyyat

-convieniences, moderate ( eg : car,house)Tahsiniyyat (Kamaliyyah)

-refinements (eg : comfortable, branded)


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Fundamental philosophy business of IslamicIslam bring peace to peopleWe peace and source of peace to othersHuman right – justice and a guidelines of moralityProductive work and efficiencyWealth must moral and ethical standards

Eg: Permissible and Prohibited (Halal and Haram)Based on Shariah(Islamic law), defined by the Maslahah(public interest)Objectives Islamic law - religion, life, reason, descendants and property.


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Business and Maqasid SyariahMaqasid Syariah in Arabic word = objectives of the

Islamic lawProtecting the benefits and good towards human beingsProtecting interest of people against harm3 categories of Maqasid Syariah are:

1. The essential (Daruriyyat)- Necessities

2. The complementary (Hajiyyat)-Convenience

3. The embellishments (Tahsiniyyat)-Refinement


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Principle of Islamic in business

Keenness to Earn Legitimate (Halal)Earnings Trade through Mutual Consent Truthfulness in Business Transactions Trustworthiness in Business Transactions Generosity and Leniency in Business Transactions Honouring and fulfilling Business ObligationFair Treatment of Workers


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The Importance of Islamic BusinessIslam recognizes business as to fulfill human’s nature of collecting

treasures. Example , Allah says in Surah Al-Baqarah 2:198 : "There is no sin for you to find a gift (provision of business outcomes) from the Lord.“

Business as the media of spreading Islam. Islam support buy and sell.

Example in Surah Al Baqarah 2:275: “Allah S.W.T. legalize the sale and prohibits usury. “

"But please have a witness when you are buying and selling.“Many Hadith Rasulullah s.a.w also related to the business:

"Business man who is honest and trustworthy will be together with the Prophet, the saints and the martyrs."


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Business and Nabi Muhammad S.A.WPeople in Arab City (hadari) is good in trading.Nabi Muhammad was born of aristocracy and Arab

Quraish / Quraysh.He take care of goats and also been works as property

keeper.When the age of 20, he receive capital from Saidatina

Khadijah in mudarabah way (profit sharing)He is patient, trustworthy, forward-looking . Thus, cause

he become a successful business man


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Conclusion- spiritual as a human and muslim, consistent with the worship based on Islamic Source : Quran and Sunnah.- Physical, safety first the body.- Mental, always increase the knowledge.- Family caring with family- Job /task, committed in a daily life. If you miss one aspect above, your life and business can be fail.


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ReferenceAl-Quran al- KarimDr. Mohamad Akram Laldin, (2007)” A Mini

Guide to Shari’ah & Legal Maxims”. CERT Publication


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Discussion1. What meanings of Islam in our life?2. How the basic concepts of Islamic teaching?3. How the Maqasid Syariah bring to the business? 4. Are the effectiveness principles impact the Islamic business?


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Current Issues1) Global Muslim Unity Eg: Iraq, Palestine , Afghanistan (Muslim Countries) - critical condition (illiteracy rate, poverty rate and

unemployment rate are high) - political and economic uncertainty brings suffering

among the people of the nations. - based on the history, Muslims are everythings for

excellence and achieve stability in all aspects of life. - According Prophet Muhammad, created a united and

strong ummah (community) through concept of mu’akhat (brotherhood) between Muslims of Madinah and Muslims from Makkah. (concept of development of economic and political system)

- the importance of knowledge (spiritual aspect with faith & piety)

2) Development of the Islamic business


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Q & A


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Thank you….Syukran Jazilan…