Business Ethics in Islam: 10 Important Rules for Muslims

It is accepted that having a desire for money is natural, but there must be a balance and money shouldn’t be worshipped. Islamic principles encourage that justice, honesty, and compassion should be the basis of your business.

7 – Treat Your Employees Fairly

The principle of treating employees well and paying them on time is central to Islamic business ethics. As a Muslim business owner, you should treat your employees well in addition to receiving compensation on schedule. An employer must understand that a delay in the payment of salaries could lead to severe issues in the employee’s life.

There are various ahadith that encourage employers to be fair to their employees and pay them on time. In the following hadith of the Holy Prophet Muhammad (PBUH), employers are encouraged to pay the wage of their workers before their sweat dries.

8 – Do Not Defraud Others To Gain Profit

Islamic commerce is based on the fundamental idea of respecting and protecting the integrity of the counterparty. Fraudulent and deceptive behavior is strictly forbidden. This concept makes sure that we cherish and respect the individuals we trade with in addition to being honorable in our dealings.

9 – Don’t Prioritize Your Business Over Prayers

The need for money is regarded as natural, but there needs to be balance and money shouldn’t be worshipped.

The faithful Muslim believes that justice, honesty, and compassion should moderate man’s attempts to work hard, run a lucrative business, and pursue the best value in his investments.

In the following verse of the Holy Quran, Muslim businessmen are encouraged to practice balance by leaving their work and detaching from it to offer the Friday prayer.

10 – Be Kind With Your Dealings

In all economic relationships, the Prophet Muhammad (PBUH) stressed compassion and truthfulness. And He (PBUH) advised people who loaned money or products to be forgiving and even to forgive the borrowers if the situation called for it.

Lessons to Learn from Sahaba and their Businesses

Prophet Muhammad, his wife Hazrat Khadija and many of the sahaba were successful businessmen of their times. Many companions of Prophet Muhammad were, in fact, the richest businessmen of their times. Here’s what we can learn from them:

• Abdul Rahman bin Auf, one of the 10 companions who were promised paradise, was also one of the richest businessmen before accepting Islam with a huge net worth. However, after moving to Medinah, he started his business from scratch and once again became a leading figure in the business world. His 3 main strategies were: to always deal in cash instead of credit, to always avoid storage of goods and to always be fair in his dealings, even if it meant revealing the faults of his products to the customer.
• Hazrat Usman too was one of the richest Muslim companions and he was known for his willingness to help his community and his blind trust in Allah.
• Hazrat Khadija was one of the few successful businesswomen of her time who also had immense wealth and undoubtedly must have had several employees and helpers. And yet, she was immensely humble both before and after accepting Islam.
• Sayyiduna Sakhr Bin Wada’ah Ghamidi was a trader and he believed that his success in business came from his habit of sending his trades and traveling for work in the earliest hours of the day. As he says that the Prophet Muhammad made this dua:

اللَّهُمَّ بَارِكْ لِأُمَّتِي فِي بُكُورِهَا

Translation: O Allah, bless my Ummah with Barakah in their early mornings [i.e. what they do early in the morning]. (Abu Dawood, vol. 3, pp. 51, Hadees 2606)

Summing up, the following image beautifully summarises all the Ahadith on business in Islam:

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