Islamic Finance For Dummies

Chapter 5

Adhering to Islamic Commercial Ethics

In This Chapter

Recognizing the purpose of business ethics in general

Introducing key Islamic values

Tying key Islamic values to business functions

The topic of business ethics is hot. Unfortunately, that’s because so many business organizations — from small retailers to giant multinational corporations — find making ethical decisions difficult.

Part of the appeal of the Islamic finance industry for Muslims and non-Muslims alike is that it centers on a religion that encourages high ethical standards. As I explain in Chapter 2, sharia is a code of conduct that shows Muslims how to apply Islamic law to all aspects of their daily lives. Because Islamic finance adheres to sharia, the professionals who work for Islamic banks, investment firms, and insurance companies are constantly striving to live up to the ethical standards established by Islamic law.

No Islamic company can claim ethical perfection, of course, but the reality is that a firm can’t claim to be Islamic if it consistently fails to comply with sharia. An Islamic business that doesn’t adhere to the code of conduct set by sharia will quickly lose its customer base and its ability ...