Strategic Management from an Islamic Perspective: Text and Cases

Chapter 5

Islam Transforms People and Leaders

Introduction

We cannot talk about the Islamic perspective on strategic management if we are not clear about basic Islamic principles. In the first draft, we proposed a classical approach that emphasized the importance of the shariah. However, when thinking about the ideas elaborated in Chapters 1, 2, and 3, we concluded that a different approach was more appropriate. Strategic management—as it is currently practiced—does not work very well because of an overemphasis on competition. Companies are not simply competing with other companies, but individuals within a company are competing with one another. When the culture of an organization is based on fear and deceit, things will go wrong when developing and implementing a strategy. The Islamic solution is not simply shariah compliance (although shariah compliance is very important), but it is a radically new perspective on how the workplace should be. In the workplace, people should cooperate with one another, seeking God’s pleasure. They will do so because that is one of the things God will question them about on the Day of Judgment. This view of the workplace is based on several pillars, namely:

1. Islam transforms people.

2. Belief in God is rooted in reason.

3. The message of the Qur’an and Sunnah is summarized in surah al fatihah, surah al takathur, and surah al asr. Everybody can understand this message, and everybody can apply it if they choose to.

The Individual as the Unit ...