INSTITUTE OF MANAGEMENT STUDIES SESSION: BUSINESS ETHICS

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1 INSTITUTE OF MANAGEMENT STUDIES SESSION: BUSINESS ETHICS MANAGEMENT LESSONS FROM QURAN SUBMITTED TO Dr. P.N. Mishra SUBMITTED BY Mohd. Altamash Palash Garg MBA FT 1 ST SEM SEC A

2 CONTENTS Management Lessons from Quran The Leadership Process of Muhammad from Hadith Effective Leadership Steps for Strategy implementation in Islamic Organization The Sunnah of Business Business and Commerce in the Quran Prophet thoughts about Business Tijarat ki Shartein Rules of Tijarat Thirty Beautiful Hadiths and Quranic Verses on the Etiquettes of Speech

3 MANAGEMENT LESSON FROM QURAN 1. Quran and Management:- This may make you very curious but the teachings of God or Allah are always timeless and their deeper meanings can be implemented in finer aspects of our daily lives. So can be done with the modern concept of corporate world, organization management, etc. We will peep into some of similar lessons from Quran. 2. Concept of a Manager:- Management principles work on have efficient managers who could get the work done through others. Holy Quran emphasizes on this point: "We raise some of them above others in ranks, so that some may command work from others. 3. Lessons:- Lesson 1: Obedience and respect for authority This is essential in any corporate setting. If the workforce does not have obedience and respect for authority, the structure would fail. The organization would not be able to function properly. Quote from Quran: Holy Quran instructs: Obey Allah and His Messenger and those in position of authority amongst you. Lesson 2: Team Work The Japanese management has proved the benefits of team work to the world. There is almost no field in the world where team work does not work. Quote from Quran:

4 The Holy Quran also advocates this concept: Pass over (their faults), and ask for (God's) forgiveness for them; and consult them in affairs (of moment). Then, when you have taken a decision put your trust in God, for God loves those who put their trust (in Him). Lesson 3: Equal Opportunities This concept is a very good one. Almost all the companies flash their adherence to this principle when they advertise for new job offers. Equal opportunities make employees work with more enthusiasm. Quote from Quran: The Holy Quran emphasis this golden rule: People, We created you from a single male and female couple and then divided you in nations and tribes so that you may recognize one another. Verily the most honorable among you in the sight of Allah is he who is most righteous of you. Lesson 4: Motivation and Commitment The management is all about motivating the workforce and making them committed to the common cause. Quote from Quran: The Holy Quran points to this principle: "If you had been stern and fierce of heart they (the companions and followers) would have disappeared from around you. So pardon them and ask forgiveness for them and consult them in the conduct of affairs". Lesson 5: Elimination of Wastage Wastage elimination is one the modern concepts implemented by Toyota. No wonder it's accepted worldwide for its efficiency and lowering the costs in almost all aspects of an organization. Quote from Quran: The Holy Quran has endorsed this view: And render to the kindred their due rights, as (also) to those in want, and to the wayfarer. But waste not (your wealth, time, health, talents, opportunities etc.) in the manner of a spendthrift. It further says: O Children of Adam! Wear your beautiful apparel at every time and place of prayer: eat and drink: But waste not by excess.

5 Lesson 6: Kaizen Kaizen is a Japanese word meaning continuous improvement. In Arabic, this is nothing but Jihad, which means continuous struggle to improve. Quote from Quran The Holy Quran confirms this fact: You who believe! Have fear of Allah and seek the means of drawing near to him, and strive in his way, so that hopefully you will be successful. Lesson 7: Just in Time Just in Time is a concept pioneered by Toyota. It means keeping as much inventory as needed. It reduces cost and wastage. Quote from Quran The Holy Quran stresses on this point quite beautifully. O ye who believe! Those who bury gold and silver and spend it not in the way of Allah, announce unto them a most grievous penalty. Lesson 8: Visual Control The technical term by Toyota is Genchi Gembitsu. It means in order to solve any problem, the manager or supervisor at Toyota is obligated to go and see for himself the issue, analyze it, and take corrective actions. Second hand information is simply not accepted. In order to minimize or eliminate this distortion, it is utmost necessary that that the information should be firsthand as much as it can be possible. Quote from Quran This golden rule is amply mentioned in the Holy Quran: You shall not accept any information, unless you verify it for yourself. I have given you the hearing, the eyesight, and the brain, and you are responsible for using them. Lesson 9: Optimum Capacity Utilization It means not to over-burden any resource, whether it is a machine or an employee; not to under-load any machine or employee; and balance out the

6 workload onto different machines or on different employees so that none of them is over-burdened or under-loaded with regards to their respective capacities. Quote from Quran The Holy Quran emphasizes on this principle: No soul shall have a burden laid on it greater than it can bear. It further says: On no soul doth Allah place a burden greater than it can bear (Pray) Our Lord! Lay not on us a burden greater than we have strength to bear. Lesson 10: Customer Satisfaction Customer satisfaction is a sure business model and it has proved its effectiveness for more than one big company. Dell established its operations worldwide for just this. Quote from Quran The Holy Quran commands: Give just measure and weight, nor withhold from the people the things that are their due; and do no mischief on the earth after it has been set in order: that will be best for you, if ye have Faith. Lesson 11: Contracts, commitments and promises For any business to survive, fulfilling its contracts, commitments, promises is extremely important. For employees, it is utterly important to respect the deadlines and deliver work when promised. Any organization can does well if these principles are followed. Quote from Quran The Holy Quran has instructed thus: Allah says, fulfill your contracts. Contracts will be asked about. It says further: And the Almighty says, O you who believe! Why do you say what you do not do? It is deeply abhorrent to Allah that you say what you do not do. Lesson 12: 5S The first step of the 5-S process is Seiri. It refers to the act of discarding all unwanted, unnecessary, and unrelated materials from any place of concern.

7 The idea is to ensure that everything left is of use only. Even the number of necessary items must be kept to its absolute minimum. Conclusion Quote from Quran This principle should be ingrained: "They ask thee how much they are to spend in the way of Allah; Say: What is beyond your needs?" The spiritual texts of the world give us principles that are timeless and have multiple applications. If understood properly and their deeper meaning grasped, these principles can certainly pave way for new techniques that can be used for the betterment of mankind. The Leadership Process of Muhammad from Hadith The Hadiths are markers of the behavior of Muhammad as he exemplified the Qur an for the Ummah. It stands to reason that we can use hadiths to distill the leadership process that Muhammad himself practiced during his lifetime, and which we, as Muslims, are to emulate. The process described below is not meant to be comprehensive or final; there is much that we have yet to learn in the field of leadership, and Muhammad being divinely inspired did much that we have yet to comprehend. Nevertheless, several leadership precepts can still be extracted from the Hadiths, and are listed below:- General Leadership Principle: Do not be in a leaderless group; appoint a leader. When three men travel together, they should make one of them their leader. Source: Abu Dawud, on the Authority of Abu Sa id Al-Khudri.

8 Develop competency in the area in which you are leading others. Whoever delegates a position to someone whereas he sees someone else as more competent (for the position), verily he has cheated Allah and His Apostle and all the Muslims. Source: Ibn Taymiyya, Assiyasah Ash-Shar iyya, Stress virtue and behave with integrity. Virtue is noble behavior, and sin is that which creates doubt and you do not like people to know about it. Source: Nawaz bin Sam an in Sahih Muslim. Maintain balance and self-control. Three things are part of the good morals of a believer. When he is overcome by anger, his anger should not drive him to falsehood. When he is happy, his happiness should not take him beyond the bounds of what is right. When he has power, he should not stake a claim to something which is not his. Source: At-Tirmidhi, on the Authority of Anas Ibn Malik. Be proactive and action-oriented especially when confronting evil. Whosoever of you sees an evil action, let him change it with his hand; and if he is not able to do so, then with his tongue; and if he is not able to do so, then with his heart, for that is the minimum that is desirable from a believer. Source: An-Nasa i, on the Authority of Abu Sa id Al-Khudri. Be modest and self-effacing (Collins Level 5 Leadership). Hayaa (i.e. modesty) is a part of Iman and Iman shall be rewarded with Paradise. Foul talk is a part of neglect [towards God] and neglect [towards God] shall be rewarded with Hellfire. Source: Ibn Maajah, no Keep your word. Three are the signs of a hypocrite: When he speaks, he lies; when he makes a promise, he breaks it; and when he is trusted, he betrays his trust. Source: Abu Hurairah, in Bukhari and Muslim.

9 Maintain a positive and cheerful attitude. Do not belittle any good deed, even meeting your brother (Muslim) with a cheerful face. Source: Abu Dhar in Sahih Muslim. Do not meddle in what does not concern you. Part of the excellence of one s Islam is his giving up of that which does not concern him. Source: Abu Hurayra, At-Tirmidhi. Leader-follower interaction: Take responsibility for your followers. Whenever God makes a man responsible for other people, whether in greater or lesser numbers, he will be questioned as to whether he ruled his charges in accordance with God s decrees or not. And that will not be all. God will question him even about his family members. Source: Ibn Hanbal, on the authority of Abdullah Ibn Umar. Enable your follower by ensuring there is a fit between his/her competencies and the requirements of his/her assignment. According to Aisha, the Prophet PBUH never gave others tasks which were beyond their capabilities. Source: Al-Bukhari. Be kind to your followers. If you show kindness to your servant while employing him in some task, this will weigh heavily in your favor on the Day of Judgment. That will be your reward. Source: Amr Ibn Harayth. Do not betray the trust of your followers. When a man tells you something in confidence, you must not betray his trust. Source: Abu Dawud, on the Authority of Jabir Ibn Abdullah. Do not condone or engage in bigotry. He who preaches bigotry is not one of us. And not being one of us, he may go ahead and fight in the cause of bigotry. He who dies for such a cause is not one of us either. Source: Abu Dawud, on the Authority of Jubayr Ibn Mut im.

10 Leader interaction with other stakeholders: Do not deceive your (business) partners. Sa ib has thus recorded his commendation of the Prophet: In the period of ignorance (i.e. before Islam) when you were my partner in business, you were the finest of all partners. You never deceived me. Neither did you quarrel with me. Source: Abu Dawud. Step into the reality of your followers, and do not be aloof from the needs of other stakeholders, including the community at large. None of you (truly) believes, until he wishes for his brother what he wishes for himself. Source: Bukhari, on the Authority of Anas Ibn Malik. Do not abuse or hurt other Muslims. Abusing a Muslim is Fusuq (an evil doing) and killing him is Kufr (disbelief). Source: Bukhari Do not harbor suspicion towards others. Beware of suspicion, for it is the worst of false tales and don t look for the other s faults and don t spy and don t hate each other, and don t desert (cut your relations with) one another. O Allah s slaves, be brothers! Source: Bukhari, Vol. 8: No Follower interaction with a leader: A follower does not support a tyrannical leader. One who walks with a tyrant, in the full knowledge that he is a tyrant, in order to strengthen him, is such as has already left the fold of Islam. Source: Al-Bayhaqi, on the Authority of Aus Bin Shurahabil. Quran and Hadith on Economics: Sources of Income Permissible In Islam. As per Islamic teachings, other than the explicitly identified impermissible sources of income, every other source of income is permissible in which the benefits are enjoyed by all the concerning parties on just basis.

11 Allah in Holy Quran says: Do not devour one another s property wrongfully, nor throw it before the judges in order to devour a portion of other s property sinfully and knowingly. (Al-Baqarah: 188). Sources of Income Prohibited In Islam. v Bribery. v Usurping other s property. v Fraud. v Stealing and robbery. v Income from sources of vulgarity. v Gambling. v Wine and its business. v Interest. Moral Directives of Islam in Conducting Business. You resort to oaths as instruments of mutual deceit, so that a person might take greater advantage than another; although, Allah puts you to the test through this. Surely, on the Day of Resurrection, He will make clear the truth concerning the matters over which you differed. Prophet Muhammad said: The seller and the buyer have the right to keep or return the goods as long as they have not parted or till they part; and if both the parties spoke the truth and described the defects and qualities [of the goods], then they would be blessed in their transaction, and if they told lies or hid something, then the blessings of their transaction would be lost. Prophet Muhammad has exhorted that we should refrain from taking oaths unnecessarily; for although, it helps in the sale of one s products, it reduces the blessings.

12 Prophet Muhammad said: If anyone would like Allah to save him from the hardships of the Day of Resurrection, he should give more time to his debtor who is short of money, or remit his debt altogether. Prophet Muhammad said: May Allah s mercy be on him who is lenient in his buying, selling, and in demanding back his money [or debts]. Prophet Muhammad said: A time will come upon the people when one will not care how one earns money, i.e. legally or illegally. Prophet Muhammad said: The flesh and body that is raised on unlawful sustenance shall not enter Paradise. Hell is more deserving to the flesh that grows on one s body out of unlawful sustenance. Prophet Muhammad said: The truthful and trustworthy businessman will be in the company of Prophets, saints and martyrs on the Day of Judgment. Islamic Teachings and Unethical Trade Practices. Prophet Muhammad said: Allah s Messenger cursed the one who accepts interest and the one who pays, and the one who records it, and the two witnesses; and he said: They are all equal. The Allah will deprive usury of all blessing, but will give increase for deeds of charity. Woe to those that deal in fraud. Those who, when they have to receive by measure from men, exact full measure. But, when they have to give by measure or weight to men, give less than due. Do they not think that they will be called to account? Keeping the commodities of general use in possession and not supplying them in the market for the sake of increasing the price is prohibited. Prophet Muhammad said: No one hoards but the traitors (i.e. the sinners). Prophet Muhammad said: The importer [of an essential commodity] into the town will be fed [by Allah], and the hoarder will have [Allah s] curse

13 upon him. Allah cursed the one who pays bribes and the one who takes bribe. Prophet Muhammad said: Do not harbor envy against one another; do not outbid one another [with a view to raising the price]; do not bear aversion against one another; do not bear enmity against one another; one of you should not enter into a transaction when the other has already entered into it; and be fellow brothers and true servants of Allah. Futures and Forward Trading: Islamic View Prophet Muhammad said: He who buys food grain should not sell it until he has taken possession of it. Analogical Deduction in Matters: Islamic View Prophet Muhammad said: What is lawful is evident and what is unlawful is evident, and in between them are the doubtful things which many people do not know. So he who guards against doubtful things keeps his religion and honor blameless, and he who indulges in doubtful things indulges in fact in unlawful things, just as a shepherd who pastures his animals round a preserve will soon pasture them in it. Beware, every king has a preserve, and the things Allah has declared unlawful are His preserves. Beware, in the body there is a piece of flesh; if it is sound, the whole body is sound and if it is corrupt, the whole body is corrupt. Benefits of Honest Conduct in Partnership Prophet Muhammad has said that Almighty Allah proclaims: I am a one third partner of a two man partnership until one of them acts dishonestly to his partner, and, in such an event, I then leave them. The importance of Paying One s Liability Prophet Muhammad said: After the major sins which must be avoided, the greatest sin is that someone dies in a state of debt and leaves behind no asset to pay it off. Job Responsibility of Employee: Islamic View

14 Prophet Muhammad said: The honest treasurer who gives willingly what he is ordered to give, is one of the two charitable persons, (the second being the owner). Responsibility of Employer: Islamic View Prophet Muhammad said: Give the labor his wage before his sweat dries. Prophet Muhammad said: Those are your brothers [workers under you] who are around you; Allah has placed them under you. So, if anyone of you has someone under him, he should feed him out of what he himself eats, give him clothes like what he himself puts on, and do not put so much burden on him that he is not able to bear, [and if that be the case], then lend your help to him. Prophet Muhammad said: I will be foe to three persons on the Last Day: one of them being the one who does not give dues to the servant he employs even after he has fulfilled his duty. Justice and Honesty: Islamic View O believers! Stand firmly for justice, giving witness for Allah, may be therein your own loss, or of your parents or of your relations. Against whom you be a witness, he be a rich or be a poor, in any case Allah has more power than anyone over them, therefore follow not passion lest you may be far away from justice; and if you distort or turn your face, then Allah is aware of your doings. O believers! Stand-up firmly by the Commandments of Allah, bearing witness with justice and let not the enmity of any people incite you that you should not do justice. Do justice that is nearer to piety and fear Allah, undoubtedly, Allah is aware of your doings. Gender and Ethnic Discrimination: Islamic View O people! We created you from one man and one woman and made you divided in branches and tribes so that you may recognize one another. Undoubtedly, the most respected among you in the sight of Allah is the one who is more pious. Verily, Allah is knowing, aware. Directives of Islam to an Earning Individual

15 Remember, the example of those who spend in the way of Allah is like that of a grain, which sprouts into seven ears, producing a hundred grains in each ear. Allah [by His mercy] increases manifold [the rewards of such deeds] for whom He wills. And Indeed, Allah is extremely bountiful [in rewarding His servants], fully aware [of your circumstances and deeds]. Those needy ones who are wholly wrapped up in the cause of Allah, and who are hindered from moving about the earth in search of their livelihood especially deserve help. He who is unaware of their circumstances supposes them to be wealthy because of their dignified bearing, but you will know them by their countenance, although they do not go about begging people with importunity. And whatever wealth you will spend on helping them, Allah will know of it. Look, you are being called upon to expend in Allah s Way, yet some of you are being niggardly, whereas the one who is niggardly is, in fact, being niggardly only to himself. Allah is Self-Sufficient. It is you who are the needy. If you turn away, Allah will replace you by another people, and they will not be like you. (O Prophet!) Tell those of My servants who believe that they should establish prayer and spend out of what We have provided them with, both secretly and openly, before there arrives the Day when there will be no bargaining, nor any mutual befriending. Have you seen him who belies the rewards and punishments of the Hereafter? He it is, who drives away the orphan and does not urge giving away the food to the poor. Those who blame Muslims who give charity willingly and laugh at those who get nothing but with their hard labor, Allah will punish them for their laughing and for them, is the painful. Prophet Muhammad said: Spend, and do not count, lest Allah counts against you. Do not withhold your money, lest Allah withholds from you. Spend what you can.

16 Prophet Muhammad said: The Lord s commandment for every one of His slaves is, Spend on others, and I will spend on you. Attitude of the Giver of Charity Those who spend their wealth in the way of Allah and do not follow up their spending by stressing their benevolence and causing hurt, will find their reward secure with their Lord. They have no cause for fear and grief. To speak a kind word and to forgive people s faults is better than charity followed by hurt. Allah is All-Sufficient, All-Forbearing. Believers! Do not nullify your acts of charity by stressing your benevolence and causing hurt as does he who spends his wealth only to be seen by men and does not believe in Allah and the Last Day. The example of his spending is that of a rock with a thin coating of earth upon it. When a heavy rain smites it, the earth is washed away, leaving the rock bare. Such people derive no gain from their acts of charity. Allah does not set the deniers of the Truth on the right way. Islamic View on Unscrupulous Consumption Give to the near of kin his due, and also to the needy and the wayfarers. Do not squander your wealth wastefully; for those who squander wastefully are Satan s brothers, and Satan is ever ungrateful to his Lord. Do not keep your hand fastened to your neck nor outspread it, altogether widespread, for you will be left sitting rebuked, destitute. Those people, who when they spend, are neither extravagant nor miserly but keep the golden mean between the two (extremes). Prophet Muhammad said: When you eat, drink, give charity and wear clothes, let no extravagance or pride be mixed up with what you do. Stinginess and Wealth Accumulation: Islamic View Those who do not spend their wealth that has been given to them by Allah must not think that it is good for them; indeed it is bad for them. Allah does not love the arrogant and the boastful, who are niggardly and bid others to be niggardly and conceal the bounty which Allah has bestowed

17 upon them. We have kept in readiness a humiliating chastisement for such deniers (of Allah s bounty). Prophet Muhammad said: Avoid doing injustice to others, for on the Day of Judgment, it will turn into manifold darkness, and safeguard yourself against miserliness, for it ruined those who were before you. It incited them to murder and treating the unlawful as lawful. Prophet Muhammad said: There are two habits which are never present together in a believer, i.e. miserliness and bad manners. Prophet Muhammad said: When someone is made rich but he does not pay Zakat for his wealth, then on the Day of Judgment his money will be turned into a poisonous snake with two black spots on its head. It will coil around his neck and bite his cheeks and say: I am your wealth, I am your treasure. Then the Prophet recited verse Al Imran: 180. Paying Zakat Say your prayers (Namaaz) and pay Zakat. Establish prayer and dispense the purifying alms (Zakat) and bow in worship with those who bow. Entrepreneurship Versus Dependency Prophet Muhammad said: The upper hand is better than the lower hand (i.e. he who gives in charity is better than him who takes it). One should start giving first to his dependents. And the best object of charity is that which is given by a wealthy person (from the money which is left after his expenses). Social Responsibility: Islamic View Prophet Muhammad said: If any Muslim plants something or sows seed from which a man, a bird or an animal eats, it counts as a charity for him. Communal Development: Islamic View

18 Prophet Muhammad said: The best charity is that which is practiced by a wealthy person. And start giving first to your dependents. Prophet Muhammad said: To give something to a poor man brings one reward, while giving the same to a needy relation brings two: one for charity and the other for respecting the family ties. Utility and Satisfaction: Islamic View Prophet Muhammad said: Wealth is not in having vast riches, it is in contentment. Effective Leadership Steps for Strategy implementation in Islamic Organizations Planning without implementation is useless. In some Islamic organizations, there is no defined concept of long-term planning. Others, who do so, are normally faced with the problem of analysis-paralysis, spending too much time on fine tuning their business plans. The result is simple; there appears to be too much ado about nothing. Only few Islamic organizations are implementing their strategy effectively. In this article, the author highlights the generally accepted principles that he believes are necessary for effective strategy implementation in the context of Islamic organizations including Islamic financial Institutions. Leadership can be defined as a dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real, intended

19 change. (Rost, 1991). At the same time, Burns (1978) defines leadership as leaders inducing followers to act for certain goals that represent the values and the motivations the wants and needs, the aspirations and expectations of both leaders and followers. Both definitions stress the transformational dimension of leadership whereby you, as the leader, and your followers enrich each other. Whereas transactional leaders approach followers with an eye to exchanging one thing for another (e.g., jobs for votes, board positions for donations), transformational leaders recognize the needs of potential followers and seek to fulfil their higher-order needs. They strive to engage the follower s full person in order to engender mutual inspiration and elevation. The transformational dimension is very much a part of the Islamic paradigm of leadership, which stresses the reciprocal enrichment of the leaders and the followers. In fact, Islam demands that you, as a leader, pay attention to your followers needs. In a hadith reported in Sunan Abu Dawud by Abu Maryam al- Azdi, the Prophet said: If Allah puts anyone in the position of authority over the Muslims affairs and he secludes himself (from them), not fulfilling their needs, wants, and poverty, Allah will keep Himself away from him, not fulfilling his need, want, and poverty. Concurrently, your followers must provide you with sincere and impartial feedback, support you, and help you orient yourself toward the good. Umar said: May God have mercy upon anyone who points out my faults to me. In fact, your followers are responsible for following your directives as long as you behave according to Islam, and for disobeying you when you do not. According to a hadith reported by Sahih al-bukhari and narrated by Ali, the Prophet said: Obedience (to somebody) is required when he enjoins what is good. Although you may behave in accordance with Islamic precepts and enjoin the good, you might also become too engrossed in your duties as a leader and thus make yourself inaccessible. Indeed, leaders of Islamic organizations are sometimes perceived as aloof and/or unapproachable once they reach a certain level of success. Collins (2003) analyzes the leadership style of some of the world s best corporate leaders and uncovers a dimension that he calls level 5 leadership. In contrast to those high-profile leaders who thrive on personality cults, Collins indicates that level 5 leaders are a paradoxical blend of personal humility and professional will (e.g., Umar and the personal humility he displayed while travelling to Jerusalem to receive its keys). The degree of humility and access suggested by level 5 leadership are critical to the effective implementation of an Islamic organization s strategy. One of the best integrative models of effective leadership is inextricably connected with transformational leadership, level 5 leadership, and innovation. This model

20 (based on Kouzes and Posner s 1995 seminal work, The Leadership Challenge) consists of five basic practices that you, as a leader, can adopt. We will now discuss the leadership practices suggested by this model in the context of strategy implementation. Challenging the Process Leadership is an active and dynamic process. The founders of the Muslim Students Association of the USA and Canada were true pioneers at a time when Islam was just beginning to spread in America. Malcolm X, after discovering true Islam during his pilgrimage to Makkah, did not hesitate to do a complete turnaround: He started rethinking his previous beliefs based on black superiority and then began to proclaim the universal message of Islam. He paid dearly with his life, in fact for speaking and living the truth. While ineffectual leaders sit around and react to events, successful Muslim leaders seek Allah s help and challenge the status quo. In challenging the process, you have to be innovative. At times, you will need to redefine the process in a way that tears down the physical and mental barriers that others have imposed on the Muslim community. For example, dynamic Muslim leaders in India refuse to allow non-muslims to label and classify Indian Muslims as untouchables. When redefining the situation of Muslims, be careful not to overstep Islamic boundaries, as several people and groups have done recently. While challenging the process, search for opportunities both inside and outside your organization or business. Look for ways to change or improve the status quo. These new opportunities may include an innovative new service or activity, reorganization, or a realignment of the organization s mission. To make this search fruitful, follow Allah s shura mandate, and consult with all manner of people, regardless of whether or not they belong to your organization. Even if you do not always agree with them, make it a point to listen to your most demanding critics. The most effective Islamic leaders that I work with use shura as part of their daily decision-making heuristics. Employing this process enables your followers to provide critical insights, since they are often the ones closest to the problem areas and know what does and does not work. Experiment and take risks while challenging the process with the understanding that you may not always succeed. Each failure, however, can be viewed as a learning opportunity. For example, let s assume that you are learning how to play soccer. If you stand behind the ball but do not try to

21 kick it, what have you learned? How can you improve your soccer skills? Similarly, if you have never opened your community s mosque up to members of other faith-based communities, how can you learn to work with them? You cannot shout for public help in times of need when you refuse to honor their request for your assistance. Go on; try, experiment, and fail if need be, but get up and improve. The example of the Prophet being pelted with stones at Taif and coming near defeat at Uhud should serve as a constant reminder of the need to rise above temporary setbacks and to keep on trying fisabilillah. While challenging the status quo, you, as a leader will often encounter many challenges. For example, you may be assailed by your fellow Muslims more viciously than by members of other faith-based communities. At times, your family may be harassed. You may even be asked to step down as president or CEO. You may pay dearly for seeking to make a positive difference, and may wonder why you are making such sacrifices when no one appreciates them. Before giving up and accepting the status quo, remember the following hadith of the Prophet narrated by Abdullah Ibn Umar and reported by Al-Tirmidhi and Ibn Maajah: He who mixes with people and endures the harm they do is better than he who does not mix with them or endure the harm they do. Leadership is about sacrifice and paradigm shifts. Muhammad challenged the worldview of jahiliyyah and encountered many obstacles. Jesus, Noah, Moses, Lot, Abraham (peace be upon all of them) were beloved by Allah, but this did not make them immune to suffering. Syed Qutub and Malcolm X paid with their lives, but never backed down. Muhammad Ali lost his world boxing title, even though his conviction was eventually overturned by the U.S. Supreme Court. Anwar Ibrahim spent years in jail and paid with his reputation and health. Challenging the status quo is never easy, but reaching the vision outlined by your strategic plan may demand no less of you. In a hadith narrated by Abu Sa id Al Khudri and Abu Hurairah and reported in Sahih al-bukhari, the Prophet said: No fatigue or disease, no sorrow or sadness, no hurt or distress befalls a Muslim, even if it were the prick he receives from a thorn, but that Allah expiates some of his sins for that. Inspiring a Shared Vision When challenging the status quo, you need to have a vision of what you want your organization to accomplish. This is your main task. This vision is the source of your organization s mission statement and long-term strategy.

22 In addition, you must involve your followers and increase their commitment to the vision. Engaging in shura can help fine-tune the vision. You can also pray salat al-istikhara to ask Allah to validate the content and direction of the organization s future direction. Once the vision is developed, effective leaders work to commit themselves to it and then to communicate it to others so that they can share it and align themselves with it. The general idea is to share your vision with your organization s members in order to increase their commitment to its implementation. To help others share the vision, explain it to them using simple images or symbols or metaphors that communicate powerfully without clogging. Enabling Others To Act Followers do not succeed (or fail) by themselves. They need servant-leaders, namely, leaders who are not so preoccupied with their self-serving ambitions that they cannot place other people s interests above their own. If a person is using an Islamic organization for self-promotion rather than to enable others to lead, he/she can cause serious damage. In a hadith reported in Al- Tirmidhi, Prophet Muhammad said: Two hungry wolves let loose among sheep are not more destructive to them than a man s greed for property and self-aggrandizement are to his faith. Note that the follower can also be a hungry wolf in sheep s clothing. This is what Ali was stressing when he wrote to Malik al-ashtar: Never take counsel of a miser, for he will vitiate your magnanimity and frighten you of poverty. Do not take counsel of a coward also, for, he will cheat you of your resolves. Do not take counsel of the greedy too: for he will instill greed in you and turn you into a tyrant. Miserliness, cowardice and greed deprive man of his trust in God. The worst of counselors is he who has served as a counsellor to unjust rulers and shared their crimes. As a Muslim leader, you need to have the right intention (niyyah). Are you truly leading this organization, or just holding on desperately to a leadership position because you are the founder? If you are the former, focus on helping those around you succeed without being concerned about your own personal gain or prestige. If you are the latter, step down; there are so many other opportunities to do good work for the cause of Allah. You will learn how good your followers are only when you give them the freedom to succeed and become a servant-leader.

23 Servant-leaders are transformational leaders who actively foster collaboration by serving. Your hard work, and the help provided by your followers, makes things happen. To build collaboration among your followers, promote frequent interaction. Hold a meeting every two weeks. If organizational participants are geographically dispersed, hold a conference call at least once a month. Kouzes and Posner (1995) point out that some organizations with superior leaders hold a staff meeting every morning, although this may not be feasible or even desirable in all situations. By stressing superordinate (organizational) long-term goals and payoffs over short-run objectives and benefits, seek to remove any kind of strategic myopia that causes your followers to emphasize their functional, departmental, or committee goals at the expense of the organization s goals. Ensure that your organization s reward system promotes teamwork over individualistic efforts. Finally, foster collaboration by nurturing trusting relationships between yourself and your followers, provided that you have selected them with care. Trusting your followers to resolve problems will energize them and enable them to come up with solutions that you may never have imagined. Followers must be able to see their work as meaningful and significant, and must be encouraged to take ownership of a task or a responsibility. An excellent example of what followers can do when entrusted with responsibility comes from Motorola (Kouzes and Posner, 1995). From , this global company trained its workers to focus on quality. Hossain Rasoli, a technician involved with power transformers, had often asked himself how the transformers performed in the field. As part of the program, he was entrusted with improving the transformers quality. After gathering information about the weakest components, he convinced the development engineers to redesign the parts. This resulted in a 400 percent improvement in product reliability. Rasoli became Motorola s Mr. Power Amplifier. Besides fostering collaboration, you have to strengthen others through empowerment and delegation. Both concepts share the same idea: power is an expandable resource. The more power you share with your followers or employees, the more power you have and the more you have strengthened them. This is the core of transformational leadership. In strengthening others, you are placing yourself in their shoes and stepping into their reality. Consequently, any demand that you make of them is a demand that you make of the whole group or organization. Muhammad was a leader who joined others in doing what he asked them to do. For example, he helped to build his mosque in Madinah, helped out around the house, and participated in the digging of the ditch prior to the battle of Ahzab. By being willing to

24 work with your subordinates of any aspect of a project or job, you demonstrate to your lower-level employees or workers that you do not feel that only they should perform the worst and/or most difficult tasks; rather, you make them feel empowered and energized through your leadership style. While strengthening your followers, work at raising their level of commitment to the cause. Delegation is critical here, for the more responsible they feel for a course of action, the more committed they will become. Some leaders use a signing up ritual, whereby a person agrees to do his/her best. Another way of building up their commitment level is by making choices visible to others. Just as at Aqaba, where the Muslims pledged their loyalty to the Prophet in public, have the Muslim brother or sister commit to performing a task in front of the group or committee. The more visible the choice, the more committed people will be to that course of action. On the other hand, guard against too much attachment to a previous course of action. Muslims who have committed themselves to a previous task may pursue it even if the project is not working out and they keep receiving negative feedback. If a follower becomes too attached to a continuously underperforming project, rotate him/her out and assign somebody else to it. This will pre-empt escalation of commitment to a previous course of action, a direction which may no longer be warranted in light of changing circumstances. Once you have delegated a task, the follower may not be able to carry it out. You should make sure to provide him/her with feedback designed to improve his/her performance in the future. Fight your desire to reprimand your follower immediately, for according to Kouzes and Posner, the best leaders allow their followers the space and time to learn from their mistakes, whenever feasible. Islam concurs with this approach, as indicated by the Quranic verse revealed after the near defeat of Uhud: It is part of the Mercy of Allah that you do deal gently with them. Were you severe or harsh-hearted, they would have broken away from about you; so pass over (their faults) and ask for (Allah s) forgiveness for them; and consult them in affairs (of moment). Then when you have taken a decision put your trust in Allah. For Allah loves those who put their trust (in Him). Similarly, Aisha narrated and al-tirmidhi reports, that Muhammad (s) stated Avert the infliction of prescribed penalties on Muslims as much as you can, and if there is any way out let a man go, for it is better for a leader to make a mistake in forgiving than to make a mistake in punishing. Modelling the Way

25 Your task is not done after developing a shared vision and empowering others, for now you must lead by modelling the way. First, be clear about your beliefs. By practicing what you preach, clarify to your followers what core values and behavior should be emulated. The Prophet did this, and all current Muslim leaders and followers should follow his example. By using the word khuluq (a derivative of akhlaq [ethics]) to characterize Muhammad, Allah describes our beloved Prophet as a timeless, virtuous model for all: And you stand an exalted standard of character. While modelling the way, remember that the level of your followers maturity will affect the degree and speed at which they follow your example. Given the different levels of follower maturity and the nature of the task, break goals down into small, manageable chunks so that you can achieve small wins. These wins are important, because they give your followers selfconfidence and thus have a multiplier effect. Encouraging the Heart Succeeding in Allah s Path is difficult, and Muslims will be continuously tested. Sometimes, brothers and sisters may become discouraged because a strategic plan may look too hard or is taking too long to implement. An appropriate verse or hadith from you during tough times will help them refocus and strengthen their resolve. You, in your capacity as the leader, can never lose hope in Allah, because doing so is tantamount to disbelief. The following admonition from Prophet Yaqub illustrates this aspect of Islamic leadership: O my sons! Go and inquire about Joseph and his brother, and never give up hope of Allah s Soothing Mercy. Truly, no one despairs of Allah s Soothing Mercy except those who have no faith. Another inspiring verse is: So lose not heart or fall into despair, for you must gain mastery if you are true in faith. The Sunnah of Business These principles are derived, first and foremost from the Quran, the book Allah has sent to mankind with guidance and a glad tidings. The second sources are the

26 hadiths, the sayings and deeds of our beloved Prophet Muhammad, Allah s peace and blessings upon him. The Arabic word tijarah means trade and commerce. The principle is, that trading and business are encouraged in Islam, even making a halal livelihood is considered as a very great source of good deeds. The messenger of Allah said: The trustworthy, honest Muslim trader is with the martyrs on the Day of Rising. However, a Muslim must always remember that his/her first duty comes to her Lord. Allah warns us in the Quran not to neglect our duties: You who have Iman! When you are called to salah on the Day of Jumuʿah, hasten to the remembrance of Allah and abandon trade. That is better for you if you only knew. First Sunnah of business: The Contract The Quran tells us very clear and detailed, that business partners should write a contract. O you who believe! When you deal with each other, in transactions involving future obligations in a fixed period of time, reduce them to writing. [ ] Disdain not to reduce to writing (your contract) for a future period, whether it be small or big: it is more just in the sight of Allah, more suitable as evidence, and more convenient to prevent doubts among yourselves. The second part of the quotation and more convenient to prevent doubts is really important. Writing a proper contract reduce the possibility of misunderstanding. I can only confirm that. In almost three years of business, once I did not write the contract. And it was a disaster. We totally understood things differently which lead to a huge amount of frustration on both sides. But Alhamdulillah, every mistake is an opportunity to learn. When the contract is written, it is the duty of the Muslim to hold on to the obligations of this contract.

27 The contract in the hadith: The Messenger of Allah said: Reconciliation between Muslims is permissible except a reconciliation which prohibits the permissible and permits the impermissible. Muslims are bound to the conditions which they agree to, except for a condition which prohibits the permissible and permits the impermissible. Second Sunnah of business: pay the debts Abu Hurairah narrated: He (the Prophet) said: The best men are those who are best in paying off the debt. Abu Hurairah narrated: The Prophet said: For a wealthy man to procrastinate in repaying his debt is injustice. So, if your debt is transferred from your debtor to a rich debtor, you should agree (to the transfer). Abdullah bin Qatadah narrated: I heard the Messenger of Allah say: He who loves that Allah should save him from the torments of the Day of Resurrection should give respite to the insolvent or remit (his debt). This means not only that you should pay your debts in time as good as you can, but also to help those who are in debt to you. Third Sunnah of business: do not be greedy The Messenger of Allah said, No one hoards except a wrongdoer. Messenger of Allah said, If a son of Adam were to own a valley full of gold, he would desire to have two. Nothing can fill his mouth except the earth (of the grave). Allah turns with mercy to him who turns to Him in repentance. This does not mean that one should not try to earn a decent living or wealth, since being in debt is something one should avoid and having money to help others is also a source of good, in this world and in the next. But being greedy by

28 demanding too high prices without giving that value back, is unislamic and could also be seen as a deception. The Messenger of Allah used to say in his prayers: O Allah, I seek refuge with you from sin and heavy debt. Someone said to him: How often you seek refuge from heavy debt! He said: When a man gets into debt, he speak and tells lies, and he makes a promise and breaks it. Fourth Sunnah of business: fair and just prices There are a lot of references in the Quran about a Muslim being fair and just in everything he or she does. But there are also interesting hadiths about fair trade. Here are few examples: Ibn Umar narrated The Messenger of Allah forbade the sale of fruits until it became clear that they were in good condition. He forbade their sale for the seller and the buyer. The Messenger of Allah said: Do not go forward to meet the caravan (in order to buy from it on the way before it reaches the town); do not urge buyers to cancel their purchases so that you may sell them (your own goods) yourselves, and do not bid against each other with the intention of inflating the price of the merchandise. A town dweller should not sell goods for a desert dweller. Do not leave sheep unmilked for a long time, when they are on sale. Whoever buys such an animal has the option of returning it after milking it or keeping it. Jabir bin Abdullah narrated The Messenger of Allah forbade the sale of a heap of dates of unknown weight for a known weight of dates. These and various other hadiths are interesting examples how treachery and unjust handling is forbidden in business. Fifth Sunnah of business: forbidden things

29 The hadith about the different things to sell are numerous. Since I am no scholar of Islam, and I do not know how they should be applied to our time, it is best to counsel with a trustworthy scholar in this matter. But one thing is very clear: Allah and His Messenger prohibited the trade of alcoholic beverages, dead animals, swine and idols. Those who devour usury will not stand except as stand one whom the Evil one by his touch has driven to madness. That is because they say: Trade is like usury, but Allah has permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (The offense) are companions of the Fire: They will abide therein (forever). O you who believe! Devour not usury, doubled and multiplied; but fear Allah; that you may (really) prosper. Ibn Mas`ud narrated: The Prophet cursed the consumer of Riba, the one who pays it, its two witnesses and the clerk who records it. Business and Commerce in the Quran O ye who believe! Eat not up your property among yourselves in vanities; but let there be among you traffic and trade by mutual good-will. If you look for the exact equivalent of the words business or commerce in the classical Arabic language, you will not find them. Modern dictionaries do list words that represent these concepts, but the words they use are really something else. Some may be puzzled by the absence of words in Arabic for professions for which ancient Arabs are so famous. But we should not be surprised because the common usage of these words, and their respective connotations, has relatively recent

30 origins. What is interesting is that most of us no longer think of the origins of these words. Business means anything that keeps you busy. Commerce originally meant social interaction or intercourse between two individuals. Even in our modern connotations of the words, we seldom think of limitations on such enterprise except that they should be in a free market and be expected to obey some undefined business ethics. We are led to believe that such ethics are flexible, to say the least; after all, we are told that business and politics are dirty businesses. The religious framework of business is very different. One talks about trade, buying, selling, and transactions that deal with things and services of physical and spiritual value. Transactions must follow all rules of justice and equity and be fully understood by the parties involved. There must be full disclosure of the qualities and quantities of the merchandise. The rules for such transactions are based on the Qur an, the traditions and practices of the Prophet and his companions and are laid out in the books of jurisprudence. In this piece, we want to introduce the audience to a few words used in the Quran: Ishtira: Purchasing, Buying, Exchanging. This word, in its various forms is used in the Qur an about 25 times. The context is always otherworldly and spiritual. The pursuit of the momentary gains and worldly comforts and conveniences should never be at the expense of the ultimate success in the hereafter. Those who conceal God s revelations in the Book, and purchase for them a miserable profit, they swallow into themselves naught but fire; God will not address them on the Day of Resurrection, nor purify them: grievous will be their penalty. They are the ones who buy error in place of guidance and torment in place of forgiveness. Ah! What boldness (they show) for Fire. Bai Selling, Buying from (committing to a transaction).

31 This word, in its various forms appears in the Qur an about 11 times. In some places, it refers to worldly trades but considers them less important than the real reason for our being. Surah Al Baqara (2), Aayah 282 but take witnesses whenever ye make a commercial contract. ( The commercial contract is the translator s rendering for one form of the above word). In Surah Ibrahim (14), Aayah 31, we read: Speak to my servants who have believed, that they may establish regular prayers, and spend (in charity) out of the Sustenance we have given them, secretly and openly, before the coming of a Day in which there will be neither mutual bargaining nor befriending. In one form, the word is used in extending and accepting fealty. As an example, the Prophet is told in Surah Al Mumtahana (60), Aayah 12: O Prophet, when believing women come to thee to take the oath of fealty to thee, that they will not associate in worship any other thing whatever with God, that they will not commit adultery (or fornication), that they will not kill their children, that they will not utter slander, intentionally forging falsehood, and that they will not disobey thee in any just matter, then do thou receive their fealty, and pray to God for their forgiveness (of their sins): for God is Oft-Forgiving, Most Merciful. Tijarah: Trade, Transaction, Commerce. I placed the quotation marks on the word commerce, because Yusuf Ali, whose English translation I am using here, translates tijarah with this word in one place out of about 9 occurrences of tijarah or its variances in

32 the Qur an. Curiously, however, that place is Surah Fatir (35), Aayah 29 where the context is not commercial. He translates this Aayah, and Aayah 30 as follows. Those who rehearse the Book of God, establish regular Prayer, and spend (in Charity) out of what we have provided for them, secretly and openly, hope for a commerce that will never fail. For He will pay them their meed, nay, He will give them (even) more of His Bounty; for He is Oft-Forgiving. Most Ready to appreciate (service). (Yes! Yusuf Ali uses the word meed which is the same as reward ) Even this most common of the words for trade, is used to draw spiritual and ethical themes. Explicit use for trade however is used when emphasizing rules that are not generally observed. The very long Aayah 282 of Surah Al Baqara (2) talks about defining the terms and conditions of a transaction with a fixed time period and documenting the agreement of the parties in the presence of witnesses who understand the deal and would remember it in case their testimony is needed. A part of this Aayah was translated above. Some other pieces are given here: O you who believe! When ye deal with each other, in transactions involving future obligations in a fixed period of time, reduce them to writing. Let a scribe write down faithfully as between the parties. Disdain not to reduce to writing (your contract) for a future period, whether it be small or big: it is juster in the sight of God, more suitable as evidence, and more convenient to prevent doubts among yourselves... and let neither scribe nor witness suffer harm. If ye do (such harm), it would be wickedness in you. So fear God; for it is God that teaches you. And God is well acquainted with all things. Trade and commercial transactions are better for distribution of wealth than the use of brute force for the control of resources. Surah Al Nisa (4), Aayat 29 and 30 say:

33 O ye who believe! Eat not up your property among yourselves in vanities; but let there be among you traffic and trade by mutual goodwill: nor kill (or destroy) yourselves: for verily God hath been to you Most Merciful! If any do that in rancor and injustice, soon shall we cast them into the Fire: and easy it is for god. Fulk: The Ships, Trade, and Passenger-boats. This word is mentioned in the Qur an more than 23 times. The word is used in the moral context of telling the story of a prophet or to remind humanity of the power and blessings of God. In Surah Al Baqara (2), Aayah 164, we read: Behold! In the creation of the heavens and the earth; in the alternation of the night and the day; in the sailing of the ships through the ocean for the profit of mankind; (here) indeed are Signs for a people that are wise. Surah Ar Rum (30), Aayah 46 says: Among His Signs is this, that He sends the Winds, as heralds of Glad Tidings, giving you a taste of His (Grace and) Mercy, that the ships may sail (majestically) by His Command and that ye may seek of His Bounty: in order that ye may be grateful. In Surah Az Zukhruf (43), Aayah 12, we read: The same God that created pairs in all things, and has made for you ships and cattle on which ye ride.

34 Read the Aayat 9 through 15 to get a flavor for the full context. Kaal and Wazan: Measuring and Weighing The word Wazan and related variants are mentioned in the Qur an about 23 times. The word Kaal is mentioned together with the above 6 times. Some examples are given below. Surah Al Israa (17), Aayah 35: Give full measure when ye measure, and weigh with a balance that is straight; that is the most fitting and the most advantageous in the final determination. Read Aayat 23 through 40 to see the whole context. Surah Al Mutaffifin (83), Aayat 1 through 3: Woe to those that deal in fraud, those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due. Surah Ar Rahman (55), Aayat 7 through 9 read: And the firmament has He raised high, and He has set up the Balance (of Justice), in order that ye may not transgress (due) balance. So establish weight with justice and fall not short in the balance. Saiyr: To move, To set out, To travel.

35 The above word, with its variations, appears in the Qur an about 26 times. Most of the usage is in the formulation of tell them to travel, or why don t they travel? Traveling for a purpose, but not a purposeless journey, is highly recommended. The emphasized purpose is learning about others and about the fate of previous peoples and civilizations. What happened to all the great powers of the past? Why were they destroyed? The Qur an tells us that they were destroyed for their refusal to be conscious and for being unjust. But He wants us to see the evidence ourselves and learn about them. Surah Al Mu min (40), Aayah 82 tells us: Do they not travel through the earth and see what was the end of those before them? They were more numerous than these and superior in strength and in the traces (they have left) in the land. Yet all that they accomplished was of no profit to them. Aayah 21 of the same Surah ends with: But God did call them to account for their sins, and none had they to defend against God. Surah Al Hajj (22), Aayah 46 adds: Do they not travel through the land, so that their hearts (and minds) may thus learn wisdom, and their ears may thus learn to hear? Truly, it is not their eyes that are blind, but their Hearts which are in their breasts.

36 The teachings of the Prophet with regard to buying and selling We can sum up the teachings of the Prophet with regard to doing business, buying and selling, as follows: The Prophet worked in business before his mission began, with his paternal uncle Abu Taalib, and he also worked for Khadeejah, and he travelled for that purpose to greater Syria. He also did business in the markets; Majannah and Ukaaz were markets during the Jaahiliyyah to which merchants would come to buy and sell. The Prophet used to engage directly in transactions himself, as we shall see below in the hadith about the camel of Umar and the camel of Jaabir. He also used to appoint one of his companions to do that for him, as in the case of Urwah Ibn Abi l-ja d al-baariqi, who said that the Prophet gave him gave him a dinar to buy a sacrificial animal or a sheep for him. He bought two sheep and sold one for a dinar, and he came back with a sheep and a dinar. He prayed for blessing for him in his business dealings, and (after that) if he had bought dust he would have made a profit. Narrated by at-tirmidhi (1258); Abu Dawood (3384); Ibn Maajah (2402); classed as saheeh by al-albaani in Saheeh at-tirmidhi. The Prophet used to enjoin traders to be righteous and honest and to give charity. It was narrated that Hakeem Ibn Hizaam said: The Messenger of Allah said: The two parties to a transaction have the option (of cancelling it) until they part. If they are honest and disclose any defects,

37 their transaction will be blessed, but if they lie and conceal defects the blessing of their transaction will be erased. Narrated by al-bukhari (1973) and Muslim (1532). It was narrated from Ismaa eel Ibn Ubayd Ibn Rifaa ah from his father from his grandfather that he went out with the Prophet to the prayer place, and he saw the people engaging in trade. He said: O merchants! and they responded to the Messenger of Allah, craning their necks and looking up at him. He said, The merchants will be raised on the Day of Resurrection as evildoers, apart from those who fear Allah and are sincere and honest. Narrated by at-tirmidhi (1210); Ibn Maajah (2146); classed as saheeh by al-albaani in Saheeh at-targheeb (1785). It was narrated that Qays Ibn Abi Gharazah said: The Prophet (blessings and peace of Allah be upon him) used to say: O merchants, selling involves idle talk and oaths, so mix it with sadaqah (charity). Narrated by at-tirmidhi (1208); Abu Dawood (3326); an-nasaa i (3797); Ibn Maajah (2145); classed as saheeh by al-albaani in Saheeh Abi Dawood. The Prophet used to enjoin people to be tolerant and easy-going in buying and selling. It was narrated from Jaabir Ibn Abdullah that the Messenger of Allah said: May Allah have mercy upon a man who is easy-going when he sells and when he buys and when he asks for payment. Ibn Hajar said: In this hadith it is encouraged to be easy-going in transactions, to have the most sublime of attitudes, and to avoid miserliness, and it is encouraged to avoid putting pressure on people when asking for payment, and to take from them what they can afford. Examples of the tolerance and easy-going nature of the Prophet include the following: It was narrated that Ibn Umar (may Allah be pleased with him) said: We were with the Prophet (blessings and peace of Allah be upon him) on a

38 journey, and I was riding on a recalcitrant young camel belonging to Umar. It kept getting the better of me and kept going ahead of the people, so Umar kept checking and making it go back. Then it went on ahead and Umar checked it and made it go back. Then the Prophet said: Sell it to me. He said: It is yours, O Messenger of Allah. He said: Sell it to me. So he sold it to the Messenger of Allah and the Prophet said: It is yours, O Abdullah Ibn Umar; do with it whatever you will. It was narrated from Jaabir Ibn Abdullah that he was riding on a camel of his that had become exhausted to the point that he wanted to let it go. He said: The Prophet (blessings and peace of Allah be upon him) caught up with me and offered supplication for me, and he hit it and the camel started moving (energetically) as I had never seen it move before. He said: Sell it to me for one uqiyah. I said: No. He said: Sell it to me. So I sold it to him for one uqiyah and stipulated that I be allowed to ride it home. When I arrived I brought the camel to him, and he gave me its price, then I left. He sent someone after me and said: Did you think that I bargained with you in order to take away your camel? Take your camel and its price; they are both yours. The Prophet used to give people their rights and urge others to do likewise. It was narrated that Abu Hurayrah said: A man was owed a camel of a certain age by the Prophet, so he came to him to ask him to repay him, and he said: Give him. They looked, but they could not find anything but a camel that was older than his, so he said: Give him. He said: You have paid me back in full, may Allah reward you. The Prophet said: Verily the best of you are those who are the best in paying off debts. The Prophet used to urge people to let a buyer cancel the transaction if he regrets it. It was narrated that Abu Hurayrah said: The Messenger of Allah said: Whoever lets a Muslim off (a transaction), Allah will relieve him of his distress on the Day of Resurrection. Letting someone off means being easy-going and agreeing to cancel a sale or purchase; it is indicative of generosity of spirit.

39 What is meant by letting someone off a sale is: if someone buys something from a man, then regrets his purchase, either because he feels that he did not get a good deal, or because he no longer has any need of it, or because he does not have the wherewithal to pay for it, so he returns the item to the seller and the seller agrees to take it back, Allah will remove his hardship and distress on the Day of Resurrection, because of his kindness towards the buyer, because the transaction has been finalized, so the purchaser could not cancel it. The Prophet used to bargain with people when buying, but he would not go so far as to undermine the real value of the item, as we have seen above in the hadith about the camel of Jaabir. It was narrated that Suwayd Ibn Qays said: Makhramah al- Abdi and I brought some garments from Hajar to Makkah. The Messenger of Allah came to us on foot and bargained with us for some trousers, and we sold them to him Narrated by at-tirmidhi (1305) he said: it is Hassan Saheeh. Also narrated by Abu Dawood (3336), an-nasaa i (4592) and Ibn Maajah (2220). The Prophet used to urge people to give a little more when weighing. It was narrated that Suwayd Ibn Qays said: The Messenger of Allah saw a man who weighed things for a fee and the Messenger of Allah said to him: Weigh and give a little more. This is the continuation of the hadith quoted above. The Prophet used to enjoin people to give more time for a debtor who is in financial difficulty, or to waive the debt. It was narrated that Abu l-yasar said: The Prophet said: Whoever waits for one who is in (financial) difficulty (to pay a debt) or waives it for him, Allah will shade him in His shade. The Prophet forbade transactions involving Riba (usury), transactions involving ambiguity, Eenah transaction (which involve selling

40 something for a price to be paid at a later date, then buying it back for a lower price to be paid immediately), dealing in haraam things, and cheating and deception. PROPHET THOUGHTS ABOUT BUSINESS The Prophet (sallallhu alayhi wasallam) said: An honest and truthful businessman shall be in the shade of the throne of Allah. Prophet Muhammad has said that whoever buys stolen goods, knowing such goods to have been stolen, becomes a party to the act of theft. Almighty Allah s mercy descends on one who is gentle at the time of buying, selling, and requesting payment. Our Prophet Muhammad has said that Almighty Allah proclaims: I am a one third partner of a two man partnership until one of them acts dishonestly to his partner, and, in such event, I then leave them. Prophet Muhammad said whosoever sells a defective product without disclosing its defect to the purchaser, shall earn the permanent anger of Almighty Allah and the angels continuously curse such a person. Our Prophet Muhammad has exhorted that we should refrain from taking oaths unnecessarily for although it helps in the sale of one s products, it reduces the blessings. Our Prophet Muhammad has said, Whosoever accepts returned products, Almighty Allah will wipe-out his punishment. Let there be no compulsion in religion. Truth stands out clear from error; whoever rejects evil and believes in God has grasped the most trustworthy hand-hold that never breaks. And God hears and knows all things." - (The Qur an, Al-Baqarah, 2:

41 256) "Be tolerant to be tolerated." Prophet Muhammad (s) as narrated in Ahmad B. Hanbal, Musnad 1/248. "No mercy would be shown to him who does not show mercy." Prophet Muhammad (s) in Sahih Bukhari 18 and in Sahih Muslim 85. "Every soul is held in pledge for its deeds." - (The Qur'an, Al-Muddathir, 74:38) God s Messenger (peace be upon him) was asked what type of earning was best and replied, A man s work with his hand and every business transaction which is approved." Rafi Ibn Khadij, Mishkat al Masabih, hadith no "Woe to those who give short measure, who demand of other people full measure for themselves, but give less than they should when it is they who weigh or measure for others! Do these people not realize that they will be raised up on a mighty Day, a Day when everyone will stand before the Lord of the Worlds? (The Qur'an, Al-Mutaffifin, 83:1-4) "O you who believe! Fulfill your obligations"(the Qur'an, Al-Ma'idah, 5:1) "If the debtor is in difficulty, then delay things until matters become easier for him; still, if you were to write it off as an act of charity, that would be better for you if you only knew."(the Qur'an, Al-Baqara, 2: 280) On the Day of Judgment, the Prophet will be a witness against one who employs a laborer and gets the full work done by him, but does not pay him his wages. Abu Hurayrah, Sahih al Bukhari, hadith no Oh you who believe! Give of the good things which you have (honorably) earned. And of the fruits of the earth which we have produced for you, and do not even aim at getting anything which is bad, in order that out of it you may give away something, when you yourselves would not receive it except with closed eyes. (The Qur'an, Al-Baqarah, 2: 267) He who buys the stolen property, with the knowledge that it was stolen, shares in

42 the sin and shame of stealing. Prophet Muhammad in a hadith reported by al Bayhaqi and cited in al Qaradawi. "God commands you (people) to return things entrusted to you to their rightful owners, and if you judge between people, to do so with justice." (The Qur'an, An- Nisa, 4:58) "And spend of your substance in the cause of God. And make not your own hands contribute to (your) destruction; But do good; for God loves those who do good."(the Qur'an, Al-Baqarah, 2: 195) None of you truly believes until he wishes for his brother what he wishes for himself "(Hadith #13 in An Nawawi and related by Bukhari and Muslim) "When someone helps the good deeds to be practiced, it is as if he performed those good deeds indeed," Prophet Muhammad (s) in Tirmizi, 14. "The blessed of mankind is the one who is the most beneficial for mankind." Prophet Muhammad in Beyhaki 6/112. "I am to my servant as he expects of me, I am with him when he remembers me. If he remembers Me in his heart, I remember him to Myself, and if he remembers me in assembly, I mention him in an assembly better than his, and if he draws nearer to me a hand's span, I draw nearer to him an arm's length, and if he draws nearer to me an arm's length, I draw nearer to him a fathom length, and if he comes to me walking, I rush to him at (great) speed" (Bukhari and Muslim). O son of Adam, so long as you call upon me and ask of me, I shall forgive you for what you have done, and I shall not mind. O son of Adam, were your sins to reach the clouds of the sky and were you then to ask forgiveness of me, I would forgive you. O son of Adam, were you to come to me with sins nearly as great as the earth and were you then to face me, ascribing no partner to me, I would bring you forgiveness nearly as great as its.

43 TIJARAT KI SHARTEIN (CONDITIONS OF BUSINESS): There are 5 conditions of business said by Prophet:- Fari qain (Buyer N Seller) Ki Bahimi Raza mandi Allah Tala Ne Farmaya Aiy Imaan Walon! Aapas Me Ek Dusre Ke Maal Baatil Tareeqe Se Na Khao Wa Len-Den Aapas Ki Raza mandi Se Hona Chahiye. (Surah Baqarah 29) Aur Hz Ibn Abbas (Ra) Se Marwi Hai Ke Nabi E Akram Ne Farmaya Kisi Musalman Aadmi Ka Maal Uski Dili Khushi Ke Be ghair Halal Nahin Hota. (Arwa Ul Ghaleel 5/481, Baheqi 6/97) Ek Dusri Riwayat Me Ye Lafz Hain Ke Sirf Khareed Wa Farokht Bahimi Raza mandi Se Hi (Jayez) Hai. (Arwa Ul Ghaleel 1273, Ibn Majah 2185) (Bayy Ke Sahih Hone Me) Sirf Bayy Aur Mush tari Ki Raza mandi Zaroori Hai Khwaah Ye Ishaare Ke Zariye Hi Haasil Ho Jaaye. (Imam Shaukani Rh) Malum Hua Ke Bayy Ke Inteqaad Ke Liye Fariqain Ki Bahimi Raza mandi Zaroori Hai, Lihaza Agar Kisi Ko Majboor Karke Koi Cheez Bikwaayi Jaaye Toh Wah Khareed Farokht Durust Nahin Hogi, Yahan Ye Bhi Yaad Rahe Ke Agar Fariqain Kisi Ghair Sharai Len Den Par Raazi Ho Jaaye Tab Mahaz Fariqain Ki Raza mandi Us Len Den Ke Jawaaz Ke Liye Kafi Nahin Hogi, Jaise Soodi Len Den Bahimi Raza mandi Se Jayez Nahin Hoga Kyonki Usse Alag Taur Par Mana Kar Diya Gaya Hai,

44 Isi Tarah Zina kari Ke Zariyr Hone Wali Kamayi Bhi Mahaz Bahimi Raza mandi Ki Wajah Se Halal Nahin Hogi Kyonke Usse Bhi Mana Kiya Gaya Hai. Khareed Wa Farokht Karne Wala Aaqil Wa Baligh Yani Muqallaf Wa Khud Mukhtar Ho: Kyonke Jab Tak Wah Sanne Takleef Ko Nahin Pahunchta Uska Maal Me Tasarruf Durust Nahin Jaise Ka Allah Tala Ka Irshad Hai: Agar Tum Unme Hoshiyari Aur Hasan Tadbeer Paao Toh Unke Maal Unhe Saunp Do.(Surah Nisa Ayat 6) Kam Aqal Walon Ko Apna Maal Na Do. (Surah Nisa Ayat 5) Imam Ibn Kathir (Rh) Ne Farmaya Ke Isse Malum Hua Ke Kam aqal Logon Ko Unke Maal Ke Kharch Se Rok Dena Chahiye, Maslan Na baligh Baccha, Majnoon Wa Diwaana, Kam aqal Wa Be waqoof Wagairah. (Tafseer Ibn Kathir 2/71) Khud mukhtar Hona Isliye Zaroori Hai Kyonki Sehat E Tijarat Ke Liye Raza mandi Aur Qalbi Khushi Ki Shart Lagaayi Gayi Hai, Kaisa Ke Abhi Peeche Dalail Zikr Kiye Gaye Hain. Jis Cheez Ki Khareed Farokht Ho Rahi Ho Uska Nafa Mubaah Ho: Yani Un Ashya Mese Na Ho Jinka Nafa Haasil Karna Shari at Ne Haram Qarar Diya Hai Jaise Aalaat E Lahu Wa Lu ab, Murdaar Aur Sharab Wagerah. Chunanche Farman E Nabawi Hai Bila shubah Allah Tala Aur Uske Rasool Ne Sharab, Murdar, Kheenzeer (Suwar), Aur Buton Ki Bayy Ko Haram Qarar Diya Hai. (Bukhari 2236 Kitab Ul Buyu, Muslim 1581, Abu Dawood 3486) Farokht Karne Wala Cheez Ka Malik Ho Ya Use Wah Cheez Farokht Karne Ki Ijaazat Di Gayi Ho: Jo Cheez Tumhare Paas Maujood Nahin Use Farokht Na Karo

45 (Arwa Ul Ghaleel 1292, Abu Dawood 3503 Kitab Ul Buyu, Tirmizi 1232, Nisai 7/289, Ibn Majah 2187, Ahmad 3/402, Baiheqi 5/ 317) Yani Wahi Cheez Farokht Karo Jo Tumhari Milkiyat Hai, Iske Elawah Wah Cheez Bhi Farokht Kar Sakta Hai Jiski Ijaazat Di Ho Jaisa Ke Shariat Me Waqeel Banaane Ka Masla Saabit Hai, Chunanche Ek Riwayat Me Hai Ke Nabi E Kareem Sallalahi Alaihi Wasallam Ne Urwa Bin Ja ad Barqi (Ra) Ko Qurabani Ka Janwar Ya Bakri Khareedne Ke Liye Ek Dinaar Ata Farmaya, Unhone Ek Dinaar Ke Auz Do Bakriyan Khareedi, Fir Unmese Ek Ko Ek Dinaar Ke Auz Farokht Kar Diya Aur Ek Bakri Aur Ek Dinaar Le Kar Aap Ki Khidmat Me Haazir Hue, Aap Ne Unke Liye Tijaarat Me Barkat Ki Dua Farmaayi, Uske Baad Wah Mitti Bhi Khareed Lete Toh Usme Bhi Unhe Zaroori Munaafa Haasil Hota. Iske Mutaalliq Ahle Ilm Ka Kahna Hai Ke Ye Malik Ki Ijaazat Par Mauqoof Hai, Agar Wah Ilm Hone Ke Baad Use Rakhe Toh Bayy Durust Hogi Warna Nahin. Qabil Farokht Cheez Aur Qeemat Bayy Aur Mush tari (Buyer n Seller) Ko Malum Ho Majhool Na Ho: Kyonki Agar Unme Se Koi Cheez Malum Na Hogi Toh Dhoke Ka Imkaan Hai Aur Dhoke Ki Bayy Ke Nabi E Kareem Sallalaho Alaihi Wasallam Ne Mana Farmaya Hai.(Muslim 1513 Kitab Ul Buyu, Abu Dawood 3376, Tirmizi 1230). RULES OF TIJARAT Beghair gawahon ke sauda kiya ja sakta hai: Jaisa Ke Hadith Me Hai Ke Nabi Ek Akram Sallalaho Alaihi Wasallam Ne Ek Dehaati (Villager) Se Ghode Ka Sauda Kiya Aur Kisi Ko Gawah Muqarrar Na Kiya Fir Tana za Ho Gaya Toh Hz Khazeema (Ra) Ne Shahadat Di Aur Aapne Unki Shahadat Ko 2 Admen Ki Shahadat Ke Barabar Qarar Diya. (Sahih Abu Dawood 3073 Kitab Ul Qaza, Ahmad 5/215)

46 Sauda karte waqt koi shart lagana durust nahi hai: Hz Jabir (Ra) Se Marwi Hai Ke Wah Apne Ek Oont Par Safar Kar Rahe They Jo Thak Chuka Tha, Nabi E Akram Sallalaho Alaihi Wasallam Ne Use Maara Aur Uske Liye Dua Ki, Wah Is Tarah Tezz Chalne Lava Ke Usse Pahle Aisi Tezz Raftaari Se Nahin Chalta Tha, Fir Aap Ne Farmaya: Mujhe Ye Oont 1 Auqiya Chandi Ke Badle Bech Do Maine Arz Kiya- Nahin Aap Sallalaho Alaihi Wasallam Ne Dobara Yahi Farmaya: Chunanche Maine Wah Oont Aap Ko Is Shart Par Farokht Kar Diya Ke Apne Ahle Khana (Family) Tak Us Par Sawaar Hokar Jaunga. Jab Ham Madeena Pahunche Toh Main Aapke Paas Oont Le Aya Aur Aapne Uski Naqad Qeemat Mujhe Ada Kar Di. Dhoka na dene ki shart par sauda kiya ja sakta hai: Hz Ibn Umar (Ra) Se Riwayat Hai Ke Rasoollullah Sallalaho Alaihi Wasallam Ke Paas Ek Shakhs Ne Zikr Kiya Ke Use Bayy Me Aam Taur Par Dhoka Kiya Jaata Hai Toh Aapne Farmaya Sauda Karte Waqt Kah Diya Karo Ke Koi Fareb Wah Dhoka Nahin Hoga (Bukhari 2117, 2407 Kitab Ul Buyu, Muslim 1533, Ahmad 2/44, Abu Dawood 350m, Nisaai 7/252) Aisi Shart Lagaane Ka Faayeda Ye Hoga Ke Agar Baad Me Koi Dhoka Hua Toh Maalik Wah Cheez Waapas Lene Ka Zimmedaar Hoga. Saude mese koi majhool cheez Mush tashna kar lena durust nahin: Hz Jabir Se Marwi Hai Ke: Nabi E Akram Ne Ek- Aadh Cheez Mush tashna Kar Lene Se Mana Farmaya Hai, Siwaaye Uske Ke Uski Miqdaar Muqarrar Kar Di Jaaye. (Nisai 3770, Arwa Ul Ghaleel 1354) Hafiz Ibn Hajar Farmate Hain Ke: Saude Me Ishtasna Ki Soorat Ye Hai Ke Aadmi Koi Cheez Farokht Kare Aur Uska Kuch Hissa Chhipa Le, Agar Koi Cheez Mushtashna (Alag Ki Hui Cheez) Malum Ho Maslan Darakhton Mese Ek Darakht, Mukhtalif Manazil Mese Ek Manazil Aur

47 Zameen Ki Mukhtalif Jagahon Mese Koi Ek Jagah Toh Bila iitefaaq Ye Sauda Sahih Hai Aur Agar Mush tasna Majhool Ho Maslan Aadmi Kisi Na maalum Cheez Ko Mushtasna Kar De (Maslan Wah Kahe Ke Maine Ye Dher Farokht Kar Diya Hai Lekin Uska Baaz Hissa Farokht Nahin Kiya) Toh Sauda Sahih Nahin Hoga, Aur Majhool Saude Se Mumaniyat Me Hikmat Ye Hai Ke Ye Sauda Jihaalat Ki Wajah Se Dhoke Par Mushtamal Hai. (Fath Ul Bari 5/354) Imam Nawawi (Ra) Se Bhi Isi Maane Me Qaul Marwi Hai (Sharah Muslim 10/195) Malum Hua Ke Majhool Istasna Wala Sauda Durust Nahin, Albatta Agar Istashna Ki Hui Cheez Ki Wazaahat Ho Jaaye Jaisa Ke Hz Jabir Ne Nabi E Akram Sallalaho Alaihi Wasallam Ko Apna Oont Farokht Karte Waqt Madeena Tak Uspar Sawaar Hoke Jaane Ka (Malum) Istasna Kiya Tha. (Bukhari 2406, Muslim 715) Toh Fir Aise Saude Me Koi Harz Nahin. Saude ki qeemat ada karke sauda na lena bhi durust hai: Jaisa Ke Hz Jabir Ki Riwayat Me Hai Ke Nabi E Akram Sallalaho Alaihi Wasallam Ne Unse Oont Khareeda Aur Uski Qeemat Ada Kar Di Fir Farmaya Ke: Apna Oont Le Lo Aur Raqam Bhi Apne Paas Rakho, Ye Sab Tumhara Maal Hai. (Bukhari 2406, Muslim 715) Sauda ho raha ho to teesra aadmi dakhal andazi na kare: Hz Ibn Umar Se Riwayat Hai Ke Rasoollullah Ne Farmaya Tum Mese Koi Bhi Apne Bhai Ke Saude Par Sauda Na Kare. (Bukhari 5142, Abu Dawood 2071, Tirmizi 1292)

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