"What is Ethics?" asked the Owl, seeking an answer. The Moon replied, "In general, ethics is a branch of philosophy, that addresses moral issues, regarding what is good and bad; right and wrong; noble and virtuous; praiseworthy or blameworthy. In particular, normative ethics, is the study of pragmatic approaches, to arriving at moral guidelines. Although most people do not consider ethics to be a religion—at least not in the original, spiritual sense of the word—it essentially, overlaps with many religions in various aspects."
"So, how is Ethics in Islamic perspective?" the Owl was curioused. The Moon talked back, "For a Muslim, the question of morality—of good and bad—is not left to arbitrary human standards. It is replaced by the nobler, more meaningful, and more just issue of obedience to the Creator, with respect to what He has declared to be halal and haram. This elevates the status of Muslims, but does not preclude ethics; in fact, it defines the ethical standards for them.
Islam begins with a clear objective for doing good: to worship Allah, which is the very purpose for which humans were created. Allah has said,
وَذَكِّرْ فَاِنَّ الذِّكْرٰى تَنْفَعُ الْمُؤْمِنِيْنَ وَمَا خَلَقْتُ الْجِنَّ وَالْاِنْسَ اِلَّا لِيَعْبُدُوْنِ مَآ اُرِيْدُ مِنْهُمْ مِّنْ رِّزْقٍ وَّمَآ اُرِيْدُ اَنْ يُّطْعِمُوْنِ
'And remind, for indeed, the reminder benefits the believers. And I did not create the jinn and mankind except to worship Me. I do not want from them any provision, nor do I want them to feed Me.' [QS. Adh-Dhariyat (51):55-57]
In contrast, the field of secular ethics, can at best advocate ‘doing good for the sake of doing good.’ Allah has warned us about such vacuous tasks, in particular the futility of doing good to seek anything other than His pleasure,
قُلْ هَلْ نُنَبِّئُكُمْ بِالْاَخْسَرِيْنَ اَعْمَالًا ۗ اَلَّذِيْنَ ضَلَّ سَعْيُهُمْ فِى الْحَيٰوةِ الدُّنْيَا وَهُمْ يَحْسَبُوْنَ اَنَّهُمْ يُحْسِنُوْنَ صُنْعًا اُولٰۤىِٕكَ الَّذِيْنَ كَفَرُوْا بِاٰيٰتِ رَبِّهِمْ وَلِقَاۤىِٕهٖ فَحَبِطَتْ اَعْمَالُهُمْ فَلَا نُقِيْمُ لَهُمْ يَوْمَ الْقِيٰمَةِ وَزْنًا ذٰلِكَ جَزَاۤؤُهُمْ جَهَنَّمُ بِمَا كَفَرُوْا وَاتَّخَذُوْٓا اٰيٰتِيْ وَرُسُلِيْ هُزُوًا
'Say, [O Muḥammad], 'Shall we [believers] inform you of the greatest losers as to [their] deeds? [They are] those whose effort is lost in worldly life, while they think that they are doing well in work.' Those are the ones who disbelieve in the verses of their Lord and in [their] meeting Him, so their deeds have become worthless; and We will not assign to them on the Day of Resurrection any weight [i.e., importance]. That is their recompense—Hell—for what they denied and [because] they took My signs and My messengers in ridicule.' [QS. Al-Kahf (18):103-106]
It is clear that Islam and secular ethics, are not merely interchangeable approaches, to the same result of reaching higher moral ground. Islam provides a purpose for ethical conduct, whereas secular ethics interfere with the purpose of life. Islam specifies legal rulings, whereas secular ethics, attempt to develop a universal moral code. Thus, Islam is clearly superior to secular ethics.
Specifically in the context of business ethics, Islam arguably provides better epistemological stances. To prove this, we will utilize the example of CSR (corporate social responsibility).
What is CSR? It is easier to explain by example than to provide a technical definition. When a hospital sponsors a free clinic in an inner-city location, a large mobile phone company engages in a city cleanup program, or a bank offers scholarships to needy students, it is engaging in CSR activities. In general, CSR refers to corporations doing something positive for the public welfare. Firms are coming under growing pressure—from everyone from consumers to lawmakers—to enhance their CSR. In the absence of any analysis, it seems that CSR, which involves firm-level ethical behaviour, is nothing but good.
However, when CSR was first emerging almost forty years ago, Milton Friedman—the Nobel Prize for Economics—strongly opposed it. He even recommended that, legal measures, be taken to prevent managers from engaging in CSR activities. His rationale was quite simple; he argued that, managers, should not interfere with the firms’ profit-maximization objectives by imposing CSR, because both firms and societies are better off with successful firms. Although Friedman’s stance endures today among his staunch supporters, most managers and other members of society have embraced CSR. Surprisingly, researchers of ethics have not been able to accurately explain why that is.
It is obvious that there are many missing parts in the CSR theory, beginning with the lack of an accurate definition of CSR. In particular, is a firm really doing any good if it is motivated by profits? Should a firm engage in CSR if it is not profitable? If so, how much profit should it sacrifice, and what level of support should it give to CSR? Does a positive outcome from CSR outweigh the inefficiency it introduces, since some of the firm’s resources are being used on activities that are not suitable for optimizing the firm’s production of goods or services?
While studies in secular business ethics have yet to generate a complete CSR theory, that addresses these questions, Islam provides all the answers, as well as perfect normative guidelines. The Islamic approach is superior to the secular approach for two reasons. First of all, Islam properly maintains the distinctions in levels between firms and managers. Islam imposes restrictions explicitly on individuals and only implicitly on firms—since firms are an aggregation of people and their activities. Thus, Islam does not impose firm-level ethicai behaviour. CSR is not explicitly encouraged or discouraged in Islam. Consequently, the Islamic approach is not even subject to the question that cripples the secular approach to business ethics, namely: why should firms engage in CSR activities that do not lead to profits, particularly when it cannot even ‘feel’ any warm glow?
Secondly, Islam challenges any seemingly ethical behaviour on the part of individuals or creations, that is not motivated by the worship of Allah as their Creator, because actions are judged by intentions. In sharp contrast, the secular business ethics, approach encourages managers—and, oddly, firms, which are not human—to engage in ethical behaviour, by suggesting such rewards as profits or pride. The issues of validating profit-driven CSR, or the morality offirm-level trickery, do not arise at all in Islam.
Despite the fact that Islam prescribes social responsibility for individuals, and not at an organizational level, companies, led by Muslim managers and owners, will practice what are arguably the most socially-responsible business practices—and it is easy to see why.
Islam advocates charity, and the exemplary Companions of our beloved Prophet (ﷺ), set incredibly high standards in their practice of charity. Thus, Muslim owners, who fear Allah and seek His blessings, will sacrifice dividends for morals. These forgone profits, untainted by marketing or other profit motives, can be managed efficiently, leading to the highest levels of CSR. Moreover, Muslim managers who fear Allah, will ensure that the firm’s activities are not unfair or dishonest.
During the time of Caliph Abu Bakr, radhiyallahu 'anhu, people were afflicted by drought. They went to him and said, 'The sky has not rained, and the earth has not grown. People are going through severe hardship.' Abu Bakr said, 'Go, and have patience, for the night will not fall until Allah, the Beneficent, has brought you relief.'
Before long, ‘Uthman’s merchants returned from the Levant with one hundred camels carrying wheat—or food. People went to his house and knocked upon his door.
‘Uthman, radhiyallahu 'anhu, came out to the group of people and asked, 'What are you here for?' They replied, 'We are going through times of drought; the sky has not rained and the earth has not grown. People are going through severe hardship, but we have heard that you have food. Sell us some. So we may distribute it to the Muslims who are poor and needy.'
‘Uthman said, 'By ail means, welcome! Come in and buy!' They entered and found the food waiting there. He said, 'O merchants, how much will I profit by selling you my merchandise from the Levant?' They offered, 'We give you twelve for ten.' ‘Uthman responded, 'They offered me more.' They said, 'Fifteen for ten.' ‘Uthman replied, 'They offered me more.' Now the merchants said, 'Abu ‘Amr, there are no merchants left in Madinah but us! Who offered you more?' He answered, 'Allah Subhanahu wa Ta'ala, offered me ten for every dirham. Do you have more?' They stated, 'By Allah, no!' He declared, 'Then I bear witness that I have given this food as charity to the poor and needy Muslims.'
As a prescription from Allah, Islam provides the solution to every ethical crisis, so Muslims have no need to resort to sources external to Islam, to learn about morality or its philosophy. It is quite surprising that Muslims today have forgotten this, and are striving to learn morality from secular approaches. Why would they choose an inferior approach over a superior one?
A universal code of ethics drafted in secular circles, may contradict Islam. Because of this reason, for Muslims, regarding to those business ethics: If it conforms to Islam, it may be accepted; if it contradicts Islam, reject it. There are a few specific guidelines for implententing this general principle.
First, gain knowledge of Islam. In reality, secular ethics are artificial and selfish, whereas, the act of pleasing Allah, is a most noble deed. As part of ethics, Muslims should first gain knowledge of Islam. True tawakkul then is to have taqwa, give up the haram, practice the halal, trust Allah, and be content with what Allah decides.
Second, promote ethics through Islam. Muslims should not oppose morality; on the contrary, they should promote it. They should also remember their duty to call others to Islam. Thus, the issue of ethics can be used by knowledgeable Muslims, to highlight the truth of Islam, by demonstrating the perfect code of conduct advocated in this religion, as prescribed by Allah, and by encouraging others to ponder the greatness ofAllah’s religion.
Third, design CSR projects that reflect Islamic ethics. Today, there are many social problems that firms can tackle through CSR. Managers should use their wisdom, acknowledge their duty to Allah, and select the best projects. As an example, firms could sponsor micro-credit initiatives to replace the riba on which existing projects depend for funding. This can be a meaningful CSR effort that helps to defeat riba.
Finally, strive to increase taqwa. Muslims should be vigilant about being conscious of Allah at all times, fearing Him and remembering that He is always watching and aware.
