From an Islamic perspective and the importance of their application in developing human virtue and perfection, there two different concepts : aḫlāq (morality) and adab (manners). Adab indicates expression, be it in behavior particular to the individual, or to the norms of a particular culture or even family. In short, adab is a proper conducts, generally, regardless of the spiritual or religious side. Adab is what is visible from the outside. Adab is very important especially, for example, living in a country where the citizens have different races, tribes and religions. Adab is important in terms of how we behave and treat our fellow human beings and the surrounding environment, fairly.
In Islam, virtues or moral character traits are termed as aḫlāq, meaning moral qualities and good traits. Al-Akhlāq (the plural of khuluq/ خُلُق) refers to morality, which means a nature, or an innate disposition or temper. The proper signification of khuluq is the moral character; or the fashion of the inner man; his mind or soul and its peculiar qualities and attributes. Ethics in Arabic is ‘ilm al-Akhlāq' (science of morality), which is the branch of knowledge that studies akhlaq (morals). Ilm al-Akhlāq is not only merely tells about what is good and what is bad, but also, influences and encourages individu to form a purer life to carry out goodness beneficial to fellow human beings.
These virtues of Akhlaq, were identified as preferred traits in the Qur’an and were manifested through the practice by the Prophet (ﷺ) who perfected these, in daily life. There are numerous references in both the Qur’an and hadith in this respect. For example, the Qur’an lays the broad foundation of the preferred character of humans to do what is good; be righteous; and forbid and refrain from what is wrong. After a broad classification of desirable behavior is prescribed, the Qur’an states, 'The noblest of you in the sight of God are the best of you in conduct.' This implies that the ones practicing and living virtues that make up good character are the successful ones.
Furthermore, the Qur’an makes a strong endorsement of the character traits of the Prophet (ﷺ) when it acknowledges the Prophet’s character (ﷺ) (huluq) as of an exalted standard that can be interpreted as adherence to and practice of virtues and sacred values, forming the basis of ethical behavior. In addition, there are several authenticated sayings of the Prophet (ﷺ) that indicate the significance of possessing good character and virtues for a successful life. Practicing these virtues is considered a sign of having perfect faith and therefore it is highly desirable to incorporate these in one’s life. In a famous saying, the Prophet (ﷺ) said that, 'I have been sent for the purpose of perfecting good morals.'
Recognizing the importance of good character traits or virtues alone is not sufficient unless one understands a subtle and strong relationship between the intentions, actions, and the outcomes. In the Islamic concept of ethics, there is an emphasis on virtue, intention, action, and the outcome as a basis for judging whether an act is ethical or not. Although intention or niyya of an action plays a critical role in determining the legal aspect of the action, Islam recognizes the moral significance of intention in advocating sincerity of intent (iḫlas̄ ). Each virtue is judged in light of the intention behind in the practice of the virtue. The distinction between having intention to serve humanity and the betterment of society as opposed to achieve personal gain could make an action ethical or unethical.
To summarize, Islamic virtue ethics are chiefly concerned with 'good character traits,' which may then be exemplified into actions. The relationship between virtues, intentions, and actions, lays the foundation of ethical behavior such that virtue ethics have a logical priority over juridical ethics. Actions driven by good intentions and in the spirit of the practice of virtues would become ordinary behavior that is not only ethical but is internally consistent in terms of intent, means, and outcomes.
Now, in order to get a clearer picture, let's look at Islamic ethics in business and economy. A framework of business ethics in Islam can be developed by identifying key virtues that are the preferred character traits of a human being. The core and fundamental axioms of Islamic ideology are Tawhid, a corollary of which is the unity of the creation, particularly the unity of mankind. Resources are created for all humans of all generations, who compose one humanity, their diversity does not and should not mean their disunity, and, by the primordial covenant, not only do all humans recognize their own unity, they also have full cognition of their responsibility to maintain the unity and integrity of the rest of creation through their service to humanity and to the rest of creation.
Tawhid requires one to believe that all creation has only one omniscient and omnipresent Creator and that all His creation constitutes a unity as well. Unity and social cohesion are so central among the objectives of the Qur’an for mankind that it can be argued that all conducts prohibited by Islam are those that ultimately lead to disunity and social disintegration. Conversely, all righteous conducts prescribed by Islam are those that lead to social integration, cohesiveness and unity. As a result, Islam is not only a call to individuals but also to the collectivity and has given the latter an independent personality and identity, which will be judged on its own merits or demerits separately from the individuals that constitute the collectivity. The final judgment on individual actions will have two dimensions, one as the individual and the other as a member of the collectivity.
One implication of the virtue of embracing the unity of creation and mankind is that it establishes the relationship of brotherhood or sisterhood and equality among communities and societies irrespective of their belief system. In this sense, unity is a coin with two faces: one implies that God is the sole creator of the universe and the other implies that people are equal partners or that each person is a brother or sister to the other. Adoption of this virtue has far reaching implications for business ethics such cooperation, solidarity, and equality of effort and opportunity.
Justice in Islam is a multifaceted concept, and several words or terms exist for each aspect. The most common word in use, which refers to the overall concept of justice, is adl. This word and its many synonyms imply the concepts of 'right,' as an equivalent of 'fairness,' 'putting things in their right place,' 'equality,' 'equalizing,' 'balance,' 'temperance,' and 'moderation.' Justice in Islam is the aggregation of moral and social values, which denotes fairness, balance, and temperance. Its implication for individual behavior is, first of all, that the individual should not transgress his bounds and, secondly, that one should give others, as well as oneself, what is due.
A just economy is part of a just, healthy, and moral society, which is the central objective of Islam for the human collectivity. What underpins all the rules of behavior prescribed by Islam is its conception of justice, which maintains that all behavior, irrespective of its content and context, must, in its conception and commission, be based on just standards as defined by the Shari’ah. Islam considers an economy, in which the behavior of its agents is so conceived, as an enterprising, purposeful, prosperous, and sharing economy in which all members of society receive their just rewards. Such an economy is envisioned as one in which economic disparities that lead to social segmentation and divisiveness are conspicuously absent. The economic justice that is envisaged in Islam does not call for equal incomes and wealth. The focus of economic justice is not solely placed on the outcome. Thus, the central framework and operation of rules concerning economic and social life is justice.
In Islam, economic justice is centered on affording all humans an equitable chance (the means) to flourish while affording the disabled a dignified life and erasing poverty everywhere. All humans should have the ssimilar opportunity and the freedom to achieve their economic goals (a level playing field in education, healthcare, and basic nutrition) through hard work, while preserving the rights (not to be confused with charity) of the disabled and less privileged. After humans have worked and received their just rewards, then they must help the less fortunate to eradicate poverty and avoid great disparities in wealth; this is a test for humans to show their love for their Creator and His creation as contrasted with a love of fleeting wealth. Individuals as well as the state, should remove all roadblocks, importantly including oppression, from the path of human development. Any injustice perpetrated by individuals against other humans and against the rest of creation is ultimately an injustice to the self. Humans must live a life that is just and must stand up to and eradicate injustice wherever they find it.
Ethics in Islam can be best understood in light of principles governing the rights of the individual, society, and state; the laws governing property ownership; and the framework of contracts. Islam’s recognition and protection of rights is not limited to human beings only but encompasses all forms of life as well as the environment. Each element of Allah’s creation, has been endowed with certain rights and each is obligated to respect and honor the rights of others. These rights are bundled with the responsibilities for which humans are held accountable.
Islam forcefully anchors all social-political-economic relations on contracts. More generally, the whole fabric of the Divine Law is contractual in its conceptualization, content, and application. Muslims are constantly reminded of the importance of contractual agreements, as they are required by their faith to honor their contracts.
In Sharῑa’h, the concepts of justice, faithfulness, reward, and punishment, are linked with the fulfillment of obligations incurred under the stipulations of the contract. Justice links man to Allah and to his fellow men. It is this bond that forms the contractual foundation of the Sharῑa’h, which judges the virtue of justice in man not only by his material performance but also by the essential attribute of his intention (niyyah) with which he enters into every contract. This intention consists of sincerity, truthfulness, and insistence on rigorous and loyal fulfillment of what he has consented to do (or not to do). This faithfulness to contractual obligations is so central to Islamic belief. Preserving the sanctity of contracts and accountability to one’s commitment to a contractual agreement is a key character trait and virtue.
Being truthful and keeping one’s word are the core traits of a true human being. This is further emphasized when a trader or a businessman is truthful in his/her dealings. A true believer or Mu’min is expected to be honest in dealings, has strong commitment to his or her word, and speaks truth. The ultimate case of commitment to truthfulness is that one is expected to be truthful while giving evidence, even if it is against him or herself. An honest and truthful trader is given tidings of blessings from the Creator while in absence of these traits, the transaction would be devoid of any blessing. Truthfulness or transparency also enhances trust between the parties and in the market and in all fairness, each party expects full transparency and disclosure regarding the transaction.
Integrity is another key virtue that is highly appreciated in Islam. The
Prophet (ﷺ) was known to be a truthful and trustworthy person who always kept his word. Given the status of the Prophet (ﷺ) as the archetype and a role model, each Muslim is expected to maintain truthfulness and integrity. Integrity of a person or entity indicates that the person or the entity is truthful, honest, and honors his or her word, which implies that such person or entity is most likely to fulfill their commitments and promises in full and in timely fashion. Honoring your word means that you are honest and are not hiding any relevant information, and there is no element of deception or any violation of contracts or property rights. Integrity is important to individuals, groups, organizations, and society because it develops valuable social capital of trust in the society. Such behavior as an employee or as the manager or leader of an organization would lead to the integrity of the entity, which is trusted by all economic agents and therefore, achieves higher efficiency and performance.
Islam places a strong emphasis on trust and considers being trustworthy as an obligatory personality trait. At a philosophical level, the role of man on earth is to act as vicegerent or trustee of the Creator. The root of the word for “trust” (amānah) is the same as that for “belief” (ῑmān), for al-Qur’an insists that a strong signal of true belief is faithfulness to contracts and promises. It makes clear that performing contractual obligations or promises is an important and mandatory characteristic of a true believer.
Contract and trust are interdependent. Without trust, contracts become difficult to negotiate and conclude and costly to monitor and enforce. When trust is weak, complex and expensive administrative devices are needed to enforce contracts.
Weakness of trust creates the problem of lack of credible commitment which arises when parties to an exchange cannot commit themselves or do not trust that others can commit themselves to performing contractual obligations.
Compassion (rahma) is a virtue that is greatly desired and admired. Compassion is stressed in the Qur’an as the basic attribute of God and all humans are expected to practice and exhibit it. Compassion calls for showing mercy, kindness, and passion toward others in all economic and social matters. One application of compassion is leniency in economic transactions in case of hardship and feeling the pain and suffering of the others. Leniency is especially encouraged with respect to debtors who are in difficult conditions provided that they made sincere efforts to meet their obligations.
Generosity is a virtue that calls for giving someone’s due right beyond normal expectations and sharing one’s time, wealth, and knowledge with others. Generosity can take several forms such as generosity toward others in redeeming their rights or generosity in voluntary social welfare contributions or not taking advantage of customers. Virtues of compassion and generosity play an important role in strengthening social bonds among humans and bringing humans closer.
The role of man as vicegerent (khilāfah) of the Creator, carries very heavy responsibility to act with prudence, because any violation of this trust itself, would be unethical. This responsibility demands prudent management of an organization’s or a country’s as well as earth’s resources; care and concern for animals; and protection of the natural environment. Utilization of resources whether scarce or abundant, requires careful management keeping in mind the well-being of the community and the society. No one is authorized to destroy or waste God-given resources. Wasting of resources is strongly condemned in Islam. Islam calls for moderation and to have a balance in social and economic dealings. Prudency calls for restoring balance in managing and utilizing resources to optimize the benefit and welfare for all. Prudence is an essential virtue for those who are in the position of leadership or management.
Humility is a valuable virtue considering that a person should be fully conscious of the state of humans with respect to the Creator. Being humble is appreciated and arrogance is considered the worst of vices. Arrogance is particularly disliked due to it being the root cause of many other evils. Spiritually, arrogance signifies man’s claim of having better knowledge than the Creator and therefore, developing a sense of over-confidence and superiority with respect to other humans. History is witness to the destruction of civilizations or leaders due to arrogance.
The virtue of being honest in business transactions is the very basic character trait of a believer. The Qur’an binds faith and action through righteous deeds as inseparable. The Prophet (ﷺ) explicitly declared honesty an article of faith as he said that there is no faith for one who lacks honesty. Honesty does not only come from being truthful, but requires avoidance of vices for worldly gains. There are several vices that are discouraged greatly when one is engaged in business transactions. Examples of such vices are purposefully deceiving others, engaging in cheating and fraud, and willfully holding or manipulating information pertaining to the transaction. One full chapter of the Qur’an is dedicated to manipulating weights and measures, and giving short-measures such as the act of giving shortmeasures while demanding full measures from others. The chapter emphasizes the grave consequences of such behavior. The Qur’an also makes reference to the community of the Prophet Shu‘ayb, alayhissalam, which was known for engaging in deceitful business practices, especially the manipulation of weights. Consequently, the community was destroyed for its persistence in deceit. Therefore, honesty in business transactions has to be the core virtue of any business person.
Islam seeks to guide man to direct individual action and responsible participation in economic affairs in a manner that commits him to community solidarity and cooperation, resulting in a dynamic and growing economy. Thus, the individual is made accountable for the moral effects of his social actions, including those in economic affairs, so that his own inner personal-spiritual transformation and growth is bound to the progress of the community.
Hence, Islam utilizes cooperation and competition in structuring the ideal society through harmonization and reconciliation between these two opposite, but equally primeval and useful forces at every level of social organization. From this perspective, one can argue that one of the greatest distinguishing characteristics of Islam is its forceful emphasis on the integration of human society as a necessary consequence of the unity of Allah. To this end, the personality of the Prophet (ﷺ) is inseparable from what the Qur’an considers as the optimal approach necessary for the emergence of solidarity in human society. Every dimension of the personality of the Prophet (ﷺ), manifested in his various social roles in the community, is directed toward maximum integration and harmony in the society. Moreover, every rule of behavior, including those in the economic area, is designed to aid the process of integration. Conversely, all prohibited practices are those, which, one way or another, lead to social disintegration.
The virtue of Ihsān, meaning benevolence, goodness, and excellence, is recognized in the Qur’an as well as in the sayings of the Prophet (ﷺ). The concept of Ihsān is the embodiment of goodness and excellence in interaction and conduct at the personal, organizational, and societal levels. As a projection of goodness, it practically and spiritually encompasses mercy, justice, forgiveness, tolerance, and attentiveness. The concept of Ihsān is much broader that simply being good to others but includes striving for excellence in goodness so much so that one is willing to go beyond what may be expected under norms to achieve the welfare of fellow humans, the community, or the society. We'll discuss Ihsān in section 4.'"
