AFS 3103 ETHICS IN ISLAMIC FINANCE AXIOMS OF ISLAMIC ETHICAL PHILOSOPHY
The axioms are the fundamental values
used to guide the daily activities of a Muslim.
The values in the Islamic ethical axioms are
similar to universal values except that it is established based on the belief of and accountability to Allah. UNITY
Refers to the belief in one and the only Allah
(Oneness of Allah).
This axiom is the most essential doctrine in
Islam.
Adherence to the concept of unity and
submissiveness to Allah will influence morality of a person. EFFECTS OF UNITY ON THE MUSLIM
By believing that everything in the world
belongs to Allah, a Muslim will treat everyone equally without prejudiced.
By believing that Allah is the Most Powerful,
a Muslim will not give up of Allah’s help.
By believing that nothing happen without
the knowledge of Allah, a Muslim will perform good deed and avoid from doing bad things. EQUILIBRIUM
Refers to the concept of balance or justice in all
aspects of human’s life to keep the harmony in the universe.
In order to achieve equilibrium between the
wealthy and the needy, voluntary giving is highly encouraged in Islam while spending lavishly is condemned by Allah.
Islam criticizes both who are too stingy to spend
his wealth and those who are too extravagant in his spending. Thus, the spending of a Muslim must be balance between the two extremes. FREE WILL
Refers to the ability of a person to make
judgements and decide his own action without coercion from others.
However, the freedom must be exercised
with intellect and within the bounds of the Shariah.
When entering into a contract, it is the free
will of a man to either honour the contract or break it. However, a good Muslim will fulfil his promises in a contract. RESPONSIBILITY
Refer to the state of a man being
accountable for his own actions.
A person is responsible for his actions, unless
he: (i) has not reached the age of puberty; (ii) in insane; and (iii) is under unconscious mind. CONT.
Accountability in Islamic perspectives is
related to the obligation to perform the commands of Allah and to avoid His prohibition.
A Muslim businessman who act unethically
due to business pressure or unethical business environment cannot put the blame on others for his actions. BENEVOLENCE
Refer to the act or kindness, which can be
defined as behaviours that bring benefits to other individuals.
One should do it voluntarily and without
expecting any return except to attain the pleasure of Allah. SIX KINDS OF BENEVOLENCE ACCORDING TO IMAM AL-GHAZALI
“If a person needs a thing, one should give it to him,
making it as little profit as possible. If the giver forgoes the profit, it will be better for him.”
“If a man purchases anything from a person, it will be
more graceful on his part to suffer a little loss by paying him more than what he considers to be the proper price.”
“In realizing one’s due and loans, one must act
benevolently by giving the debtors more time to pay than is due and, if necessary, one should make reductions in loans to provide relief to the debtors.” CONT.
“It is only proper that people who want to return
the goods they have purchase should be permitted to do as a matter of benevolence.”
“It is a graceful act on the part of a debtor if he
pays his debts without being asked to do so, if possible long before they are due.”
“When selling things on credit, one should be
generous enough, not to press for payment when people are not able to pay the stipulated terms.”
Q1: Zakat Occupies A Position of Fundamental Importance in The Islamic Economic System, Explain in Detail With Reference To System of Distributive Justice. What Is Zakat?