IMPLEMENTATION OF ISLAMIC BUSINESS ETHICS IN 4 BUSINESS

FUNCTION

1. Islamic business ethics in product development.

Discussion on development of product is based on three main items which is produce the
product ethically, the importance of Halal certification and the challenge of producing a
product ethically. To produce a product ethically, there are some things that must be given
attention and done consistently. It includes trust and responsibility, take care and maintaining
the personal hygiene and premises, conducting research on products, the use of pure and clean
raw materials (thoyyiba halal).In order to ensure that every product they produce is legitimate
in Islamic perspective, Muslimpreneurs looks particularly concerned with some factors such as
thoyyiba, benefits of product produced. They also strive to ensure that their products meet the
basic principles of product production in Islam including pure and clean, conforming to the
concept of maslahah, achieving the sharia maqasid, based on the required priorities (al-
awlawiyyat) and harmless. In producing halal products, they will ensure the raw materials used
are halal. In addition, they also carry out halal work procedures such as not cheating, not
practicing riba and keeping clean. Muslimpreneurs are also seen to comply with all the rules
and regulations set by the authorities. As a complement to their practice, they seek to obtain
halal certification. Halal certification is seen as helping them upgrade their company and
product products and increase customer confidence. At the same time, they will automatically
have a regular syariah compliance monitoring schedule.

2. Islamic business ethics in product marketing

Marketing is a business function that aims to identify the needs of consumers as well as
determine the target market of a product and service. It focuses on quality and value and
customer satisfactions. At the same time, Muslimpreneurs were also found to be not directly
involved with matters that were banned by Islam. Generally they are free from illegal and
dubious contracts like bai 'al-najash and bai' al-hasāt. They are also free from elements of riba,
corruption, monopoly and manipulation. The process of product advertising is done taking into
account factors such as true and transparent, reasonable pricing, no discrimination practices
and no compulsion and fraud elements. They are also only willing to use appropriate product
ambassadors with Islamic principles. In the face of business competition, Muslimpreneurs are
more likely to win a competition through improved product quality and benefits rather than
using a negative approach such as squeezing competitors. They are also more likely to increase
the company's sales rates through good relationships with customers as well as good personal
and ethical prominence.
 3. Islamic business ethics in financial management

Implementing the Islamic finance system is essential to every Muslimpreneurs as the

importance of product earnings within their company. This is based on the fact that every
Muslim is subject to Islamic principles in all aspects of their life. The three main points of
concern in Islamic financial management are that it must be free of element of riba, uncertainty
(gharar) and gambling (maysir) as stated clearly in the Quran and al-Hadith. Muslimpreneurs
recognize and understand that financial management in the business is related to revenue and
expenses. Hence, they need to ensure that all business sources and business income expenditure
are done in accordance with the provisions in Islam. Among the key issues of financial
acquisitions are business capital. To avoid being involved with illegal sources, Muslimpreneurs
are more likely to use their own personal savings, family and friends. Should they need to use
financial institution services, they choose Islamic financial institutions or apply for grants from
non-interest-based agencies. At the same time, Islam explains that there are two forms of
expenditure, namely halal and haram. The halal expenses comprise mandatory expenses and
circumcision. In performing compulsory expenditure, Muslimpreneurs were found to be
successful in doing so. They are found to be capable of managing salaries and wages of
workers, solving management costs, issuing zakat, settling business debts and so on at the set
time and rates. At the same time, Muslimpreneurs are also inclined to spend on items that are
not obligated to them such as bonuses and rewards and salary increases to employees. Their
concern over the prohibitions in spending also makes them cautious enough in any expenses
incurred. They are trying hard to avoid unnecessary, wasteful and wasteful expenses. This
awareness arises because there is a clear ban from the Quran and al-Hadith on the extravagant
and wasteful attitude.

4. Islamic business ethics in human resources management (HRM).

Employees are the most valuable asset for a company as they contribute substantially to the
success of a company or company. The relationship between the employer and the employer is
included in the hablumminannas category. Hence, Islam suggests that the relationship between
the two should be based on the framework of Islamic teaching. Through this approach,
employees will be regarded as a trust and the company's assets are not merely as labor. By
understanding that every sustenance from Allah SWT is a favor that must be shared equally,
Muslimpreneurs will avoid doing tyranny and persecution of its workers. Therefore, they do
not hesitate to fulfill their responsibilities and rights to their employees. It covers the space of
conducting religious, community, employment rights, salaries and so on. From the perspective
of employment, workers will be appointed based on their eligibility, ability and willingness to
work. At the same time, the company's capability is also taken into account before an employee
is appointed. Salary and wage arrangements are also made based on the factors above.
Muslimpreneurs also consider other factors such as the poverty line, the cost of living and the
minimum wage in the determination of salaries and wages. However, the size of the company
is also the reason why most Muslimpreneurs tend to hire employees among their family
members.
References

1. Beekun, R. I. (1996). Islamic Business Ethics. Virginia: International Institute of

Islamic Thought.

2. Nor ’Azzah Kamri. (2009). Etika Usahawan Muslim Berpandukan Al-Quran dan Al-
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3. Saeed, M., Ahmad, Z. U., & Mukhtar, S. M. (2001). International Marketing Ethics
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4. Ibrahim Abu Bakar. (1997). Ciri-ciri Usahawan Islam. Kuala Lumpur: JAKIM.