In spite of a renewed interest in the relationship between spirituality and managerial thinking, the literature covering the link between Islam and management has been sparse – especially in the area of ethics. One potential reason may be the cultural diversity of nearly 1.3 billion Muslims globally. Yet, one common element binding Muslim individuals and countries is normative Islam. Using all four sources of this religion’s teachings, we outline the parameters of an Islamic model of normative business ethics. We explain (...) how this ethics model seeks to balance the needs of multiple stakeholders, and discuss its enforcement mechanisms. This Islamic approach to business ethics is centered around criteria that are in common with stakeholder theory such as justice and balance, and includes unique additional criteria such as trust and benevolence. (shrink)

This essay focuses on the normative teachings of Islam. Justice, honesty, and public welfare are the pillars of Islamic business ethics. These values have two major roots: (1) belief in and devotion to Allah (God), and (2) the earthly trusteeship that grounds moral accountability. The business values of productivity, hard work, and excellence are encouraged. However, at the heart of various injunctions relating to business transactions are the imperatives of lawfulness, honesty, and fair play. Products or services must be lawful, (...) and produced in lawful ways causing no undue harm to others or to the environment. Competition, distribution, and consumption must be lawful as well. Lawful behavior is enforced by consciousness of Allah, supportive social norms, and government control. Islamic norms may not be uniformly or strictly followed, yet they provide a helpful background to practitioners andresearchers. (shrink)