* Muslim Businesses *
Trade
Trade and commerce have always been a part of Islam. From pre-Islamic days, the Holy City of Mecca has been the center of commercial activities. It was indeed the annual trading center of Mecca that provided Prophet Mohammad the forum for preaching Islam.
The early Muslims were not only engaged in trade but they went to distant lands in connection with business. Islam in fact reached East and West Africa, East Asia through the business people.
Islam encourages work in general, and trade and commerce in particular, Prophet Mohammad was himself engaged in this profession before he became a prophet. He was a successful businessman. Known for integrity, he bore the honorific title, ?the Trustworthy?, The Quran states:
"God has made business lawful for you"
In addition, the Qur'an includes rules not only for manners and hygiene, marriage and divorce, but it also lays down detailed rules for commerce and politics, interest and debts, contracts and wills, and industry and finance. Islam has permitted and in fact encouraged business. Islam lays out the basic principles of our economic behavior as consumers, producers and owners of wealth.
In addition, the Qur'an includes rules not only for manners and hygiene, marriage and divorce, but it also lays down detailed rules for commerce and politics, interest and debts, contracts and wills, and industry and finance. Islam has permitted and in fact encouraged business. Islam lays out the basic principles of our economic behavior as consumers, producers and owners of wealth.
The Islamic principle in business is based on individual enterprise and correspondingly individual?s reward. It is basically based on benefiting the humanity while maintaining God?s orders.
In business relationships Islam strictly forbids any discrimination between people based on their religion, sex, or gender.
There is no basic conflict between good business practice and profit making in Islam. Islam looks at profit as secondary way to measure efficiency. Business Ethics in Islam
Trust:
Trust of God's creation and all that is in it. God has created and perfected the whole universe then Man is set over it all with delegated. So as Muslims we realize that we are just trustee for God?s universe and we truly do not owe anything in this life. That kind of belief along with your knowledge that God sees all what you do, will make you work under constant surveillance, and keeps your performance at its best while following God?s defined conduct.
(Quran 45-13): And He has subjected to you, as from Him, all that is in the heavens and on earth: behold, in that are Signs indeed for those who reflect.
(Quran 6:164): It is He who hath made you (His) agents, inheritors of the earth: He hath raised you in ranks, some above others: that He may try you in the gifts He hath given you: for thy Lord is quick in punishment: yet He is indeed Oft-Forgiving, Most Merciful.
Justice and Honesty:
Justice can be defined as just conduct, fairness exercise of authority in maintenance of right and fair dealing between each other regardless of faith is strictly laid down in Islam. Honesty incorporates the concepts of truthfulness and reliability and covers all aspects of relationships in human life thought, word and action. It is more than just accuracy; it is an attitude with integrity.
(Quran 4:135): O ye who believe! Stand out firmly for justice, as witnesses to Allah, even as against yourselves, or your parents, or your kin, and whether it be (against) rich or poor: for Allah can best protect both. Follow not the lusts (of your hearts), lest ye swerve, and if ye distort (justice) or decline to do justice, verily Allah is well-acquainted with all that ye do.
(Quran 6:115): Perfected is the Word of thy Lord in truth and justice. There is naught that can change His words. He is the Hearer, the Knower.
(Quran 11:85): O my people! Give full measure and full weight in justice, and wrong not people in respect of their goods
?O you who have attained to faith! Do not devour one another?s possessions wrongfully ? not even by way of trade based on mutual agreement ? and do not destroy one another: for behold, God is indeed a dispenser of grace unto thee!
Oh ye who believe! Eat not up each other's property by unfair and dishonest means."
?O you who have attained to faith! Do not devour one another?s possessions wrongfully ? not even by way of trade based on mutual agreement ? and do not destroy one another: for behold, God is indeed a dispenser of grace unto thee!
Oh ye who believe! Eat not up each other's property by unfair and dishonest means."
The third principle is mutual respect and consideration for others is also inherent in the moral teachings of Islam.
The application of this has come to mean that self interest only has a place in the community in as much as it takes into account the interests of others. So a person or organization can not under self benefit measures takes an action or start a business that will harm the community or environment more than providing good to it. The prophet (PBUH) said: "You will not attain righteousness, unless you give of that which you love?. And said "God loves kindness when you deal with any matter" And also said: "You will not enter Paradise until you have faith and you will not have faith until you love one another". What is forbidden in business in Islam?
1.Islam has not permitted producing, selling and purchasing of goods, which are prohibited in Islamic law. Alcohol, Drugs.. The Prophet of Islam has said: "When God prohibits a thing He prohibits (giving and receiving) the price of it as well."
2.Islam has also prohibited any kind of transaction involving uncertainty, as this could lead to quarrel or litigation. The Prophet of Islam has forbidden transaction involving unspecified quantity, acceptance of money for fish in the river or bird in the air as there is element of uncertainty. Similarly the Prophet of Islam has prohibited sale of fruit till they are ripened. However; if the element of uncertainty is very small, the transactions are permissible.
3.Islam condemns hoarding to make high profit at the cost of public interest (when it is needed or so it will become needed). Islam, however; allows normal trade - buying and selling of goods again and again at a reasonable profit.
4.Islam prohibits fraud in business dealings. The Prophet has said: "Sell the good and bad separately. He who deceives is not of us" The sin of fraud is greater if the seller supports it by swearing falsely. The Prophet has said, "Swearing produces ready sale but blots out blessing".
5.Islam prohibits buying or selling what?s legal if we know that it will be used for illegal use: weapons, abortion drugs, drugs for meth making, and so on.
6.INTEREST: Muslims are not allowed to pay or receive interest. This is a shared value in all religions. The Quran is explicit about it and says, "God- has permitted for you trade and prohibited interest" (2 : 275). The Bible says: ?and lend, never despairing; and your reward shall be great, and ye shall be sons of the Most High? Luke 6:35.
Depositors in an Islamic bank would be treated like shareholders, would receive dividends when the bank makes a profit, and would lose capital when it suffers a loss.
The prohibition or fixed interest flows from Islam's concern for social justice Interest is said to reinforce a tendency for wealth to accumulate in a few hands
So how would you by buy a house for example? A new trend has recently started that work as follows: An Islamic financing company buys the house. The house then is leased back to you for a fixed period of time. You pay the finance group the rent value plus an additional amount for the house purchase. The value or the lease home will be reassessed every year, and the rent will be adjusted accordingly. In Closing
To close let me reassure that it is the responsibility of every Muslim to be ethical in their daily business practices and to act responsibly toward the community in which it serves. To review its business practices and remove from its organization any unlawful activities and devote themselves to productive and lawful activities that benefit mankind.
It is everyone?s responsibility to take a long and serious look at their organization and implement policies and procedures that are conducive.
It is everyone?s responsibility to take a long and serious look at their organization and implement policies and procedures that are conducive.
As a general guide to Muslims in business we should adopt the following overriding principals:
? Love God and his commands more than your trade or business
? Love God and his commands more than your trade or business
? Be honest and truthful
? Keep one?s word
? Be humble in how you conduct your life
? Do not deal in fraud
? Do not bribe
? Deal justly
? Keep one?s word
? Be humble in how you conduct your life
? Do not deal in fraud
? Do not bribe
? Deal justly
How to Increase Profits and Help The Muslim Economy Grow
“I live in a suburban where there are 3 "Halal" meat stores within a 5 mile area, and another which is about 30 minutes away. I am an "American" Muslimah. In the three stores owned by Pakistani/Indian businessmen, the treatment I receive is terrible. In addition, the stores are filthy and no health code is followed. Blood from the meat is spread from meat counter to checkout counter, hands to money and pens, etc. In the store that is further away, the owner has argued and almost had fist fights with customers, and will not disclose his meat source. I have gone to great lengths to continue to buy Halal meat, but I feel that doing business with these people is not something I can continue to do." (Comment in the Halal and Healthy forum of the Sound Vision website, July 22, 1999)
Muslim consumers are often criticized for not doing enough to support Muslim businesses, whether it's paying the extra dollar (or two or three or four) to buy products, or to drive the extra mile (or two or three or four) to get to the store.
But what is rarely discussed in the North American context is what obligation Muslim businesses, especially Halal grocery stores, have to the Muslim community.
The above-mentioned complaint is not a reflection of all Halal grocery stores. However, the problems outlined in it cannot be ignored.
If Muslim businesses want the support of Muslim consumers, they will have to do more to accommodate them, provide better service and prices.
New York-based Muslim social scientist Ilyas Bayunus conducted a study in which he found that Chicago has a Muslim population of about 300,000. The state of Illinois has a population of 400,000.
This indicates the tremendous buying power of Muslims in this city and this state.
In Chicago alone, there are a minimum of 60 retail Halal meat shops that are owned and operated by Muslims.
Currently, the Halal meat business makes close to $5 million a year. But the potential profit could be as high as $60 to $80 million. The market hasn't developed for a number of reasons, some of them can be attributed to Muslim consumers, others to Muslim businesses.
Below are some tips on how you can improve service and profits of your Halal business. This can be applied to all business, not just the meat business:
“I live in a suburban where there are 3 "Halal" meat stores within a 5 mile area, and another which is about 30 minutes away. I am an "American" Muslimah. In the three stores owned by Pakistani/Indian businessmen, the treatment I receive is terrible. In addition, the stores are filthy and no health code is followed. Blood from the meat is spread from meat counter to checkout counter, hands to money and pens, etc. In the store that is further away, the owner has argued and almost had fist fights with customers, and will not disclose his meat source. I have gone to great lengths to continue to buy Halal meat, but I feel that doing business with these people is not something I can continue to do." (Comment in the Halal and Healthy forum of the Sound Vision website, July 22, 1999)
Muslim consumers are often criticized for not doing enough to support Muslim businesses, whether it's paying the extra dollar (or two or three or four) to buy products, or to drive the extra mile (or two or three or four) to get to the store.
But what is rarely discussed in the North American context is what obligation Muslim businesses, especially Halal grocery stores, have to the Muslim community.
The above-mentioned complaint is not a reflection of all Halal grocery stores. However, the problems outlined in it cannot be ignored.
If Muslim businesses want the support of Muslim consumers, they will have to do more to accommodate them, provide better service and prices.
New York-based Muslim social scientist Ilyas Bayunus conducted a study in which he found that Chicago has a Muslim population of about 300,000. The state of Illinois has a population of 400,000.
This indicates the tremendous buying power of Muslims in this city and this state.
In Chicago alone, there are a minimum of 60 retail Halal meat shops that are owned and operated by Muslims.
Currently, the Halal meat business makes close to $5 million a year. But the potential profit could be as high as $60 to $80 million. The market hasn't developed for a number of reasons, some of them can be attributed to Muslim consumers, others to Muslim businesses.
Below are some tips on how you can improve service and profits of your Halal business. This can be applied to all business, not just the meat business:
MAKE PROFIT THE SECONDARY AIM:
The first goal of a Muslim business should not be cashing in on a Muslim market. It should be pleasing Allah and establishing Halal as a way of life.
Seeking profit is not a bad aim, but it should be secondary.
By making Allah the goal, and implementing Islamic rules of honesty, truthfulness, and good behavior with customers, Insha
Seeking profit is not a bad aim, but it should be secondary.
By making Allah the goal, and implementing Islamic rules of honesty, truthfulness, and good behavior with customers, Insha
Allah, any Muslim business is bound to boom.
BE TRUTHFUL AND HONEST
The Prophet has said the the honest and truthful businessman will be in Jannah amongst the Prophets the Truthful and the martyrs. Honesty and truthfulness are essential in this business. And when it comes to Muslim businesses, it means building a relationship of trust with customers, which cannot be done with lies and deceit.
BE OPEN TO SCRUTINY AND CRITICISM
BE OPEN TO SCRUTINY AND CRITICISM
While this may be a bitter pill to swallow, being ready to have your product or business scrutinized for cleanliness or the “Halalness” of products indicates a willingness to work with the consumer. This serves to build trust.
For those business people who may feel hesitant or downright angry with a Muslim consumer for even asking about the acceptability of a given product in their store, remember that this is the right of the consumer.
Remember, ultimately, we are all responsible to Allah. If a business is cheating Muslims, Allah will eventually expose those involved.
As well, a Halal business is not just one person's profit-making machine. It is also an institution of the Muslim community. Therefore, it must be ensured that it meets not just state and federal standards, but most importantly, the Quran and Sunnah's standards.
BE CLEAN!
This is especially important for Halal grocery stores where the presence of animal blood is expected. Not being careful of this means not only lost customers, but also possible sicknesses from the germs in the blood.
The Prophet (peace and blessings be upon him) said: "Cleanliness invites towards faith (Iman) and faith leads its possessor to paradise." (Tabarani)
This cleanliness, by the way, does not just apply to those areas of a store a customer will see. It includes equipment and storage areas as well.
For those business people who may feel hesitant or downright angry with a Muslim consumer for even asking about the acceptability of a given product in their store, remember that this is the right of the consumer.
Remember, ultimately, we are all responsible to Allah. If a business is cheating Muslims, Allah will eventually expose those involved.
As well, a Halal business is not just one person's profit-making machine. It is also an institution of the Muslim community. Therefore, it must be ensured that it meets not just state and federal standards, but most importantly, the Quran and Sunnah's standards.
BE CLEAN!
This is especially important for Halal grocery stores where the presence of animal blood is expected. Not being careful of this means not only lost customers, but also possible sicknesses from the germs in the blood.
The Prophet (peace and blessings be upon him) said: "Cleanliness invites towards faith (Iman) and faith leads its possessor to paradise." (Tabarani)
This cleanliness, by the way, does not just apply to those areas of a store a customer will see. It includes equipment and storage areas as well.
Don't just aim for one successful Halal grocery shop in your chosen neighborhood. Think big. Improve the inventory of your store, the types of items in it, and strive to find ways to improve service and profit margins.
As well, look into the possibility of pooling resources within the Muslim community or with other shareholders to expand the business. Doing this will also reduce overhead costs and in the long run, the price of products for your consumers.
WORK WITH OTHERS IN YOUR MARKET
Yes. This can be very difficult. Finger pointing, accusations and nasty rivalry often characterize Muslim businesses aiming to market the same products. But this is not the way a Muslim economy should work.
Brotherhood in the Ummah cannot be forgotten. Consider forming an association of Muslim meat retailers or distributors that can sit down together share experience, and learn to cooperate. This cooperation could, in the long run, benefit the Muslim consumer, and in turn the Muslim businesses themselves.
One example of where cooperation can take place in the Halal meat industry is by having all grocers or butchers slaughtering the animals in one place, Instead of doing it the way it's been done since the beginning: every individual or couple of retailers slaughtering their own animals.
By slaughtering in one place, costs are reduced, and in turn, the Muslim consumer pays less for the same product.
DO NOT SELL THE HARAM
While there are more “Muslim” businesses sprouting up, not everything they sell is Islamic.
It is not difficult to find Muslim owned businesses selling pork, alcohol, pornographic magazines, and renting these kinds of movies on the one hand, while selling Halal meat on the other.
Of a less offensive nature, perhaps, are those businesses which sell Halal products but rent or sell cultural (especially Indo-Pakistani) movies. While these movies may seem harmless in comparison to those of the pornographic variety, what must be remembered is that when Muslim parents and elders indulge in watching such cultural films, their children can very easily find an excuse to watch their own “cultural” films (i.e. American-Hollywood).
This requires efforts on the part of Muslim business owners to wipe out the Haram and ensure the Halal in their businesses.
A telling anecdote about Haram business practices was provided by Imam Siraj Wahhaj of Brooklyn, New York during a Khutbah.
He recounted the case of a Muslim who owned a shop that sold newspapers and magazines-including pornographic magazines. The Imam tried to convince the Muslim brother to stop selling these publications. At one point he agreed, and removed them from his shelves.
But after a while, Imam Wahhaj noticed they were back on the shelves. When he asked the brother about their reappearance, he said he was losing money.
Shortly after that, the entire store was destroyed in a fire.
