Business Ethics in Islam . A Note on Islamic Finance: Finance that complies with Sharia law can vary dramatically from Western notions of finance. This … Focusing for example in Saudi Arabia that has one of the largest market in the Middle East, I can say that according on what I have study in this course is a very conservative country where a large segment of the population desires to preserve the religious values … Muslim needs include time and setting for daily prayer – especially Friday noon – as well as ritual washing before eating and prayer. However, this research is limited to theory alone. Business Practices of Islamic Banks Islamic banks, like other banks, attract financial resources from individuals and institutions and direct them towards business firms which need external finance to support their productive activities. Islam and Business Ethics - Overview [Extract from Foreword by Prof. Rodney Wilson on Islam and Business Ethics by Dr S M Hasanuzzaman, published by the Institute of Islamic Banking and Insurance 2003] Many question why the global economy appears so unjust, with huge income and wealth disparities and exploitation all too apparent. Global Journal Al-Thaqafah. However, as we shall see, usury and its prohibition is as appropriate today as it was when Islam confirmed God’s dislike for a practice that is designed to steal money from those who can least afford … How would business practices in an Islamic country differ from business practices in a Christian country? As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. Tunisian business culture has been shaped by various regional, cultural and religious influences and bears the characteristics of Arab/Muslim, Mediterranean and French culture at varying degrees. Those seeking to do business in the economically-expanding Arab world have to learn about the cultural mores and traditions of the countries in which they work. Islamic laws tend to adhere strictly on the principles and values intimated in the Qur'an and Hadith. There is a reference to this point in the Qur’an: For you in the Messenger of Allah is … It is strictly a monotheistic religion since it restricts worship to the one supreme Lord who is the Originator and Creator of the universe. Yes, business practices in an Islamic country are likely to differ from business practices in the United States. For instance, the terms and conditions of a contract of joint venture should be drafted in a way to avoid any possibility of dispute during the conduct of business or at the time of sharing the profits or bearing the loss. Why have the Islamic countries failed to develop even with resources like oil, while countries with no resources like Switzerland have flourished? In fact, the last 15 countries (130-144) are all Muslim majority countries. [MO 3.2] Choose two countries that appear to be culturally diverse. Capitalizing on in-depth, face-to-face interviews with Muslim … Free Essays on Business Practices In An Islamic Country Differ From The United States . The principles of appropriate personal behavior inherent in the Muslim faith are in essence benign, and have a direct impact on how business should be conducted in the Islamic world // The majority of the local population is Muslim, and Islam dominates most facets of life in Kuwait, including business practices. Retrieved November 06, 2020 from _Practices_of_Women_Traders_A_Study_in_An_Islamic_State_in_a_Developing_Country Allam Advisory Group (2016). The key is to act in a … Do you think that business practices in an Islamic country are likely to differ from business practices in the United States? A business can operate internationally with the same policies and procedures it developed at home, or it can adapt its own practices to the norms of each country in which it operates. For example, partnership is often preferred to hierarchical structures, speculation is prohibited, and charging of interest is not allowed … In fact, this is a topic that has been widely researched and written about. Modern Islamic economics emerged in the 1945s, and as of 2004 Islamic Banks have been established in over 8 countries, and interest has been banned in three: Pakistan, Iran and the Sudan. Yes, since an organization is a reflection of the values of the society in which it operates, it is correct to say that business practices in an Islamic country may be different from business practices in a Christian country. Search. 2-Recognize why many economics believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system. First is a description of the Islamic ethical system. If so, how? There are various different ways in which business conduct in Islamic countries differ from practice in the US. Business deci- sions are guided by iman, which in practice means following shariah law, and engaging in what is halal,or permitted, and avoiding that which is haram, or forbidden. Multinational companies doing business in the Muslim world face many challenges in the human resources and employment law arena. Most importantly, Muslim finance takes the concept of fairness very seriously, and charging interest is considered unfair, although in practice … So, we encourage expats to familiarise themselves with and show respect for local customs and business … Although it is understandable that vast differences in protocol would arise from the East to the West.First of all, a great difference lies in the law. Answer (1 of 1): Hi,Thanks for your question. Business culture in Kuwait is essentially Arabic. By Dr. Muzammil Siddiqi. The differences between these two countries would be significant. Be mindful of the Holy month of Ramadan, Muslims abstain from food and drink from dusk till dawn for one month every year, although it is not supposed to be an excuse to not perform one’s affairs with due diligence, it is still preferable to do business when one is not hungry and thirsty. Kazakhstan is the top among Muslim countries (51st) and out of the 30 Islamic countries which have been ranked, 25 are in the last 50 (90-144). If so how? This can also help explain the normative gap between Islam’s ethical teaching and business practices in many Muslim countries, where corruption is high (see Transparency International’s Corruption Index, 2014). This is an astonishing figure and clearly points to an across the board problem in the Muslim world. Next is a discussion of the dif ferences between philosophy and practice in Islamic business ethics.