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Business Ethics

No one can be more honest and truthful than Allah’s Messengers, without a doubt. Muhammad (ﷺ) demonstrated that he was the most honest and truthful person of his day by his example. His honesty and integrity impressed everyone. Although he began trading with his uncle as a destitute orphan, he quickly gained notoriety and esteem for his fair and honest transactions with everyone. Al-Amin (the Faithful) and Al-Sadiq (the Truthful) were his names. He was referred to by these names by all Makkans, regardless of wealth. When there was disagreement among Makkah’s many tribes about who should place the Black Stone in the Ka’bah where it belonged, they agreed that the one who got inside the Ka’bah first the following morning would put it there. When the people saw Muhammad (peace be upon him), who had entered the Ka’bah first that morning, they were all overjoyed that Al-Amin and Al-Sadiq had arrived and would be the ones to place the Black Stone in its rightful place.

Honesty and Truthfulness in Trade

Example: The Prophet (ﷺ) was known for his honesty in business. He himself worked as a trader before his prophethood, and his dealings were marked by transparency. He always spoke the truth, even when it was not to his personal benefit.

Source: A well-known narration from Al-Bukhari reports that the Prophet (ﷺ) said:

“The buyer and the seller have the option of canceling or confirming the bargain unless they separate, and if they spoke the truth and made clear the defects of the goods, then they would be blessed in their transaction. But if they lied and concealed the defects, their transaction would be deprived of Allah’s blessings.”

(Sahih al-Bukhari, 2139)

Fairness and Justice

Example: The Prophet (ﷺ) emphasized fairness in business and trade. In one instance, he condemned the practice of selling goods with hidden defects or giving less than what was agreed.

Source: The Prophet (ﷺ) said:

“Whoever cheats is not one of us.”

(Sahih Muslim, 102)

Fulfilling Promises

Example: Prophet Muhammad (ﷺ) placed great importance on keeping promises and fulfilling contractual obligations. In his dealings, he would always honor agreements made with others, whether in business or personal matters.

Source: The Prophet (ﷺ) said:

“The signs of a hypocrite are three: When he speaks, he lies; when he makes a promise, he breaks it; and when he is entrusted, he betrays that trust.”

(Sahih al-Bukhari, 33)

Avoiding Greed and Exploitation

Example: Prophet Muhammad (ﷺ) warned against greed in business and emphasized that wealth should be acquired through lawful means and not through exploitation of others.

Source: He said:

“Do not sell goods until they are fully in your possession.”

(Sahih Muslim, 1514)

This hadith advises traders not to engage in transactions where they do not fully control or possess the goods, ensuring that they don’t profit from uncertainty or deceit.

Kindness and Humility

Example: The Prophet (ﷺ) showed kindness and humility in all his dealings, whether with the rich or poor. In business, he encouraged people to be humble and not to boast of wealth or status.

Source: The Prophet (ﷺ) said:

“The most beloved of people to Allah are those who are the most beneficial to Others.

(Sahih Muslim, 1514)

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