ISLAM

DARYL INGRID WEDINGCO

 Islam – means “Submission” and it pertains to “Submission to God”

 Muslim – Islam followers, means “One who submits or surrenders”

 Islam is the world’s second largest religion next to Christianity, in fact it

has been clamed that there are more Muslims than there are Roman
Catholics (the largest Christian denomination) in the world.
 Statistics also showed that it is the “fastest growing religion” which
means that everyday more people are converted to Islam in comparison
to the number of people converted to other major religions

 Majority of the members of the Islamic religion inhabit the Asian

countries of Indonesia and Malaysia.

 Indonesia has the largest Muslim population in the world

 Islam was founded in the year 610 when Muhammad, Islam’s Holy
Prophet, was believed to have received revelations from Allah (God)

 The Quran, Islam’s Holy Book, contains the records of Allah’s revelations
to Muhammad

 Muhammad is the first Muslim, the first who submits to Allah

 Unlike Christians who claims that Jesus Christ is God, Muslims believe
that Muhammad is just a Holy Prophet

 “He was an ordinary human being who listened carefully to – and then
orally transmitted – the divine message.”

 Islamic Ethics – mainly based on Shariah, the Sacred Law or the Islamic
legal/social system whose main purpose is the advancement of goodness
for humankind and the protection from evil.
SHARIAH – CONSIST OF TWO MAJOR WRITTEN TEXT

1. Quran – Revelation of Allah to Muhammad

2. Sunnah – Life of the Prophet
GENERAL ETHICAL RULE OF ISLAM

“Whatever leads to welfare of the individual or society is morally

good and whatever is injurious is morally bad”
 Islamic Tradition – centered on the observance of moral rules and the
attainment of an ethical life

“Islam therefore lives not for itself but for humanity and lays out a clear
guideline for Muslims to be righteous and, thus, socially responsible
throughout their actions in life.”
THE FIVE PILLARS OF ISLAM

 Shahadah – (The declaration of faith is on God) – “The is no God but

Allah, and Muhammad as His messenger”

 Salat – (Obligatory prayers) – Facing the directions of Mecca, every

member of the Islamic faith ins obliged to pray five times a day

 Zakat – (Islamic Tax) Every Muslim must give a minimum of 2.5% of his
or her income for the charity and for the mosque. It is also called
“Purification Tax”
FIVE PILLARS OF ISLAM

 Sawm - (Fasting in the month of Ramadan) – Ramadan is the 9th month of

the year when the Muslims are obliged to fast

 Hajj – (Pilgrimage to Mecca) – At least once in their lifetime, every able-

bodied Muslim who can afford the journey is instructed to go to Mecca
to pray and to proclaim his or her faith in Allah. When you meet a
Muslim with the title al-Hajj (Pilgrim) in his or her name, it means that he
or she has already fulfilled his or her religious day of Hajj
ISLAM ON CONDUCT OF BUSINESS

It does not just uphold the value of business and trade, but it even
encourages the Muslims to participate in business activities that are not
against Islamic laws.
1. Muhammad himself was a tradesman and his wife Khadijah was a merchant
2. There is no inherent conflict between fair business and Islam
3. Islam declares that the search for one’s livelihood through fair business is like the
pursuit of the blessing of Allah
ISLAM ON CONDUCT OF BUSINESS

The concept of halal and haram are very important considerations for the
businesspersons
1. Halal – means “lawful”
2. Haram – means “unlawful”
3. The lawfulness and unlawfulness derive from the clear guidelines and principles
found in the Shariah
BUSINESS PRACTICES AND CONDUCT THAT ARE
CONSIDERED HALAL

1. Legitimate earnings
2. Trade contact with mutual consent
3. Truthfulness in business dealings
4. Trustworthiness in business matters
5. Generosity and leniency in business transactions
6. Honoring business obligations
7. Fair treatment of workers
BUSINESS PRACTICES AND CONDUCTS THAT ARE
CONSIDERED HARAM: IN ALL FORMS OF INTEREST (RIBA)

1. Business activity involving prohibited items such as forms of meat,

statues, and alcoholic beverages
2. The sale of Al-Gharar (risk, speculation) such as insurance and other
financial derivatives
3. Indiscriminate price-fixing
4. Hoarding of basic necessities such as food
5. Exploitation of one’s ignorance of market conditions
6. Fraud and trickery in business dealings