Norms of Ethics in an Islamic Economic System

In light of the Qur’an and the Sunnah, the scholars have defined some norms of ethics in an Islamic economics system. For brevity, we will list them here for now. Each of these will be discussed in further detail later. An Islamic economic system is based on the following norms of ethics:

1. Freedom to contract
2. Freedom from coercion
3. Freedom from misrepresentation
4. Freedom from Ar-Ribaa (interest)
5. Freedom from Al-Gharar (excessive uncertainty)
6. Freedom from Al-Qimaar (gambling)
7. Freedom from Al-Maysir (unearned income)
8. Freedom from price control and manipulation
9. Freedom from impulse
10. Right to trade at efficient prices
11. Entitlement to transact at fair prices
12. Right to equal bargaining power
13. Entitlement to equal, adequate and accurate information
14. Freedome from Darar (detriment)
15. Mutual cooperation and solidatrity
16. Maslahah Mursalah (unrestricted public interest)

Source: Obaidullah, 9-15.

 

Ethics Defined

According to Dr. Refik Beekun, ethics are defined as a set of moral principles that distinguish what is right from wrong, and in an Islamic context, the Qur’anic term khuluq is closest to it. Also, some other terms referenced from Qur’an describing the concept of good are khayr (goodness), birr (rightousness), qist (equity), and ‘adl (equilibrium and justice).

Source: Shikoh, Rafi-Uddin. “Islamic Business Ethics: Book Review.” Dinar Standard. 15 May 2005. 22 Jan. 2006 [http://www.dinarstandard.com/management/EthicsBookReview051505.htm].