Historically, trade has been seen as a
major contributor to the Islamic civilization. The special place of trade in
Islam has also been manifested by Allah in the Quran. Although trade is
encouraged in Islam but riba (usury) is totally unacceptable as Allah has
mentioned in the Quran (2: 275-276) “trading
is permitted but riba (usury) is forbidden”. Riba is prohibited because it
concentrates wealth and nurture inequality via exploitation. In addition, Islam
also forbids speculation, gambling and hoarding. This has been evidenced
through these following ayahs:
يَا
أَيُّهَا الَّذِينَ آمَنُواْ إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالأَنصَابُ
وَالأَزْلاَمُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ
تُفْلِحُونَ
O ye who believe! Intoxicants and
gambling, (dedication of) stones, and (divination by) arrows, are an
abomination, - of Satan's handwork: eschew such (abomination), that ye may
prosper (5:90).
يَا أَيُّهَا الَّذِينَ آمَنُواْ إِنَّ
كَثِيرًا مِّنَ الأَحْبَارِ وَالرُّهْبَانِ لَيَأْكُلُونَ أَمْوَالَ النَّاسِ
بِالْبَاطِلِ وَيَصُدُّونَ عَن سَبِيلِ اللّهِ وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ
وَالْفِضَّةَ وَلاَ يُنفِقُونَهَا فِي سَبِيلِ اللّهِ فَبَشِّرْهُم بِعَذَابٍ
أَلِيمٍ
O ye who believe! there are indeed many
among the priests and anchorites, who in Falsehood devour the substance of men
and hinder (them) from the way of Allah. And there are those who bury gold and
silver and spend it not in the way of Allah. announce unto them a most grievous
penalty (9:34)
However, nowadays, the core anxiety of
people is that trade can cause the economic entity to neglect ethical duty
(Abdul Rahman 1998). As far as Muslims are concerned, Islam has the fundamental
principles which could be used as guidance to coordinate corporate dealings.
The concept of corporations has been existed since the age of Prophet Muhamad
(pbuh). During this era, lots of people involve in commercial ventures by
pooling their resources. This act was very similar to the notion of modern
corporation nowadays. For instance, “al-inan” (limited partnership) in Islam is
akin to the concept of joint stock companies which resembles the limited
partnership. This concepts of partnership (limited partnership) entails two or
more individuals form a business where they agree to contribute capital, share
the profits as predetermined before the business started and also have agreed
to bear the losses based on their capital contribution in case the business
face failure. Here, the partners’ liability is limited. The members’ works and
performance will be monitored by the board of directors. As the representatives
of the company’s shareholders board of directors carry a responsibility to
ensure the members perform their duty within their capacity and act for the
sake of the business instead of their personal interest.
Mudharabah is another form of partnership
in Islam which akin to the modern joint stocks venture. It is a form of
partnership where one party supplies the capital whereas another party will run
or operate the business. The profit will be distributed based on the
predetermined profit ratio. This notion of mudarabah has number of similarities
with the modern joint stock companies. This is evidenced by the disaffiliation
of control and possession or ownership. In other words, the capital providers
will not going to involve in the daily business operations. Besides, there is
unlimited number of shareholders being practiced. Also, share transfer is
allowed and will not cause the company to dissolve.
The only problem of this modern
corporation is the inability to comply with certain values in Islam as well as
the Shari’ah requirements. Thus, in order to make this system in line with the
Shari’ah, the companies act need to be revised accordingly to the Islamic Law
and the ultimate goals of the corporation need to be altered from profit
maximizing alone to also nurture the socio economic justice (Abdul Rahman
1998). Apart from revising the law as well as to ultimate goals of the
companies, the role of the leaders (managers) should not be ignored. In fact,
perfect rules, regulations and planning are useless without proper
implementation as well as supervision by the managements and board of directors
respectively.
According to Khalifah Ali, there ought to
be certain qualities before a person can be a leader. Some of these qualities
are outlined in the Quran where Allah addresses the prophet;
"It was by the mercy of Allah that
you (O Prophet) were lenient with them, for if you had been stern and hard-hearted,
they would have dispersed from around you. So forgive them and seek mercy for
them and consult with them in the conduct of affairs. And when you have
resolved [on an issue], then put your trust in Allah. Lo! Allah loves those who
put their trust in Him” (3:159).
A
few matters are pointed out here such as a leader must be kind hearted,
compassionate and forgiving towards their people. If he is cruel to them, they
will cease him. When a decision is made he must consult them. Allah then
further mentioned that no weaknesses should be shown and the policy be pursued
with single-minded of purpose, determination and boldness. Khalifah Ali then
concluded that the qualities of a leader are namely knowledge and hikmah
(wisdom, insight), taqwa (piety),
‘adl (justice) and rahmah (compassion), courage and bravery; shura
(mutual consultation), decisiveness and being resolute, eloquence, spirit of
self sacrifice and sabr (patience).
