Abbas J. Ali’s Business Ethics in Islam is a timely contribution to the burgeoning literature in the area of management from Islamic perspectives. Ali is an established scholar in the area. His book Islamic Perspectives on Management and Organization, that I had a chance to review in 2006, was a significant addition to the efforts to fill the gap in management from Islamic perspectives literature. With Business Ethics in Islam, Ali makes another valuable contribution to the thinking on the significant subject of business ethics.
Business ethics literature, in recent times, has been enriched by so many different perspectives. There are religion-specific perspectives, an example of which is Pava’s Business Ethics: A Jewish Perspective, or a regional perspective such as Fernando’s Business Ethics: An Indian Perspective. Ali’s book is a welcome addition to this genre of business ethics literature.
In ten chapters of his book, Ali expounds the theme of business ethics in the context of Islam. The first chapter lays the groundwork for developing a conceptual understanding of business ethics in Islam. Three chapters—two through four—are devoted to macro issues of sources of ethical problems in business, Islamic ethics and free market economy, as well as the ethics of profit. The remaining six chapters relate to leadership within organizations, ethics in banking and financial services, ethics in organization and work, marketing ethics and consumerism, the ethics of human resource management, and finally, social responsibility and sustainability. Thus, Ali broadly covers issues that are relevant to organizations, their operational environments, and the ethical values of Islam.
The sources that Ali uses to describe business ethics from an Islamic perspective are the Quran, the sayings and actions of Prophet Mohammad, the sayings and actions of the rightly-guided four Caliphs, and the writings of early Muslim scholars and thinkers. His historical reference for drawing lessons on business ethics is the golden age of Islam, which is commonly understood as the six centuries following the advent of Islam in the 7th century A.D. While doing so, Ali provides references to contemporary practice of business ethics in countries with Muslim majorities. He skillfully brings to the fore the essence of ethics in Islam, relates it to business context, and describes it in the macro- and micro-economic contexts. He also compares the position of business ethics in Islam with that in the other two monotheistic religions of Judaism and Christianity, pointing out the similarities as well as differences among the three religions’ ethical perspectives.
Ali chooses virtue ethics as the theoretical perspective to ethics, leaving out the teleological (or consequentialist) and deontological (or non-consequentialist) perspectives. The virtue ethics perspective is meant to relate to “dispositions that a person displays in relationships and attitudes and is embedded in the values and beliefs that one subscribes to” (8). In this sense, they differ from contemporary ethical theories by emphasizing individual character, attitudes, and other dispositions and preferences. Ali believes that wider good can emanate from actions derived out of goals that result from an interplay of virtues and human intentions. Indeed, the role of intention in guiding conduct is significant in Islam. Ali also explains the four levels of human existence elaborated in the Quran: sawala (passion for temptation); ammara (prone-to-evil psyche); lawama (self-reproachment) and mutmainna (the righteous). He relates these to the inclinations that a human being might have.
Ali’s approach is based on a theoretical framework for ethical conduct that he describes in the first chapter. A brief explanation of this framework is in order. Ali’s framework has three logics. First, there is public interest that is manifested in two elements of acquisition of benefits and repulsion of harm. The second logic is of moderation that proposes a middle way, avoiding extreme positions either way. The third logic is expressed in the Arabic term “ehsan.” Ali elaborates ehsan as “… the embodiment of goodness and generosity in interaction and conduct, be it on a personal or organizational level” (20). The three logics lay the groundwork for cultivation of two prerequisites for ethical conduct: good intention and virtuous conduct. Ethical conduct results when morally driven methods are used as means propelled by the interaction of good intention and the embodiment of virtue in conduct.
As we move through the chapters, in each of them, Ali brings to the fore his theoretical framework to explore, interpret, and describe the various issues that he has covered in his book. I will present two examples, one from the macro and the second from the micro context to illustrate how Ali applies his theoretical framework.
The first example is from the third chapter on Islamic ethics and free market economy that initially clarifies how the acquisition and holding of private property, competition, investment, trade, and business expansion are understood from the Islamic perspective. The difference with modern capitalism lies in the emphasis that Islamic perspectives place on responsible conduct and the primacy of societal good over individual gain. Ali explains that Islamic ethics in a free market economy involves the production of benefits for all and avoidance of harm to society, while maintaining a balance between conspicuous consumption and miserliness. Ehsan, or benevolence, in turn, sets the stage for ethical conduct.
The second example is from chapter eight on marketing ethics and consumerism, which is a detailed exposition of Islamic ethics in the context of marketing management. Ali is of the opinion that marketing ethics in Islam is broad in scope and places emphasis on furthering public interest. It promotes responsible marketing conduct and societal welfare. Islamic marketing ethics is also in favor of moderation in spending and consumption. The element of ehsan makes it imperative for marketers to avoid misleading customers and establish a relationship of trust with them. Based on this analysis, Ali goes on to draw clear implications for marketing ethics. For instance, deception in dealing with customers and hoarding are prohibited, while moderation in profit making and in promotion of products is advisable. Consumerism is recommended to maintain balanced tendencies and direct spending to areas that have the highest value for the largest number of people. Overall, Ali concludes that “Islamic ethics provides a practical framework for guarding the interests of those who are partners in the (market) exchange function” (172).
Ali’s treatment of Islamic business ethics offers a significant addition to and departure from contemporary literature on business ethics, dominated as it is, by normative and descriptive business ethicists. Ali’s prescription of profit moderation as an alternative to profit maximization, for instance, offers a counterpoint in the debate on the applicability of the “free market” theory of ethics. Moreover, its emphasis on societal welfare, as compared to individual gain, favors a conception of corporate social responsibility over and against the now familiar “business-of business-is-business” argument. In many of the areas of business, such as leadership, marketing, banking and financial services, and human resource management, there are real ethical dilemmas before practitioners. Ali presents a succinct analysis of many contemporary issues and offers a practical framework for applying Islamic business ethics to deal with those dilemmas.
Business ethics in Islam also has some useful material for researchers in the area of business ethics. For instance, there is ample material in chapters on human resource management, banking and financial services, and organization and work for researchers to pick up useful and workable ideas to explore. The Islamic work ethic is explained in some detail bringing out clearly its philosophical, spiritual, social psychological, and economic dimensions. It enables the reader to explore opportunities for enhancing motivation, discipline, and creativity in organizations.
The reader of this book might have a feeling, as I did, about the actual state of business ethics in countries with Muslim majorities. The feeling is that if Islam offers a clear framework for business ethics, then why are so many contemporary Muslim societies facing problems of low economic growth, developmental stagnation and decline? Ali refers to this state of affairs at some points in the book. For instance, writing about work ethic in Muslim societies, Ali states that, “for various reasons—psychological, economic or health—a commitment to work may reach a low threshold though a person philosophically believes that work is important” (123). Elsewhere, Ali refers to the cultural discontinuity experienced by Muslim societies since the Mongol invasion, the destruction of the Islamic state in 1258, and the ill effects of colonialism on most Muslim majority nations, as reasons for low economic performance and productivity. One wishes that Ali had gone further to say that all ethical traditions, including the modern one that grounds business ethics in the norm of the market, involve idealizing assumptions and when put to practice inevitably have unrealized outcomes.
While the book under review is certainly not designed as a text, it can be useful as a reference book. It is a treasure trove for researchers in the area of management from Islamic perspectives, as there is a wealth of information related to various relevant issues. There is a copious bibliography listing the contribution of Muslim thinkers and scholars from the golden age of Islam as well as contemporary sources of references to business ethics in Islam as well as other allied areas of research such as law, economics, leadership, corporate social responsibility and the like. To the reader who is interested in knowing the Islamic perspectives on business ethics, this book will be a useful resource. A glossary of Arabic and Quranic terms and their explanation in English could have been a good addition to the book to make it more useful for readers who are not conversant with the Arabic language.
