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Chapter 7: Marketing and Islamic Business Ethics

Marketing based on Islamic perspective

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Chapter 7: Marketing and Islamic Business Ethics

  1. 1. Chapter 7: Marketing & Islamic Business Ethics Islamic Business School (IBS) 2013 BPMS1013 Theory & Practice of Islamic Business 1
  2. 2. INTRODUCTION      What is Marketing? Why we do need Islamic Marketing? What is the Islamic principles in the design and Marketing strategy? What is the different between Islamic Marketing and traditional? What is the current marketing issues? In the world overview. BPMS1013 Theory & Practice of Islamic Business 2
  3. 3. Conti….. Islam places the highest emphasis on ethical values in all aspects of human life. In Islam, ethics governs all aspects of life.  Ethical norms and moral codes discernable from the verses of the Holy Qur’an and the teachings of the Prophet (pbuh) are numerous, far reaching and comprehensive. Islamic teachings strongly stress the observance of ethical and moral code in human behaviour.  Moral principles and codes of ethics are repeatedly stressed throughout the Holy Qur’an.  BPMS1013 Theory & Practice of Islamic Business 3
  4. 4. Issue of Riba In Islamic  The most difficult issues concern for fairness in business dealings is its prohibition of business transactions that call for charging riba (usury and interest).  Riba in Quran means paying money for the use of money.  From the Islamic perspective, with its bias towards fair distribution of wealth and social justice, the Qurans strictures against riba have implications for international political economy BPMS1013 Theory & Practice of Islamic Business 4
  5. 5. ISLAMIC MARKETING A process and strategy of fulfilling need through Halal products and services with the mutual welfare of both sellers and buyers.    not at all about increasing profits but concerns community welfare Achieve material and spiritual needs of consumers Never compromise with unethical practices BPMS1013 Theory & Practice of Islamic Business 5
  6. 6. ISLAMIC MARKETING STRATEGICS Satisfy to customers based on the human values, marketing cultures, and Islamic rules and regulations.  Focus on religious rules and ethics   Combine a value-maximization concept with the principle of ‘justice’ for the wider welfare of the society (Hassan et al. 2008)  enhancing the dignity and upholding the rights of human beings within the society In any marketing plan, the three keys processes in order are: 1. Strategy: The thought process behind the plan 2. Tactics: The execution using tools based on the strategy 3. Measurement : Monitoring success, short and long term results  BPMS1013 Theory & Practice of Islamic Business 6
  7. 7. What is ETHICS?  The set of moral principles that distinguish what is right from what is wrong  Consists of two fold objective  In Islam, ethics governs all aspects of life. (based on Quran and Sunnah) Principles Governing Islamic Ethics  Unity  Iman (faith)  Trusteeship  Balance  Justice  Free will BPMS1013 Theory & Practice of Islamic Business 7
  8. 8. Dangerous Business In The Country Or Community MONOPOLY  Monopoly (ihtikar) comes from the word hakr, which means collecting and controlling goods. Ihtikar used by scholars of Islamic jurisprudence to assert the privilege to collect and control of goods in an effort to anticipate the need for price increases. In other words, means the process of monopolizing ihtikar products to result in price increases.  Increasing the price  Decreasing supply sufficiently COPYRIGHT  Trade names, trademarks, copyright and patents are all rights which belong exclusively to their owners. In modern times they have come to have a considerable financial value. These rights are recognized according to sharee’ah, and they should not be violated. BPMS1013 Theory & Practice of Islamic Business 8
  9. 9. DRUGS AND ALCOHOL Alcohol Is Prohibited Alcohol is clearly forbidden in several verses of the Qur'an. Since intoxicants are prohibited in amounts both large and small, Muslims avoid alcohol even in baking, cooking, or in medicinal substances.  Modern Drugs Many of the illicit drugs available today were not yet known at the time of the Prophet Muhammad and the revelation of the Qur'an. Modern scholars have used principles of Islamic law to derive judgments regarding these new substances. Any substances that can cause harm to the body or impair a person's judgment are considered poisons to be avoided.  LOTTERY  Gambling is prohibited in the text of the Qur'an; there is no question about that. Gambling is described as taking money from person(s) to give it to others by virtue of a vain chance based on a strike of luck. The Shari`ah does not approve of such gains and losses, or such redistribution of income or money between people because there is no valid basis for it. Valid bases for acquiring a property are sale of goods and services (including labor) and growth of one' own property, such as reproduction of livestock. BPMS1013 Theory & Practice of Islamic Business 9
  10. 10. FORBIDDEN BUSINESS 1. Riba 2. Extortion and taken his property by way of vanity 3. Cheat and swear to popularize goods 4. Bribe 5. Monopolize goods (ihtikar) 6. Prohibition to buy stolen merchandise, grazing or confiscated without rights. 7. Etc.. BPMS1013 Theory & Practice of Islamic Business 10
  11. 11. ILLEGAL SALES & PURCHASE 1. Sale and purchase of faecal material. 2. The sale that cause the separation between mothers and young children. 3. The sale during prayers on Friday. 4. Sell ​wine or liquor of dates to the processor if the assured purchase material to be alcohol or other illegal substances. 5. Monopoly or speculation (al ihtikar) on essential items. 6. Involve sales or earnest deposit will not be refunded if the sale does not occur ( al’arabun). BPMS1013 Theory & Practice of Islamic Business 11
  12. 12. CONCLUSION  Nowadays, business in Islamic ethic had become one of the topic to be discusses in business communities. The Islamic ethical codes, on the contrary, are humane rather than utilitarian or relative. They are good for all times and absolute. Ethical and moral codes in Islam are part of the overall Islamic faith and observing them will not only lead to a happy state of affairs in this world but also holds the promise of manifold returns in the Hereafter. Islamic ethical and moral codes thus create a sense of responsibility and accountability in the minds of the believers, be they buyers or sellers.  Through business Islamic ethic, we can see that the ethical is multidimensional and comprehensive. So there is a need for people to study and get implement this ethic in our present business situation. BPMS1013 Theory & Practice of Islamic Business 12
  13. 13. Q&A 1. What is ethics? 2. Please list out three principles of Islamic ethics. 3. State out four types of illegal sales and purchase. BPMS1013 Theory & Practice of Islamic Business 13