Shu'aib was sent as a prophet by Allah to the people of Madyan, who were known for dishonest business practices like giving short measure and hiding defects in goods. Shu'aib called them to worship only Allah and reform their ways, but they refused to listen and mocked him. When Shu'aib's followers were driven out, Allah punished the disbelievers by sending down a cloud that burst with thunderbolts and fire, killing the evil-doers. The story highlights the consequences of rejecting prophets and corrupt business practices.