WEEK 3

INTRODUCTION TO ISLAMIC ETHICS

(AKHLAQ)
AFS 3103
ETHICS IN ISLAMIC FINANCE
 DEFINITION OF AKHLAQ

The most related term of ethics in Islamic

context is ‘khuluq’ (singular) or ‘akhlaq’
(plural).

Akhlaq can be defined as the practice of

virtue and morality or the Islamic disposition of
a person.
Akhlaq is an important element of a person’s
faith (iman). It reflects a person’s behavior
towards Allah, himself and other human
beings. Generally, someone who has good
faith also has good akhlaq.

 Akhlaq outlines the right and wrong of a

person’s behavior.
 CONT.

The disposition that existed in an individual

can be caused by:
Natural character in which human are
born with (fitrah).
Habits due to repetitive doing of a
character
Continuous practice of a character
 SOURCES OF ISLAMIC ETHICS

Quran
The divine book of revelation consisting of
words from Allah.

The Quran stipulates the right and wrong,

as well as the prohibited and permissible
conducts of Muslims.
 CONT.

The Quran does not only explain on the

beliefs and religious practices of Muslims but
also consists of description on ethical
standards and guidelines for Muslims.

 Islam has provided rules and guidelines for its

believers to control their life in all aspects
including commercial and economic
transactions as well as social interactions.
 CONT.

Business activities are encouraged in Islam but

they must follow rules and guidelines that has
been mentioned in the Quran.

 ‘… but Allah has permitted trade and has forbidden

interest.’ ( Surah Al-Baqarah, 2:275)

 ‘… give full measure when you measure and weigh with an

even (honest) balance. That is good and the better at the
end.’ (Surah Al-Israa, 17:35)

 ‘Deal not unjustly, and you shall not be dealt with unjustly.’
(Surah Al-Baqarah, 2: 279)
 CONT.

Sunnah
Derived from the reports of recorded
sayings, personal teachings, practices,
behaviour, character and deeds of the
Prophet Muhammad that exemplify the
teachings of Islam.
The Prophet Muhammad is the ultimate
role model for Muslims in terms of how they
should conduct themselves.
 CONT.

Examples of sunnah that explicitly reinforced

the virtues of ethical conduct.

‘The best amongst you are those who have

the best manners and character’ (al-Bukhari,
hadith no. 759).

‘There is nothing more heavier [in weight] on

the scale on thr Day of Judgement] than
good character’ (Abu Dawud, hadith no.
4781).
DISTINCTIVE FEATURES OF ISLAMIC
ETHICAL SYSTEM

Divine Pleasure as the objective of man’s life

• Muslims believe that behaving ethically is one
way to prove their devotion to Allah.

• A man who believe in Allah as his Creator will

behave in such a way that can attain the
pleasure of Allah.

• A man who believe in the Day of Judgment will

behave in such a way that obeys the
commands of Allah and avoid behaviour that
violates Allah’ commands.
 CONT.

Permeates all spheres of life

• Islamic ethical system covers every aspect
of human life.

• Islamic ethical values applies to man’s

individual and collective life including
commercial affairs.
DIMENSIONS OF ETHICS IN ISLAM

Ethics towards
Ethics towards
other human
Allah
beings

Ethics towards
Ethics towards
other
innermost self
creatures