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Lesson Islamic Ethics in Financial Transactions
Ethics are inextricably linked to all aspects of life. One of the essential features of the Islamic financial system is the moral values on which it is based and observed. This makes the Islamic financial system unique from other economic systems.
It is everything that the legislation allows work in for the sake of a lawful earning. Financial transactions include all contracts based on money or giving rise to economic rights, such as buying and selling, renting, a company, and other agreements. The rulings related to Islamic transactions are the legal rulings that regulate people's financial and economic dealings with one another.
The Aims of Islamic Financial Transactions
Islam is the religion of truth. It shows people what is good for them and what will rectify them. This is because it is from the Creator of people, and above all, He knows them best and what will benefit them. Allah says: (How could He not know His Own creation? For He ˹alone˺ is the Most Subtle, All-Aware.)[Al-Mulk: 14]. Contrary to other laws and regulations, Islam has a financial system that considers the needs of the body and the matters of the life of this world, and the needs of the soul and the hereafter.
Firstly, the worldly aspect: Islamic law regulates people's financial transactions in a manner that achieves justice among all involved and in a manner that gives each person his right, and this suffices all. Likewise, the legislation has made the lawful a wide range of things, and anything harmful has been made unlawful.
Secondly, from a religious aspect: The ultimate objective of all the legislation rulings is to achieve the pleasure of Allah and victory in paradise. In addition, the rulings of Islamic transactions bring about brotherhood among believers by promoting justice and encouraging charity, such as giving the person in debt respite and making unlawful anything that causes feelings of malice in the hearts, such as usury and gambling.
Firstly, Justice: To ensure the right of both parties in a financial transaction without addition or reduction, such as selling and leasing for a similar price, etc. Allah says: (Allah has made lawful trade.)[Al-Baqarah:275] Secondly, virtue: Showing kindness, such as giving a person in debt respite or canceling the debt. Allah says: (If it is difficult for someone to repay a debt, postpone it until a time of ease. And if you waive it as an act of charity, it will be better for you if only you knew.)[Al-Baqarah:280]
Thirdly- oppression: When a person takes more than his right and consumes the wealth of people through false means, such as usury, gambling, and denying an employee his right, etc. Allah says: (O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers. If you do not, beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm.)[AL-Baqarah:278, 279] The Prophet ﷺ said: «Allah says: "There are three whose adversary I shall be on the day of resurrection: A man who gave a promise in my name then acted faithlessly; a man who sold a free man and enjoyed the price he received for him; and a man who hired a servant and, after receiving full service from him, did not give him his wages.”» (Al-Bukhari, 2227)
