Business ethics in Islam: the glaring gap in practice

Abstract

Purpose The purpose of this paper is to examine and discuss business ethics from an Islamic perspective. Design/methodology/approach Descriptive, analytical, and comparative analyses are used. Findings The study reveals several factors that affect Muslims' ethical behavior, including legal, organizational, and individual factors. However, there are factors that affect manager's unethical behavior; for example, stage of moral development, family influence and peer influence. The paper outlines some of the ethical guidelines that should be manifested in a Muslim manager, such as being trustful, honest, and consultative. Finally, the paper highlights some of the moral issues that seem to be common between Islam and other religions such as no lying, stealing, fraud, or deceit. Research limitations/implications The paper provides insights into Islamic work ethics for Western managers and employees, enabling them to work more effectively with Islamic managers, employees, and business partners. It is believed that the paper will provide a better understanding of Muslim societies in general and Islamic managers in particular. It also has some implications for Islamic managers and employees who have to deal with ethical dilemmas as well as situations that offer potential benefits or gains and are considered unethical on a daily basis. It is also hoped that this paper will reinforce managers' Islamic behavior and make them more aware of the code of conduct on business. Practical implications The findings presented in this research can be used by Western managers, employees, business partners, and academicians as a guide to Islamic work ethics in Muslim societies. Originality/value The paper makes a contribution to the literature on Islamic work ethics. It is believed to be one of few studies investigating the issue of management ethics in Islam. The findings presented will be of genuine interest to Western and non‐Western managers, employees, and academicians.

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