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The life of the Holy Prophet (PBUH) and his teachings which include his sayings (hadiths) and actions (sunnah) are an integral part of Islam. These teachings provide valuable insights on how Muslims should deal with both worldly and religious matters.
Such is the extent that Muslims use the Prophet’s teaching as guidance within their lives that among these teachings, you can also find guidance on how to conduct business ethically Today we will discuss these ethical business practices as taught by our Prophet (PBUH) so that we can follow his example in our day-to-day business dealings.
It is important to remember even though these practices form part of Islamic teachings, they can apply to people of all faiths and backgrounds in terms of ethical guidelines.
In Islam, business is not merely a means of earning a livelihood; it is seen as a noble pursuit that should be conducted in a manner that aligns with ethical principles and promotes fairness, integrity, and social responsibility.
The Islamic perspective on business is grounded in the belief that all wealth ultimately belongs to Allah (SWT), and human beings are entrusted with its management in a just and fair manner.
The life of the Holy Prophet (PBUH) provides a perfect example for all Muslim business owners and sellers on how to conduct business dealings honestly and fairly, which everyone appreciates. There is a reason why he was called “Al-Amin" (The Trustworthy) and "As-Sadiq" (The Truthful), and even his enemies acknowledged it.
The Prophet (PBUH) was involved in business and trading from a very early age when his uncle Abu-Talib (RA) used to take him along on business trips. He learned all the basics of the business from his uncle and later applied them when he started his own business in his later years.
The Prophet (PBUH) was mainly involved in trading activities between Makkah and Syria. His honesty, trustworthiness, and fair dealings made him quite popular in trading. He not only earned the respect of his peers but also gained many loyal companions along the way. It was due to these qualities Khadija (RA) was so impressed that she sent him a marriage proposal, which he accepted. After marriage, he started managing her business, too.
Even when the Prophet (PBUH) became successful and well-known he continued to remain honest and fair in his business dealings and never exploited anyone. The Quran has highlighted the importance of fair dealings as follows:
O my people! Give full measure and weigh with justice. Do not defraud people of their property, nor go about spreading corruption in the land. What is left ˹as a lawful gain˺ by Allah is far better for you if you are ˹truly˺ believers. And I am not a keeper over you.”
After the Prophethood, he provided additional instructions and ethical rules that Muslim businesses should follow that adhere to the teachings of Islam. Some of these are:
Here are some Islamic business ethics that were taught by the Holy Prophet (PBUH) to the Muslim community:
One of the core principles of Islamic business ethics is honesty. The Prophet Muhammad (PBUH) greatly stressed the importance of being truthful in all transactions. He famously said:
“The truthful and trustworthy merchant is with the Prophets, the truthful, and the martyrs.”
(Tirmidhi, Hadith 1209)
Imagine this—you go to the market, and a merchant tells you everything about a product, including its flaws. You’d trust them more, right? That’s the kind of honesty the Prophet (PBUH) encouraged. It’s not just about gaining customers’ trust but also about earning Allah’s (SWT) blessings.
Unfortunately, in today’s world, some people lie about their products or hide defects to make a quick profit. But Prophet Muhammad (PBUH) showed us that honesty builds long-term relationships and success.
Fairness is another key principle taught by the Prophet (PBUH) when it comes to Islamic business. He believed that all transactions should benefit both parties. In one of his sayings, he warned against exploiting others:
“Do not sell what you do not possess.”
(Sunan Abi Dawud, Hadith 3503)
This means you shouldn’t sell something you don’t own or promise things you can’t deliver. If you do that, you are deceiving the public, which not only harms your business image but also goes against the teachings of the Prophet (PBUH) and Allah (SWT).
Interest, or riba, is strictly prohibited in Islam and is one of the main Islamic business principles that everyone should be aware of. The Prophet (PBUH) warned against engaging in any form of interest-based transactions. He said:
“Allah (SWT) has cursed the one who consumes riba, the one who gives it, the one who witnesses it, and the one who records it.”
(Sahih Muslim, Hadith 3901)
Why is interest forbidden you may wonder? It’s because it exploits people, especially those in need. Instead of helping someone in financial difficulty, interest-based loans often worsen their situation. The Prophet (PBUH) encouraged Muslims to engage in fairer and more equitable profit-and-loss sharing models.
Prophet Muhammad (PBUH) also discouraged practices like hoarding goods to create artificial scarcity and raise prices. He said:
“Whoever hoards is a sinner”
(Sahih Muslim, Hadith 1605)
So if you have any surplus items that are in shortage, then sell them at a normal rate to the people in need. Avoid overstocking them in the warehouses while waiting for the pricing to skyrocket. This strictly goes against the business ethics of the Holy Prophet (PBUH).
The Holy Prophet (PBUH) encouraged fair and transparent pricing of the products and advised against exploiting the customers by increasing pricing. He said:
“The buyer and the seller have the option of cancelling (the contract) as long as they have not separated, and if they spoke the truth and made things clear, they will be blessed in their transaction.”
(Sahih al-Bukhari, Hadith 2079)
If someone is not honest and fair in their pricing, it might lead to disputes and a bad reputation for the business, which can diminish profits because no one would buy from him/her. Choosing fair prices not only leads to growth in business but also ensures the blessings of Allah (SWT). Also, check our blog on dua’s to recite to increase blessings in business.
Enhance your dua experience through our beautifully crafted tasbeeh (prayer beads) available at Riwaya Tasbeeh Section. Our collection includes tasbeehs made of premium materials like gemstones, wood, metal and glass to ensure top-notch quality. You can buy it for yourself or as a gift for someone.
The Prophet (PBUH) wasn’t just a great businessman; he was also a kind and compassionate person. He encouraged traders to be lenient and understanding, especially when dealing with people facing financial difficulties. He said:
“May Allah have mercy on a man who is kind when he sells, buys, and demands his due.”
(Sahih al-Bukhari, Hadith 2076)
Being kind doesn’t mean you let people take advantage of you, but it does mean showing empathy and understanding. For example, if a customer is struggling to pay, giving them extra time or reducing the amount owed can go a long way in earning Allah’s (SWT) blessings.
Another important thing to remember from the Holy Prophet's (PBUH) teachings on businesses is how business owners should treat their employees. He highlighted treating the employees with kindness while ensuring their well-being. He encouraged paying their wages on time without unnecessary delay:
Give the worker his wages before his sweat dries
(Sunan Ibn Majah, Hadith 2443)
This not only ensures the fair and kind treatment of employees but also impacts their productivity, and overall morale as well. Wages are the right of the employees and withholding onto them is a serious sin and not in line with the teachings of the Prophet (PBUH).
Further, Holy Prophet (PBUH) also encouraged employers to treat their employees like their family and provide them with the same care as they would to their children, such as providing food and clothes and managing workload as required:
“Your brothers are your responsibility. Allah has put them under your authority. So, whoever has a brother under his authority, let him feed him with the same food he eats, clothe him with the same clothes he wears, and do not burden him beyond his ability. If you burden him, then help him.”
(Sahih al-Bukhari, Hadith 30)
Another essential aspect of Islamic business ethics is giving back to the community. The Prophet (PBUH) taught that wealth is a blessing from Allah (SWT), and sharing it with others increases it. He said:
“Charity does not decrease wealth.”
(Sahih Muslim, Hadith 2588)
Think about it—when you’re generous, people appreciate you more, and Allah (SWT) rewards you abundantly. It also helps to protect your business from nazr (evil eye).
At Riwaya, we donate a part of our earnings to help communities and support charitable organizations around the world. Whether you're shopping with us or selling, you can be sure that a portion of your money will go towards charity.
The life of the Prophet Muhammed (PBUH) and his hadiths provide countless examples regarding how to conduct business dealings in an honest and fair way. Doing so not only benefits us in the real world and helps build a positive image of our business but also receive blessings from Allah (SWT).
As Muslims, it is our responsibility to apply these teachings in our work and business, ensuring that our actions align with the values of Islam. Let us strive to make honesty, fairness, and compassion the foundation of our professional lives.
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