PMS 1013 THEORY & PRACTICES OF ISLAMIC BUSINESS CHAPTER 1 THE PHILOSOPHY OF ISLAMIC BUSINESS

INTRODUCTION
Business

is the most important activities to develop the societies and countries. In Islamic perspective, doing a business is a worship to Allah SWT and communally obligatory (fard alkifaya) for the Muslims people.
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Personally

obligatory (fard al-'ayn), which is required from every individual Muslim (e.g. salah and zakah); Communally obligatory (fard al- kifaya), which if performed by some Muslims is not required from others (e.g., funeral prayers).
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ISLAM AS A WAY OF LIFE

Islam

refer to compliance, belief and obedient to Allah in all human behavior Islam is the religion that recognize by Allah SWT.

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The

Meaning of Islam The name of the religion is Islam, which comes from an Arabic root word meaning "peace" and "submission." Islam teaches that one can only find peace in one's life by submitting to Almighty God (Allah) in heart, soul and deed.
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How

Many and Where?

Islam is a major world religion, with over 1 billion followers worldwide (1/5 of the world population). It is considered one of monotheistic faiths, along with Judaism and Christianity. Although usually associated with the Arabs of the Middle East, less than 10% of Muslims are in fact Arab. Muslims are found all over the world, of every nation, color and race. Muslim majorities are found throughout the Middle East, North Africa, East Asia and the Pacific Islands. Large numbers are also found in Western Europe, the former Soviet Union, and North America.
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Al-Quran

Al-Quran is a primary sources and guide line on decision making for Muslims Al-Quran is contain all the fundamental directives and instructions of Allah.

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Rasulullah

SAW Muhammad bin Abdullah is passenger of god and Role Model for Muslim.

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THE FOUNDATIONS OF ISLAM

Islam

is a completely religion in every way (syumuliyyah). Its consist 3 main foundations: Aqidah (faith) Syariah (Law) Akhlak (ethics)

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Aqidah

The word aqidah come from arabic, : aqada, yaqidu, aqdan or aqidatan Aqidah refer to belief and faith to Allah SWT. The knowledge about Allah SWT.

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Syariah

Shari`ah literally the laws and way of life prescribed by Allah (SWT) for his servants The shari`ah deals with the ideology and faith; behavior and manners; and practical daily matters (Articles of worship & Day-to-day activities) Its means worships (ibadah)

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Its consist 2, : - mahdhah, a formal worships (ibadah) (e.g: solat, fasting, etc.). - ghairi mahdhah a informal worships (e.g: business, commerce, etc.) 5 pillars of Islam Testimony/ Declaration of faith There is no deity save God, and Muhammad is the messenger of God Prayer (5 formal daily) Fasting (Ramadhan) Zakah (fitrah & Mal) Pilgrimage (haji)
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Akhlak

(ethics) The word of akhlak is synonim with ethics. The word of akhlak come from Arabic, khuluq it means a natural Code of human conduct

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THE RULINGS OF SACRED LAW

The rulings of sacred law for all daily actions are 5: prescribed, recommended, permissible, disliked and unlawful The definition of rulings are: The prescribed (fard) is refer to as obligatory (wajib), mandatory (muhattam) and required (lazim). Its can be divided into two categories : personally obligatory (fard al-'ayn), which is required from every individual Muslim (e.g. prayer and zakah); communally obligatory (fard al- kifaya), which if performed by some Muslims is not required from others (e.g., funeral prayers).
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The recomended (mandub) is refer to as sunnah, preferable (mustahabb), meritorious (fadila), and desirable (marghub fih). An examples are night vigil (tahajjud) prayers, and rememberance of Allah (zikr).

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Permissible (Mubah) is refer to The performance and nonperformance of the permissible/ allowed (mubah) is neither rewarded nor punished. Disliked (Makruh) is refer to non performance of both the disliked. Performance of the disliked is not punished.

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Unlawful

(Haram), is refer to the prohibited is rewarded. Performance of the unlawful is punished, but that of the disliked is not punished.

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ISLAM AND BUSINESS

There

are various definition of Islamic business develop by scholar. The main differences between Islamic business & conventional are a goals or outcome, The goals of conventional business are maximun profit. Therefore, the goals of Islamic business are to max. profit & max. social welfare.
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In daily life or create a business, the most important is a promise (uqud) with people or customer.

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Wahai orang-orang yang beriman, penuhi serta sempurnakanlah perjanjian....... (Q.S: Al Maidah: 1)

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types of job in the world

(1) Employee

(2) Built Business

(3) Self-employed

(4) Investment

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Criteria to be a successful entrepreneurs /worker. Its . 1) Passion 2) Knowledge 3) Skills 4) Desire 5) Intention to build a business 6) Maximum profit & welfare (barkah)
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1) 2) 3) 4) 5)

Please pay attention on this aspect: Spiritual, as a human and Muslim, consistent with the worship Physical, safety first the body. Mental, always increase the knowledge. Family, caring with family. Job/task, committed in a daily life. If you miss one aspect above, your life and business can be fail.
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A HUMAN NEED
The

level of human need and want are difference based on standards of consumption in a society, or etc. Islamic scholars are classified with 3 categories, its: Necessities (Dharuriyyah) (e.g: eat, drink, house, etc.) Convieniences (Haajiyyah), moderate (e.g: car and house, etc.) Refinements (Tahsiniyyah), (e.g: comfortable, sophisticated, branded, etc.)
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THE PRINCIPLES OF ISLAMIC BUSINESS

Its consist: Freedom Freedom to do something, but still have a guide line. Justice Fair in business and reduce the social gap riba not invest (sale or buy) on the interest activities).

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Gharar not invest (sale or buy) on the ambiguity activities). Maisir not invest (sale or buy) on the gambling activities). Provide a good products and services always increase the quality of products and services, and caring about customer right Dedication Committed with the jobs and tasks.

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Productive Use the sources effectively & efficiently, and growth. Trusteeship always take care about personnel and organizational image.

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