This paper proposes a Guiding Principle for Islamic Labour Code and Business Ethics for business entities such as multinational corporations (MNCs) operating in Muslim countries. This code is proposed to ensure the manners in which they conduct with their business operations, in particular the way they manage their employees in accordance with the Islamic principles. In developing such guiding principle, the authors will take into consideration the elements of human rights and corporate responsibilities as well as the notion of maqasid shari’a. In other words, it means achieving and protecting the benefits and good (masalih) for the sake of human beings. This will cover the issues such as the rights and duties of employees in Islam, discrimination against employees, labour associations, child and forced labours and fair distribution of income and wages. This paper is a conceptual paper thus it uses the library-based research method by analysing relevant materials such as the Holy Quran, the Hadith, the traditional Islamic books and literatures, journals, academic textual materials as well as internet sources. The outcome of this paper emphasised that, by incorporating Islamic labour code and business ethics based on the principle of maqasid shari’a, business does not only serve as a purely profit-oriented entity but will also be a more socially-responsible entity that will make profit in a responsible and ethical manner by respecting its employees and people within its sphere of influence.
Abdal-Haqq, I. (2002). Islamic Law An Overview of Its Origin and Elements, 7 J. Islamic L. & Culture 27, 41.
Almihdar, Z. (2008). Human Rights of Women and Children under the Islamic Law of Personal Status and its Application in Saudi Arabia, 5 Muslim World Journal of Human Rights 1, 8.
Azmi, S (2005). An Islamic Approach to Business Ethics, online: http://www.renaissance.com.pk, islamicstudies.islammessage.com
Beekun, R. I. & Badawi, G.A. (2005). Balancing Ethical Responsibility Among Multiple Organizational Stakeholders: The Islamic Perspective, 60 J. Bus. Ethics 131, 133.
Brougher, C. (2011). Application of Religious Law in US Courts: Selected Legal Issues. Congressional Research Service (CRS)’s Report to Congress. Retrieved on 15 April from: http://www.fas.org/sgp/crs/misc/R41824.pdf
Donboli, J. H. & Kashefi, F. (2005). Doing Business in the Middle East: A Primer for U.S. Companies, 38 Cornell Int’l L.J. 413, 414.
Doniger, W. (2006). Encyclopedia of World Religions, Encyclopedia Britannica Inc.: US.
Elsaman, R. S. (2011) Corporate Social Responsibility in Islamic Law: Labour and Employment, Yonsei Law Journal, vol.2, no.1, 64-93
Mohamed Adil, M. A. & Ahmad, N. M. (2014). “Islamic Law and Human Rights in Malaysia”. Islam and Civilisational Renewal, Vol. 5 No. 1, January 2014 – ISSN 1394-0937, pp. 43-67.
Muzammil H. Siddiq. (2014). Rights of Workers in Islam. Retrieved 9 October 2014 from: http://www.onislam.net/english/shariah/shariah-and-humanity/shariah-and-life/456899-rights-of-workers-in-islam.html
Wan Hamat, WN., Zaharah H., Ahmad Fakhrudin MY. and Ahmad Arifin S. (2013), 'Pengaruh Media Massa terhadap Penampilan Akhlak,' The Online Journal of Islamic Education, January, 1 (1).
Williams, G. & Zinkin, J. (2005). Doing Business with Islam: Can Corporate Social Responsibility be a Bridge between Civilisations?. Available at SSRN: http://ssrn.com/abstract=905184
Williams, G. & Zinkin, J. (2009). Islam and CSR: A Study of the Compatibility between the Tenets of Islam and the UN Global Compact, 51 J. Bus. Ethics 520.
Zulfiqar, A. A. (2007). Religious sanctification of labour law: Islamic labour principles and model provisions, U. Pa. Journal of Labour and Employment Law, vol. 9:2.
Zakaria, M. Z., Ahmad, N. M., Salleh, A. Z., Hasbullah, M., & Thoarlim, A. (2017). Guiding Principles for Islamic Labor Code and Business Ethics. International Journal of Academic Research in Business and Social Sciences, 7(5), 308-316.
Copyright: © 2017 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
