
First: the ethical basis of financial transactions
Point 1 of 7 — Lesson 2: Business Ethics, the Prohibition of Fraud and MonopolyQuestion bank: 0 questions (0 with pictures)
01 First: the ethical basis of financial transactions
- Islam builds financial dealings on justice, honesty and trustworthiness joined to mercy toward people.
- It forbids usury (riba), fraud, monopoly and the exploitation of people's needs, so that solidarity and prosperity are preserved.
The default rule in transactions
- "God has permitted trade and forbidden usury" — al-Baqara 275.
- "O you who believe, do not consume your wealth among yourselves by false means, unless it be a trade by mutual consent" — an-Nisa 29.
- Mutual consent (tarad) between the two parties is a condition of a valid sale.
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