"Hoarding is prohibited in Islam because it encourages profiteering and creation of false shortage in the market at the expense of the common man..."
Business Ethics in Islam
Islamic Perspective on How to Spend and Gain Capital Lt Col (R) Muhammad Sarwar Friday, August 7, 2009
Business and businessmen have always been held in high esteem in Islam. The Holy Prophet (PBUH) himself led a few business ventures and even travelled to Syria in this connection. He successfully and profitably completed the assignment given to him by the Prophet’s wife to be, Khadija (RA). Islam promotes a balanced way of life in all spheres of human behavior. The Holy Prophet (PBUH) said, “No doubt the middle path is the best course”. In Islam Israaf is prohibited because it falls in the sphere of extravagance and no person, people or country can exist for long if it does not adopt a balance in its income and expenditure. It is for this reason that Israaf is disliked in Islam. Similar is the case with “Bukhl”, that is, being miserly. If money is not spent and does not come in circulation, it is detrimental to the interests of all and sundry. Resultantly, no new establishment, enterprise or business can be floated if money is blocked and does not come into circulation.
Islam believes in spreading of business to the grass root level where it says that the purchase has to be made at one place and sold at another place, so that maximum people can benefit because of creation of new markets. In this way, indirectly, creation of monopoly is discouraged. Islam is based primarily on truthfulness and it is said that both the seller and the purchaser have to explain the good and bad points of a particular transaction before it is carried out. (Al Adda bin Khalid Pg 165- Sahih Al Bukhari vol 3)
Hoarding is prohibited in Islam because it encourages profiteering and creation of false shortage in the market at the expense of the common man. In Confusciousism and Islam as well, it is said, “Whoever likes to enlarge his sustenance and age should keep good relations with his kith and kin”. (Anas Bin Malik- Bukhari) It implies that the business should be confined to the areas where it is produced and the surplus should be traded to the other areas.
Generosity and leniency in business transactions is of paramount importance in Islam. Businessmen should be very lenient with the customers because the customer is totally at their mercy. When a few camels were brought to the Holy Prophet (PBUH) in charity, the Prophet (PBUH) asked Abu Rafi to give the creditor a young she camel. Abu Rafi informed that there was no such camel except for a camel of very good quality. The Prophet (PBUH) said, “Give him the best one, for the best amongst you is he who repays the rights of others handsomely”. (Muslim)
There is a lot of emphasis in Islam on donation in the name of Allah for ultimate distribution to the populace. On one occasion when people donated in the name of God Almighty, the Prophet (PBUH) said, “He who sets a good precedence in Islam, there is a reward for him (for his act of goodness) and the reward of those who acted on it subsequently and he who sets an evil precedence there is upon him the burden of that and the burden of him who acted upon it subsequently, without any deduction from the burden”. (Mundhir bin Jarir on authority of his father)
Islam is a complete way of life and ethics play a vital role in the religion where great emphasis paid on the conduct of transactions and respect for individual’s life and property. The sanctity of others’ money is stressed on a great deal to ensure harmony in the society in general and business transactions in particular.
