1.3 Sharia (Islamic) marketing values

Sharia Islamic Marketing Values:

Sharia means a way or path. It refers to the divine guidance and laws given by the Holy Quran and Hadith (sayings) of the prophet Mohamed and supplemented by the juristic interpretations by Islamic scholars.

Sharia serves to set a scale in everybody's mind to distinguish between the lawful and the unlawful means of earning, and to prohibit or disapprove of all things that are either morally wrong or socially unacceptable.

Sharia embodies all aspects of Islamic faith including beliefs and practices. It is the body of Islamic religious law. It is also the legal framework within which the public and private aspects of life are regulated for those living in a legal system based on Islamic principles of jurisprudence.

The principles of Islamic marketing are following Shariah that covers the aspects and values of Islamic business thought. It provides a framework and practical perspectives for understanding and implementing the Islamic marketing code of conduct. The Principles of Islamic Marketing will lay the foundation of, and advance, Islamic Marketing as a new social science.

Islamic marketing values are reflecting the Islamic ethical values which are humane rather than utilitarian or relative. They are good for all times and absolute for all spheres of life including business financial dealings and obligations.

1.3 Sharia (Islamic) marketing values

Islamic ethical and moral codes create a sense of responsibility and accountability in the minds of the believers, be they buyers or sellers. If we compare Islamic marketing values to the Western ones we will find that the Western secular ethical values utilitarian, relative, situational and devoid of any spiritual sanctioning power.

To sum up, Islamic market is regulated by:

a.

the dictates of the Holy Qur'an and

b.

the teachings of the Prophet Muhammad (SAW)

c.

and at the same time the directives of the temporal authority.

Important Sharia Marketing Values:

Some of the important Sahria Marketing values are:

1.	Prohibiting of interest (Riba)

2.	Risk Sharing

3.	Sanctity (sacredness) of contracts

4.	Investing in unlawful business (Haram).

1.3 Sharia (Islamic) marketing values

Prohibiting of interest: (Riba):

Riba means excess and it is interpreted as any unjustifiable increase of capital whether in loans or

sales. Any positive, fixed, predetermined rate tied to the maturity and the amount of principal is

considered Riba and is therefore forbidden.

Risk Sharing:

Investors share business risk as they share the profit. Money is considered as a medium of exchange.

Charging interest on loans is considered unjust since money is viewed as an intermediary between

goods.

Sanctity of contracts:

Islam holds the contractual obligations and the disclosure of information as a sacred duty. Islam reduces

the risk of asymmetric information and moral hazard.

In markets, Shariah approved activities are allowed. Investing in unethical sectors is not permitted.

Examples of these sectors are casinos, tobacco companies, wine and alcohol business.