Relationship Between Corporate Leaders and Islamic Banks
( This article was published by NST , Malaysia , 2nd August 2006)
By : Ust Hj Zaharuddin Hj Abd Rahman *
A Muslim must know the rulings of Islam pertaining to the obligations and teachings he has to adhere to in his life. He must know the rulings related to purification of the body, the prescribed five daily prayers, and Friday prayer. He has to know the basics in Islam such as the five pillar of Islam and know the implementation, it is known as Fardhu ‘ain (Individual obligation). However, he is not required to go into the details and complex questions which concern scholars more.
The same goes for fasting, zakah, and Hajj. A Muslim should learn the rulings he is to abide by to perform these obligations. As for zakah, if a Muslim has sufficient wealth (which is stipulated in the Shari`ah), he is to know the amount of zakah he must pay in relation to the kind of wealth he possesses.
If he is a merchant or businessman, for example, he is to study the zakah on trade, way to execute correct and valid sale, trading and also to understand the elements of Riba which could be present especially in order to get the business's working capital through loans from any conventional financial institution, it might also be present in the investment and placing company's monies in conventional deposit accounts. All Muslim entrepreneurs must realize that there is no more excuse such as ‘common needs' to justify any subscription to conventional financial and banking products claiming that there is no Islamic products available in the market. It is vital in Shariah, to make sure that all of our business transaction, investment and their sources and users of fund are Shariah compliant or otherwise there will be no ‘Barakah' (blessing from Allah) or the outcome might be worse. Today where there are Islamic Banks and Islamic Financial institutions which has their long list of Islamic products which can be utilized accordingly as well as it offers a lot more benefit for the customer.
The leader or top management of the companies and organization should understand that their responsibility is not just to create wealth for the company but they have also a social ethical responsibility ensuring all of their Muslim staffs or employees are being facilitated with Islamic Financial facilities. In the event that the company is big enough in offering some benefits to their staffs with either a car or home financing etc and if they are already conventional loan given from the management to their employees, there is still a way out and that is by way of refinance all staff's loan with an Islamic product. At this juncture, Islamic banks are able to provide the facility as well as facilitate in the conversion of conventional facility to Islamic. The prophet Muhammad (peace be upon him) has said narrated by At-Tirmidzi "Leave doubt towards undoubted one"
No defense could be used to rationalize the apathy in not providing and facilitating Islamic scheme to the staffs, employees and workers, especially when they themselves prefer and in search for Islamic products to get away from Riba and other prohibited elements in their daily life. Ibn `Umar (May Allah be pleased with them) reported: I heard Messenger of Allah (PBUH) saying, "All of you are guardians and are responsible for your wards. The ruler is a guardian and responsible for his subjects; the man is a guardian and responsible for his family; the woman is a guardian and is responsible for her husbands house and his offspring; and so all of you are guardians and are responsible for your wards.''(al-Bukhari & Muslim)
A leader in any organization, companies and country, must also know what is lawful and unlawful regarding matters of daily working life like how to generate their employees trustworthiness in delivering tasks, understanding the concept of bribery, the do's and don'ts in claiming amount of money from the company, the Shariah rules in doing overtime, truthfulness in utilizing working period etc. Concerning ethics, a Muslim must learn the kind of behavior that he should adhere to. One must not to deviate from the orders that Almighty Allah has ordained, nor is to commit any prohibition. A Muslim is to abide by virtue and shun vice.
However, I would say that, when the management and the employee are involved with Riba and neglected these kinds of ethical concerns, it would go very difficult to manage the above said problems. Allah has said in surah al-Baqarah; 278, meaning: " Allâh will destroy Ribâ and will give increase for Sadaqât (deeds of charity, alms). And Allâh likes not the disbelievers, sinners"
From this verse, a prominent Shariah Scholar, Imam Ibn Hajar al-Haithami explained: "when Allah destroy riba as said in the above verse, that means Allah will destroy anyone and any wealth created from Riba transaction, and the result will be; whoever involves in it will feel very comfortable with doing sins, and feel very encouraging to do it. On the other hand, their hatred to good deeds will increasing from day to day" . ( Az-Zawajir ‘an Iqtiraf al-Kabair). Therefore, a company or organization with this sort of employees will suffer various kinds of problems until it go down to the drain. Good deed but if contrary to Shariah's rule cannot be said as pious deed.
Thus, every Muslim must learn the rulings relevant to his roles in life: a leader must know the rulings regarding leadership, a merchant has to learn the rulings pertaining to trade, a doctor must know the rulings related to medicine, spouses and parents have to learn the rulings concerning their duties and rights, and so on. The prophet Muhammad (peace be upon him) has said narrated by At-Tabrani : " Verily, Allah loves one who does his work with itqan (in order targeted, and certain as well as complete)"
In conclusion, I would say that, Islamic banks and other Islamic Financial institution are now very well prepared to discuss, and ready to engage in constructive dialogue, offer Islamic financial solutions to all of the top corporate leaders to provide their company needs and their employees with various Islamic products including consultation services on how to structure business model which is in line with the Shariah requirement. Only then, Malaysia would be an International Islamic Banking and Finance hub.
* The writer is a Senior Manager, Shariah Coordinator, ASIAN FINANCE ISLAMIC Bank Berhad, Malaysia
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