What Does the Hadith Say About Business Ethics?

Narrated Jabir bin 'Abdullah: Allah's Apostle said, "May Allah's mercy be on him who is lenient in his buying, selling, and in demanding back his money."

Narrated Hakim bin Hizam: The Prophet said, "Both the buyer and the seller have the option of cancelling or confirming the bargain unless they separate." The sub-narrator, Hammam said, "I found this in my book: 'Both the buyer and the seller give the option of either confirming or cancelling the bargain three times, and if they speak the truth and mention the defects, then their bargain will be blessed, and if they tell lies and conceal the defects, they might gain some financial gain but they will deprive their sale of (Allah's) blessings."

Narrated Nafi: Ibn 'Umar told us that the people used to buy food from the caravans in the lifetime of the Prophet. The Prophet used to forbid them to sell it at the very place where they had purchased it (but they were to wait) till they carried it to the market where foodstuff was sold. Ibn 'Umar said, 'The Prophet also forbade the reselling of foodstuff by somebody who had bought it unless he had received it with exact full measure'

Narrated Abu Huraira: Allah's Apostle said, "Do not go forward to meet the caravan (to buy from it on the way before it reaches the town). And do not urge buyers to cancel their purchases to sell them (your own goods) yourselves, and do not practice Najsh. A town dweller should not sell the goods for the desert dweller. Do not leave sheep unmilked for a long time, when they are on sale, and whoever buys such an animal has the option of returning it, after milking it, along with a Sa of dates or keeping it. it has been kept unmilked for a long period by the seller (to deceive others).

Narrated Ibn Shihab: that Malik bin Aus said, "I was in need of change for one-hundred Dinars. Talha bin 'Ubaid-Ullah called me and we discussed the matter, and he agreed to change (my Dinars). He took the gold pieces in his hands and fidgeted with them, and then said, "Wait till my storekeeper comes from the forest." 'Umar was listening to that and said, "By Allah! You should not separate from Talha till you get the money from him, for Allah's Apostle said, 'The selling of gold for gold is Riba (usury) except if the exchange is from hand to hand and equal in amount, and similarly, the selling of wheat for wheat is Riba (usury) unless it is from hand to hand and equal in amount, and the selling of barley for barley is usury unless it is from hand to hand and equal in amount, and dates for dates, is usury unless it is from hand to hand and equal in amount"

Narrated Abu Said Al-Khudri: Allah's Apostle said, "Do not sell gold for gold unless equivalent in weight, and do not sell less amount for greater amount or vice versa; and do not sell silver for silver unless equivalent in weight, and do not sell less amount for greater amount or vice versa and do not sell gold or silver that is not present at the moment of exchange for gold or silver that is present.

Narrated Sahl bin Abu Hathma: Allah's Apostle forbade the selling of fruits (fresh dates) for dried dates but allowed the sale of fruits on the 'Araya by estimation and their new owners might eat their dates fresh. Sufyan (in another narration) said, "I told Yahya (a subnarrator) when I was a mere boy, 'Meccans say that the Prophet allowed them the sale of the fruits on 'Araya by estimation.' Yahya asked, 'How do the Meccans know about it?' I replied, 'They narrated it (from the Prophet ) through Jabir.' On that, Yahya kept quiet." Sufyan said, "I meant that Jabir belonged to Medina." Sufyan was asked whether in Jabir's narration there was any prohibition of selling fruits before their benefit is evident (i.e. no dangers of being spoilt or blighted). He replied that there was none.

Narrated Anas bin Malik: Allah's Apostle forbade the sale of fruits till they are almost ripe. He was asked what is meant by 'are almost ripe.' He replied, "Till they become red." Allah's Apostle further said, "If Allah spoiled the fruits, what right would one have to take the money of one's brother (i.e. other people)?" Narrated Ibn Shihab: If somebody bought fruits before their benefit is evident and then the fruits were spoiled with blights, the loss would be suffered by the owner (not the buyer). Narrated Salim bin 'Abdullah from Ibn Umar: Allah's Apostle said, "Do not sell or buy fruits before their benefit was evident and do not sell fresh fruits (dates) for dried dates."

Narrated Ibn 'Umar: The Prophet said, "Whoever pollinates date palms and then sells them, the fruits will belong to him unless the buyer stipulates that the fruits should belong to him (and the seller agrees)."

Narrated Aun bin Abu Juhaifa: I saw my father buying a slave whose profession was cupping, and ordered that his instruments (of cupping) be broken. I asked him the reason for doing so. He replied, "Allah's Apostle prohibited taking money for blood, the price of a dog, and the earnings of a slave-girl by prostitution; he cursed her who tattoos and her who gets tattooed, the eater of Riba (usury), and the maker of pictures."

Narrated Ibn 'Abbas: The Prophet came to Medina and the people used to pay in advance the prices of fruits to be delivered within two to three years. The Prophet said (to them), "Buy fruits by paying their prices in advance on condition that the fruits are to be delivered to you according to a fixed specified measure within a fixed specified period." Ibn Najih said, " ... by specified measure and specified weight."

Narrated Jabir bin 'Abdullah: I was accompanying the Prophet on a journey and was riding a slow camel that was lagging behind the others. The Prophet passed by me and asked, "Who is this?" I replied, "Jabir bin 'Abdullah." He asked, "What is the matter, (why are you late)?" I replied, "I am riding a slow camel." He asked, "Do you have a stick?" I replied in the affirmative. He said, "Give it to me." When I gave it to him, he beat the camel and rebuked it. Then that camel surpassed the others thenceforth. The Prophet said, "Sell it to me." I replied, "It is (a gift) for you, O Allah's Apostle." He said, "Sell it to me. I have bought it for four Dinars (gold pieces) and you can keep on riding it till Medina." When we approached Medina, I started going (towards my house). The Prophet said, "Where are you going?" I Sad, "I have married a widow." He said, "Why have you not married a virgin to fondle with each other?" I said, "My father died and left daughters, so I decided to marry a widow (an experienced woman) (to look after them)." He said, "Well done." When we reached Medina, Allah's Apostle said, "O Bilal, pay him (the price of the camel) and give him extra money." Bilal gave me four Dinars and one Qirat extra. (A sub-narrator said): Jabir added, "The extra Qirat of Allah's Apostle never parted from me." The Qirat was always in Jabir bin 'Abdullah's purse.

Narrated Ibn 'Umar: A man came to the Prophet and said, "I am often betrayed in bargaining." The Prophet advised him, "When you buy something, say (to the seller), 'No deception." The man used to say so afterwards.

Narrated Rabi bin Hirash: 'Uqba bin 'Amr said to Hudhaifa, "Won't you relate to us of what you have heard from Allah's Apostle ?" He said, "I heard him saying, "When Al-Dajjal appears, he will have fire and water along with him. What the people will consider as cold water, will be fire that will burn (things). So, if anyone of you comes across this, he should fall in the thing which will appear to him as fire, for in reality, it will be fresh cold water." Hudhaifa added, "I also heard him saying, 'From among the people preceding your generation, there was a man whom the angel of death visited to capture his soul. (So his soul was captured) and he was asked if he had done any good deed.' He replied, 'I don't remember any good deed.' He was asked to think it over. He said, 'I do not remember, except that I used to trade with the people in the world and I used to give a respite to the rich and forgive the poor (among my debtors). So Allah made him enter Paradise." Hudhaifa further said, "I also heard him saying, 'Once there was a man on his death-bed, who, losing every hope of surviving said to his family: When I die, gather for me a large heap of wood and make a fire (to burn me). When the fire eats my meat and reaches my bones, and when the bones burn, take and crush them into powder and wait for a windy day to throw it (i.e. the powder) over the sea. They did so, but Allah collected his particles and asked him: Why did you do so? He replied: For fear of You. So Allah forgave him." 'Uqba bin 'Amr said, "I heard him saying that the Israeli used to dig the grave of the dead (to steal their shrouds)."

Narrated Abu Al-Minhal 'AbdurRahman bin Mut'im: A partner of mine sold some Dirhams on credit in the market. I said, "Glorified be Allah! Is this legal?" He replied, "Glorified be Allah! By Allah, when I sold them in the market, nobody objected to it." Then I asked Al-Bara' bin 'Azib (about it) he said, "We used to make such a transaction when the Prophet came to Medina. So he said, 'There is no harm in it if it is done from hand to hand, but it is not allowed on credit.' Go to Zaid bin Al- Arqam and ask him about it for he was the greatest trader of all of us." So I asked Zaid bin Al-Arqam., and he said the same (as Al-Bara) did."

Narrated Abu Said Al-Khudri and Abu Huraira: Allah's Apostle appointed a man as the ruler of Khaibar who later brought some Janib (i.e. dates of good quality) to the Prophet. On that, Allah's Apostle said (to him). "Are all the dates of Khaibar like this?" He said, "No, by Allah, O Allah's Apostle! But we take one Sa of these (dates of good quality) for two or three Sa's of other dates (of inferior quality)." On that, Allah's Apostle said, "Do not do so, but first sell the inferior quality dates for money and then with that money, buy Janib." Abu Said and Abu Huraira said, "The Prophet made the brother of Bani Adi from the Ansar as the ruler of Khaibar.

Narrated Ibn 'Abbas: 'Ukaz, Mijanna and Dhul-Majaz were markets during the Pre-islamic Period. They (i.e. Muslims) considered it a sin to trade there during the Hajj time (i.e. season), so this Verse was revealed:-- "There is no harm for you if you seek of the Bounty of your Lord during the Hajj season." (2.198)

Narrated 'Aisha: When the last Verses of Surat-al-Baqara were revealed, the Prophet read them in the Mosque and prohibited the trade of alcoholic liquors. "If the debtor is in difficulty, grant him time till it is easy for him to repay.." (2.280) Narrated 'Aisha: When the last Verses of Surat-al-Baqara were revealed, Allah's Apostle stood up and recited them before us and then prohibited the trade of alcoholic liquors.

Narrated Abu Sa'id Al-Khudri Allah's Apostle forbade two ways of wearing clothes and two kinds of dealings. (A) He forbade the dealings of the Mulamasa and the Munabadha. In the Mulamasa transaction the buyer just touches the garment he wants to buy at night or by daytime, and that touch would oblige him to buy it. In the Munabadha, one man throws his garment at another and the latter throws his at the former and the barter is complete and valid without examining the two objects or being satisfied with them (B) The two ways of wearing clothes were Ishtimal-as-Samma, i e., to cover one's shoulder with one's garment and leave the other bare: and the other way was to wrap oneself with a garment while one was sitting In such a way that nothing of that garment would cover one's private part

Narrated Ibn 'Umar: Allah's Apostle said, "While three persons were traveling, they were overtaken by rain and they took shelter in a cave in a mountain. A big rock fell from the mountain over the mouth of the cave and blocked it. They said to each other. 'Think of such good (righteous) deeds which, you did for Allah's sake only, and invoke Allah by giving reference to those deeds so that Allah may relieve you from your difficulty. one of them said, 'O Allah! I had my parents who were very old and I had small children for whose sake I used to work as a shepherd. When I returned to them at night and milked (the sheep), I used to start giving the milk to my parents first before giving to my children. And one day I went far away in search of a grazing place (for my sheep), and didn't return home till late at night and found that my parents had slept. I milked (my livestock) as usual and brought the milk vessel and stood at their heads, and I disliked to wake them up from their sleep, and I also disliked to give the milk to my children before my parents though my children were crying (from hunger) at my feet. So this state of mine and theirs continued till the day dawned. (O Allah!) If you considered that I had done that only for seeking Your pleasure, then please let there be an opening through which we can see the sky.' So Allah made for them an opening through which they could see the sky. Then the second person said, 'O Allah! I had a she-cousin whom I loved as much as a passionate man love a woman. I tried to seduce her but she refused till I paid her one-hundred Dinars So I worked hard till I collected one hundred Dinars and went to her with that But when I sat in between her legs (to have sexual intercourse with her), she said, 'O Allah's slave! Be afraid of Allah ! Do not deflower me except legally (by marriage contract). So I left her O Allah! If you considered that I had done that only for seeking Your pleasure then please let the rock move a little to have a (wider) opening.' So Allah shifted that rock to make the opening wider for them. And the last (third) person said 'O Allah ! I employed a laborer for wages equal to a Faraq (a certain measure: of rice, and when he had finished his job he demanded his wages, but when I presented his due to him, he gave it up and refused to take it. Then I kept on sowing that rice for him (several times) till managed to buy with the price of the yield, some cows and their shepherd Later on the laborer came to me an said. '(O Allah's slave!) Be afraid o Allah, and do not be unjust to me an give me my due.' I said (to him). 'Go and take those cows and their shepherd. So he took them and went away. (So, O Allah!) If You considered that I had done that for seeking Your pleasure, then please remove the remaining part of the rock.' And so Allah released them (from their difficulty)."

Narrated 'Amr bin Ash-Sharid: Al-Miswar bin Makhrama came and put his hand on my shoulder and I accompanied him to Sa'd. Abu Rafi' said to AlMiswar, "Won't you order this (i.e. Sa'd) to buy my house which is in my yard?" Sa'd said, "I will not offer more than four hundred in installments over a fixed period." Abu Rafi said, "I was offered five hundred cash but I refused. Had I not heard the Prophet saying, 'A neighbor is more entitled to receive the care of his neighbor,' I would not have sold it to you." The narrator said, to Sufyan: Ma'mar did not say so. Sufyan said, "But he did say so to me." Some people said, "If someone wants to sell a house and deprived somebody of the right of preemption, he has the right to play a trick to render the preemption invalid. And that is by giving the house to the buyer as a present and marking its boundaries and giving it to him. The buyer then gives the seller one-thousand Dirham as compensation in which case the preemptor loses his right of preemption." Narrated 'Amr bin Ash-Sharid: Abu Rafi' said that Sa'd offered him four hundred Mithqal of gold for a house. Abu Rafi ' said, "If I had not heard Allah's Apostle saying, 'A neighbor has more right to be taken care of by his neighbor,' then I would not have given it to you." Some people said, "If one has bought a portion of a house and wants to cancel the right of preemption, he may give it as a present to his little son and he will not be obliged to take an oath."

Narrated Abu Huraira: Allah's Apostle said, "There will be three types of people whom Allah will neither speak to them on the Day of Resurrection nor will purify them from sins, and they will have a painful punishment: They are, (1) a man possessed superfluous water (more than he needs) on a way and he withholds it from the travelers. (2) a man who gives a pledge of allegiance to an Imam (ruler) and gives it only for worldly benefits, if the Imam gives him what he wants, he abides by his pledge, otherwise he does not fulfill his pledge; (3) and a man who sells something to another man after the 'Asr prayer and swears by Allah (a false oath) that he has been offered so much for it whereupon the buyer believes him and buys it although in fact, the seller has not been offered such a price." (See Hadith No. 838, Vol. 3)

Narrated Abu Musa : The Prophet said, "An honest Muslim store-keeper who carries out the orders of his master and pays fully what he has been ordered to give with a good heart and pays to that person to whom he was ordered to pay, is regarded as one of the two charitable persons."