Introduction to Ethical Leadership:
 How We Define Ethical Leadership?
Ethical leadership is about leading, inspiring, motivating, and making the employees feel
accountable for their work. When this happens, greater business success is achievable because
employees are happier to be at work. If ethical leaders can influence results, then they can
equally influence workplace culture.
 What is Ethical Leadership at Workplace?
Ethical leadership in business is focused on the collective values, morals, and beliefs of
individuals and their organizations. The role of business leaders is to uphold and exemplify a
company's ethical values and embody the heart and soul of an organization.
 Ethical Leadership according to Islam;
Ethical leadership according to Islam is based on the teachings of the Quran and the example
set by the Prophet Muhammad (peace be upon him). Islamic ethical leadership emphasizes the
following principles:
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Taqwa (God-consciousness)
Integrity and Honesty
Justice and Fairness
Accountability
Compassion and Mercy
Consultation (Shura)
Servant Leadership
Humility
Patience and Perseverance
 Continuous Learning and Improvement
 Points to be Discussed:
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Islamic ethics
Islamic perspective on leadership
Ethics in the workplace from an Islamic perspective
Ethical challenges in the workplace
Implementing ethics in the workplace
Case studies : leading with ethics in the workplace
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Ethical decision making in Islamic work context
Promoting ethics and Islamic values in the workplace
Conclusion
Islamic Ethics : Foundations and Principles
 Overview of Islamic Ethical and Framework:
The ethical system in Islam is presented in light of Sharjah – the Islamic social/legal system.
According to Islam, whatever leads to welfare of the individual or society is morally good and
whatever is injurious is morally bad. Here is an overview of the Islamic ethical framework:
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Tawheed (Oneness of Allah)
Quran and Sunnah
Maqasid al-Shariah (Objectives of Islamic Law)
Five Pillars of Islam
Moral Values and Virtues
Halal and Haram
Akhlaq (Morality and Manners)
 Quranic Principles Related to Ethics in the Workplace:
Major characteristics of Islamic ethics include bravery, consideration, epperience, fairness,
justice, honesty and the pursuit of knowledge. Each ethic is discussed in detail below, along
with examples and reference to al-Quran and Sunnah. Courage is required for those working in
the realms of Science and Technology
 Prophetic Traditions on Ethical Conduct in Business:
One Hadith reports Muhammad saying, 'I was sent to perfect the ethical conduct'." (Muwatta
Malik) They state that the one with the best or most complete faith “is the one who is the
best in conduct, and the most kind to his family" (Jami al-Tirmidhi).
Here are some examples of Prophetic traditions related to ethical conduct in business:
Honesty and Truthfulness: The Prophet Muhammad (peace be upon him) emphasized the
importance of honesty and truthfulness in business transactions. He said, "The truthful and
trustworthy merchant is associated with the prophets, the truthful, and the martyrs." This
highlights the significance of maintaining truthfulness and trustworthiness in all business
dealings.
Avoiding Deception and Fraud: The Prophet Muhammad (peace be upon him) forbade
deceptive practices and fraud in business transactions. He said, "Whoever deceives is not one
of us." This hadith highlights the prohibition of dishonest practices such as misrepresentation,
false advertising, and deceptive pricing strategies.
Islamic Perspective on Leadership:
 Concept of Leadership in Islam:
In Islam, leadership describes a person or a group of people who guide and lead followers or
mankind from the brink of destruction to the path of Allah. The concept of leadership in Islam
is rooted in the teachings of the Quran and the example set by the Prophet Muhammad (peace
be upon him). Islamic leadership is characterized by a combination of authority, responsibility,
and moral guidance.
 Qualities of Righteous Leadership in Islamic Teachings:
Accountability, justice, trust and consultation are four important elements of Islamic leadership.
The study also informs that the qualities of an ideal Islamic leader include taqwah, patience,
dependence on Allah, knowledge and wisdom, spirit of sacrifice, honoring the pledge, and
epcellence. In Islamic teachings, a righteous leader is expected to possess certain qualities and
characteristics that reflect their commitment to Islam and their role as a leader. Here are some
key qualities of a righteous leader in Islamic teachings:
 Responsibilities and Accountability of Leaders in Islam:
In Islam, leaders are entrusted with significant responsibilities and are held accountable for their
actions and decisions. They have a crucial role in guiding and governing the community, and
they are expected to fulfill their duties with integrity and righteousness. Here are some key
responsibilities and forms of accountability for leaders in Islam:
Responsibility to Allah: Islamic leaders recognize that their ultimate responsibility is to
Allah. They are accountable to Him for their leadership role and are expected to lead in a
manner that aligns with Islamic teachings and principles. They should constantly seek guidance
from the Quran and Sunnah, ensuring that their decisions and actions are in accordance with
the divine guidance.
Responsibility to Serve the People: Islamic leaders are servants of the people they lead.
They are responsible for the welfare and well-being of their community members. This includes
providing essential services, addressing the needs of the people, and working towards the
betterment of society. They should be accessible and responsive to the concerns and aspirations
of the community.
Responsibility to Consultation (Shura): Islamic leaders are encouraged to practice
consultation (shura) in decision-making processes. They should seek the opinions and advice of
experts, scholars, and community members before making important decisions. This promotes
inclusivity, collective decision-making, and accountability to the community.
Accountability to the Community and Allah: Ultimately, Islamic leaders are accountable
to the community they serve and to Allah. They will be questioned about their leadership, their
fulfillment of responsibilities, and the impact of their decisions and actions on the community.
Leaders in Islam understand that they will be held accountable for their leadership in this life
and the Hereafter.
These responsibilities and forms of accountability emphasize the importance of leadership in
Islam as a position of trust and service.
Ethics in the workplace:
 Honesty and Integrity in Business Dealing;
The concept of honesty in business is derived from the broader Islamic principle of "Siddiq" or
truthfulness. Muslims are encouraged to be truthful and honest in their words, actions, and
transactions. The Prophet Muhammad (peace be upon him) set a profound example of honesty
and integrity in his business dealings, earning him the title of "Al-Amin" or "The Trustworthy."
Islamic teachings promote fairness and justice in business dealings. Muslims are advised to treat
others with respect, fairness, and equality. Unfair practices such as exploitation, price
manipulation, or taking advantage of others' vulnerabilities are strictly condemned.
 Justice and Fairness in Decision Making;
The Quran and the teachings of Prophet Muhammad (peace be upon him) emphasize the
concept of justice as a core Islamic value. Muslims are encouraged to uphold justice and
fairness, even if it goes against their own interests or the interests of their family or community.
The Quran states, "O you who have believed, be persistently standing firm in justice,
witnesses for Allah, even if it be against yourselves or parents and relatives" (4:135)
Islamic teachings guide decision-making processes by emphasizing several principles related to
justice and fairness:
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Equality
Impartiality
Due Process
Restitution and Compensation
Balancing Rights and Responsibilities
Social Justice
 Respect and Dignity towards Employees and Stakeholder;
Islamic teachings emphasize the importance of respecting and honoring the rights, dignity, and
well-being of employees and stakeholders in business and organizational contexts. Islam
promotes a framework of ethical conduct that extends to all aspects of human interactions,
including the treatment of employees, customers, suppliers, and the community at large.
The Prophet Muhammad (peace be upon him) said, "Give the laborer his wages before his
sweat dries"
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Fair wages and benefits.
Justice and equity in treatment.
Safe and healthy work environment.
Open communication and consultation.
Fulfillment of contracts and commitments.
Compassion and empathy.
Social responsibility.
These points reflect the importance of treating employees and stakeholders with fairness,
compassion, and respect.
Ethical Challenges in the Workplace:
 Ethical Dilemmas faced by Muslims Professionals;
Muslim professionals may face various ethical dilemmas in their personal and work lives. While
the specific dilemmas can vary depending on the industry and individual circumstances, here
are some common ethical dilemmas that Muslims professionals may encounter:
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Balancing religious obligations with work responsibilities.
Unethical business practices.
Gender-related issues.
Ethical considerations in financial transactions.
Conflicting cultural practices and religious values.
Privacy and confidentiality concerns.
Whistleblowing and reporting unethical behavior.
It's important to note that while Muslims face these ethical dilemmas, individuals' responses
may vary based on their interpretations of Islamic teachings, personal beliefs, and the specific
contept in which the dilemmas arise. Consulting with knowledgeable scholars, seeking advice,
and striving to uphold Islamic values can help Muslims navigate these ethical challenges.
 Balancing Religious values and Professional Responsibilities;
In Islamic teachings, balancing religious values with professional responsibilities is encouraged,
and Muslims are advised to integrate their faith into all aspects of their lives, including their
work. Islam recognizes the importance of fulfilling one's obligations and being active and
productive members of society, while also upholding religious principles and values.
Here are some key principles from Islamic teachings that can help Muslims navigate the balance
between religious values and professional responsibilities:
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Intention (Niyyah).
Honesty and integrity.
Time management.
Seeking knowledge.
Maintaining boundaries.
Seeking guidance.
It is important to note that the specific balance between religious values and professional
responsibilities may vary based on individual circumstances, cultural contepts, and the nature
of the profession. Muslims are advised to continuously strive for balance, make informed
decisions based on Islamic teachings, and rely on their faith as a guiding principle in their
professional lives.
Implementing Ethics in the Workplace;
 Establishing an Ethical Organizational culture;
Establishing an ethical organizational culture based on Islamic teachings involves creating an
environment that promotes integrity, justice, compassion, and accountability. Here are some
key steps to establish an ethical organizational culture according to Islamic teachings:
Align with Islamic Values: Ensure that the organization's values and mission align with the
principles of Islam, such as honesty, fairness, justice, and respect for others. Clearly
communicate these values to all stakeholders and integrate them into the organization's
policies, practices, and decision-making processes.
Lead by Epample: Leaders and managers should embody Islamic ethics in their conduct and
decision-making. They should demonstrate integrity, humility, and fairness in their interactions
with employees and stakeholders. Leading by example establishes a strong foundation for an
ethical culture throughout the organization.
Establish Ethical Guidelines: Develop a comprehensive ethical code that provides
guidelines and standards for behavior in the workplace. This code should reflect Islamic
teachings, addressing topics such as honesty, transparency, avoiding conflicts of interest,
respecting diversity, and upholding social responsibility.
Ethical Decision-Making in Islamic Work Context:
According to fundamental Islamic belief, the Holy Quran is the Fountainhead of Islam. It is a
Divine book that is unaltered, and its safety has been taken by Allah, and to this day not even a
single word is changed in this Divine Scripture. Muslims believe that Holy Quran is permanently
preserved for all time, is always applicable, and includes all-encompassing guidelines for the
resolution of any worldly problems.
So accordingly, the Holy Quran is clearly defined as the Islamic code of conduct and ethics In
the Quran it is stated that Allah is the creator and ultimate Law Giver and has provided the
guidelines covering all disciplines of life. So, for a person to make ethical decisions in his life he
must follow the book of Allah.
 Ethical Frameworks and models for Decision-making in Islam:
Following are some verses of the Quran that serve as the foundation of Islamic ethics:
“Help one another in righteousness and piety but not in sin and epcess. Fear Allah for Allah is
strict in punishment.” (Surah al Ma’idah (5):2).
“Oh believers! Stand out firmly for justice.” (Surah al Nisa (4):135).
“He has set up the Balance so that you may not transgress balance. So, establish weight with
justice and fall not short in the balance.” (Surah al Rahman (55):7-9).
“Hold forgiveness and command to what is right.” (Surah al Baqarah (2):237).
“Do not forget liberality between yourselves.” (Surah al Anam (6):152).
These verses according to the Holy Quran is the basis of the ethical behavior of a Muslim with
others. In terms of group decision-making, it can be stated as when we are dealing with people
we must use honesty, justice, forgiveness, piety, moderation, and generosity. We need to
illustrate most of these attributes concerning ethics in decision-making.
Morality in terms of decision-making deals with honesty fulfilling commitments, performing
tasks well, admitting mistakes, and fixing those mistakes, emphasizing a positive character. The
Quran stresses Morality in many places. Without morality, a society cannot be regarded as an
Islamic state.
The Quran also stresses moderation so that a harmonious relationship among people can be
maintained. The Quran describes the Muslims as a Middle “Nation”. It should be noted that by
this definition exist not a single nation is proclaimed to be a True Middle. It has been seen in
Surah al Baqarah that the style and contents of the communication are fundamental factors
affecting a decision process.
Promoting Ethics and Islamic Values in the Workplace:
Promoting ethics and Islamic Values in the workplace is a very viable point. Islam stresses the
significance of ethical business practice and social responsibility.
 Training and development programs for employees:
There should be a training and development program for employees in which they are trained
to work with honesty and conduct their business with integrity. In these programs, they will
learn skills like product management, leadership training, sale training, and product training
all according to the rules and principles of Islamic studies. This will create a safe environment
and offer employees many benefits such as health insurance and paid-off time. There will be
fewer problems in the community, and they will work more efficiently.
On the other hand, the company should emphasize the importance of fair play, ethical
business practices, and social responsibility. Islam recognizes the inherent dignity of labor and
reinforces the value of treating employees with respect and fairness.
 Encouraging ethical behavior through reward and recognition:
Another way to spread ethical behavior is through rewards. It could be tricky to reward an
employee for abiding by the code of ethics of a company. But there are some ways to reward
those employees who work hard, perform well, and their attitude embodies workplace ethics.
Explain to the newly hired employees during orientation. Show them the importance of
performing very routine job duties with ethical decision-making. We can also design an
employee reward system based on peer or supervisor nominations for employees to
exemplify workplace ethics. Make an official presentation of the reward system so that
employees could understand the whole system and work according to it, for their reward.
Another way to encourage ethical behavior is by giving recognition to an employee. More
recognition should be given to an employee who works hard, does his task accordingly and
within the time limit, and try his best to make the company walk towards more prosperity.
 Building a supportive and inclusive work environment:
One of the most fundamental ways to promote Ethics is through teamwork. In general,
everyone should be given the right to give their own opinions on a matter, and ideas and
suggestions should be taken from the staff for further improvement on a project. Leaders and
managers should make it clear that they value diversity and inclusion. Set standards for
professionalism and respectful behavior and address incidents of bias or discrimination.
Encourage open communication about diversity and inclusion and create channels for
feedback. Encourage team members to speak up if they encounter any biased behavior. We
should also support personal growth and learning. It is important to understand that we will
occasionally make mistakes and commit ourselves to learning from them. This will create a very
supportive environment in the community, and everyone will feel welcome and will recognize
that they are a part of the team.
Conclusion:
Hence ethical leadership is the ability to inspire, motivate and lead people to their work and to
get proper results. By introducing ethical leadership in a workplace, a company can become
very successful in its business, and in this way, a harmonious community is formed that leads
towards victory. Islam teaches us ethical leadership by following the Holy Manual Quran. The
Quran is the source of guidance, and one must follow it to make ethical decisions in life. By
following the frameworks of Islamic ethics, a person can make ethical decisions that will benefit
not only him but also the people around him. The concept of leadership in Islam is following the
teaching of the Quran and the examples set by the Holy Prophet (S.A.W). A leader’s
responsibility is toward Allah. If He does bad, then he will be accountable to Him. They are the
servants of the people, and their responsibility is for the welfare and well-being of the people.
We must introduce Ethics in the workplace because by introducing ethics there will be honesty,
fair judgment, and truthfulness among people. There are many ways to introduce ethics in a
workplace like giving rewards or recognition, giving the employees a challenge, and following
the Islamic principles and rules. The employee should feel welcome in the company, and he
should feel that he is a part of the team.
Islam is a divine religion, and the holy Quran is in the Divine Book of Allah which is sent as a
guide for mankind. It’s a book with no errors. In many places in the Quran Islam stresses making
an ethical work environment. Because without an ethical work environment, there can be no
just society. Everything will be unstable and because without truthfulness, honesty, fair
management, good behavior, trustfulness society cannot be successful. That is why Islam
teaches us all these things so that a proper society can be formed. So, creating a work
environment inspired by Islamic rule is the best option for us.