I. History of Islam
Islam is the youngest of the major world religions, and as such, it is also the most well
documented and historically verifiable. It began in the 7th century in Arabia and has
since spread across the globe, forming significant communities in the Middle East,
South Asia, Southeast Asia, North Africa, and beyond.
●​ Basic understanding of Islam
Islam is an Abrahamic monotheistic religion centered on the Quran and the teachings
of Muhammad. Adherents of Islam are called Muslims, who are estimated to number
1.9 billion worldwide and are the world's second-largest religious population after
Christians.
●​ History of formation of Islam
Islam began with Muhammad ibn Abdullah, born around 570 A.D. into the powerful
Quraish tribe in Mecca, initially worked as a merchant and married Khadija, a wealthy
widow. At age 40, he began receiving divine revelations from the Archangel Gabriel,
marking the foundation of Islam. His monotheistic message challenged Mecca's
polytheistic beliefs, leading to his ostracism.
The Hijra and Medina
In 622, facing persecution, Muhammad and his followers migrated to Medina (the
Hijra), which marks year 1 of the Islamic calendar. In Medina, he built a growing
Muslim community and continued receiving revelations. After years of conflict,
Mecca surrendered, and Muhammad returned, establishing Islam and destroying
pagan idols.
The Night Journey
In the miraculous mi'raj, Muhammad traveled from Mecca to Jerusalem and ascended
to Heaven, where he met prophets, saw Paradise and Hell, and encountered God. This
event symbolizes his unique role in Islam as the Prophet who spread the message of
one God
II. Basic Philosophy of Islam
1. Core beliefs
Muslims hold six core beliefs:
1.​ Belief in one God (Allah).
In Islam, Allah is the only God. The Qur'an describes Him as the sole Creator,
Judge, and Ruler, beyond comparison, needing no partner or offspring. He
governs all existence, never tires or sleeps, and everything happens by His will.
2.​ Belief in Angels.
3.​ Belief in the holy scriptures revealed to various prophets, including the Torah
(to Moses), the Bible (to Jesus), and the Qur'an (to Muhammad).
4.​ Belief in all prophets sent by God, such as Noah, Abraham, Ishmael, Isaac,
Jacob, Moses, Jesus, and Muhammad. While Muslims honor Jesus (Isa), they
do not view him as the Son of God, as Christians do.
5.​ Belief in the Day of Judgment and the afterlife. Good deeds bring one closer to
God, which is considered the greatest reward.
6.​ Belief in divine decree. God is all-powerful, and nothing happens without His
permission. However, humans have free will to choose between good and bad
and will be held accountable for their actions.
2. Five Pillars of Islam
2.1. Shahada (declaration of faith)
The Shahada (shahadah) is the Arabic term for the declaration of faith in one God
(Allah) and His messenger.
The belief in one Allah is the central tenet of the Islamic faith, around which all
else revolves. Muslims are continuously reminded of this foundational belief.
The second part of the Shahada requires Muslims to acknowledge and testify to the
belief in the Prophet Muhammad (peace be upon him) as Allah’s messenger.
2.2. Salah (ritual prayer)
Salah, also known as Salat or Prayer, involves the obligatory act of praying 5 times
a day at set times, and is a direct means of communication with Allah. Muslims perform
Salah as an essential part of their daily lives to seek guidance, forgiveness, and blessings
from Allah and to fulfil their rights to Him
2.3 Zakat (alms tax)
Zakat (zakaat, zakah), or almsgiving, is one of the five pillars of Islam. For every
sane, adult Muslim who owns wealth over a certain amount – known as the Nisab – he or
she must pay 2.5% of that wealth as Zakat. Eligible Muslims pay Zakat once a year, and it
is due as soon as one lunar (Islamic) year has passed since meeting or exceeding the Nisab
(certain amount of wealth).
eight categories of people receive Zakat, these are: The poor, The needy,
Administrators of Zakat, Th ose who have a reconciliation of heart (those who have
embraced Islam or are inclined to it), Those who have been enslaved, Those in debt, In the
cause of God, Travellers (including refugees).
2.4. Sawn (Fasting)
Sawm is the Arabic term used to describe the act of fasting. Passed the age of
puberty, Muslims are required to fast during the month of Ramadan, which entails
abstaining from food, drink, sexual relations and displeasing speech and behaviour from
dawn until dusk.
The month of Ramadan is the ninth month of the Islamic calendar
The month of Ramadan therefore marks an important moment for mankind and
requires special devotion from Muslims.
giving them room for a heightened sense of introspection and their purpose in life –
2.5. Hajj (pilgrimage)
Hajj is a pilgrimage made to the Kaaba, the "House of Allah,"
It occurs annually from the 8th to 13th of Dhul Hijjah, the 12th Islamic month. Eid
al-Adha begins with the sighting of the new crescent moon and lasts four days.
Hajj is performed in Makkah, modern day Saudi Arabia.
Pilgrims are required to travel between locations throughout, and can walk on
average between 5km-15km per day.
A spiritual, emotional, and physical challenge
Sharia law is a set of principles that govern the moral and religious lives of Muslims.
Key Principles of Sharia Law
-​ Faith & Worship – Rules on prayer, fasting, charity, and pilgrimage.
=> Shapes how Muslims practice faith, including prayer, fasting, and
pilgrimage.
-​ Family Law – Marriage, divorce, rights and duties of spouses,
inheritance.
=> Regulates marriage, divorce, inheritance, and responsibilities
between spouses.
-​ Economic Laws – Business ethics, prohibition of interest (Riba).
=> Influences business ethics, prohibits interest (Riba), and promotes
fair trade.
-​ Criminal Law – Punishments for crimes like theft, adultery, and
murder.
=> Some countries apply Sharia in their legal system, including
punishments for violations.
-​ Social & Ethical Laws – Guidelines on dress code, behavior, and
gender relations.s
-​ Rights & Responsibilities – Personal and communal obligations in
society.
3. Ethical principles and impacts on business practices
3.1. Kindness to both people and animals
3.1.1. Kindness to animals
Kindness to animals is a highly praiseworthy act in Islam.
Hurting, maiming, or disfiguring an animal is strictly forbidden in Islam. Such acts
are not only unethical but also invite the curse of Allah. Such actions will be questioned in
the Hereafter, as they reflect the moral character of an individual.
Cruelty toward animals is a grave sin in Islam, while even the smallest acts of
kindness, such as providing food, water, or care, can lead to immense rewards and
blessings. As stewards (*khalifah*) of the Earth, Muslims are called to treat animals with
compassion and ensure their welfare, fulfilling the divine trust placed upon humanity.
https://www.greenislam.org/articles/animals-in-islam-lessons-from-the-hadith#:~:te
xt=Kindness%20to%20an%20animal%20carries,of%20human%20beings%20in%20Islam.
Because of that, slaying animals for humans consumption has to following strict
rules.
Slaughtering Process in Islam :
Islamic Slaughtering Process ( video nè)
3.1.2. Kindness to people
Khajal (shyness) and Haya' (modesty) are closely related.
-​ khajal can also mean hesitation or confusion
-​ haya' is a noble trait that encourages people to do good and avoid wrongdoing.
There are different types of haya:
1.​ Shyness before Allah​
A person can develop this type of haya' through reflecting on the numerous blessings Allah
has given, recognizing their shortcomings in showing gratitude, and feeling shy before Him.
Reflecting on Allah’s majesty and power, one would feel too shy to disobey or fail in
worship, especially knowing that Allah sees everything.
2.​ Shyness before the angels​
Remembering that angels are always present, recording every action, motivates a person to
feel shy about committing sinful acts or speaking words that might cause regret on the Day
of Judgment.
3.​ Shyness before people​
A person feels shy to neglect their responsibilities toward others or to engage in any
reprehensible behavior that might tarnish their reputation.
4.​ Shyness before oneself​
This type of haya' involves being ashamed of falling short of personal standards and
constantly striving to improve oneself.
Because of this belief, all Islam women and men must dress modestly and cannot
have physical interactions with strangers of different gender. Women have to cover all
of their heads, faces and hairs but eyes by a headscarf which is called niqab. Abaya
(Abajeh)
is
the
islam
traditional
costume
for
women.
Musims men has their own naitional custome. They wear the thobe is a long robe
worn by Muslim men. (such as is worn in Kuwait) or the kandourah (common in the
United Arab Emirates).
The bisht is an elegant cloak for men, often worn over the thobe. It is
commonly associated with high-ranking government officials, religious leaders, and
special events like weddings.
https://www.learnreligions.com/mens-islamic-clothing-2004254
3.2. Emphasis on justice, honesty, and accountability
●​ Justice
Social justice is a fundamental aspect of Islamic teachings, grounded in principles
of equality, freedom, and collective responsibility.
Islamic law (Sharia) provides a comprehensive legal framework that
emphasizes fairness, equity, and justice across various aspects of life:
-​ Criminal Justice:
-​ Civil Rights:
-​ Environmental Stewardship: Islamic Perspectives on Social Justice GlobalSadaqah.com Blog
●​ Honesty
Honesty is a central principle in Islam, defined as speaking the truth and
ensuring that actions align with words. Honesty also involves fulfilling promises and
performing duties with integrity.
Honesty and truthfulness are closely linked; an honest person is always truthful.
●​ Accountability
Every individual is accountable for their actions, words, and intentions.
Accountability in Islam
https://islamonline.net/en/accountability-and-the-day-of-judgment/
https://islamqa.info/en/answers/12377/man-is-accountable
●​
Ethical Conduct in Business
principles are considered divine commands that guide Muslims in their
business dealings.
-​ Justice and fairness are essential, ensuring that transactions are
transparent and equitable.
-​ Honesty and truthfulness are fundamental in Islam, ensuring transparency
and building trust between business partners for long-term success.
-​ Public welfare and social responsibility are also key aspects, encouraging
businesses to consider their societal impact and act as responsible trustees,
contributing positively to the community.
https://blog.globalsadaqah.com/islamic-ethics-in-business-and-trade/
3.3. Islamic banking
1.​ Prohibition of Riba (Interest):​
Riba, or interest, is strictly prohibited in halal finance as it is considered exploitative.
both the lender and the borrower share the risks and rewards of the transaction, ensuring
fairness and mutual benefit.
2.​ Avoidance of Gharar (Uncertainty) and Maysir (Gambling):​
Islamic finance prohibits transactions that involve excessive uncertainty (gharar) or
speculative activities (maysir).
3.​ Ethical and Social Responsibility:​
It encourages investments in industries such as healthcare, education, and
infrastructure while avoiding industries like alcohol, gambling, pork, and weapons
manufacturing,
well-being of the community.
4.​ Profit and Loss Sharing:​
In halal finance, the relationship between the lender and borrower is based on profit
and loss sharing rather than the payment of interest.
5.​ Prohibition of Unjust Enrichment:​
ensures fairness in financial dealings and prevents exploitative practices, such as
charging excessive fees or engaging in predatory lending, which are considered haram.
6.​ Asset-Backed Financing:​
Halal finance mandates that all financial transactions must be backed by tangible assets or
services. This principle ensures that transactions are grounded in the real economy and not
based on speculative activities.
III. How MNCs apply the understanding of Islam
1. Halal compliance practices
●​ Halal certification
According to Islamic law, the Shariah, the Certification is used for Food and other
consumables permissible for consumption. Halal Certification emphasizes cleanliness
in all aspects of a person's life, and Halal foods ensure that the Food consumed by
individuals is clean, hygienic, and does not harm their health or well-being.
Halal certification plays a crucial role in ensuring that products and services comply
with Islamic principles, particularly in industries like food, pharmaceuticals,
cosmetics, finance. It provides credibility, consumer trust, and market access for
businesses targeting the growing global Halal market.
●​ Implementing Halal-compliant manufacturing & supply chains
-​ Raw material sourcing:
+​ MNCs need to partner with suppliers who provide Halal-certified
ingredients, such as meat, dairy, flavorings, and other essential raw
materials.
+​ Companies
often
require
their
suppliers
to
provide detailed
documentation about the origin and processing methods of raw materials
to ensure that they align with Halal standards. For example, a food
company might need to ensure that its product is derived from
Halal-certified animal sources (such as Halal-slaughtered cattle or fish)
instead of from pork
-​ Halal manufacturing process
-​ Halal logistics & supply chain
Example: Nestle’s Halal strategy
Acknowledging the nutritional and religious requirements of Middle Eastern
consumers, Nestlé launched goods certified as halal to comply with regional food laws
and customs.
For example: Nestle’s plain milk chocolate KitKat range made in Australia is halal
certified. This includes the 2 finger (17g), 4 finger (45g), ChunKy (50g), King Size
(65g), and 170g block made in Australia, as well as share bags and bulk packs. As of
April 2019, KitKat Gold, KitKat Chunky Caramel and KitKat Dark are also Halal
certified.
Other products that are halal certified: Nescafe, Maggi, Koko Crunch, Milo Breakfast
Cereal,...
-​ Features of Nestle’s Halal products:
+​ Compliance with Halal Standards certified by the Department of Islamic
Development Malaysia (JAKIM) and the relevant recognised Islamic
authorities.
+​ Achieving Halal certification allows Nestlé to cater to Muslim consumers,
particularly in regions with significant Muslim populations.
-​ Supply Chain Adjustments for Halal Compliance
1
2. Islamic finance in global markets
Islamic business strictly prohibits Riba, or interest. Profits should come from real
trade, investment, or partnerships where all parties share risk and reward.
Traditional loans with interest are not an option, therefore MNCs have been applying
alternative methods to fund their businesses:
1
https://www.nestle.com.my/our-halal-promise
1)​ Issuing Sukuk (bond)
-​ When an MNC issues Sukuk, investors are purchasing a share of the
underlying asset or project. The corporation shares the profits from that asset or
project (e.g., income from a building, infrastructure, or a specific business
venture).
-​ No Riba: Because Sukuk is based on ownership of real assets, the returns are
linked to tangible economic activity rather than an interest-bearing loan.
2)​ Mudarabah (trustee finance):
-​ It is a form of business contract in which one party (the investor) provides the
capital, while the other party (the entrepreneur or manager) provides the
expertise and effort to run a business or project
-​ Both capital provider and entrepreneurs share profit and financial risk
3)​ Musharakah (trustee finance):
-​ Musharakah is another partnership arrangement in Islamic finance, but it
involves both parties contributing capital and sharing profits and losses equally
or according to their share of investment.
-​ Both the investor and the entrepreneur (or MNC) contribute capital and may
also jointly manage the business or project
-​ Both share profit and financial risk
Example: HSBC Amanah
-​ MNC: HSBC Amanah: is the Sharia-compliant division of HSBC Bank,
established to meet the growing demand for Islamic financial services. The
division provides a comprehensive suite of financial products and services that
adhere to Islamic principles, catering to both individual and corporate clients
across global markets.
- Offering profit-sharing investment accounts, Islamic mortgages, and
Sukuk products:
+​ Facilitating Sukuk Issuances in the Middle East​
HSBC Amanah has been instrumental in structuring and underwriting several
high-profile Sukuk issuances in the Middle East. By offering Sharia-compliant
investment products, HSBC has helped corporate and government entities in
Saudi Arabia, UAE, and Qatar secure billions in financing through ethical
investment instruments.
For example, HSBC supported a $1 billion Sukuk issuance to finance key
infrastructure projects in the UAE, highlighting its role in fostering ethical
investment for public sector development.
HSBC Amanah co-managed the issuance of a $1.75 billion Sukuk for the Saudi
Electricity Company, providing Sharia-compliant investment opportunities for
both domestic and international investors.
+​ In Malaysia, HSBC Amanah has successfully implemented its Islamic
mortgage offerings by adhering to the Ijarah and Murabaha models. These
financing options have become essential for customers seeking ethical
alternatives to conventional home loans.
1.​ Ijarah Model (Lease-to-Own)
○​ HSBC Amanah retains ownership of the property while leasing it to the
customer. Rent payments are made over a fixed term, and ownership is
transferred to the customer at the end of the lease.
○​ A notable example includes a housing development partnership in Kuala
Lumpur, where HSBC Amanah provided Sharia-compliant home
financing to hundreds of first-time homeowners.
2.​ Murabaha Model (Cost-Plus Financing)
○​ HSBC Amanah purchases the property and resells it to the customer at
an agreed-upon profit margin, with payment structured over a defined
period.
○​ This model proved particularly beneficial in areas with rising property
values, allowing customers to secure homes without the burden of
interest payments.
+​ In Malaysia: HSBC Amanah collaborated with local investment initiatives to
provide customers with profit-sharing opportunities in the Malaysian equity
and property markets. One notable example includes financing an agricultural
development project, where returnns were distributed fairly among
stakeholders.
- Expansion into key markets in the Middle East and Southeast Asia, showcasing the
demand for Islamic financial products:
+​ In the Middle East, the division established strong partnerships with corporate
and sovereign clients, becoming a key player in major financial hubs like
Dubai and Riyadh (HSBC, n.d.).
+​ In Southeast Asia, HSBC Amanah capitalized on Malaysia’s position as a
global leader in Islamic finance by offering tailored products and services such
as profit-sharing investment accounts, Islamic home financing options, and
structured Sukuk bonds to meet the region’s dynamic market needs
3. Workplace practices and employee engagement
Accommodating Islamic practices in the workplace involves adopting policies and
practices that recognize and support the needs of Muslim employees, ensuring that
they can observe their religious duties and practices while maintaining a productive
work environment. There are 3 main initiatives applied in the workplace:
1)​ Flexible schedule
-​ For Daily Prayers (Salah): Muslims pray five times a day at specific times,
which vary by season and location. Many businesses offer flexible break
schedules to accommodate prayer times, allowing short breaks for midday and
afternoon prayers or extended lunch breaks.
-​ For Ramadan Fasting: During Ramadan, Muslims fast from dawn to sunset,
which affects their daily routines. Businesses often adjust work hours, allowing
early or late shifts, special Iftar breaks, and additional support like meals.
2)​ Adhering to Islamic dress codes
-​ Islam promotes modesty in dress, including the Hijab for women and loose,
non-revealing clothing for both genders.
-​ Employers support inclusivity by allowing religious attire in the workplace and
ensuring non-discriminatory dress code policies.
3)​ Foster Islamic practices in workplace
-​ Muslims appreciate workplaces that respect their religious identity and allow
them to practice their faith without discrimination.
-​ Companies can foster inclusivity by raising awareness through training,
implementing Diversity & Inclusion (D&I) initiatives, and forming Employee
Resource Groups (ERGs) to support Muslim employees. These efforts help
create a welcoming and respectful work environment.
Example: Pepsico
Ramadan: is the ninth month of the Islamic lunar calendar and is considered the
holiest month for Muslims. It is a time for prayer, fasting, charity, and self-reflection.
As part of a diversity initiative, PepsiCo employees in the UK were invited to fast
from sunrise to sunset during one day of Ramadan. Many employees stopped
themselves from staying hydrated and eating, a completely voluntary choice, to show
support to their Muslim colleagues during the month. Employees that participated in
the fast were also invited to share an iftar or breaking of the fast. They were also given
the option to give to charity.
+​ Iftar: Is a meal that takes place right after sunset during the month of Ramadan
to break (after a day of abstaining from food and drink). Muslims usually start
the Iftar meal by eating dates and drinking water in the tradition of the Prophet
Muhammad.
4. Marketing and communication strategies
●​ Aligning Campaigns with Islamic Values: holding campaigns that convey
special meaning to the Muslim
-​ Promoting Family: Campaigns emphasize family bonds, respect for elders,
and togetherness, especially during occasions like Eid.
-​ Promoting Charity (Zakat) & Social Responsibility: Brands integrate
themes of giving, CSR initiatives, and donation drives, especially during
Ramadan.
-​ Promoting Community & Togetherness: Ads highlight social unity,
cooperation, and local community engagement.
●​ Observing Islamic Holidays in Marketing
-​ Ramadan: Special promotions, ads focusing on Iftar gatherings, charity
initiatives, and Zakat-linked donation platforms.
-​ Eid al-Fitr & Eid al-Adha: Eid-themed advertisements, exclusive products,
festive promotions, and collaborations with charities for Qurbani donations.
Example: KFC
1.​ Menu creativity: Adjusting dishes to better suit local tastes and Muslim dietary
rules.
-​ During Ramadan 2024, KFC Morocco is launching two special menu
packages:
+​ “Ftour Individuel”: A single-serving meal, featuring popular KFC dishes at a
reasonable price.
+​ “Ftour Familial”: A family-sized meal, featuring more dishes, allowing
families to gather together for dinner after breaking their fast
→ The campaign not only provides suitable meals but also conveys the message of
family bonding and community spirit, which are important values ​during Ramadan.
-​ In March 2024, KFC Malaysia launched “Ayam Acar Cili Hijau”, a variation of
KFC fried chicken with a traditional Malaysian green chilli vinegar sauce.
→ This dish is not only suitable for Malaysian palates but also typical of Ramadan
meals, where spicy and sour spices are often preferred to stimulate the taste buds after
a day of fasting. This campaign demonstrates their commitment to adapting to local
tastes.
2.​ Focus on family and community values:
-​ KFC Malaysia also launched the “Jom Berbuka Puasa” (Let’s Break the Fast
Together) campaign, encouraging people to dine with family and friends after
sunset.
-​ KFC also partners with charities to distribute free meals to those in need during
Ramadan, emphasizing the value of zakat (almsgiving) in Islam: In April 2022,
QSR Brands (parent company of KFC) collaborated with the Malaysian Armed
Forces Religious Corps (KAGAT) and the Federal Territories Islamic Religious
Council (MAIWP) to distribute 500 food aid packs daily to asnaf
(underprivileged groups) throughout the month of Ramadan. This effort was
part of the Program Agihan Ramadan ATM, aiming to alleviate the burdens of
the less fortunate during the holy month.
These strategies help KFC build loyalty with Muslim customers and strengthen its
brand position in Muslim markets