Islamic Marketing: Ethics, Application and Issues

Islamic marketing can be defined as the wisdom of satisfying the needs of customers through the good conduct of delivering Halal - wholesome, pure and lawful products and services with the mutual consent of both seller and buyer for the purpose of achieving material and spiritual well-being in the world here and hereafter^[1] and making consumers aware of it through the good conduct of marketers and ethical advertising ^[2] Halal has three levels;

• Wajib or Fard, Mandoob and Makrooh. Wajib are obligatory acts which in cases of failure to perform results in sin. It is a duty, which can be described as the Core Halal. In Islamic Marketing, firms must perform Wajib. Mandoob is something that is likable and preferable but not obligatory. This can be described as Supplementary Halal and should be done if possible. Makrooh is something that is despised and discouraged by the religion, and is usually only used as the last resort.
• Mushtabeh are acts that Muslims should refrain from because they might be Haram themselves. Businesses should keep away from doubted acts like these.
• Haram are acts that are condemned by the Islamic religion. Engaging in these acts is a sin.^[3]

History

The history of business in Islam begins with Prophet Muhammad and his wife Khadijah who were merchants. The Prophet himself is known as a trader, and as truthful. The Sharia law that has derived particularly from the Quran and Hadith, deals with a lot of things like banking, business, economics, politics, contracts etc.^[4] Since early days of Islamic History, Muslim business producers had to follow the rules and requirements of Islamic Sharia when conducting production and marketing activities.^[5] The focus on ethics in Islamic Marketing resulted in early Arabian merchants converting into Islam.^[6] Since 2000, the importance of the Muslim market began to appear in consultancy reports. The majority of the 1.6 billion Muslim population are quite poor, but the number of consumers with purchasing power is significant enough for Islamic Marketing to be discussed. The goal of these reports are to educate Western multinationals about Islam and Muslim lifestyles. After this attention, research has intensified. Some research has been done on consumption practices of Muslims as well as implications of Islamic ethics on marketing practices, however there is still missing scholarly literature on the subject.^[7] On the 29th to 30 November in 2010, practitioners like scholars, academics, policy makers and managers met in Kuala Lumpur, Malaysia to discuss Islamic Marketing and branding at the "1st International Conference"^[8] The Journal of Islamic marketing was launched in 2010, and it lays the foundation of Islamic Marketing as a new discipline.

Ethics

Islam has four sources for their ethical system, and these are the Quran, the sayings and behaviours of Prophet Mohammad, the example set by his companions, and the interpretations of Muslim scholars of these sources. These sources emphasize the importance of human well-being and good life, religious brotherhood and sisterhood, socioeconomic justice, and a balanced satisfaction of both the material and the spiritual.^[9] Islamic marketing ethics aims at maximizing equity and justice for the welfare of the society. It does this by inhibiting customer exploitation, and avoiding dishonesty, fraud and deceit in business. Any unethical actions will do injustice and go against brotherhood and equality of humanity which form the core of Islamic vision.^[10] In today's society, business often relies on free market economy where firms experience the pressure of competition and seek profit maximization. This may lead to Islamic ethics being overlooked, which makes the application of ihsan impossible. In an Islamic setting, the application of ihsan can strengthen relationships with customers and communities, which will again improve a firm's public image and make it more competitive.^[11]

Application of Marketing

To understand Islamic Marketing, it is important to remember that there are religious factors that define it. Islamic Marketing follows certain sets of rules.^[12]

• Production and sales that are considered unclean is forbidden. Examples include activities that are related to marketing of alcohol, gambling etc.
• Adulteration with something concealed in the sale and purchase is forbidden. This means it is forbidden to omit and fabricate the quality and quantity of products.
• Sales and marketing of all the instruments meant for prohibited acts are forbidden, for example instruments meant for entertainment like lyre, flutes, harps etc., as well as gambling instruments like backgammon.
• Sales and marketing of weapons to the enemies of Islamic faith, or any faith, are forbidden when used for war against Muslims.
• Drawing pictures in stone, wood, metal, or any other concrete forms, of living beings from among human beings and animals is forbidden.
• Performance of magic, as well as learning and teaching it is forbidden.

Issues

There are several issues that arise when Islamic Marketing is introduced to Western countries. The first is the conceptualisation of "Islam" and "Islamic societies". The Western often has a set view of ideas, beliefs and practices called "theoretical structures", which makes it difficult for the Muslim world to define their own theories and philosophies. Secondly, it is easy to oversimplify and reduce the meaning of Islam to something that is purely a marketing tool. Thirdly, sacralisation of Islam can occur which will reduce tolerance and hamper the acceptance and growth of critique.^[13]