Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

In the name of Allah,

The Most Beneficent,
The Most Merciful

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Muhammad Mubashar Arshad

Research Thesis

MARKETING IN CORRESPONDENCE TO
SHARIAH IN SERVICES SECTOR

Submitted by:
M. Mubashar Arshad
08U00550
Sec: I

Lahore School of Economics

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

Acknowledgement
I will start of by thanking Allah, the Almighty for giving me the strength, courage and
dedication to complete this research project because no one of us holds the ability to do anything
without his help and consent.
My parents have always been a helping hand and there support is like water to crops for
me as it helps me grow in confidence and it also motivates to do better and better. My family has
been absolutely supportive throughout the project and motivated me to complete this task.
My instructor Mehrukh Jawaid was always very cooperative and helping, she guided me
out during each and every step, her guidance was absolutely essential in the success of this
research.

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Muhammad Mubashar Arshad

Contents
ABSTRACT .................................................................................................................................. 05
INTRODUCTION.04
KEY DEFINATIONS06
STUDY OBJECTIVES..........07
LITERATURE REVIEW..08
TENTATIVE HYPOTHESIS....17
VARIABLES.....18
METHODOLOGY19
FINDINGS.20
PRODUCT: PRODUCTION PROCESS...21
PRICING OF THE PRODUCT.23
PROMOTION OF THE PRODUCT.24
PLACE, THE DISTRIBUTION CHANNELS..26
PEOPLE.27
MALPRACTICE...28
MANAGERIAL

IMPLICATIONS

OF

ISLAMIC

MARKETING

ETHICS

FOR

MULTINATIONAL CORPORATIONS..29
CONCLUSION..32
REFERENCES..34

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

ABSTRACT
The historical success of Islam in providing the framework for a thriving world economy
from the 7th to the 15th centuries was independent of economy breakdowns and uncertainties.
After this golden era world economy has struck severe recessions and faced instability which left
adverse effects as wealth started accumulate to certain regions which later on caused deadly
battles and wars. This happened because of ignoring Islamic principles that lay foundation of
political, social and economic infrastructure of states. Economies majorly rely on business and
other revenue generated sectors, Business are dominant by services sector throughout the world.
A careful study of historical happenings in world economies is not a matter of historical record
but these conditions can be repetitive and cyclic. Through this research paper we will be able to
get answers the question of whether Islam in particular, or religion and spirituality in general, are
helpful to or necessary to conduct business in the modern world. Businesses can possibly never
breakdown if they are run according to Islamic laws with justice, truthfulness, honesty and
commitment while ignoring all kind of misconduct with customers to get up to the success and
hold it.

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Muhammad Mubashar Arshad

INTRODUCTION
The religious point of view in Islam gives considerable significance and weight in the
field of global business ethics scenario majorly for five reasons. First and foremost, Islam gives a
valuable framework that molds the ethical behavior of largely growing population of Muslim
enhancing the value for both the businesses and consumers around the World economy. These
consumers comprise around one fourth of the total population of the world while symbolizing a
dominant majority in above fifty countries. Second Reason is an increasing number of Muslim
countries showing some of the most prosperous consumers and customers in world around the
globe. Thirdly the growing momentum of Muslim markets which is heading towards the creation
of Muslim trading blocks. Fourth, there has been escalating ups and downs in economies which
are highly erratic and unpredictable which might be removable through old Islamic principles.
And the last reason is the current political disposition which specify that there seems to be a
definitive push in support greater Islamization of countries where Muslims are in Excess e.g.
Egypt, Algeria, Pakistan, Sudan, Afghanistan in the form of a return to the request of the Islamic
law (Shari'ah) to all facets of life and thoughts. The ever increasing role of Multinational
Corporations in the modern-day global economy makes it sticking upon them to understand the
dynamics of the Islamic school of thoughts and perspective in order to gain a better
understanding of the mindset of consumers in services sectors. By rejection of understanding this
mind set and thus isolating themselves from Islamic principles, laws and codes of practice,
marketers and investors may not only be at risk of estrange a large proportion of their target
market but also risk being in direct conflict with them with immense effects on economies. This
is particularly true in core and well established Islamic countries such as Saudi Arabia, Iran and
Malaysia which have laid down the strict Islamic codes of conduct in all objects of life including
international marketing approaches.
Modern economies are driven by individual service businesses operating within a
remarkable array of industries which are responsible for substantial new jobs creation with
estimated percentage of GDP leading United sates of America at 79%, followed by Japan at
76%, U.K. 74%, Australia 69%, Pakistan 58% while India with 53% proportion of services
offered business of all.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

Marketing is itself a vast field commonly taken as just to promote and advertise a
business but in reality both of these are partial characteristics of Marketing. Initially Marketing
of businesses was broadly categorized under four broad fields also known as Four Ps, Product,
Price, place and promotion. Now one more factor is added to these four which is People. Briefly
explaining these five Ps of Marketing, Product is all about providing solution to a need whether
in the form of tangible good, commodity or an intangible service. Product with Good quality,
Ease of access and Ease of use is more likely to sell faster. Price is the value of product in terms
of monetary units and a very important factor in buying and selling. For a business It can be as
simple as buy it for 5 and sell it out for 7 but it can get complex and severe when it comes to
gather all the costs from tens of departments which may locate in different parts of the world just
to find out the cost of a single product and then a whole team works out days and night to find
selling price considering the buying power of their target market. Place is basically about
selecting the contact points simply selling points where a business is going to sell their products.
In placing a product the targeted segment of market is further studied along with their trends of
purchasing to force them to buy the product in one way or the other. Promotion focuses on to
prop up a business by flowing information through various ways by various means which also
include advertising aspect. Flow of information between buyer and seller is very important in
order to keep reminding or informing about a change in products elements, price or place to the
customers. People, fifth P in marketing consists of front desk staffs who deal directly with the
customers in process of buying. Behavior of front line employees can actually make difference
when it comes to buying again. Good helping behavior can force a customer to come again and
shop your product.
Five Ps of marketing mix as explained above are almost common for all the four sectors
but additional three Ps come into action when tertiary sector i.e. Services sector is taken into
consideration. Those additional characteristics for services marketing are productivity and
quality, Physical environment and process. Process in providing a service includes its mean and
method in which service is offered. Productivity and quality referred to the standard of services
that provide maximum value, perfection and durability. Physical environment is a tangible aspect
in provision of a service which creates a certain impact on customers like in cinema, everything
including furniture, internal decoration, light effect and structure of hall creates an impact on
people who are there to watch movie.
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Muhammad Mubashar Arshad

This paper will draw on interpretations of Shari'ah, which is the name given to the
sources of the sacred law of Islam, governing all aspects of a Muslim's life. The principal sources
of Islamic law are Al-Qur'an, the immutable collection of revelations received by the prophet
Muhammad (peace be upon him) and Sunnah, which is custom sanctioned by tradition,
particularly. Most of us get confused when we think whether Islam in particular, or religion and
spirituality in general, is helpful to or necessary to conduct business in the modern world where
competitions and risks are too high and leaving no room for a single wide of the mark strategy.
So to know that how can we utilize Islamic laws and policies in our daily business deals to keep
or bring back on the right way towards the mission and objectives of our businesses.
KEY DEFINATIONS
Islamic law widely known as Shariah, is well defined by Islam through the Holly book,
Quran (Book revealed on Muhammad (P.B.U.H.)) and Sunah (Sayings and doings of Prophet
of Islam Muhammad (P.B.U.H.). It is obligation of every human being to lead his life under the
limits and rules defined by Shariah to get success in life here after death (Islamic concept of
limitless life after death). Anyone who performs prohibited acts according to Shariah would get
punishment.
In Islam, forbidden things are named HARRAM while permissible things are called
HALAL. Halal products are Shariah compliant, i.e. do not involve: the use of haram
(prohibited) ingredients, exploitation of labor or environment, and are not harmful or intended
for harmful use. Muslims are obliged by religion to clearly scrutinize products to make sure they
are halal. And, they are strongly encouraged by the Islamic teachings to shy away from
consumables that are doubted. Violating Islamic values is named a crime while earning through
halal (Shariah-compliant) is considered an act of worship. Riba (interests) is prohibited in Islam
and Muslims should not earn through charging interests.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

STUDY OBJECTIVES
Objective is to know that contemporary marketing practices carried out by marketers
especially for services lie under the boundaries defined by Shariah or not. Then find out the
differences between todays modern world undergoing marketing strategies and ideal Islamic
marketing practices and finally find out the potential difference between the business scenarios
and policies of both the current world economy and historic Islamic ruled economies along with
the milestones to achieve successful integration of services providing businesses.

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Muhammad Mubashar Arshad

LITERATURE REVIEW
John F. Gaski hypothesized potential boundaries of operational marketing ethics through
law and self interest, which defines that what type of marketing strategy can provide best
opportunities in relation to ethical issues by maintaining self interest of an institution within the
limits of law. Following is the visual explanation of the proposed hypothesis by John F. Gaski.
Based upon prior acquaintance with the literature, the author had developed the tentative
null hypothesis that all or most so-called ethical guidelines for marketers are mere restatements
of other established normative principles such as law and economic self-interest, along with the
alternative H that those marketing "ethics" do represent something distinct. The former, more
provocative, proposition translates into the working hypothesis that all the standard ethical
prescriptions in the field of marketing can be reduced conceptually to either (a) obey the law or
(b) act in your own self-interest, i.e., do what is "right" because if you do not, it will be damaging
to your interests in the long run.
Actually, the number of truly distinct ethical prescriptions set forth in the marketing
literature is found to be quite limited. The first to be elaborated also illustrates the less-thanradical nature of most of those guidelines.
Ethical Prescription #1: Do not market harmful or dangerous products
Ethical Prescription #2: Do not deceive the customer
Ethical Prescription #3: Pricing ethics in general
One might imagine or invent ethical prescriptions not discussed in this study, but if
attention is restricted to the considerable body of literature developed over a quarter century in
marketing, the subject of marketing ethics appears to be completely undistinguished, feckless,
jejune, and vacant operationally, offering not an iota of content distinct from other established
normative concepts, namely law and economic self-interest. The conjunction of marketing
ethics/law/self-interest is the same as law/self-interest, hence, in the colloquialism of scholars,
"There's just nothing there". What are almost universally positioned as ethical issues in
marketing are, in reality, nothing more than legal or economic issues. In view of the intrinsic and
reciprocal benevolence of the marketing concept, i.e., self-interest achieved through serving the

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

interests of others, and the common interpretation of law as society's best consensus over what is
right, perhaps this finding of the total redundancy and superfluity of marketing ethics should not
be startling - or troubling. If it is true that the conjunction of natural marketing behavior and the
law coincides almost perfectly with what is thought of as ethical, it is no less than reassuring, and
cause for congratulation and celebration of the institutions of free market commerce. Though this
paper may have appeared to be a contentious rebuke of ethicists, it can be seen as testimonial to
how well they have done their jobs over the decades, even centuries? so well, in fact, that normal
commerce under democratic law reconciles so closely with accepted ethics as to render
contemporary marketing ethics, per se, practically unnecessary. (Of course, and as
acknowledged, ethics historically has guided public redress of improper activities, i.e., underlies
the law.) The "good news" of this review is that of mission accomplished: Marketing practice
apparently has been brought into close conformity with prevailing ethical standards, which
surely was the ethicists' intention all along. If normative marketing ethics has nothing to offer at
present, this condition results from the best possible reasons.
Subhash C. JainReviewedo wrote this aticle in Jan., 1989. In this article the author
discussed the framework for determining marketing program standardization. The Factors that
affect program standardization are examined critically. In an effort to establish a research agenda
on the standardization issue, the author develops research propositions for each and every factor
in detail. GLOBAL marketing is all over the minds of academicians and practitioners and it has
been argued that the worldwide marketplace has become so homogenized that multinational
corporations can market standardized products and services all over the world, through identical
strategies which result in lower costs and higher margins. Interestingly, the standardization issue
is not new. Whether to standardize or to customize has been a vexing question with which international marketers have wrestled since the 1960s. The world went on without the issue being
fully resolved. Recent resurgence of interest in the international standardization issue is
recognized to such global powers in Televisions, films, the computer and telecommunications.
Though much has been said and written lately on globalization of marketing, we are nowhere
close to any conclusive theory or practice. Because empirical detection requires a theoretical
base, this article is an attempt to provide a conceptual framework for gaining insights into the
standardization issue. Hypotheses are presented in the form of propositions. Ideas for testing

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Muhammad Mubashar Arshad

these hypotheses are given. Briefly it is an effort to establish a research agenda on

standardization issue in international markets.
A model for making the standardization decision is developed majorly by synthesizing
both the theoretical and the empirical works in this complex field of marketing, international
business and strategic planning. A difference is made between program standardization and
process. The ultimate relevance of standardization depends on its real economic payoff. Program
standardization is projected to be a function of numerous factors and can be reviewed with
reference to major factors of marketing i.e. distribution, product, promotion and pricing
decisions. Previous research has focused primarily on program standardization, with emphasis on
the product and advertising areas. A comprehensive framework such as the one proposed here
has been lacking. This framework is likely to be useful in future studies in directing research
attention to key variables and relationships. The framework developed in this article has
implications for domestic marketing decisions, as well as the actors involved in the
standardization process-international corporate managers and subsidiary managers and
subsidiary man-agers. Domestic Marketing Decision Implications What type of headquarters
marketing perspective will help foster globalization? The framework discussed here can be used
to seek answers to this question. For example, the propositions stated can be tested to determine
whether a higher degree of similarity in competitive market shares offers greater opportunity for
standardization. Likewise, one can test whether the similarity between markets (in development
and conditions) is likely to lead to greater globalization. An important aspect of standardization
is the combination of common segments in different country 76 / Journal of Marketing, January
1989 .Markets to designate the target market. How a firm should go about recognizing identical
segments throughout the world, coalescing them, and then serving them as one market is an
interesting research question. Corporate Management Implications The framework means that
corporate managers can impact certain variables to generate a climate in which superior degree
of standardization would be practicable. These variables include

Founding a geocentric orientation in organization (which is absolutely favorable to

achieve standardization)

Balancing the aims of headquarters and large associates (because the presence of the
latter affords greater opportunity for standardization)

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

Giving opportunities for an continuing parent-subsidiary conversation for greater

harmony (to avoid clash between the two groups)

Encouraging an international attitude in general on a different level, corporate managers

can decrease the harmful impacts of cultural differences between corporate and
subsidiary marketing managers through well organized staffing/training systems.
For example, marketing managers with international back-ground can be hired at

headquarters. Similarly, a common marketing program can be organized for managers from all
over the world. Implications for Subsidiary Managers By conceptualizing standardization in
terms of degree of involvement and information sharing in various stages of marketing decision
making at headquarters, subsidiary managers can better understand their own role than is the
corporate managers. The proposed framework can be used to answer such questions as "Which
group is most capable of providing authoritative information on what topics?" and "Which group
should undertake what tasks?" Once respective areas of strength are established, the degree of
standardization feasible in a particular case can be explored. Instead of simply implying that
multinational companies should aim at standardization, the frame-work helps in identifying the
specific problem areas. Hence it should aid in resolving the controversy on the subject and
provide a much-needed base for empirical research.
Mark S. Schwartz researched in his paper, A Code of Ethics for Corporate Code of
Ethics, in 2002 about the importance business ethics for corporate world in order to achieve their
strategic objectives and raises a question, are corporate codes of ethics necessarily ethical? To
challenge this notion, an initial set of universal moral standards is proposed by which all
corporate codes of ethics can be ethically evaluated. The set of universal moral standards
includes: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6)
citizenship. By applying the six moral standards to four different stages of code development
(i.e., content, creation, implementation, administration), a code of ethics for corporate codes of
ethics is constructed by which companies can be ethically audited for compliance. The newly
proposed code of ethics for corporate codes of ethics was then applied to four large Canadian
companies representing a variety of industries: telecommunications; banking, manufacturing,
and high technology. The ethical audit of the four companies' ethics programs based on the
proposed code indicates that all four companies have room to improve the ethical nature of their
codes of ethics (i.e., content, creation, implementation, administration).
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Muhammad Mubashar Arshad

Codes of ethics are now prevalent in large corporations around the world. In the U.S.,
over ninety percent of large corporations have a code of ethics, while in Canada eighty-five
percent have a code. Of the largest European corporations, fifty-seven percent of U.K.
companies have a code, fifty one percent of German companies have a code, and thirty percent
of French companies have a code. The prevalence of codes should continue to increase as
governments, industry associations, professional associations, and special interest groups
increasingly call for the establishment of corporate codes of ethics. Along with the tremendous
growth of corporate codes, researchers have begun to examine a number of code related issues.
For example, researchers have looked into the reasons why companies might establish codes,
including the provision of consistent normative standards for employees, avoidance of legal
consequences, and promotion of public image (Ethics Resource Center, 1980, 1990). By
carefully analyzing various samples of codes, researchers have discovered which issues are more
prevalent, and which ones are missing. A number of studies have been conducted in an attempt
to verify if codes are in fact a variable which influence behavior.
Despite the growth of corporate codes of ethics and corresponding research, codes appear
to have been used and discussed in somewhat of a normative vacuum. An assumption appears
pervasive among both academics and the business community that codes of ethics are prima
facie ethical in terms of their content and use. Few studies (see below) examine the normative
foundations for the existence of codes or their application. Those making recommendations
regarding the content and use of corporate codes typically offer little or no normative
justification. As a result, researchers have called for standards by which to evaluate codes. To
address the gap in the normative research on codes of ethics, this paper attempts to challenge the
fundamental assumption that codes of ethics are always ethical, and to generate a set of ethical
criteria by which to ensure that the future use of codes of ethics remains within an ethical
framework.
Mary Lyn Stoll discuses in his article, the Ethics of Marketing Good Corporate Conduct,
about the Companies that contribute to charitable organizations rightly hope that their
philanthropic work will also be good for the bottom line. Marketers of good corporate conduct
must be especially careful, however, to market such conduct in a morally acceptable fashion.
Although marketers typically engage in mild deception or take artistic license when marketing
goods and services, these sorts of practices are far more morally troublesome when used to

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

market good corporate conduct. I argue that although mild deception is not substantially
worrisome with respect to the marketing of most goods and services, it is a far greater moral
blunder to use such methods in the marketing of good corporate character. These erode trust and
demonstrate a lack of adequate respect for the moral good. In light of these concerns, I suggest
that such practices must be re-examined when applied to the marketing of corporate character
and good conduct. Finally, I develop a revised set of ethical guidelines that are needed in order to
address the problems peculiar to the marketing of morally praiseworthy behavior. Companies
that contribute to charitable organizations rightly hope that these contributions will not go
unnoticed by consumers, investors, and members of local communities. Whether it is a line of
acknowledgement in a brochure for Earth Day or a national advertising campaign, companies
want consumers to know about the good that they do in the hopes that their good deeds might
also be good for the bottom line.
In one sense, this is utterly unproblematic. Good companies are rewarded for good deeds
and this in turn encourages other companies to follow suit in giving back to the community.
Companies that publicly proclaim their desire to be a positive force in the community will also
be more likely to face continued public scrutiny, and this will in turn provide a further incentive
to avoid wrongdoing. In another sense, however, advertising concerning corporate donations can
be morally problematic. When a company spends far more on advertising their good deeds than
it spends on the deeds themselves, it is question able whether or not such actions are truly
morally praiseworthy and whether or not this sort of advertising is unacceptably misleading.
Although advertising campaigns are generally less than forthright concerning all of the relevant
facts, mild deception in marketing corporate character is a much more serious offense. When
advertising campaigns concerning corporate philanthropy are selectively advanced as a means of
reacting to negative public perceptions resulting from prior misdeeds, this too raises serious
ethical concerns. At the same time, however, the benefits of positive publicity for good deeds
must not be undercut as an incentive for companies to engage in morally acceptable behavior.
A set of guidelines for dealing with the marketing of good corporate conduct is needed in
order to deal with these sorts of issues. Thus, standard views of marketing ethics must be
adjusted to deal with the moral peculiarities of marketing good deeds. In this paper, I will begin
with standard views of marketing ethics and then discuss how such accounts must be revised in
order to deal with the peculiarities of marketing corporate good conduct. I will then use two
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Muhammad Mubashar Arshad

cases studies, one of unacceptable marketing of corporate conduct and one of very careful
marketing of good corporate conduct, to suggest more adequate guidelines towards which
business persons in marketing may turn when formulating advertising campaigns concerning
good corporate conduct.
In 2007, an article named: The International Business Ethics by John Tsalikis and Bruce
Seaton discusses Business transactions are becoming increasingly global, necessitating a deeper
understanding of divergent cultures. An important cultural element is the degree of consumer
acceptance of current business practices. Such consumer trust is vital for the efficient functioning
of the marketplace (Johnson et al. 2005). In order to systematically evaluate consumers'
sentiments towards business ethical practices, the Business Ethics Index (BEI) was
conceptualized, developed and brought to fruition in the USA. The purpose of this paper is to
describe the extension of the BEI to the European Union (EU). The choice of the EU was
primarily based on its economic importance. The EU consists of 25 countries with a population
of approximately 460 million. The economic output of the EU, as measured by GDP in
international dollars, is slightly greater than that of the USA1. In 2005, the combined GDP of the
EU and the USA represented approximately 40% of the world GDP. Other factors supporting the
EU as a focus of the initial international expansion are: a. Similarity in culture: Brooks (1998)
argued that American value systems are similar to those of Europeans, but with such differences
as the higher importance that Europeans attribute to issues of pace-of-life and long term pay-offs.
b. Similarity in methodology: the CATI (Computer Assisted Telephone Interviewing) system of
data collection was used in the US. The practice of opinion research is well developed in the
Western European countries of the EU, allowing the respective BEI's of the chosen countries to
be methodologically equivalent to those of the USA.
The following framework is based on that proposed by Cooper (2004) to describe the
development of a Moral Point of View.
Moral Theory

Moral Principles

Moral Context

Moral Evaluation

As the BEI is self-referenced, the moral (ethical) evaluation is performed within the
moral context described by Theory/Principles/Context sketched out above. There are various
perspectives on how the culture of a country provides some degree of uniformity in the above
process. One school of thought argues the commonality of human nature and posits that a set of

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

universal values and ethical standards does exist. According to this school of thought, cultural
differences are superficial and people in China basically exhibit the same ethical values as people
in France. The other school of thought posits that there are significant differences in cultural
values that need to be studied and addressed when dealing with diverse cultures (Vogel, 1992).
Wines and Napier (1992) argue that cultures are similar on moral values and different on the
application of moral principles to specific situations. Similarly, Dees and Starr (1992) see the
"core social values" as cultural universals while reactions to moral dilemmas are culturally
specific. This latter perspective is more consistent with the relativistic approach that has come to
dominate moral thought. In the relativistic tradition, Ferrell and Gresham (1985) introduced their
"contingency framework for understanding ethical decision making." Rather than attempting to
discover universal moral principles, they recommended the examination of contexts (cultural,
historical, situational or individual) and variables that influence ethical behavior. As a set of selfreferenced measures, the BEI has been developed to facilitate longitudinal comparisons (i.e.
within a cultural context) rather than horizontal (i.e. between cultural contexts) and is thus more
consistent with a relativistic perspective. Previous cross-cultural ethical studies have focused on
managerial perceptions and values and such studies support cultural factors as influencing ethical
beliefs and behavior. For example, Vitell and Paolillo found that people from different countries
utilize different ethical standards and evaluations. In their study, American business persons
scored higher in ethically than did their Spanish counterparts while very few studies have
measured the ethical sentiments of consumers in actual terms.

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Muhammad Mubashar Arshad

TENTATIVE HYPOTHESIS:
H1: Does current marketing practices in services sector lies under the limitations of Shariah?
H2: Does truthfulness, honesty and malpractice affect a business? Either in short-run or long-run
or in both?
Find the region C which Union of region A and B.
A: Business strategies allowed and recommended by Shariah.
B: The sole self-interest organizations through any sort of tactics.
C: Common strategies which can help a business to achieve its strategic aims.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

VARIABLES
Independent variables:

Honesty and Truthfulness: is a qualitative variable and positively related to Shariah

Justice: is a qualitative variable and positively related to Shariah

Commitment and Devotion: is a qualitative variable and positively related to Shariah

Misconduct: is referred to as injustice and inequality which makes it qualitative

variable and it is negatively related to Shariah

Dependant

Current marketing practices in services sector lies under Shariah

THEORETICAL FRAMEWORK

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Muhammad Mubashar Arshad

METHODOLOGY
Details about the form, mode and way of collecting the information are discussed as
under:
Interviews:
Face to face interviews would be conducted with pre informed consent from interviewee. I will
interview individuals including manager from well renowned companies and certified Islamic
scholars to get best out of this research. Time allotted to each interview was approximately half
an hour which may increase or decrease on the availability and comfort level of interviewee.
There were semi structured questions which covered the services nature, quality, price, place,
promotion, people and physical environment used in provision of service, questions were directly
and indirectly related to variables and on spot situational questions concerning to business
growth and development.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

FINDINGS
Islamic international marketing ethics differ from secular approaches in a number of ways.
First, they are not relative but are absolute in their terms as they are based on Qur'anic
commandments and leave no room for ambiguous interpretation by marketing executives to suit
their individual whims and desires. The second notable difference is their transcendental aspect
of absoluteness and non-malleable nature. Third, the Islamic approach emphasizes valuemaximization in view of the greater good of the society rather than selfish pursuit of profit
maximization. Such properties grant Shariah tremendous capacity to penetrate human
conscience and are capable of influencing the behavior of international marketing executives
from within. Since, these Islamic practices are based on divinity and faith, and as Islam does not
recognize any division between the temporal and the spiritual dimensions, it can appear, at times,
to be in conflict with contemporary Western marketing practices based primarily on profit
maximization approach.
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Islam, above all, respects freedom and offers a means of freeing human beings from all
shackles of enslavement including that of international marketers. Islamic ethical framework is
based on equity and justice ensures the dignity and freedom of people for the consumers and
producers, their minds, their conscience and their soul from all types of bondage. The principle
of value-maximization is based on the concept of justice. Numerous Islamic scholars have
analyzed the application of justice in marketing by categorizing it into "fair play" and "just
dealing". Miskawayh (1968), for example, defines fair play as to give and take in business
according to the interest of all concerned, while just dealing is defined as a virtue which causes
one to be fair to oneself and others by refraining from giving of more of the "useful" to himself
and less to others, and more of the "harmful" to others and less to himself (Miskawayh, 1968).
Justice dictates one not to be greedy in lawful earning and even an honest and just
businessperson should have recourse to God, to his promise, and to this covenant at the utterance
of every word, at every glance of the eye.
A businessperson is not worthy of the rank of a "just person" if he has an excessive love for
money, for this eagerness of acquiring money prevents him from being kind, observing what is
right and giving what he should. Pursuit of money alone will lead a businessperson towards the
path of treason, lying, fabrication, false testimony, standing in the way of duty and assiduous
search, and the pursuit of valueless earnings. In this struggle of amassing wealth, he will be
ready to sacrifice his honor and forsake the higher moral values. Given that, in the main, the
thrust behind unethical marketing practices is that of the profit maximization motive. According
to Islamic scholar if this thrust is shifted towards value-maximization instead, and if justice
becomes an inherent part of international marketing interactions and inter dependence, a
harmonious and collaborative global atmosphere will be created, while in no way jeopardizing
the competitive advantage of an organization.
Marketing mix from an Islamic perspective exactly under the limits of Shariah:
It follows from the above that any commercial activity from an Islamic perspective is
governed by two principles. First, submission to the moral order of God and second, empathy
and mercy to God's creations which implies refraining from doing harm to others and thus
preventing the spread of unethical practices. This section analyses the five Ps of the marketing

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

mix (i.e. product, price, promotion, place and people) within the context of marketing as
determined by Shariah.
PRODUCT: PRODUCTION PROCESS
The quality of the production process is of a paramount concern in Islamic ethics.
The Qur'an declares that pursuance of safe and high quality ideals is one aspect of actualizing
safe and reliable products and services for the customers. In some of these Qur'anic verses the
phrase "Eat pure things," precedes "do righteous deeds." Put simply, these phrases are meant to
impress and emphasize the principle that righteous deeds are meaningless without true purity in
matters pertaining to production, consumption, and marketing of pure and lawful products and
services. The production process in Islam is visualized quite differently compared to Western
thinking. The Islamic perspective incorporates moral and transcendental elements within the
production decision making process and is guided by the principles of lawfulness, purity,
existence, deliverability, and precise determination (Al-Misri).
These principles dictate that first, the product should be lawful and not cause
dullness of mind in any form lead to public nuisance, or immorality. Second, the product must be
in the actual possession of the owner. Third, the product must be deliverable since the sale of a
product is not valid if it cannot be delivered as for example the sale of fish in the river. Fourth,
the article for sale must specify exactly its quantity and quality, and the seller must be able to
point to the actual commodity where quality is determined by inspection while description
cannot take the place of visual inspection. Fifth, the object should not be unclean. Al-Ukhuwa
has categorized "unclean" things into four kinds, those unclean essence (e.g. dogs and swine),
those made unclean by association (contamination), those made unclean by contamination but
whose usefulness is not entirely destroyed (e.g. unclean garment), and things unclean by
contamination which entirely destroys their usefulness (e.g. contaminated edible oil).
In other words, the production process should be permissible (Halal) and pure
(Twayyib) i.e. it should ensure that the ingredients have been taken/extracted/obtained from
lawful sources, to the extent that it is free from any harmful consequences. Islamic principles
dictate that the production operations must be innocent and pure from beginning to end (Al
Faruqi, 1992, p. 177).
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Muhammad Mubashar Arshad

While the overriding concern of first three principles is to prevent conflict, unjustified
profits and fraud, the fourth principle has been formulated in order to prevent uncertainty and
conflict between contracting parties in situations where a contract is rescinded or terminated due
to some cause and either party is seeking a remedy. Under the Islamic approach, therefore, the
production process has to be guided by the criteria of the value and the impact of the product
upon the whole society. This is due to the highest importance given to the actualization of the
optimum welfare of a human being and the society at large. To be engaged in the production
process is a part of worship (Ibadah) to God (Al-Faruqi, p. 175). Al Ukhuwa, discusses all
aspects of a production process in Ma'alim al-Qurba, for example, elaborating on the
responsibilities of millers states "(They) must clean the grain of earth before they grind it. The
sieves must be renewed periodically. The official inspector must examine the flour to prevent
admixture with flour of chick-pea, etc., and must prevent milling on the work particles of the
mill stone, which causes harm to men". Regarding bakers and bread-makers he states, "for
kneading, men may not use their feet, knees and elbows as doing so implies a lack of respect for
the food; also drops of sweat may fall into it. Smocks with tight sleeves must be worn at the task
and the face should be veiled. During the day time a man with a fly whisk should drive away the
flies".
The primary objective of the production process is to deliver, elevate and satisfy basic
human needs. But modern age marketers focus on low cost of production which may result in
deceiving their customers as the main thrust behind unethical decision making on part of
business persons to produce sub-optimal products is cost leadership strategies. In contrast, the
Islamic perspective encourages a societal and welfare approach rather than decisions based on
the profit maximization.
PRICING OF THE PRODUCT
Pricing policies are, in the main, formulated to exploit and manipulate human psychology
as witnessed by common practice whereby a recommend retail price which is printed on the
product is often substantially higher than what the retailers actually charge. The aim of such
pricing policies is to give customers the false impression that they are in fact getting a bargain.
Such practices are banned under Islamic law. Islam prohibits getting something too easily
without hard work/labor , or receiving a profit without working for it (Tatfif); changing the price

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

without altering the quality and/or quantity of the product; and cheating the easy-going customer
for illicit gain. This doctrine prohibits marketers from practicing price discrimination between
bargainers (Mumakis) and non-bar gainers (Mustarsit) by selling the same merchandise to them
for different prices. The Prophet (PBUH) proclaimed, "Do not urge someone to return what he
has already bought (i.e. in optional sale) from another seller so as to sell him your own goods"
(An-Nawawi). Islam also prohibits false propaganda on the part of the marketer regarding the
position of demand and supply through the media.
It should be noted that Islam does not prohibit price controls and manipulations to meet
the needs of the market e.g., charging higher prices as a result of natural scarcity of supply of a
given commodity or setting price ceilings to curb opportunistic tendencies among merchants. In
Islam, self-operating mechanism of price adjustments and healthy competition (Munafasah) are
in fact encouraged (Al-Qur'an 83:26). However, the essential conditions for the successful
operation of such a mechanism dictate that there should be no corner market, no hoarding, no
(unjustified) price manipulation, and no restriction on trade. Once Umar Al-Khattab passed by
Hatib bin Abi Balta'ah and found him selling raisins at a much lower price with the intention of
putting his competitors to loss. Umar Al-Khattab told him: "Either enhance your rate or get away
from our market" (Malik, 1989). Hoarding (Ihtikar) of any product is banned in Islam. However,
the system offers flexibility if compelling marketers to sell at one price amounts to coercion and
distortion of the free market or if it means very high product prices. Under these circumstances
and in view of safeguarding public interest, Islamic officials can bring together market leaders
representing a particular region or a particular commodity, in the presence of others with a view
to reaching a consensus on price level that would not be unjust to the consumer and at the same
time reap reasonable profits to the marketers. The key impetus to intervene on such an ad hoc
basis is to prevent "black-marketing" and "concealment of essential foodstuffs."
Ibn-Ukhuwa (1938) identifies various types of contemporary "ethical lapses" in pricing.
Examples illustrated by him include when real owners of the products pretend that they are not
the owners in order to hike up the price by making consumers believe that an even higher price
would be charged by the real traders, or when there are collusive agreements. Al Ukhuwa,
therefore, emphasizes the role of a public welfare official to ensure that prices remain fair and
just by curbing any ethical lapses in price setting. He observes that "the public welfare official
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Muhammad Mubashar Arshad

must see that a broker receives his commission only from the seller and must not cause the price
to be abated in collusion with the buyer' (Ibn-Ukhuwa, 1938, p. 4). All unethical lapses in pricing
are tantamount to injustice (Dhulm) and are sin. Hence, all profits earned through such
unjustified prices are not only unethical, they infringe upon the unique status of man/woman and
his/her role and responsibilities as viewed under the Islamic framework.
The Prophet (PBUH) remarked, "Do not raise prices in competition" (An-Nawawi 2:270,
narrated by Al Bukhari and Muslim). In order to eliminate this type of "injustice", the marketer
and customer must acknowledge that they have higher moral responsibilities on earth rather than
to be preoccupied with profit maximization alone.
PROMOTION OF THE PRODUCT
There is no room in Islam to justify any cover up of promotional behavior. Qur'an
condemns all forms and shapes of false assertions (Kadhb), unfounded accusations, concoctions
and false testimonies. In terms of Islamic marketing ethics, it is unethical for the salesperson to
over praise his products and attribute to them qualities which they do not possess. The latter have
been categorized as fraudulent and hence not permissible.
The Prophet (PBUH) narrated specific examples to illustrate Kadhb. For example, the
seller and the buyer have the right to keep or return the goods so long as they have not parted. If
both the parties spoke the truth and describe the defects and qualities (of the goods), then they
would be blessed in their transaction, and if they told lies or hide something, then the blessing of
their transactions will be lost". The Prophet (PBUH) added further, "The swearing by the seller
may persuade the buyer to purchase the goods but that will be deprived of God's blessings"
(Sahih-al-Bukhari, 3:296).
The Holly Qur'an states, "Those who purchase the small gain at the cost of Allah's
covenant and their oaths (they have no portion in the hereafter) (Al-Qur'an 3:77). He said, ". . .
One who sells his (inferior) wares with false oaths" for such persons there has been ear-marked a
painful punishment, (Sahih-al Bukhari, 3:301).
Islam neither allows one to give false impression about the product nor allows to hire
someone else for falsely description of products that is why to "To hire a salesman to make

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

(unfair) speeches which shall facilitate the sale of goods is for bidden and anything received by
the salesman on account of rank and dignity and the (consequent) respect paid to his word when
selling products is forbidden" (Al-Ukhuwa, 1938, p. 24). The underlying rationale for this
prohibition is to stop all means which will lead to fraud and deception. Sometimes there is no
other way of revealing the hidden qualities of the products, but that should not be taken as an
excuse for being involved in the art of deception. Giving a false impression of any kind to
promote or sell a product is strictly prohibited within the Islamic ethical framework of
international marketing practices. From the Islamic perspective, a seller as a person who feels
accountable to God, will be honest and fair in his marketing activities and only true documents
which reveal accurate specifications in terms of quality, contents, etc. will exchange hands. To
practice otherwise constitutes disgraceful' "dishonorable" and "shameful gain" through
pandering, deceit, treachery, theft or injustice.
In an attempt to persuade people to buy their products, advertisers are prone to exploit
ambiguity, conceal facts by suppressing information that is unflattering to their products,
exaggerate by making claim unsupported by evidence, and employ psychological appeal that
persuade customers by appealing to their emotional needs and not to reason. According to
Islamic principles, international marketers are required to "disclose all faults in (their) goods,
whether obvious or hidden; to do otherwise is to act . . . fraudulently" (Al-Ukhuwa, 1938, p. 42).
It is obligatory for the seller to reveal all available and known information of defects to the
purchaser which cannot be seen "on the surface" and cannot be found out by the "cursory
glance". In addition, it is dictated that - "A sale, without any stipulation, makes it necessary that
the thing sold should be free from defect". Marketing disclosure is manifested either by
assurance which will be given by word of mouth or in writing, or in some cases silence will
mean assurance.
The Prophet (PBUH) expressively condemned all manipulative promotional behavior
stating that, "One who cheats (ghassh) is not one of us" (An-Nawawi 2:770).
According to Islam, the promotional techniques must not use sexual appeal, emotional
appeal, fear appeal, false testimonies and pseudo research appeal, or contribute to the dullness of
the mind and/or encourage extravagance. Within the Islamic framework, these methods are
unethical since they are utilized purely to exploit the basic instinct of consumers worldwide with
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Muhammad Mubashar Arshad

a view to gain profits and greater market share. Furthermore, Islamic ethics strictly prohibits
stereotyping of women in advertising, excessive use of fantasy, the use of suggestive language
and behavior, and the use of women as objects to lure and attract customers.
As shown by the Prophet (PBUH) and his disciples. For example, a famous disciple, Jarir
always pointed out to customers the flaws in his goods. When told that his business was bound to
collapse he replied, "We promised the Prophet (PBUH) to deal honestly (in our marketing
activities)"
PLACE, THE DISTRIBUTION CHANNELS
Ethical dimensions of decision-making pertaining to distribution are of great
significance in the area of marketing. Physical distribution can be viewed as an integrated
collection of information, people, equipment, and organization; and as a process, embracing
numerous steps, starting with providing the customer with a means to place an order and ending
with putting the product in the customer's hands. Transportation itself as an element of
distribution has undeniable impact on the natural and human environment. A grim reminder of
such an impact is the 1989 Exxon Valdes disaster resulting in millions of gallons of crude oil
spilled in Alaska. It is suggested that the impact of this disaster would have been minimized if,
for example, double-hulled tankers were used by Exxon. However, usage of such tankers,
although more safe, is also more costly. Again, it is not surprising to note that decisions made on
the profit maximization principle are not necessarily the most appropriate for the society's
welfare. Other cases of unethical practices in distribution include the usage of packaging designs
without adequate security and protection for the product, inappropriate packaging, and dangerous
and toxic products transported through public highways. From an Islamic perspective, such
treatment of customers is unforgivable and equates to unjust marketing practices.
According to Islamic principles, distribution channels are not supposed to create a
burden to the final customer, in terms of higher prices and unjustified delays by facilitating
others. Al-Ukhuwa (1938), for example, identifies, in particular, ethical lapses in distribution
channels as those which cause unnecessary delays in their delivery, compelling customers to
return repeatedly and thus causing them unnecessary inconveniences. Islam does not prohibit
agency representation as a link in the market to facilitate the movement and acquisition

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

functions. Within the Islamic ethical framework, however, the main aim of distribution channels
should be to create value and uplift the standard of living by providing ethically satisfactory
services.
PEOPLE
Islam emphasizes the importance of "free" and "independent judgment" on the
part of the customer. The ability to think rationally while making any decision relating to
international marketing activities is a prerequisite in Islamic law (Ahmad, 1995). The society at
large should not be deprived of honest, free from coercion marketing information. A customer's
right to acquire such information is his right and is indicative of the status given to him by Islam,
as well as of the ingrained rights of his wealth which he spends in purchasing products and
services. It is the responsibility of the international marketers not to resort to any form of
coercion and they must, under all circumstances, have a regard for the intellectual integrity and a
higher degree of consciousness of the consumers to ensure that the hard earned money of
customers is not wasted.
Coercion (Ikrah), is defined as to compel a person to do a thing without his consent. It
follows, therefore, that whenever some coercive force is applied for the purposes of concluding
an international marketing deal, the fundamental and vital condition of mutual consent remains
unfulfilled and the resultant transaction is unethical and unlawful.
The Prophet (PBUH) prohibited a transaction concluded under constraints (or Bay'alMudtarr) (Ahmad, 1995, p. 126). According to Islamic principles, sexual appeal, emotional
appeal, fear appeal, subliminal advertising and pseudo scientific claims all have elements of
coercion, which render them to be categorized as unethical as a means of marketing. An ethically
sound marketing mix, therefore, dictates that customers' decision-making freedom must be
protected from all elements of coercion.
MALPRACTICE
An adherence to the principles of corporate responsibility and accountability within
ethical regulatory institutions necessitates avoidance of corrupt practices. Acts of corruption and
bribery may range from subornation, lubrication, gifts, commissions and extortion to kickbacks.
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Muhammad Mubashar Arshad

However, two elements are common to them all. First, they all constitute an important element of
marketing strategies in today's business environment, often seen as short-cuts for gaining market
share, or as a means to conform to socio-cultural demands of a specific target market. Second,
they are practiced often at the risk of undermining society's welfare. Furthermore, acceptance of
such practices over time legitimizes their existence as they become standard marketing tools at
the disposal of the international marketers with the (illicit) costs treated routinely by
organizations as part of their production costs. These higher costs in turn are passed on to the
consumer in the form of higher prices. As a result, the innocent masses not only suffer from suboptimal goods but also from a greater financial burden. Since all Islamic principles have at their
core the welfare of the wider society, it is this regard for the societal welfare that Islam
condemns bribery unequivocally in all its forms whether it represents protecting business
interests and/or securing greater profits.
The Qur'an and the Prophet (PBUH)'s teachings provide clear guidance on misconducting
and deceiving the people. The Qur'an declares, "... do not eat up your property among your
selves for vanities, nor use it as bait for the judges, the intent that ye may eat up wrongfully and
knowingly a little of (other) people's property (Al-Qur'an 2:188)".
The Prophet (PBUH) is reported to have said that "if you get from the people because of
your position, it is bribery. Would you get it if you are not holding that position, or if you stay in
your father's house?" In another tradition, the Prophet (PBUH) stated, "When I nominate a
person from amongst you on some job, and if that person hides even a needle or anything lesser
than that from me, then this act will amount to misappropriation; and he will have to produce
such thing on the day of judgment. I once more say this that the person whom I appoint to any
(public) office must render account of his charge in full" (An Nawawi). When, an appointed
collector of money returned from his duty and declared that part of the collection was given to
him as a gift, the Prophet (PBUH) said, "I have deputized a person from among you to do some
duty. On the completion of his mission that man comes back and says, this is my property, and
that has been presented to me as a gift. By God, if anyone of you takes anything without the
rights, he will have to face God on the Day of Judgment, with burden of such things"
MANAGERIAL IMPLICATIONS OF ISLAMIC MARKETING ETHICS FOR
MULTINATIONAL CORPORATIONS

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

The call for a practical global ethical framework is gathering momentum. Conscious
consumer behavior is likely to grow and influence the international marketing production process
having an impact on advertising, product design, channels of distribution and packaging.
Whatever the definition of "ethical behavior", evidence from surveys from as far back as the
1970s shows that managers have been in favor of its execution and regard it as "good" and
beneficial for business in the long term. More recent support for such policies is reported, among
others, by Miller and Deiss (1996). In view of such evidence, we would expect MNCs to adopt
an ethical corporate culture without hesitation because it may even help these MNCs to gain a
competitive edge globally for two reasons. First, their environmental or social products may have
a greater appeal to discerning customers. Two, as people becoming more aware of corporate
responsibility, fair dealing, integrity and other higher qualities they will be willing and eager to
involve themselves in mutual business dealings. Yet, despite the recognition on part of
consumers and organizations alike to adhere to and operate within, an ethical framework,
unethical practices continue to persist, justified in the name of ethical relativism and
maximization of share holders' wealth.
Implications of these findings within the broad context of this study show that when the
Islamic perspective is applied to the field of international marketing, it is found to be relevant
and effective in developing and maintaining a strong culture of ethical behavior. The solution
from an Islamic perspective is simple. If the thrust is shifted away from profit maximization
towards value-maximization, a collaborative and value loaded global order will be created that
does not harm the competitive advantage of an organization. Furthermore, Islamic ethical
guidelines, as believed by Muslims worldwide, are valid for all times and all cultures since
human nature is basically the same. It follows then that an appreciation of Islamic moral and
ethical business framework on the part of MNCs will not only help them to shape their strategy
to succeed in markets where the Islamic perspective is the hallmark of success, but such
guidelines can help to create a global marketing ethical framework for all MNCs. The key
elements of the Islamic ethical framework within this context are summarized below.
1.

Just marketing practices: a value-maximization approach: At the heart of the

Islamic marketing and business principle of value-maximization does the concept of justice
constitute just dealing and fair play for the wider welfare of the society. These principles offer a
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Muhammad Mubashar Arshad

means to create value and elevate the standard of living of people through commercial pursuits,
and are based on the belief that decisions based on profit alone may encourage selfish
extravagant behavior. The inculcation of extravagant behavior not only has an impact upon
changing the conducive cultures, lifestyles, and the customs of the people, it diverts attention
from the actualization of higher spiritual objectives of life and leads towards marketing slavery.
Islamic ethical guidelines above all respect and ensure individual freedom of both consumers
and producers. The Islamic principles dictate that, under no circumstances, do international
marketers have an unbridled liberty to exploit their customers and to exercise marketing
dishonesty by way of fraud, deceit or other means. To commit such unethical marketing
practices is to do injustice, which, by definition, negates the very concepts of brotherhood and
equality of humanity, concepts that form the core of Islamic vision. An Islamic approach
towards marketing ethics will plant the seeds of harmony and provide order in the society as
consumers will be perceived as lofty creatures. Hence their rights will be maintained and
upheld.

2. Elements of the marketing mix

Product: Islamic principles dictate that the production process must be innocent and pure
from beginning to end. It should be guided by the principles of lawfulness, purity, existence, and
precise determination and ensure that the ingredients have been taken/extracted/obtained from
lawful sources. In other words, the production process must be guided by the criteria of the value
and the impact of the product upon the whole society which is to prevent conflict, unjustified
profits, fraud, uncertainty and harm to society.
Price: Islam encourages the self-operating mechanism of price adjustments subject to
certain prohibitions. These include changing the price without altering the quality and/or quantity
of the product; over charging the customer for illicit gain; practicing price discrimination;
charging excessive prices as a result of scarcity of supply of a given commodity; hoarding;
restriction on trade; unjustified price manipulation; black marketing; and concealment of
essential foodstuffs. All unethical lapses in pricing are tantamount to injustice and are sin and all
profits that accrue as a result are unethical and unjust.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

Promotion: Islam obligates the seller to disclose all known faults of the product or service
and condemns manipulative promotional behavior. It prohibits the seller from falsely glorifying
the product; any cover up; false assertions; unfounded accusations; concoctions, false
testimonies; deception; inducing people to give their money away through cunningness and
craftiness; helping them in their immoralities praising what is vile to satisfy their desires; the use
of sexual, emotional, fear or pseudo research appeal; encouraging extravagant behavior;
excessive use of fantasy; the use of suggestive language and behavior; and the use of women as
sexual objects. Such promotional techniques are considered fraudulent and violate the principle
of justice.
Place: Unethical lapses in distribution channels from an Islamic perspective include the
usage of packaging designs without adequate security; inappropriate or inadequate packaging;
transport of dangerous and toxic products in a manner that exposes the general public to its
dangers; unnecessary delays in product/service delivery; compelling customers to return
repeatedly causing those inconveniences. The role of distribution channels should be to create
value and uplift the standard of living by providing ethically satisfactory services and not to be a
CONCLUSION
The Islamic approach towards business ethics is governed by two sources, the Qur'an and
the practices of the Holy Prophet (PBUH) which shape and guide the entire Islamic way of life.
Since, these Islamic practices are based on divinity and faith, and as Islam does not recognize
any division between the temporal and the spiritual dimensions, it can appear, at times, to be in
conflict with contemporary Western marketing practices based primarily on profit maximization.
According to the Islamic perspective, such pursuits based on satisfying material
objectives alone will impede the rational thinking of people and will make them slaves of
marketing firms. Islam, above all, respects freedom and offers a means of freeing human beings
from all shackles of enslavement including that of international marketers. Islamic ethical
guidelines, based on human nature, encapsulate its spiritual dimension and thus cannot be
compared with other artificial manmade, purely physical constraints. Since human nature is
basically the same irrespective of time, culture, economic status, race or creed, a global ethical
business and marketing frame work based on the Islamic principles of value maximization will
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Muhammad Mubashar Arshad

be applicable for all times and across all cultures. Islamic principles should serve as an
invaluable guide in the formulation of a global ethical framework. According to Islam, unethical
marketing practices and their implications in pursuit of profit maximization have tremendous
side effects on the socio-cultural and socio-economic welfare of the worldwide society and
constitute Dhulm (injustice/exploitation/ oppression).
Islamic business ethics based on value-maximization demand empathy and mercy to
God's creations which implies refraining from doing harm to others and preventing the spread of
unethical practices. Adherence to the Islamic ethical framework based on equity and justice
ensures the dignity and freedom of people (consumers and producers), their minds, their
conscience and their soul from all types of bondage.
Allah has clearly defined the way to conduct good and healthy life, Everything is clear from this
translation of verse Woe to those that deal in fraud,- Those who, when they have to receive by
measure from men, exact full measure, But when they have to give by measure or weight to
men, give less than due. Do they not think that they will be called to account?- On a Mighty
Day (Al- Quran, 83:1-5).While Holly Prophet (P.B.U.H.) is reported to have said, The truthful
and trusty merchant is associated with the prophets, the upright, and the martyrs. This is solely
up to us to go choose which way.

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

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Does Marketing Ethics Really Have Anything to Say? - A Critical Inventory of the Literature
Author(s): John F. Gaski (Feb., 1999)

A Code of Ethics for Corporate Code of Ethics

Author: Mark S. Schwartz
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Muhammad Mubashar Arshad

Journal of Business Ethics, Vol. 41, No. 1/2, the Role of the Business Person in the Fabric of
Society (Nov. - Dec., 2002), pp. 27-43

Islamic Ethics and the Implications for Business

Author: Gillian Rice
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Published by: Springer
Stable URL: http://www.jstor.org/stable/25074904

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Author(s): Shahnaz Naughton and Tony Naughton
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Published by: Springer
Stable URL: http://www.jstor.org/stable/25074231

The Ethics of Marketing Good Corporate Conduct

Author: Mary Lyn Stoll
Source: Journal of Business Ethics, Vol. 41, No.
Published by: Springer
URL: http://www.jstor.org/stable/25074910

The International Business Ethics

Author: John Tsalikis and Bruce Seaton
Source: Journal of Business Ethics, Vol. 75, No. 3 (Oct., 2007)
Published by: Springer
URL: http://www.jstor.org/stable/25123990

Research Thesis: MARKETING IN CORRESPONDENCE TO SHARIAH FOR SERVICES SECTOR

International Marketing Ethics from an Islamic Perspective: A Value-Maximization

Author(s): Mohammad Saeed, Zafar U. Ahmed, Syeda-Masooda MukhtarReviewed
Source: Journal of Business Ethics, Vol. 32, No. 2 (Jul., 2001), pp. 127-142
Published by: Springer
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Page | 37

Muhammad Mubashar Arshad

Mufti Mohammad Abdu-r-rehman
Khatieb, Abubakar Mosque
Lahore
Qari Abdullah
Muntazim, Abubakar Mosque
Lahore
Qari Niaz Ahmad
Khatieb, Medina Mosque
Sahiwal

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